Brussels, 09/03/2007 (Agence Europe) - EU member states are making real progress in implementing the Lisbon Strategy reforms, although performance varies widely from one country to another and from one industry to another, note the conclusions of the European Council published on Friday. EU heads of state and government based their assessment on a document drawn up by the General Affairs Council (see EUROPE 9379), also bearing in mind a series of other contributions from various other EU Council formations, including the ECOFIN Council on the Broad Economic Policy Guidelines (BEPG) for 2007 and the Key Issues Paper (see EUROPE 9375), the Competitiveness Council and the Employment and Social Affairs Council. The political leaders endorsed the country and eurozone recommendations prepared by the European Commission in December 2006 (see EUROPE 9327), urging the Commission to draw up an interim report on the revised strategy for the autumn of this year, ahead of new integrated growth and employment guidelines for 2008-2011.
Balanced, healthy budget policies are necessary if EU member states are to meet the mid-term targets they have set themselves, explains the conclusion document, stressing the need to pursue structural reforms and consolidate public finance. The viability of public finance needs to be guaranteed by reform of the pension and healthcare systems, cutting debt and boosting employment and productivity. On the qualitative front, improvement of public finance will require great efficiency and returns from spending, along with measures to back productivity, innovation, building on human capital to boost growth potential in the long-term.
EU heads of state and government feel that the single market is at the heart of the Lisbon Agenda and they want to ensure it operates more smoothly and consumers and companies have greater confidence in the common market. They took note of the Commission's interim report on the common market in the 21st century (see EUROPE 9371), urging the Commission to make a full, ambitious review of the internal market as early as possible in the second half of the year. The report notes that particular attention should be paid to small and medium-sized enterprises, including SMEs in the creative and culture industries. The EU27 noted the importance of the new legislation unveiled by the Commission to improve the free circulation of goods (see EUROPE 9366), and called for full, coherent and timely transposition of the Services Directive. Other factors that will improve the functioning of the common market include a fully operational, inter-connected gas and electricity market, greater integration of financial services and the creation of a single payments area, future liberalisation of postal services ensuring the funding of an effective universal service, and completing the cellphone roaming charges legislative process. EU heads of state and government took on board the Competitiveness Council's target of cutting the backlog of EU directives waiting to be transposed into member states' legal systems by 1% by 2009.
On the international front, the European Council called on its 'key partners' to act in a constructive manner to reach a full, ambitious and balanced agreement in the World Trade Organisation's Doha Trade Round. The politicians stressed that regional and bilateral free trade agreements would also be required. Ahead of the EU-US summit in Washington at the end of April, the European Council stressed the importance of transatlantic trade links, to be beefed up by the new Transatlantic Economic Partnership (TEP) promised by the German presidency at the start of the year (see EUROPE 9336 and 9338). The TEP should focus on regulatory convergence, protection of intellectual property rights and cooperation over energy and the environment. The European Council also stressed the importance of improving EU companies' access to booming emerging markets.
Determined to improve the funding of innovation, the European Council reiterated its target of devoting 3% of GDP to R&D by 2010. The politicians said it would be necessary to optimise synergy among EU programmes, improve the process of turning discoveries into innovative products and services, and ensure sufficient pooling of knowledge among all partners. The European Council instructed the Commission to prepare recommended guidelines for cooperation and technology transfer among public research bodies and industry, and to publish strategies on intellectual property rights and patents as a matter of urgency.
Investment in technologies of the future is key to ensuring European competitiveness in pilot markets, the conclusions added, calling on the Commission to propose joint technological initiatives in sectors of strategic importance. In education and training, member states agreed to continue with reforms to modernise higher education, guarantee the quality and attractiveness of education and vocational training and implement national lifelong education and training strategies. They pressed the Council and European Parliament to complete their examination of the Commission proposal on a European Institute of Technology, so that a decision could be taken before the end of the year, and were determined to promote eco-innovations, particularly in low carbon emission technology, renewable energy, energy efficiency and the efficient use of resources. The Council called on the Commission, then, to make proposals, prior to putting an integrated eco-innovation strategy in place at the start of 2008.
In the light of developments in labour markets, the European Council stressed the importance of “quality jobs”, in the hope that discussion on the Commission communication on flexicurity would bring forward the raft of measures that was best suited to labour market needs. Heads of state and government confirmed the need to improve economic and social cohesion within the EU and highlighted the key role played by the social partners. Member states' joint social objectives should be taken more into account in the Lisbon programme if EU citizens were to continue to support European integration, the conclusion stated. They argued, too, for active social inclusion to provide everyone with sufficient minimum resources, while making work more financially attractive. There were calls for measures on equal opportunities for men and women, and on the role of the young, older people and poorly qualified people as economic players. (ab/mb)