Brussels, 09/02/2010 (Agence Europe) - As part of its discussions on economic issues and growth, the informal European summit on Thursday 11 February will debate the new Lisbon strategy post-2020, or the EU2020 strategy. After submitting a paper for EU foreign ministers to discuss on 16 November 2009 the Commission has published two working papers, “Lisbon Strategy Evaluation Document” and “EUROPE 2020 - Public Consultation - First Overview of Responses” (see EUROPE 10020 and 10026). These two papers will be on the table of heads of state and government on Thursday. The current problem resides in the economic downturn, following which it is difficult to present a paper on future strategy, growth requiring reliable pubic finances. With the parlous state of public finances in four member states (Greece, Spain, Portugal and Ireland), Thursday's summit will probably focus on the issue of the debt burden, with the possibility of the other matters scheduled for discussion being relegated to second place, according to a number of Community sources (see EUROPE 10069, 10070, 10071, 10072 and 10073).
In its six-page non paper on the EU2020 strategy, which it has put to the informal European summit on Thursday, the Commission notes that, “while the European Union was moving in the right direction before the crisis, progress was uneven and insufficient, and the crisis has wiped out many of the gains”. However, the Commission says that “there are important lessons to be learned from the crisis if Europe is to sustain its high standard of living and unique social model”. The two lessons to be learned from the crisis are: (1) “It underscored the close interdependence of our economies, particularly in the eurozone, which means that reforms (or the lack of them) in some countries affect the performance of others. Similarly, as we emerge from the crisis, no single member state can address the challenges effectively by acting alone.” (2) “The crisis showed the impact of globalisation and the extent of global interdependence. The EU has been an effective player in the G20 because it has sought to speak with one voice.”
The goal of the EU2020 strategy is to establish a social market economy that is competitive, innovative, sustainable and inclusive. “This strategy must combine the successful exit from the immediate effects of the crisis, in a way that allows it to achieve our long-term goals, with an ambitious structural reform agenda aimed at building a competitive, innovative, sustainable and inclusive social market economy.” By talking this bold action, the EU can realise its ambitions and avoid the trap of a decade of sluggish growth and high unemployment which would reduce living standards, put enormous strain on social systems and diminish Europe's role in the world. To reach its goals, the EU must strengthen its human capital and innovative capacity by investing in research and development, education, high tech industry and the business environment.
From a policy point of view, the new EU2020 strategy should focus on three themes: (1) basing growth on knowledge, (2) empowering people in inclusive societies, and (3) developing a competitive and sustainable economy. But if these objectives are to become reality, more has to be got out of the internal market, the interaction between the EU2020 and the Stability and Growth Pact has to be strengthened, and the EU budget has to fully reflect the agreed political priorities, so that it can become a key delivery instrument for EU2020, complementing national budgets and EIB lending. Lastly, international trade will be a key driver of growth, employment and investment in the EU.
The Commission points out that the EU faces critical choices going forward: “Our 2020 vision should shape our exit from the crisis,” it says. For this it is essential that member states design and implement ambitious and sustained programmes for budgetary consolidation, for the most part starting in 2011 and lasting several years. Stronger economic policy coordination is more essential than ever. The 2020 strategy needs to be strong where the Lisbon strategy was weak, because of its overly high number of objectives. What the EU now needs is a stronger governance framework. The Commission proposes that the EU2020 be based on a thematic approach, the advantages of which are: - clearer recognition of the interdependence of member states' economies; - clear focus on a limited number of priorities with clear EU value added; - and a much clearer link between the objectives and concrete initiatives and instruments to deliver them. (G.B./transl.rt)