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Europe Daily Bulletin No. 7684
THE DAY IN POLITICS / (eu) eu/lisbon summit

For Antonio Guterres, "Lisbon Strategy" and recognised role of the European Council on economic and social issues mean primacy of politics over economy - Commission will have "key role" in this new process

Lisbon, 24/03/2000 (Agence Europe) - "For someone who, like myself, is living the European political project with great intensity, this day is a day of very deep satisfaction", as the Lisbon Summit has "gone beyond our greatest expectations", European Council President Antonio Guterres told the press after the extraordinary summit of 23 and 24 March on employment, economic reform and social cohesion. The EU leaves Lisbon with a "clear strategy, a firm political determination and an effective method of coordination" which, in just one decade, will allow it to become the most competitive and dynamic economy in the world, an economy founded on knowledge and able to keep up sustained growth, with more jobs and greater social cohesion. The strategy convened in Lisbon is "doubly successful" as it respects the balance between the economy and the social dimension, competitiveness and cohesion. We are convinced that application of the measures agreed today will allow us in years to come to have growth of around 3% on average, said Mr Guterres. Mr Guterres then gave as one of the main results of the summit the European Council's decision to "take in hand the responsibility of determining strategic priorities of the Union's economic and social policy, in close cooperation with the Commission based on quantitative and qualitative indicators". Each spring, the European Council will hold a session to this effect. This is a "completely new attitude" which affirms the "primacy of politics over the economy". The role of the European Council will be "eminently political and strategic" and will allow a "hinging between national policies around European objectives for the good of citizens", stressed Mr Guterres, who stated and restated that the European Commission will play a driving role in this process that will place it at the centre of Community life and that this new method will make it an obligation for Council formations never to let their work lapse.

The new "open coordination method" is "a true revolution in our working methods" according to the Portuguese Prime Minister, who stressed that the heads of state and government were successful, in Lisbon, in coming to an agreement on a series of concrete measures, specific objectives which concern the daily life of Europeans, for access for all to the new knowledge society, lifelong training, and the rate of employment. Mr Guterres challenges the fact that the conclusions of the summit are a little out of balance to the detriment of the social chapter. "The whole summit was tinged with a deep social concern", he said, and among the profoundly significant results at this level he quoted the aim of achieving an average rate of employment in the EU (which is today 61%) at a level that is as close as possible to 70% by the year 2010, and to ensure that the proportion of women employed (currently 51% on average) exceeds, at the same date, 60%. For the first time in years, we are making full employment a main target, noted Mr Guterres.

Regarding the conclusions of the summit concerning the liberalisation of the energy market and transport market (which, unlike what certain Member States had hoped, do not comprise a deadline), Mr Guterres explained that, in order to benefit from the "new economy", the EU needs to liberalise two decisive sectors: communications and financial services. We have dates for these two aspects, he pointed out, and we shall be continuing work on the other sectors.

Mr Prodi states summit is a "turning point"

European Commission President Romano Prodi - who took part at the final press conference alongside the president of the General Affairs Council Jaime Gama and Secretary General of the EU Council/High Representative for CFSP Javier Solana - welcomed the way Antonio Guterres had conducted this "operational and concrete" summit, which he sees as a "true turning point". The measures allowing for "new technological instruments" to be made accessible to all and "at once, in all countries" for young people are fundamental, like those on the free movement of research workers (we have also added the free movement of teachers, he stressed) and that on the liberalisation of public services, given that the "sensitivities" of Member States on this subject are very different. "I would not wish the mandate given to the Commission on the sustainability of retirement systems to be under-estimated", remarked Mr Prodi. The "important spring venue", for the European Council in the future, means a radical change in our way of working, according to Mr Prodi.

Furthermore, he welcomed the results of the Council concerning the Balkans (see page 6), and noted that the EU thus shows its commitment to "give the region a political and economic destiny", mainly by later liberalising trade. Mr Prodi also stressed that, in Lisbon, the EU made a "strong political commitment in favour of resumed navigation on the Danube".

Tony Blair states summit marks end of social model of the 80s and the
transition to an active employment policy

Tony Blair, British Prime Minister, said the summit is a turning point in the European economic way of thinking, which is geared more to structural reform and the modernisation of the European social model. Abandoning the social agenda of the eighties, the summit marks the changeover from a policy of preserving employees' rights to an active employment policy. The role of governments is going to change, he said, adding that they will deal less with protection and more with investment in education and training. The British prime minister stressed that the performance of Member States in employment matters will be compared to those of the most advanced countries "wherever they may be in the world", and not just in the EU, thus showing that "we do not have an insular vision of the European Union".

Giving details of the timetable defined in Lisbon, Tony Blair insisted above all on speeding up liberalisation of the energy and transport sectors, but without giving dates, and France was opposed to the fixing of deadlines in this field as, it believes, these should come under other fora. Tony Blair nonetheless played down this difference of opinion with France, stressing that this was the least controversial summit he has attended so far, because of the excellent way it was prepared. The British prime minister sees the target of creating 200 million jobs within 10 years as a realistic one as there are jobs to be filled, but the problem is that people are not qualified to fill them.

France believes the summit recognises the "European social model"

French President Jacques Chirac believes two conclusions may be drawn from this summit. On one hand, the "European social model was recognised by all, even though there are differences between us". On the other hand, "the message is that development comes through growth and employment and that innovation is at the heart of our strategies". He went on to add: "For the first time, the Fifteen have understood that, in the context of our own culture, social progress could be the driving force for economic development". In his opinion, the aim of 3% growth set out in the conclusions of the Council "is not a pious hope, but a mobilising objective".

Prime Minister Lionel Jospin welcomed the results of "French perseverance" in including the objective of growth in the texts. The French president and prime minister also welcomed the reference to the "European social agenda" in the conclusions, hoping that this may be adopted during the Nice Summit during French EU Presidency. Lionel Jospin pointed out that the Commission had been instructed to study the issue.

Concerning the dispute with the United Kingdom on some liberalisation, the French prime minister felt that one cannot put on an equal footing the liberalisation of telecommunications, a sector where mobility and speed are indispensable, and energy or transport where "the rate of transfer for which there is no possible comparison". "France is in favour of regulated liberalisation of trade but also of account to be taken of the diversity of sectors and social conditions in which they are found", remarked Lionel Jospin, calling for pragmatism and continued discussions in ad hoc sector-specific Councils. He recognised, however, that the public sector cannot remain outside modernisation.

In answer to questions on the Austrian question, Jacques Chirac said he was "struck by the unity displayed among the 14" and added that "no-one has sought to bring into question the measures adopted on 31 January. Although there is no doubt that Austria has equal rights within the EU, it also has equal duties".

Spain believes the EU is now willing to rival the United States

Spanish prime minister José Maria Aznar said he was very pleased with the results of the summit. It is not a "fashion of liberalism" that is beginning, as some believe, but of progress that is starting. In his view, "we are on the right track for rivalling the United States and achieving full employment". He plans to apply, in Spain, the measures recommended at the summit. Although the deadlines are not the same as those proposed by the Spanish government, José Maria Aznar welcomed the timetable and aims set. In answer to questions on the cancellation of the EPP congress because of the Austrian issue, the Spanish prime minister hoped the meeting would take place before the Feira summit.

Italy calls for regional margin of manoeuvre

Italian Prime Minister Massimo D'Alema pleaded for greater flexibility in the economic reform process, as such a process has to take account of the deep differences, in terms of employment and the labour market, that exist in certain Member States between one region and another. According to him, it is "not reasonable that Community rules should impose the same tax policies in regions with as different unemployment rates as between Northern and Southern Italy". Speaking to the press, Foreign Minister Lamberto Dini said on this that the European Union should allow Member States to implement "diverisifed" policies, for example regarding tax, so as to enable certain regions to attain the objectives it itself has set. Mr. Dini recalled that, at the time when the Cassa del Mezzogiorno existed, tax exemptions had been possible for a certain period to encourage the creation of businesses; today, "this is no longer permitted" by EU rules.

Mr. Schuessel says he is prepared to be "patient and tenacious", but no breakthrough noted

At his press conference, Chancellor Schuessel noted that, for him, the summit had been the first opportunity to have a dialogue among the Fifteen, but that there had been no breakthrough in the Austrian affair. One has to be "patient and tenacious", and we are prepared to be just that, he said, adding that there had to be utmost transparency and that all questions raised by Austria's partners had to be answered: "we have nothing to hide", he exclaimed. Mr. Schuessel deplored the measures taken over and above those decided on 31 January by the Fourteen, stating that the victims of these measures had in particular been cultural exchanges and youth exchanges, and he noted with satisfaction that Mr. Guterres had distanced himself from the excessive reactions. Nobody must believe that "one can topple a government from the outside".

EUOPE will report on the reaction of other Heads of Government and that of the President of the European Parliament in its next bulletin.

Contents

THE DAY IN POLITICS
GENERAL NEWS
TIMETABLE
ECONOMIC INTERPENETRATION
SUPPLÉMENT