Brussels, 09/03/2009 (Agence Europe) - No country in Europe has been spared by the economic recession which has slowed progress in implementing the Lisbon Agenda. This is the main conclusion of the annual European Growth and Jobs Monitor, produced jointly by Brussels-based think tank The Lisbon Council and German financial group Allianz SE. Six indicators are used to monitor member states' progress towards a knowledge economy: economic growth, productivity growth, jobs, human capital, future-oriented investment and sustainable public finances. The study focused on the EU's 14 largest economies: Austria, Belgium, Denmark, Finland, France, Greece, Germany, Ireland, Italy, the Netherlands, Poland Spain, Sweden and the United Kingdom.
The overall findings show a decline in performance over the last 12 months, so that the EU15 will not be able to reach the Lisbon targets in 2009 and probably not in 2010. Finland tops the rankings in this third edition of the Monitor (eclipsing the performance of the other countries in the human capital and public finances categories). It is followed by Poland, which finished first in economic growth and second in productivity, but performed badly on employment. The Netherlands leapt six places up the list, finishing in third spot thanks to good performances in growth (3rd place) and employment (2nd). Spain, which also climbed six places from last year and finished 6th, saw improvement in productivity growth, though the success was somewhat ambiguous, with a strong rise in labour productivity largely on the back of rapidly rising unemployment. Against a background of falling growth, productivity and deterioration in public finances, Ireland tumbled to 13th (a fall of nine places). Italy, Europe's fourth largest economy, came in last, in 14th position. While finishing 9th, Germany's performance in public finances gives it more scope to respond flexibly to the global downturn this year, the report says. Had there been no crisis, six member states (Finland, Greece, Netherlands, Poland, Spain and Sweden) would have been on track to meet their Lisbon targets by 2010. The current situation, however, means that none of the countries studied will reach its target. Four countries (Finland, Greece, Poland and the United Kingdom), however, reported labour productivity growth higher than in the United States, though this improvement seems set to end as productivity falls in the wake of the deepening recession.
Despite these results, “the prospects are not all dire,” says Dr Michael Heise, chief economist with Allianz SE and main author of the study, in a press release. Europe still has many assets, including good human capital, a strong social model, cutting edge technical prowess and comparatively good governance, Heise says, adding: “Far from backing away from the objectives and ambition of the Lisbon strategy, we must continue to focus on long-term goals, innovation, development of human capital, improvement of labour-market productivity and economic growth to help us lay a sound social foundation. The Lisbon strategy has been a very effective way of keeping our eyes on these goals. It is time to proclaim this strategy a success”. (A.B./transl.rt)