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Europe Daily Bulletin No. 8995
Contents Publication in full By article 22 / 48
GENERAL NEWS / (eu) eu/lisbon strategy

Commission sets out 8 key measures to create growth and jobs

Brussels, 20/07/2005 (Agence Europe) - On Wednesday, the European Commission tabled a comprehensive plan of EU measures to boost growth and create more and better jobs by promoting knowledge and innovation and making Europe an attractive place to invest and work. Its sets out the measures in a communication entitled 'Common Actions for Growth and Employment: The Community Lisbon Programme'.

Commissioner Gunter Verheugen told reporters that the Commission was continuing its briefings with Member States to draw up national reform plans (four Member States will hold discussions with the Commission in August), wanting to give an initial, positive, answer to European citizens with this action plan, responding to the crisis of confidence that is sweeping across Europe, expressing a mixture of lack of economic security and fear for the future. He said Europe had the potential to ensure a decent quality of life despite the rapid changes in the world, adding that Europe had to reverse the current growth and GDP trends in Europe and the insufficient employment levels. Describing the “Community Lisbon Programme” to foreign reporters, Verheugen said he wanted to send a strong political message to Member States: “With this action plan, the Commission is moving from words to deeds. It is up to Member States to deliver at their end by coming up with credible and ambitious national reform programmes.” He hailed Member States' spirit of cooperation during the meetings on the drawing up of national action plans and the way the Member States had welcomed the revised Lisbon Strategy. Verheugen said the action plan was 100% market-oriented, wanting neither a nanny state, nor protectionism, but rather a competitive Europe to compete with emerging economic powers with their huge technological background. Competitiveness, excellence and innovation are the key words of the “Community Lisbon Programme”, he added, explaining that the economic pressure on Europe and the intensification of global competition would continue to grow, as would structural change. Only a suitable policy to meet these challenges facing Europe would be able to cope with these revolutionary changes.

The policies presented in the 'Community Lisbon Programme' cover areas where purely national action is insufficient, thereby complementing the efforts of Member States in the framework of the new “Partnership for Growth and Jobs”. The Member States will present their national reform programmes in October 2005.

With the Community Lisbon Programme the EU will contribute to the overall economic and employment policy agenda by completing the internal market and by implementing common policies and activities that support and complement national policies. It sets priorities in order of importance for the 94 activities to be implemented under the revised Lisbon Strategy, explained Verheugen. To achieve the Lisbon Strategy targets of stimulating knowledge and innovation, making Europe more attractive to investment and the creation of more and better jobs), the Commission will focus on 8 key EU measures. 1) supporting knowledge and innovation in Europe; 2) reform of state aid policy; 3) improvement and simplification of the regulatory framework in which business operates; 4) completion of the internal market for services; 5) completion of an ambitious agreement in the Doha round; 6) removal of obstacles to physical, labour and academic mobility; 7) developing common approach to economic migration; and 8) supporting efforts to deal with the social consequences of economic restructuring.

Gunter Verheugen stressed the need for the EU to invest more in R&D. Europe lags behind its historic competitors (the United States and Japan) and is rapidly being caught up by emerging economies in terms of R&D. Verheugen stressed that the connection between investment in R&D and economic success could not be denied and this should be hammered home in Europe. He urged Member States to reach rapid agreement on the EU's budget for 2007-2013 and choose the right priorities. He argued Europe should do more to boost R&D in areas where there is insufficient public and private funding or areas public and private investment are not interested in. If cuts have to be made in the budget, he said, they should not be made in research.

Asked about the weak levels of economic growth in Europe, the Commissioner admitted that it was largely due to the low growth levels in Germany, France and Italy. The situation in Europe would be better, he said, if the big three economies were able to overcome their growth weaknesses. He explained that the low growth rates are caused by something different in each of these Member States.

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