Fortunately, the political storms and work of the Convention, although having monopolised public attention, have not interrupted the Union's activities in the area where its weight is undisputed, that of economics. Preparation for the 21 March Summit is in full swing and the actors involved are giving it specific attention. To simplify, the objective is to relaunch the "Lisbon process", which should make the European economy into the world's avant-guard. These words are so loaded that it is easy (and tempting) to be ironic in this period of uncertainties, where the slow-down in growth, combined with the spectre of unemployment and in part, inflation, dominate. But experience has taught that we must distinguish between the vagaries of the changing and structural situation. When the political storm subsides, perspectives for re-launching the economy will be linked to progress in structural reforms, of which the main guidelines have already been etched out, even though carrying them out remains hesitant.
Chirac, Schröder and Blair support manufacturing industry. Something positive is the fact that preparation for the Summit is not suffering from the political division that has affected Member States. The preparatory document that has had the most echoes is the one signed by President Chirac, Chancellor Schröder and Prime Minister Blair, a trio which has hardly been singing from the same political hymn sheet. The second positive element is that the Lisbon Strategy, whatever the delays and shortcomings, is not a failure. The final Commission documents are to a certain extent inspired by a degree of realistic and moderate optimism both in relation to industry (see this section 7 February) and the information technology sector, which has some promising perspectives despite some of the mistakes and disappointments that have occurred.
The Blair/Chirac/Schröder letter (published in No. 2313 in our Europe/Documents series) reaffirms the importance of manufacturing industry for the Union, "a vital source of growth and jobs…which represents a quarter of real net production in the internal market, provides work for 45 million…and generates a trade surplus of EUR 55 billion". Replying to those who believe that the EU should be resigned to a certain decline in industry if the services sector replaces it, the three Heads of Government state that, ""the dynamism of services, especially in the high quality branches, would not be viable without a competitive, world class industrial base" and call on the Commission and Council to orientate themselves in this direction and "simplify and reduce without delay, costs to businesses…pay more attention to the effects of Community legislation on industrial competitiveness…steadfastly push forward the liberalisation of the energy markets…create an effective research environment and facilitate the implementation of the research results". The last result presupposes a, "European patent that is supportive of European enterprise and an increased use of the opportunities offered by biotechnology" as well as the urgent increase in the number of researchers in Europe.
Victory of public services. Is this a definitively typical neo-liberal programme? Not completely, as a chapter is dedicated to "services of general interest", which "constitute an essential part of the European economic and social fabric", whose funding should be guaranteed. Neither European competition rules or those on State Aid should "endanger the functioning of the public services". This language is new coming for the United Kingdom and Germany, which is testimony to the progress achieved by the EU over a number of years in understanding and defending the role of the public services.
Consolidate the European model of society. Trade Union forces and Left parties will certainly find this document unbalanced, as neither the social Europe or the European model for society are mentioned and the passages on employment are more focused on liberalisation than guarantees, when they call for " more efficient labour markets". But it is normal that each Head of Government highlights his main worries: it is up to the political and social forces to express theirs and the Commission and the Presidency of the Council to make sure there's balance.
In the next few days and weeks, this section will be presenting what is at stake in the "Spring Summit" (this is its official name). We shouldn't be expecting decisions that are immediately operational but rather guidelines, Commission and Council mandates, clarification of the economic strategies and the application of the Stability Pact and, in general, increased pressure on the EU institutions and EU governments to make good the delays in the Lisbon Strategy. If this fails to gain the enthusiasm of the masses, it will, nonetheless, contribute to preparing for the future. (F.R.)