| Author (Person) | Davies, Eric | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Publisher | ProQuest Information and Learning | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series Title | In Focus | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series Details | 9.2.04 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Publication Date | 09/02/2004 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Content Type | News, Overview, Topic Guide | In Focus | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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On 21 January 2004, the European Commission published its fourth annual Report on the Lisbon Strategy for the Spring European Council. For the second successive year, the Commission complained that Member States have not been quick enough to implement relevant legislation. Particular problems are associated with three areas considered crucial for growth: knowledge and networks, industrial and service sector competitiveness, and active aging. According to Commission President Romano Prodi: 'Four years after Lisbon it is clear that we are going to miss our mid-term targets. This should be a strong enough message to serve as a wake-up call to governments. At European level we have advanced steadily in setting the right priorities but Member States have not demonstrated enough “ownership”.' The Commission wants the Member States to 'commit more firmly' to pursuing the Lisbon reforms and 'requests the Spring European Council to give fresh impetus to the Lisbon strategy'. Background The March 2000 Lisbon European Council launched the Lisbon Strategy, intended to make the European Union 'the most competitive and dynamic knowledge based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion' by 2010. Each year there is now a 'Spring European Council', at which EU leaders are able to assess progress towards that objective and take appropriate action. Their discussions are informed by analyses produced for the European Council by the European Commission. The latest Report, Delivering Lisbon - reforms for the enlarged Union, is based on structural indicators and on analyses of Member States' implementation of the Broad Economic Policy Guidelines and the Employment Guidelines. Together with an Implementation Report on the Internal Market Strategy, these elements comprise an 'Implementation Package' which will be discussed at the European Council on 25-26 March. The Commission acknowledges the 'undeniable progress' made under the Strategy, which is credited with helping create some six million jobs since 1999, improving the prospects of the long-term unemployed and of women seeking work, and of improving competition in a number of key sectors including telecommunications, energy and rail freight. The Commission also calculates that 'the simultaneous and integrated pursuit of reforms will produce an increase in the GDP growth potential of the Union in the order of 0.5-0.75 percentage points over the next 5 to 10 years.' However, failure to fully implement the Strategy could, warns the Commission, 'produce significant net costs for Europe: in terms of reduced growth, delayed improvements in employment levels, and a growing gap with some of our large industrial partners in the fields of education and R&D.' It is this tendency to failure which particularly concerns the Commission. Although steps have been taken at EU-level, Member States are not keeping their side of the bargain, with an average of just 58% of relevant legislation having been implemented across the Union (a performance described by the Commission as 'mediocre'). This leaves the Union with an Internal Market which the Commission characterises as 'too fragmented, in terms of both services and intra-Community trade.' Similar accusations were levelled at the Member States in the Commission's previous Report, which also highlighted their failure to implement policy and legislation concerning the Internal Market. Although the Financial Times noted 'a growing sense of anger and embarrassment in Brussels at the way Europe is falling further behind the US' in its efforts to become the world's dominant economy ( On the basis of its analyses, the Commission suggests that the European Council should address three priority areas: - Improving investments in knowledge and networks. The priority for Member States is to commit themselves 'to implementing the growth initiative through the Quick Start programme and the Investing in Research action plan'. - Strengthening the competitiveness of the European economy. The Commission wants the Council of the EU and the European Parliament to promote greater competitiveness by focusing on a number of strategic proposals, including the framework services Directive and the Environmental Technologies Action Plan. - Promoting 'active ageing', by discouraging early retirement and persuading older people to stay at work. In parallel with this, Member States 'should embark on the modernisation of their health care systems, to make them more efficient and financially viable.' Responsibility for revitalising Member States' enthusiasm for the Lisbon Strategy will largely fall to the Irish Presidency. The Lisbon Strategy is one of Ireland's main priorities for its six-month Presidency. In a paper circulated prior to the Spring European Council, 'Europeans working together for growth and dynamism in the enlarged Europe', the Presidency identified four areas on which the Summit should focus:
Ireland's Deputy Prime Minister, Mary Harney, was reported to have said that one test of Member States' willingness to pursue the Lisbon reforms would be whether - after 14 years of negotiations - they can finally adopt proposals for a single European patent (Financial Times: The Commission's Report also invited the European Council to look forward to the mid-term review of the Lisbon Strategy, due in 2005. The Commission believes that the review should take account of the Union's post-2006 financial perspectives and should focus on implementation, but wants the European Council to 'define a framework and method' for the preparation of the review. Further information within European Sources Online European Sources Online: In Focus
European Sources Online: European Voice
European Sources Online: Financial Times
Further information can be seen in these external links: EU Institutions European Commission
DG Press and Communication
DG Employment and Social Affairs
Irish Presidency of the Council of the EU Council of the European Union
Think tanks and pressure groups European Policy Centre
Lisbon Council
Eric Davies Background and reporting on the week's main stories in the European Union and the wider Europe. |
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| Subject Categories | Economic and Financial Affairs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
