Brussels, 14/01/2002 (Agence Europe) - In Strasbourg this Tuesday the European Commission is expected to give its approval to a Communication (to the European Council meeting in Barcelona on 15-16 March in Barcelona) providing an update on the implementation of the "Programme of Lisbon" (adopted by the European Council two years ago). The object of this programme was to make the EU the most competitive economy in the world by 2010 and established a very comprehensive structural reform timetable, as well as other initiatives aimed at achieving its objective. The European Council decided to hold an additional summit every year to assess the progress made in the domain.
The message that the Commission wants to get across on the current state of affairs is as follows: given that the Euro is now a reality, the time is now ripe for introducing new structural reforms that must at the same time create full employment by 2010 (a objective that remains to be confirmed), to bring an end to national budgetary deficits (by replacing them with as far as possible, by surpluses and strengthening social cohesion. There have been some delays, as announced at the Laeken Summit (European patents, liberalisation of the energy markets, certain aspects of financial market unification, etc),which should be rectified. The following objectives will be included in the text:
1. Budgetary policy. Countries that still have serious deficits (Germany, France, Italy and Portugal) must get rid of them by 2003 or 2004. If they are not able to carry this out by 2002, they must make a greater effort in the two years afterwards. The Stability and Growth Pact must, in any case, be respected.
2. Employment. Unemployment did not go down in 2001 and there is a danger that it will rise in 2002 (600,000 more unemployed?). It is crucial to deal with the situation by lowering taxes for those on low wages (38% on average, with high points of 45% against 29% in the USA), change the age of retirement (which is due to rise from 60/62 in 2010, currently standing at 58) raise the ratio of women workers (the Lisbon Strategy wants it to increase to 57% by 2005).
3. Integration of the markets. Measures must urgently be taken to integrate the energy, financial and transport markets more quickly.
4. Teaching and Training. It is imperative that the EU increases its investments in these fields. Some figures will be indicated, including the multiplication of structures for young children in order to facilitate the employment of women (in 2010 such structures would be ready for a third of children aged under 3 and for 90% of children aged between 3 and school age.
There are other initiatives aimed at strengthening the "European Social Model" about which EUROPE has discussed in the previous issues of 11 January 2002 page 9. Also see the issue of 21 December page 10 on the labour market.