The new Lisbon Strategy. An estimation of the economic impact of reaching five Lisbon Targets

The Lisbon strategy could reinvigorate Europe’s economy and boost employment. In 2000 the
European leaders agreed to stimulate economic growth and employment and make Europe’s
economy the most competitive in the world. If Europe would really reach the goals they set,
Europe’s Gross Domestic Product could increase by 12% to 23% and employment by about
11%. This paper draws this conclusion after having analysed five of the most important Lisbon goals: the internal market for services, the reduction of administrative burdens, goals on improving human capital, the 3% target on research and development expenditures, and 70% target on the employment rate. Using CPB’s general equilibrium model for the world economy the paper has simulated the consequences for Europe of reaching the Lisbon targets in these fields.