Europaudvalget 2004-05 (1. samling)
Det Europæiske Råd 22-23/3 2005 Bilag 1
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COMMISSION OF THE EUROPEAN COMMUNITIES
Brussels, 02.02.2005
COM (2005) 24
COMMUNICATION TO THE SPRING EUROPEAN COUNCIL
Working together for growth and jobs
A new start for the Lisbon Strategy
Communication from President Barroso
in agreement with Vice-President Verheugen
EN
EN
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TABLE OF CONTENTS
Foreword .................................................................................................................................... 5
Growth and jobs: A New Start for the Lisbon Strategy ............................................................. 5
Executive Summary ................................................................................................................... 9
1.
2.
3.
3.1.
3.2.
3.2.1.
3.2.2.
3.2.3.
3.2.4.
3.3.
3.3.1.
3.3.2.
3.3.3.
3.4.
3.4.1.
3.4.2.
3.4.3.
3.5.
4.
Growth and jobs centre stage ..................................................................................... 14
Building a european partnership for growth and employment................................... 16
Actions to deliver growth and jobs ............................................................................ 17
A Lisbon Action Programme for the Union and the Member States......................... 17
Making Europe a more attractive place to invest and work....................................... 17
Extend and deepen the Single Market........................................................................ 18
Ensure open and competitive markets inside and outside Europe ............................. 20
Improve European and national regulation ................................................................ 20
Expand and improve European infrastructure............................................................ 21
Knowledge and innovation for growth ...................................................................... 22
Increase and improve investment in Research and Development.............................. 22
Facilitate innovation, the uptake of ICT and the sustainable use of resources .......... 23
Contribute to a strong European industrial base ........................................................ 25
Creating more and better jobs .................................................................................... 26
Attract more people into employment and modernise social protection systems...... 27
Increase the adaptability of workers and enterprises and the flexibility of labour
markets ....................................................................................................................... 29
Investing more in human capital through better education and skills........................ 29
The impact on growth and jobs.................................................................................. 30
Making the partnership deliver on growth and jobs................................................... 31
ANNEX.................................................................................................................................... 35
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Foreword
Growth and jobs: A New Start for the Lisbon Strategy
Just think what Europe could be. Think of the innate strengths of our enlarged Union. Think
of its untapped potential to create prosperity and offer opportunity and justice for all its
citizens. Europe can be a beacon of economic, social and environmental progress to the rest of
the world.
It is in this spirit of realistic optimism that the new European Commission has put together
our policy recommendations for the Mid-Term Review of the Lisbon Strategy – our ambitious
agenda for reform launched by the European Council in March 2000.
Europeans have every reason to be positive about our economic potential. The successes of
the second half of the 20
th
century have left a strong legacy. After half a century of peace we
have one of the most developed economies in the world united together in a unique political
Union of stable and democratic Member States. That Union has created a Single Market
underpinned for participating members by a single currency that consolidates economic
stability and deepens the potential of economic integration. We have consolidated a unique
participative social model. Our standards of basic education are high and the science base is
historically well developed. Europe is home to dynamic and innovative companies with
extraordinary competitive strength. At their best, they are demonstrating a remarkable
capacity for renewal. We have made more progress towards sustainable development than any
other region of the world.
We have done this by acting in partnership – Europe’s institutions, government and
administrations at a national, regional and local level, our social partners, civil society – all
moving together towards a common goal.
This legacy represents a substantial down-payment towards the vision that binds us together;
a vision, confirmed in the Constitution, of ensuring “the sustainable development of Europe
based on balanced economic growth and price stability, a highly competitive social market
economy, aiming at full employment and social progress and a high level of protection and
improvement of the quality of the environment”.
The past 50 years have seen extraordinary progress, but in a changing world Europe cannot
stand still. This is why five years ago Heads of State and Government signed up to an
ambitious programme of change. They committed themselves to making the European Union
the most dynamic and competitive knowledge-based economy in the world capable of
sustainable economic growth with more and better jobs and greater social cohesion, and
respect for the environment.
Today, we see that progress has at best been mixed. While many of the fundamental
conditions are in place for a European renaissance, there has simply not been enough delivery
at European and national level. This is not just a question of difficult economic conditions
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since Lisbon was launched, it also results from a policy agenda which has become
overloaded, failing co-ordination and sometimes conflicting priorities. For some this suggests
that we should abandon the ambition of 5 years ago. The Commission does not agree. The
challenges we face are even more urgent in the face of an ageing population and global
competition. Unless we reinforce our commitment to meeting them, with a renewed drive and
focus, our model for European society, our pensions, our quality of life will rapidly be called
into question.
The need for urgent action is confirmed by the report from the High Level Group chaired by
Wim Kok last November. It identifies a daunting challenge. According to Kok,
“The Lisbon
strategy is even more urgent today as the growth gap with North America and Asia has
widened, while Europe must meet the combined challenges of low population growth and
ageing. Time is running out and there can be no room for complacency. Better
implementation is needed to make up for lost time”.
Faced with this challenge Europe needs
to improve its productivity and employ more people
On current trends, the potential growth of the European economy will halve over the coming
decades and reach just over 1% per year.
Europe’s performance has diverged from that of our competitors in other parts of the world.
Their productivity has grown faster and they have invested more in research and
development. We have yet to put in place the structures needed to anticipate and manage
better the changes in our economy and society. And we still need a vision for society which
can integrate both the ageing and the young, particularly for the development of our
workforce, where current dynamics cast a shadow over both long-term growth and social
cohesion.
The Commission has risen to this challenge in presenting it proposals for the Union’s
Strategic Objectives, ‘renewed
growth is vital to prosperity, can bring back full employment
and is the foundation of social justice and opportunity for all. It is also vital to Europe’s
position in the world and Europe’s ability to mobilise the resources that tackle many global
different challenges’.
We need a dynamic economy to fuel our wider social and environmental ambitions. This is
why the renewed Lisbon Strategy focuses on growth and jobs. In order to do this we must
ensure that:
−
Europe is a more attractive place to invest and work
−
Knowledge and innovation are the beating heart of European growth
−
We shape the policies allowing our businesses to create more and better jobs
Making growth and jobs the immediate target goes hand in hand with promoting social or
environmental objectives. The Lisbon Strategy is an essential component of the overarching
objective of sustainable development set out in the Treaty: improving welfare and living
conditions in a sustainable way for present and future generations. Both Lisbon and the
Sustainable Development Strategy contribute to ensuring this goal. Being mutually
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reinforcing, they target complementary actions, use different instruments and produce their
results in different time frames.
The Commission is fully committed to sustainable development and to modernising and
advancing Europe’s social model. Without more growth and jobs this will not be possible.
Our Sustainable Development Strategy and our Social Agenda have been under review and
proposals, ahead of the Spring European Council, will be presented in the coming weeks. In
addition, we have to continue working with our international partners to address global
macro-economic unbalances, as boosting growth is as beneficial to our partners as to the
Union.
“Lisbon” therefore requires immediate action and the case for acting together in Europe is
strong.
The costs of not doing so are large and quantifiable. The ‘costs of non-Europe’ have been
substantiated through a large volume of academic evidence. One can argue with the figures.
But not achieving “Lisbon” does have a cost. The best evidence can be found in the widening
gap of Europe’s growth potential compared to other economic partners. However, the
potential gains from wider and deeper economic integration in an enlarged Europe are
massive.
This mid-term review sets out how we can help Europe to meet its growth and jobs challenge.
It launches the idea of a Partnership for Growth and Jobs, supported by a Union Action
Programme and National Action Programmes containing firm commitments. It builds on three
central concepts:
−
First,
Europe’s actions need more focus.
We must concentrate all our efforts on
delivering on the ground policies that will have greatest impact. This means keeping
existing promises, building on the reforms already underway in every Member State and
launching new action where it is needed to keep us on target. It requires a rigourous
prioritisation on the part of the Commission and must be anchored in the firm support of
the European Council and the European Parliament.
−
Second, we have to
mobilise support for change.
Establishing broad and effective
ownership of the Lisbon goals is the best way to ensure words are turned into results.
Everyone with a stake in Lisbon’s success and at every level must be involved in
delivering these reforms. They must become part of national political debate.
−
Third, we need to
simplify and streamline Lisbon.
This means clarifying who does what,
simplify reporting and backing up delivery through Union and National Lisbon Action
Programmes. There should be an integrated set of Lisbon “guidelines” to frame Member
State action, backed up by only one report at EU level and only one report at national level
presenting the progress made. This will significantly reduce the national reporting burden
placed on Member States.
All this must be set against the backdrop of wider reforms. Our ambition for change must be
matched by the necessary resources at both EU and national level.
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Sound macroeconomic conditions are essential to underpin a credible effort to increase
potential growth and create jobs. The changes proposed to the European Union’s stability and
growth pact – the rules at EU level that govern national budgetary policies – should further
stabilise our economy, while ensuring that Member States can play a full role in creating
conditions for long-term growth.
At a European level, the debate on the future financial framework for the Union up to 2013
(“the Financial Perspectives”) must draw the consequences of our Lisbon ambition,
supporting Lisbon priorities within the future EU budget. We must provide the support and
investment a modern, knowledge-economy needs, use our resources in ways which help us to
adapt to changing economic and social conditions, and operate programmes which provide the
right incentives for Member States to focus their own national public spending on Lisbon
objectives. The Commission’s proposals for the Financial Perspectives reflect these priorities.
If we can match ambition, resources and good ideas; if we can transform them by the end of
the decade into lasting change on the ground; and if we can support Lisbon by closing the gap
on investment in our economy and launching a new drive for stronger cohesion across our
continent then we can bring our Lisbon goals back into sight.
This is the new start that Europe needs.
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Executive Summary
Five years ago the European Union launched an ambitious agenda for reform. Over the last
year the Commission has been reviewing the progress made. This has led to a vigorous debate
at European and national level amongst all those with an interest in Lisbon’s success. In
addition, the Commission has benefited from the work of the High Level Group chaired by
Wim Kok, which reported last November. Today, there is general consensus that Europe is far
from achieving the potential for change that the Lisbon strategy offers. While both the
diagnosis and the remedies are not contested, the reality is that not enough progress has been
made.
This Report, at the mid-point stage of Lisbon, now sets out how we can work together for
Europe’s future and put the Lisbon agenda back on track.
The renewed Lisbon Strategy – what will change?
The Commission proposes a new start for the Lisbon Strategy, focusing our efforts around
two principal tasks –
delivering stronger, lasting growth and creating more and better
jobs.
Meeting the Europe’s growth and jobs challenge is the key to unlocking the resources
needed to meet our wider economic, social and environmental ambitions; meeting those wider
goals will anchor the success of our reforms. For this to be possible, sound macroeconomic
conditions are crucial, in particular the pursuit of stability-oriented macroeconomic policies
and of sound budgetary policies.
I
Ensuring delivery
Delivery is the main issue for the Lisbon Strategy at both European and national level. The
implementation of the reform agenda requires a renewed Partnership for growth and
jobs.
As regards the EU level, the
Commission
will play its central role of initiating policy and
ensuring implementation.
In parallel,
Member States
must deliver the agreed backlog of Lisbon reforms. This should
be backed up by National Lisbon Programmes – setting out how they will do this (see
governance below).
II
A renewed Lisbon Action Programme
This Report does not attempt to rewrite the Lisbon strategy, but it does identify new actions at
European and national level which will help to see our Lisbon vision is achieved.
A more attractive place to invest and work
Extend and deepen the internal market
Improve European and national regulation
Ensuring open and competitive markets inside and outside Europe
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Expand and improve European Infrastructure
We must extend and deepen the internal market. Member States must improve
implementation of existing EU legislation
if businesses and consumers are to
feel the full benefits. In a number of Member States, key markets like
telecoms, energy and transport are open only on paper – long after the expiry
of the deadlines to which those Member States have signed up.
Key reforms are still needed to
complete the single market
and should be
given specific attention: financial services markets, as well as services in
general, the REACH proposal, a common consolidated corporate tax base as
well as the Community Patent.
The regulatory climate must improve. In March the Commission will launch a
new regulatory reform initiative,
and we will draw on outside expertise to
advise us on the quality and methodology of how we carry out impact
assessments.
Competition rules must be applied proactively. This will help to boost
consumer confidence.
Sectoral screenings of the barriers to competition
will be launched in sectors such as energy, telecoms and financial services.
European businesses also need open global markets. The Union will press hard
for
completion and implementation of the Doha Development Round,
as
well as progress on other bilateral and regional economic relationships.
Knowledge and innovation for growth
Increase and improve investment in Research and Development
Faciliate innovation, the uptake of ICT and the sustainable use of resources
Contribute to a strong European industrial base
Public authorities at all levels in the Member States must work to support
innovation,
making a reality of our vision of a knowledge society.
The
Union’s continued focus on areas such as the information society,
biotechnology and eco-innovation should help them to do this.
More investment by both the
public and private sector spending on research
and development.
At EU level, we need the early adoption by the European
Parliament and Council of the next
Research Framework programme
and of
a
new programme for competitiveness and innovation.
These will be
presented in April.
As part of a major
reform of State Aid policy
starting later this year, Member
States, regional and other public actors will have more scope to support
research and innovation, particularly by the EU’s small and medium-sized
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businesses.
Spreading knowledge through high quality education system is the best way of
guaranteeing the long-term competitiveness of the Union. In particular, the
Union must ensure that our universities can compete with the best in the World
through the completion of the European Higher Education Area.
The Commission will propose the creation of a “European
Institute of
Technology”.
The Commission will support and encourage
Innovation Poles
designed to
help regional actors bring together the best scientific and business minds with
the right resources to get ideas from the lab and into the workshop.
The Commission and Member States must step up their
promotion of eco-
innovation
which can bring substantial improvements to our quality of life as
well to growth and jobs, for example in areas such as sustainable resource use,
climate change and energy efficiency.
Partnering with industry will also be fostered by
European Technology
Initiatives,
which build on the experience of the Galileo satellite navigation
system. The first of these should start to appear in 2007 once the next Research
Framework Programme is up and running.
Creating more and better jobs
Attract more people into employment and modernise social protection systems
Improve the adaptability of workers and enterprises and the flexibility of labour markets
Investing more in human capital through better education and skills
The
Social Partners are invited to develop a joint Lisbon action
programme
ahead of the Spring 2005 European Council identifying their
contribution to the Lisbon goals.
Member States and the social partners must
increase efforts to boost the level
of employment
particularly by pursuing active employment policies which
help people in work and provide incentives for them to remain there,
developing active ageing policies to discourage people from leaving the
workforce too early, and by modernising social protection systems, so that they
continue to offer the security needed to help people embrace change.
The future of Europe and the future of the Lisbon Strategy is closely linked to
young people.
The Union and the Member States must ensure that the reforms
proposed help to give them a first chance in life and equip them with the skills
needed throughout their lives. The Union also needs to develop its priorities in
responding to the demographic challenge that we face.
Member States and the social partners must improve the
adaptability of the
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workforce and of businesses as well as the flexibility of labour markets
to
help Europe adjust to restructuring and market changes.
In the face of a shrinking labour force, we need
a well-developed approach to
legal migration.
The Commission will present a plan before the end of 2005
on the basis of the on-going public consultation.
Europe needs
more and better investments into education and training.
By
focusing at European and national level on skills and life-long learning it will
be easier for people to move to new jobs. This should be backed up by the
adoption this year of the
Life Long Learning Programme
at EU level and in
2006 the presentation of national Life Long Learning strategies by the Member
States.
Europe also needs a
more mobile workforce.
Mobility within the Union will
also be helped by the early adoption of the pending framework for
professional qualifications.
The Commission will make proposals during
2006 to simplify mutual
recognition of qualifications.
Member States should
accelerate the removal all restrictions on the mobility of workers from the
countries that have recently joined the Union.
Regional and local authorities should be designing projects which take us
closer to our Lisbon ambition. The
next generation of Structural Funds
(including those for rural development) are being reshaped with this in mind –
focusing on how it can help to deliver growth and jobs at a local level.
III
Improving Lisbon governance
The governance of the
Lisbon Strategy needs radical improvement to make it more
effective and more easily understood.
Responsibilities have been muddled between the
Union and its Member States. There are too many overlapping and bureaucratic reporting
procedures and not enough political ownership.
To clarify what needs to be done and who is responsible the Commission will bring forward a
Lisbon Action Programme.
In addition, the Commission is proposing an integrated approach to
streamline the existing
Broad Economic Policy and Employment Guidelines, within a new economic and
employment cycle.
In future, an integrated set of Guidelines alongside the Lisbon Action
Programme will be used to move the reform agenda forward. These will cover macro-
economic policies, employment and structural reforms. In response, Member States are
expected to adopt National Action Programmes for growth and jobs, backed up by
commitments and targets, after broad discussion at a national level.
To bring all this together Member States should appoint a “Mr”
or “Ms Lisbon” at
government level.
Reporting will also be simplified.
There will be a single Lisbon report at EU and at national
level on the progress made. This new reporting process will provide a mechanism through
which the European Council and the European Parliament can focus on key policy issues
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without being encumbered by the multitude of sectoral reports which are currently part of the
annual cycle.
This approach will make it easier for the European Council to give practical guidance each
spring and for the Commission to play its role of monitoring progress towards the Lisbon
goals, offering encouragement and proposing additional action to keep Lisbon on track.
***
On this basis, the Commission recommends to the European Council to:
– Launch a new Partnership for Growth and Jobs
– Endorse the Community Action Programme and call for Member States to establish their
own National Action Programmes
– Approve the new arrangements for governance of the Lisbon Strategy set out in this
Report, in order to improve the effectiveness of policy delivery at Community and national
level and to encourage a real debate and genuine political ownership of our Lisbon goals.
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1.
G
ROWTH AND JOBS CENTRE STAGE
The Single Market, the euro, the recent enlargement of the Union show the
potential of the Union has to achieve ambitious goals.
Over half a
century the Union has built peace and prosperity. It has taken a changing
economic, social and political landscape in its stride. It has done this by
setting common goals and working together to achieve them; the Union and
the Member States, Governments and civil society, business and citizens.
This same dynamism drove the launch of the far-reaching agenda for
reform in March 2000 at the Lisbon European Council. It mapped out a
path towards a competitive and inclusive, knowledge-based, economy,
offering a European response to the urgent challenges our continent faces.
Today, we see that combination of economic conditions, international
uncertainty, slow progress in the Member States and a gradual loss of focus
has allowed Lisbon to be blown off course. Yet the challenges if anything
have become more urgent in the face of global competition and an ageing
population; factor which are even more apparent today than five years ago.
This assessment is shared by the Report presented by the High Level Group
chaired by Wim Kok
1
. It stressed Europe’s
insufficient progress
in
reaching the Lisbon strategy’s objectives. In response, we need to restore
confidence in Europe’s ability to create the conditions to meet its
objectives. Europe can build on its rich tradition and diversity, its unique
social model and draw further strength from its recent enlargement which
makes it the largest single market and biggest trading block in the world.
The most important conclusion of the Kok report is that “the promotion of
growth and employment in Europe is the next great European project”. The
Commission proposes to refocus the Lisbon agenda on actions that promote
growth and jobs
in a manner that is fully
consistent with the objective of
sustainable development.
The actions falling under this strategy should
reinforce the Union potential to meet and further develop our
environmental and social objectives. However, the challenge is to define
now a strategy that addresses the areas in which Europe is not performing
well (for example, our stagnant growth and insufficient job creation).
This strategy must be taken forward through a renewed partnership between
the Member States and the Union – with the full involvement of the social
partners. The new Lisbon agenda is necessarily broad but a limited set of
policy priorities will be central to its success. We must focus on these to
ensure the success of the whole. Delivery will be critical and improvements
of the existing delivery mechanisms are urgently required. This calls for a
streamlined and effective working method to implement the strategy which
binds together the Union and the Member States. For this to be possible, the
Lisbon agenda must be owned by all stakeholders at EU, national, regional
and local level: Members States, European citizens, parliaments, social
partners and civil society and all Community institutions. They should all
The Lisbon
agenda was
meant to unlock
Union’s
potential…
…but not
enough progress
has been made.
Growth and jobs
are the next
great European
project.
This requires a
renewed
partnership.
1
Report from the High Level Group on the Lisbon Strategy, chaired by Wim Kok, November 2004.
http://europa.eu.int/comm/lisbon_strategy/group/index_en.html
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contribute to construct Europe’s future. After all, everyone will benefit
from the future that the Lisbon agenda is trying to shape. The renewed
Lisbon strategy is about tapping this potential for our citizens. It is about
opportunity and a common vision for progress.
Sound
macroeconomic
conditions are
the starting
point for
success.
Sound macroeconomic conditions and policies
Sound macroeconomic conditions are essential to underpin a credible effort
to increase potential growth and create jobs. In particular, the continued
pursuit of stability-oriented macroeconomic policies and of sound
budgetary policies will be crucial. Governments must, whilst maintaining or
pursuing sound public finances maximise the contribution to growth and
employment.
The changes proposed to the European Union’s stability and growth pact –
the rules at EU level that govern national budgetary policies – should
further stabilise our economy, while ensuring that Member States can play
a full role in creating conditions for long-term growth.
Productivity and employment
The Lisbon strategy gives equal importance to increasing both employment
and productivity, through enhanced competitiveness.
More and better
jobs….
Labour markets must be allowed to function better, providing incentives for
people to work and for businesses to take them on, and to create more and
better jobs. This will require significant investment in human capital, and
greater adaptability of the workforce in more inclusive labour markets.
Productivity growth has slowed down markedly in the EU. Reversing this
trend is the major competitiveness challenge facing the Union. At the same
time, we must aim at lasting productivity increases in all key sectors of the
economy. Together with improving the skills of the labour force, stronger
investments and use of Information and Communication Technologies
(ICTs) across the economy, a healthy competitive environment and the
right balance of regulation are of paramount importance to boosting
productivity. However, Lisbon’s overburdened list of policy objectives has
obscured the importance of these actions which can drive productivity
growth. From now on, structural reforms, through such policies, should be
pivotal in the renewed Lisbon strategy.
Productivity growth and increased employment must go hand in hand. We
need to avoid the type of jobless growth that has marred the performance of
the US economy in the past years. At the same time, we must bring the long
term unemployed and people with relatively low skills back into work. This
might impact the speed at which our productivity can improve. The strong
emphasis on knowledge, education and innovation in our renewed Lisbon
strategy will give people the opportunity to climb the productivity ladder
and guarantee that overall our productivity grows quickly.
The
opening of international markets
and the strong growth of newly
industrialising economies will make a significant contribution to growth
13
…enhanced
competitiveness
through
productivity
growth …
…must go hand
in hand.
Open
international
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markets matter.
and jobs. However, this will only happen if we can ensure a deeper and
more rapid process of structural adjustment of our economy to reallocate
resources to sectors where Europe has a comparative advantage.
Facilitating change to more competitive sectors and better quality jobs is
therefore critical to the success of the renewed Lisbon strategy.
Against the backdrop, pushing forward our policy agenda relies on action at
both Union and national level. Success depends on shared responsibilities
and shared ownership. This is why a partnership is indispensable.
The
responsibility
must be shared
between the EU
and national
level.
2.
B
UILDING A EUROPEAN PARTNERSHIP FOR GROWTH AND EMPLOYMENT
The Commission has just recently proposed building a partnership for
European renewal
2
. This forms part of the strategic programme for 2005-
2009 and is geared to enabling the Member States, the European Union and
the social partners to work together towards the same aim. As already stated,
growth and jobs will spearhead this new partnership. All the input so far
clearly indicates a real determination to work towards this renewed
ambition.
The Commission is therefore calling on this March’s European council to
relaunch the Lisbon Strategy by way of a European Partnership for jobs and
growth.
The partnership will have
one aim and one only: to facilitate and
speed up delivery of the reforms needed to boost growth and
employment.
It must bring solid added value if it is to produce tangible and swift results:
Growth and jobs –
the first example
of our Partnership
for European
renewal.
To succeed we
must take Lisbon
forward by ….
…mobilising
support…
Getting the different players to work together.
Mobilisation and
collective effort are the key elements of the Partnership. The
challenges are common challenges and affect our model of
development. We have to rise to them together – after all, everyone's
individual input is essential to ensure collective success. The scale
of the challenges is such, and our economies so interdependent, that
no Member State is capable of facing up to the task alone.
Making sure
that these objectives and reforms are
taken on board
by all the various players. The Lisbon Strategy failed to commit the
key players sufficiently in terms of delivery, particularly at national
level. Mobilisation is possible only if the various players feel that
the policies proposed concern them, and that they are truly involved
in the decision-making and implementation process. The Member
States should therefore be called on to produce a single national
action programme – following broad consultation – and a single
national report on the Lisbon Strategy (see point 4).
…spreading
ownership…
2
COM(2005)12, Strategic objectives 2005-2009. Europe 2010: a partnership for European renewal –
Prosperity, solidarity and security.
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…and
strengthening
priorities.
Refocusing
efforts on priority and visible objectives, backed up by
tangible measures impinging on growth and jobs. This is
fundamental if Lisbon is to succeed. It is by pinpointing clear
priorities and concrete action that we shall get people rallying
behind it and committing themselves to it.
For this partnership to deliver result, it requires, at a national level, the full
commitment of every partner.
3.
A
CTIONS TO DELIVER GROWTH AND JOBS
3.1.
A Lisbon Action Programme for the Union and the Member
States
Three main
areas…
At the heart of the proposed partnership for growth and jobs is a
Lisbon
Action Programme.
It sets out priorities which will help the Union and its
Member States drive up productivity and create more and better jobs. It
covers actions in three main areas:
Making Europe a more attractive place to invest and work,
Knowledge and innovation for growth,
Creating more and better jobs
…will simplify
our approach…
This provides a stronger focus for the renewed Lisbon strategy. It gives a
clearer sense of priorities. It responds to the criticisms that Lisbon had too
many priorities and was too complex for people to really understand what
Lisbon was about.
The Lisbon Action Programme – building on the experience of the Internal
Market Programme – identifies responsibilities, sets deadlines and measures
progress. In particular, it makes a clear distinction between actions at
Member States and European Union level. The most important actions are
presented in this chapter.
As regards the EU level, the Commission will play its central role of
initiating policy and ensuring implementation. It will do so working closely
with the Parliament and Council, as well as drawing on the expertise of other
EU institutions such as the European Economic and Social Committee, the
Committee of the Regions or in the financial field the European Investment
Bank.
As regards the national level, the Commission will be a facilitator through
benchmarking, financial support, promotion of social dialogue or by setting
up best practices. But success on the ground is where the first phase of
Lisbon has fallen down. This is why the Commission is setting out where
Member States, taking account of their specific situation, are expected to
make firm commitments within their own national action programmes.
These should cover concrete measures, including a time-table and progress
…setting out who
does what, by
when and how we
will judge
progress.
All EU
Institutions have a
role to play.
Member States
must make firm
commitments.
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indicators. The Commission will continue to monitor and assess the progress
made, using the new method of reporting and coordination described below.
3.2.
Making Europe a more attractive place to invest and work
Boosting growth and jobs requires increasing Europe’s attractiveness as a
place to invest and work. The European Union and the Member States must
focus their actions on key levers.
We need a better
environment for
our small and
medium-sized
businesses.
Action here is of
particular importance for Europe’s small and medium
sized businesses (SMEs)
which constitute 99% of all enterprises and two
third of employment. There are just too many obstacles to becoming an
entrepreneur or starting a business, and, therefore, Europe is missing
opportunities. Encouraging more entrepreneurial initiative implies promoting
more entrepreneurial attitudes. The balance between risk and reward
associated with entrepreneurship should be reviewed. The stigma of failure
complicates a fresh start and even deters many from starting a business in the
first place. Finally, in Europe, despite progress during the first five years of
Lisbon, there is still insufficient risk capital available to start up innovative
young businesses and current tax rules discourage the retention of profits to
build up equity.
3.2.1.
Extend and deepen the Single Market
We need to extend
and deepen the
internal market...
Completing the Single Market,
particularly in the area of services,
regulated professions, energy, transport, public procurement and financial
services remains a crucial task. Providing high quality services of general
interest to all citizens at affordable prices is also necessary. A healthy and
open services sector is increasingly crucial to growth and jobs in the
European economy. The services sector has been responsible for almost all
the new jobs created in the EU in the period 1997-2002. Services now
account for 70% of EU value added. Freeing up the provision of these
services will stimulate growth and generate employment. A net increase of
600.000 jobs could be achieved if the services sector was freed up.
These are areas which can deliver a real growth and job dividend and are of
immediate relevance for consumers. In many of these areas, Lisbon has
already delivered much of the legislation, but Member States are letting their
businesses and citizens down by dragging their feet in implementation and
enforcement.
…spur investment
and innovation….
Removing remaining barriers will create new opportunities for market
entrants and the resulting competition will spur investment and innovation.
This is all the more important against a backdrop of stagnating intra-EU
trade in goods and stalling price convergence.
Public services have a central role in an effective and dynamic single market.
The Commission published in May 2004 a White Paper setting out principles
underpinning EU policies in the area of services of general interest and
addressing key issues such as the interface with internal market, competition
and state aid rules, and the selection of the provider and consumer rights.
Making the most
of services of
general economic
interest
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The Commission will return to this issue later in 2005.
…and national
administrations
have a central
role.
Finally, Member States should ensure that their own regulatory systems are
better attuned to the needs of an EU-wide market. It is crucial to ensure and,
where necessary, improve of the role of national administrations in providing
the right market conditions (e.g. greater use of on-line services (e-
government), tackling corruption and fraud). Moreover, much can be done in
the area of taxation to make the Single Market work better and to reduce the
existing barriers and the administrative burden for entrepreneurs.
SINGLE MARKET LEGISLATION
The
Financial Services Action Plan
was one of the real success
stories of the first phase of the Lisbon Strategy: legislative
measures were delivered on time; the European Institutions worked
well together and innovative solutions were found to fill in the
detail of the ambitious new framework. What counts now is to
ensure the rules are consistently applied across the Union. At the
same time, the “leftovers” from the Financial Services Action Plan
should be addressed over the coming years. Action will be taken
only if broad consultation with interested parties and impact
assessment demonstrates a clear value-added
In order to build consensus on the
Services Directive
and to ensure
the smooth discussion of this important proposal, the Commission
will work constructively with the European Parliament, the Council
and other stakeholders in the run up to the adoption of the first
reading by the Parliament. We will focus particularly on concerns
raised on areas such as the operation of the country of origin
provisions and the potential impact for certain sectors.
On the
REACH directive,
the Commission stresses the need to
arrive at a decision which will be consistent with the Lisbon goals
as regards the competitiveness of the European industries and
encouraging innovation, and which will achieve a marked
improvement in health and environment to the benefit of Europe’s
citizens. The Commission signals its willingness to cooperate fully
with Parliament and with Council in search for pragmatic solutions
to key issues which have emerged in the examination of REACH in
order to improve its workability.
In order to overcome the obstacles posed by 25 different sets of
rules governing how companies are taxed when they operate in
several Member States, the Commission is taking work forward to
try to achieve an agreement on a
common consolidated corporate
tax base
and its implementation. This will reduce a significant
overhead to doing business in different countries, while leaving
Member States free to set the corporate tax rate.
The
Community Patent
has become a symbol of the Union's
commitment to a knowledge-driven economy. This remains an
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important proposal and rapid progress towards a workable solution
that supports innovation must be pursued.
3.2.2.
Competition is of
fundamental
importance.
Ensure open and competitive markets inside and outside Europe
Competition is of fundamental importance for the whole partnership for
growth and jobs.
EU competition policy has played a key role in shaping
European competitive markets,
which have contributed to increasing
productivity. This will continue in the enlarged Europe in particular through
proactive enforcement and a state aid reform regarding innovation, R&D and
risk capital. The Commission will, therefore, continue to pursue its
competition policies, which can also help in identifying regulatory and other
barriers to competition.
Enquiries in key sectors,
like financial services and
energy, will be undertaken to ascertain the underlying reasons why markets
do not fully function in such sectors.
Member State should reduce and redirect State Aids to address market
failures in sectors with a high growth potential as well as to stimulate
innovation. These initiatives should clearly target the needs and burdens for
small and medium sized enterprises. The Commission will launch a major
overhaul reform of State aid rules during the course of the year (see section
3.3.1).
European companies are facing more and more international challenges and
EU trade policy needs to ensure that they can have access to third markets
and compete on a fair basis with clear rules. In summary, open markets, both
in Europe and globally, are crucial to generating higher growth rates.
GROWTH AND JOBS: THE GLOBAL DIMENSION
The completion of an ambitious agreement in the DOHA round,
therefore, remains the fundamental objective. This should be
complemented by bilateral and regional Free Trade Agreements,
including with Mercosur, the Gulf Co-operation Council.
There should be a fresh drive for regulatory and administrative
convergence at the international level, in particular in transatlantic
trade relations. Ensuring that standards converge as widely as
possible at the international level – whether this is with our major
trading partners such as the USA or with rapidly growing markets
in Asia such as China, India and with other countries in the EU
neighbourhood – holds out the potential for significant cost
reductions and productivity growth. The Commission will actively
pursue this agenda.
3.2.3.
Improve European and national regulation
Member States
must reduce and
redirect State aid.
EU business also
needs open global
markets.
The right
regulatory
framework helps
business and
builds consumer
Cutting unnecessary costs, removing obstacles to adaptability and innovation
and more competition and employment friendly legislation will help create
more conducive conditions for economic growth and improved productivity.
This comprises measures such as simplification, well shaped legislation and
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confidence.
efforts to reduce the burden of administrative costs. The right regulatory
framework will also strengthen consumer confidence and help them
contribute to growth. Regulatory burdens also disproportionately affect
SMEs which usually have limited resources to deal with the administration
such rules often imply.
A new approach to regulation should seek to remove burdens and cut red
tape unnecessary for reaching the underlying policy objectives. Better
Regulation should be a cornerstone for decision making at all levels of the
Union.
BETTER REGULATION
Better regulation has a significant positive impact on the
framework conditions for economic growth, employment and
productivity by improving quality of legislation, thereby creating
the right incentives for business, cutting unnecessary costs and
removing obstacles to adaptability and innovation.
Member States
should also pursue their own better regulation
initiatives, notably in respect of sectors where Europe’s
productivity growth is clearly lagging behind, such as the services
sector.
The Commission
will ambitiously pursue this objective and launch
a major new initiative before the Spring Council, which includes:
– Better assessing the effect of new legislative/policy proposals on
competitiveness, also through its Impact Assessment instrument.
– Drawing on outside expertise to advise on the quality and
methodology of how to carry out impact assessments.
– The cumulated burden of regulation, difficult market access and
insufficient competitive pressure can hold back innovation in
sectors that have a high growth potential. The Commission will,
therefore, launch a series of sectoral reviews with a view to
identifying growth and innovation inhibiting obstacles in key
sectors. A special attention will be given to burdens for small
and medium sized enterprises.
3.2.4.
Expand and improve European infrastructure
We must remove
unnecessary
burdens
A modern
infrastructure
facilitates trade
and mobility.
The Single Market needs to be equipped with
modern infrastructure
to
facilitate trade and mobility. Progress here has been disappointingly slow
and this now needs to be addressed.
A modern infrastructure is an
important competitiveness factor in many enterprise decisions,
affecting
the economic and social attractiveness of locations. It guarantees mobility of
persons, goods and services throughout the Union. Also, infrastructure
investments especially in the new Member States will encourage growth and
lead to more convergence, in economic, social and environmental terms.
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Given the long term effects of infrastructure, decisions should significantly
contribute to sustainability. Similarly, fair and efficient systems of
infrastructures pricing will serve this objective.
The opening up of
energy and other
network
industries must be
fully implemented.
Finally, we need to ensure that the opening to competition of sectors like
energy and other network industries, which has already been agreed, is now
fully implemented on the ground. These measures offer an essential lever for
ensuring the best use of physical infrastructure with both industry and
consumers enjoying the benefits, wherever their location, of lower prices,
greater choice and a guarantee of high quality services of general interest to
all citizens.
EUROPEAN INFRASTRUCTURES
Modern transport and energy infrastructures throughout the European Union
territory are a prerequisite for reaping the benefits of a re-invigorated Lisbon
strategy. Member States must deliver on their commitments to start work on
45 “quick start” cross-border projects
for transport and energy. European
coordination on a project by project basis must be matched by a clear
commitment on the part of Member States concerned to launch a planning
and financing process. Member States should report on progress made as
part of their national action programmes.
3.3.
Knowledge and innovation for growth
Knowledge drives
productivity
growth.
In advanced economies such as the EU, knowledge, meaning R&D,
innovation and education, is a key driver of productivity growth. Knowledge
is a critical factor with which Europe can ensure competitiveness in a global
world where others compete with cheap labour or primary resources.
3.3.1.
Increase and improve investment in Research and Development
We must close the
EU’s R&D
investment gap
The EU, however, still invests about a third less than the USA in R&D. 80%
of the gap is due to under-investment in research and development from the
private sector, notable in ICT. The EU is currently spending only 2% of
GDP, barely up from the level at the time of Lisbon’s launch. We must
achieve faster progress towards the EU target of 3% of GDP for
R&D
expenditure.
This requires increased and more effective public expenditure,
more favourable framework conditions and powerful incentives for
companies to engage in innovation and R&D, as well as more numerous well
trained and motivated researchers.
MEETING THE 3% R&D TARGET
Progress towards the Lisbon target for EU research and
development spending (3% GDP by 2010) is largely in the
hands of Member States. In their national Lisbon programmes,
Member states should explain the steps which will bring this
target in reach. Mobilising more business investment is crucial
and Member States should take full advantage of the
possibilities that the new State aid framework.
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A key building block should also be a co-ordinated European
approach to
improve the tax environment for R&D.
This is
an increasingly important factor encouraging business to spend
more on investment research and development in other
countries. This will primarily be important for the growth of
high-tech small and medium sized enterprises throughout the
Union.
At EU level the
7
th
research framework programme
will aim
strongly boost our industries’ competitiveness in key
technology areas by pooling and strengthening efforts across
the EU and by leveraging private sector investment. The new
framework programme will also focus on excellence of the
research base through the future
European Research Council,
composed of independent world-class scientists, selecting
research projects and programmes on the basis of scientific
excellence.
REVISION OF THE STATE AIDS FRAMEWORK FOR R&D
AND INNOVATION
In the context of the overall reform of State aid rules, a
revision
of the existing State Aid Framework for R&D
will be brought
forward with the aim of facilitating access to finance and risk
capital as well as public financing of R&D and innovation. The
Commission will present a communication on the future of State
Aid policy before summer 2005. We need to make it easier to
provide financial support for research and innovation,
particularly for young and innovative companies. Today, limited
access to finance is one of the biggest barriers to innovation.
Public support should be available where the spill-overs for
society at large is significant, while ensuring that competitive
conditions are not distorted.
3.3.2.
Universities
have a crucial
role in creating
and spreading
knowledge.
Facilitate innovation, the uptake of ICT and the sustainable use of
resources
Universities’ contribution to the creation and dissemination of
knowledge throughout the Union must be reinforced.
The Commission
will come forward with ideas on how to increase their potential and quality in
research, science in order to be more attractive and build better links with
industry. The Commission will also propose guidelines to improve their
research collaboration and technology transfer with industry. It will address
the question of how to enable European universities to compete
internationally. In many ways, the existing approaches to financing,
governance and quality are proving inadequate to meet the challenge of what
has become a global market for academics, students and knowledge itself.
In order to achieve greater synergies between research, structural and
EU investment
should play its
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part.
cohesion funding, we should invest more in facilities for research and
innovation, which enable more regions to participate in EU level research
activities.
INNOVATION POLES
At a regional and local level, we need a greater focus on establishing
innovation poles,
bringing together high technology small and medium
sized enterprises, universities and the necessary business and financial
support.
Member States should exploit the opportunities offered by EU
regional and social funds to support regional innovation strategies. This is
crucial to exploiting new “centres of excellence”, promoted in our research
program so that we get more ideas out of the lab and into workshop. This will
be facilitated by strengthened links between the regional funds, the research
framework programme and the new Competitiveness and Innovation
Programme.
National Lisbon action programs should provide a roadmap for such
establishing and developing new and existing poles.
The search for knowledge has always been at the heart of the European
adventure. It has helped to define our identity and our values, and it is driving
force behind our future competitiveness. In order to reinforce our
commitment to knowledge as a key to growth, the Commission proposes the
creation of a “European
Institute of Technology”
to act as a pole of
attraction for the very best minds, ideas and companies from around the
World. The Commission will actively explore with the Member States and
public and private stakeholders on how best to take this idea forward.
Investment in
new
technologies…
…is crucial to
push up
productivity,
while….
Innovation is significantly affected by competition and tax policy, as well as
the speed with which new technologies are taken up, especially in the context
of rapidly changing technology.
More generally, our innovation performance is crucially dependent on
strengthening
investment and the use of new technologies, particularly
ICTs,
by both the private and public sectors. Information and
Communication technologies provide the backbone for the knowledge
economy. They account for around half of the productivity growth in modern
economies. However, investments in ICTs in Europe have been lower and
later than in the United States, especially in service sectors such as transport,
retail or financial services.
While the prime responsibility remains with business and public
administrations when making their investment programmes, Europe is
helping. A new initiative -
i2010: European Information Society
will
stimulate the take-up of ICTs, to continue the
eEurope
agenda which the
Lisbon Strategy fostered. It will do this by promoting a clear, stable and
competitive environment for electronic communications and digital services;
increased research and innovation in ICTs and an Information Society
dedicated to inclusion and quality of life.
i2010: European
Information
Society can
stimulate ICT
use
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We must also
meet resource
and
environmental
challenges...
Lasting success for the Union depends on addressing a range of
resource and
environmental challenges
which if left unchecked will act as a brake on
future growth. This goes to the heart of sustainable development. In contrast
to Europe, many parts of the world see high rates of economic growth
combined with rapid rise in their population. Europe must rise to this
challenge and take the lead in shifting towards more sustainable patterns of
production and consumption.
Moreover, by getting more output from given inputs innovation leading to
productivity growth can also make a significant contribution to ensuring that
economic growth is increasingly environmentally sustainable. This is why
eco-innovations need to be strongly promoted, notably in transport and
energy.
ECO-INNOVATION
The Commission will step up its promotion of environmental
technologies. It will also take necessary steps to promote the
development of approaches and technologies that allow the EU to
make the structural changes needed for long term sustainability, for
example in the areas of sustainable resource use, climate change
and energy efficiency. These are needed both for use within the EU
and to meet demand in expanding markets worldwide. There is
significant potential for economic, environmental and employment
synergies from environmental technologies and energy efficiency.
These will be supported by increased research and technology
dissemination efforts, including leveraging private finance through
the European Investment Bank, to promote the development and
uptake of low carbon technologies.
…Eco-
innovation will
hold the key.
3.3.3.
A strong
industrial base
can keep us at
the cutting edge
of science and
technology.
Contribute to a strong European industrial base
Taking the lead internationally in the field of R&D and innovation creates a
first-mover advantage which can be long-lasting, all the more so as
technological breakthroughs such as our experience with GSM enable Europe
to set international standards. In order to enhance and sustain an economic
and technological leadership Europe must have a
strong industrial capacity,
particularly by exploiting fully its technological potential.
We need an
integrated and anticipative approach based on market driven development of
industrial sectors. The synergies from jointly addressing research, regulatory
and financing challenges at the European level where for reasons of scale or
scope individual member states cannot succeed in isolation to tackle market
failures have not always been fully exploited.
The Galileo project and the aeronautics are powerful examples of a
successful pooling of European excellence – in both cases bringing
significant benefits to the European economy. Such approaches, mobilising
Galileo and
aeronautics
stand as
examples of
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where public-
private
partnerships
have delivered.
public private partnerships, should be developed to tackle cases where the
benefits for society are larger than those for the private sector: for example,
energy from hydrogen. The relaunch of the Lisbon strategy should create the
right conditions for tapping this potential and facilitating the necessary
structural change whilst working externally to achieve open markets.
EUROPEAN TECHNOLOGY INITIATIVES
Industrial competitiveness can be supported by setting up major
European technology initiatives mobilising funding from the Union,
Member States and industry. The next framework programme for
research can drive this process, providing sufficient priority. The
objective is to
tackle market failures and to advance concrete
product or service developments
on the basis of those
technologies that are not only fundamental to Europe’s sustainable
development model, but will also contribute to industrial
competitiveness. Their scale justifies additional EU funding, which
in turn will mobilise additional national and private funding. The
management would be handled through
public-private
partnerships.
Important examples relate to environment-friendly technologies,
such as hydrogen technologies and solar energy. For these projects,
Galileo, which will create an important market and numerous jobs,
is a good reference point. Increasing the EU’s ability to transform
technology into concrete products, markets and jobs is a key for the
Lisbon success.
The Commission will identify criteria, themes and projects in close
cooperation with the main stakeholders (Member States, research
community, industry, and civil society) and report to the European
Council in June. This process and the subsequent preparation and
funding phase will take place within the Framework Programme
preparation and adoption process.
3.4.
Creating more and better jobs
Europe needs
more and better
jobs...
…but
demographics
are putting our
employment
record under
further pressure.
Ensuring prosperity and reducing the risks of social exclusion means doing
more to give people jobs and make sure they remain in work or education
throughout their lives.
In a context of rapid economic change and intense demographic ageing,
creating more and better jobs is not just a political ambition: it is an economic
and social necessity. Over the next 50 years Europe will face an
unprecedented demographic transition. The total working population will
decrease in absolute terms on current demographic trends. Apart from the
significant social changes this transition will bring about, it will also put
enormous pressure on our pension and social security systems and, if left
unchecked, drag down potential growth rates to a paltry 1% per year. In
addition, the population of some our Member States could shrink
dramatically. The Commission will adopt a green paper to launch a debate on
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this demographic challenge in order to identify which public policies could
be put in place to address it.
Finally, the Commission will propose to
revise the European Employment
Strategy in 2005
as an integral part of the new Lisbon Strategy, building on
the Lisbon Action Plan.
3.4.1.
Attract more people into employment and modernise social
protection systems
We must attract
more people into
the labour
force…
While the issue of low birth rates in Europe should be properly addressed as
part of a long-term policy,
raising employment levels is the strongest
means of generating growth and promoting socially inclusive economies.
The challenge is to attract and keep more people in the labour market through
active labour market policies and appropriate incentives. Moving people from
unemployment or inactivity back to employment and giving incentives to stay
longer in the workforce all require the modernisation of social protection
systems. The huge potential of women in the labour market remains to be
fully exploited. social partners should be committed to further eliminate the
gender pay gap.
Action is also needed for
young people,
where Europe is still faced with high
structural unemployment and high drop out rates from education and for
older workers who still start exiting the labour market on a very large scale
by the time they reach 55 years of age. Moreover, many people find it
difficult to combine work with family life. The provision of better and
affordable child care facilities, in particular, could make an important
contribution. Legal migration to avoid shortages of specific skills and a
mismatch of demand and supply in important segments of the labour market
also has a key role to play
EUROPEAN YOUTH INITIATIVE
In their letter of 29 October 2004, the leaders of France, Germany,
Spain and Sweden put forward a proposal for a European Pact for
Youth which concentrates on reducing youth unemployment and
facilitating entry into the labour market. Finding ways to further
combine work and family life as a central element of the Initiative.
The Policy Areas presented in this Communication contain a
number of measures central to unleashing the potential of young
people. They will be important elements in the revised European
Employment Strategy and back-up by EU funding, notably through
the European Social Fund. Taken together these measures constitute
a genuine European Youth Initiative:
•
The policy area “Attract more people into employment and
modernise social protection systems” proposes measures to
reduce
youth unemployment
such as better vocational training
and the development of apprenticeships, and measures to ensure
that young unemployed people be given particular attention in
…and shape the
right policies for
both the young
and for older
workers.
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active labour market policy measures. Also under this heading,
actions aimed at improving facilities for childcare and for elderly
and disabled as well as extension of parental leave for fathers
will contribute to a more harmonious combination of work and
family life.
•
In the policy area “Increase investment in human capital through
better education and skills”, several measures specifically target
the younger generation and aim at
endowing this group with
the human capital and the skills needed
in a dynamic
knowledge-based economy. Examples of such measures are the
increase and improvement in effectiveness of investments in
education; the reduction of early school leavers and of low
achievers; and increased participation in mathematics, science,
technology and engineering studies.
•
Measures under the heading “Increase and Improve investment
in Research and Development” - linked with the ability to
increase the amount of human capital in the economy - will also
benefit the younger generations by
opening up new career
prospects.
The
modernisation
of social
protection
systems is also
important.
Member States should
modernise social protection systems
(most
importantly pensions and health care systems) and strengthen their
employment policies. Member States' employment policies should aim at
attracting more people into employment (notably through tax and benefit
reforms to remove unemployment and wage traps, improved use of active
labour market policies and active ageing strategies); improving the
adaptability of workers and enterprises notably through wage developments
in line with productivity growth and increased investment in human capital.
Increasing healthy life years will be a crucial factor in achieving this
objective.
The Commission is proposing that
Member States fix national employment
rate targets for 2008 and 2010
in their National Lisbon Programmes and
that they map out which policy instruments they intend to mobilise to reach
it. The employment guidelines will assist Member States in selecting the most
effective instruments and the Commission will, on this basis, in its Strategic
Annual Report assess progress.
Voluntary business initiatives, in the form of corporate social responsibility
(CSR) practices, can play a key role in contributing to sustainable
development while enhancing Europe’s innovative potential and
competitiveness.
Member States
should set
national targets
for
employment…
…and we need
the support of
the social
partners.
Finally, the
social partners
are asked to promote the integration of people
excluded from the labour market, including young people. This will not only
contribute to the fight against poverty, but also ensure that more people are in
work.
3.4.2.
Increase the adaptability of workers and enterprises and the
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flexibility of labour markets
A high degree
of adaptability
will boost our
performance and
help people into
jobs.
In rapidly changing economies,
a high degree of adaptability is also vital to
promote productivity growth and to facilitate job creation in rapidly
growing sectors.
Increasingly, new firms and SMEs are major sources of job
creation and growth in Europe. More flexibility combined with security will
require a greater ability of workers and enterprises to anticipate, trigger and
absorb change. Greater adaptability should also contribute to ensuring that
wage labour cost developments do not exceed in line with productivity
growth over the cycle and reflect the labour market situation. Given
differences in labour market institutions and the functioning of labour
markets, it is clear that a one–size-fits-all policy would be ineffective and
potentially counterproductive. Member States will themselves have to
develop the best policy mix.
In order to target specific problems, the Commission will make proposals to
remove obstacles to labour mobility
arising from occupational pension
schemes and work on the co-ordination of admission policy for economic
migrants. Adoption of proposed legislation to further mobility in the
professions, the adoption of a European Qualifications Framework in 2006
and the promotion of equal opportunities (recast proposal) are also of
fundamental importance.
3.4.3.
Investing more in human capital through better education and
skills.
We must remove
barriers to
mobility.
More
investment
in education
and skills is a
further factor.
Structural change, greater labour market participation and productivity
growth require a
continued investment in a highly skilled and adaptable
workforce.
Economies endowed with a skilled labour force are better able to
create and make an effective use of new technologies. Educational attainment
in Europe falls short of what might be required to ensure that skills are
available in the labour market and that new knowledge is produced that is
subsequently diffused across the economy. The emphasis on lifelong learning
and knowledge in economic life also reflect the realisation that advancing
educational attainment and skills makes an important contribution to social
cohesion.
The modernisation and reform of Europe's education and training systems is
mainly the responsibility of Member States. However, there are certain key
actions that must be taken at European level to facilitate and contribute to this
process. The proposal for a new
Lifelong Learning programme,
to replace
the current generation of education and training programmes from 2007, must
be adopted by the legislator by the end of 2005 in order to allow it's effective
and timely implementation. It must also be endowed with a budget consistent
with its aims. Member States must fulfil their commitment to put in place
Lifelong Learning Strategies by 2006.
The Community will contribute to the objective of more and better jobs by
mobilising its expenditure policies. The
Structural Funds
are already being
used and geared towards these objectives, but this progress can only be
consolidated through the adoption of the proposals for the new
Framework post 2007.
Adequate funding for these policies which would
27
Life long
learning is a
priority.
EU funding
has a role to
play.
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lever regional and national means from the public and the private sector and
support the sharing of best practices is required.
DELIVERING LISBON: REFORM OF EU COHESION POLICY AND
THE ROLE OF THE STRUCTURAL FUNDS
For the next generation of regional development, European Social Fund and
cohesion programmes, the Commission proposes a more strategic approach in
an effort to ensure that their content is targeted on growth and jobs. Strategic
guidelines will be established at Community level by decision of the Council,
setting the framework for guidelines at the level of each Member State to be
negotiated in partnership and taking account of differing national and
regional needs and circumstances.
The future regional programmes and the national employment programmes
will seek to target resources notably in the less prosperous regions where
Community resources will be concentrated:
– on developing more and better jobs through investments in training and in
the creation of new activities,
– by encouraging innovation and the growth of the knowledge economy by
reinforcing research capacities and innovation networks, including the
exploitation of the new information and communication technologies and,
– on improving the attractiveness of regions through infrastructure
provision.
Rural Development policies will also focus more specifically on the creation
of growth and jobs in rural areas. Full advantage needs to be taken of the
possibilities on the internet and broadband communications to overcome the
disadvantages of location.
This should be taken forward by Member States, in partnership with regions
and cities.
3.5.
Lisbon delivers
growth in
medium- and
longer-term.
The impact on growth and jobs
The policy actions set out in this communication will evolve as Member
States detail their national action programmes. While it is not possible,
therefore, to provide a comprehensive assessment of the effects of the whole
Lisbon Action Programme at this stage, it is now widely recognised that the
type of measures envisaged in this Action Programme can make an essential
contribution to increasing the growth potential in the medium- and longer-
term
3
.
Making Europe a more attractive place to invest and work
3
See “The costs of non-Lisbon. An issues paper”, draft working document of the services of the
Commission.
28
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A Single Market
in services could
add 0.6% to
GDP and
increase the
employment rate
by 0.3%, …
The Internal Market Programme is one of the best examples of a Lisbon-type
reform leading to a significant impact on growth and employment. For
example, the completion of a single market in services should lead to an
increase in the GDP level by 0.6% and of employment level by 0.3% in the
medium-term. The integration of financial markets could – in the medium to
long term – lower the cost of capital for EU companies by about 0.5
percentage points and that this could bring about a 1.1% rise in the level of
GDP and 0.5% in the level of employment in the long run.
Knowledge and innovation for growth
Investing in the knowledge should increase the capacity of the EU to innovate
…investing in
and to produce and use new technologies. An increase in the share of R&D
knowledge and
expenditures in GDP from 1.9% to 3% (in order to reach the Lisbon target by
education should
2010) would result in an increase of 1.7% in the level of GDP by 2010.
boost our
Investment in human capital is also necessary because highly skilled people
capacity to
are the ones who are best equipped to work with the most productive capital
innovate, …
and to implement organisational changes appropriate for the new
technologies. An increase by one year in the average education level of the
labour force might add as much as 0.3 to 0.5 percentage points to the annual
EU GDP growth rate.
Creating more and better jobs
…and the right
approach to
employment
could raise the
participation
rate by 1.5%.
Finally, the improvement in the employment performance observed in the
latest years is more significant in those countries that have carried out
reforms aimed at increasing the participation rate and at better designing
active labour market policies and tax and benefit systems. Studies show that
such reforms can increase the participation rate by 1 �½ percentage points and
combined with wage moderation, they may result in a 1% reduction in the
unemployment rate.
As the above selection illustrates, the individual measures envisaged in the
Lisbon Action Programme would have substantial positive economic effects.
But the strategy is a comprehensive package of reforms which are mutually
reinforcing. The available estimates indicate that it would not be
unreasonable to expect the full Lisbon Action Programme, once all its
constituent components have been implemented, to increase the current EU
potential growth rate bringing it closer to the 3% objective. It would also
raise employment by at least some 6 million jobs by 2010.
The mutually
reinforcing
nature of these
individual steps
means that the
overall impact
could be much
higher.
4.
M
AKING THE PARTNERSHIP DELIVER ON GROWTH AND JOBS
While some progress has been made towards reaching the targets set at the
Lisbon European Council in 2000, the overall picture is very mixed. The
single biggest challenge we are facing midway towards 2010 is, therefore, to
fix the implementation deficit. We need to revamp the delivery process which
has become too complicated and is poorly understood. It generates much
paper, but little action. Responsibilities between the national and the
29
We are revamping
the way Lisbon is
delivered, …
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European level have become blurred. Limited ownership is the result
To remedy this, the Commission proposes a complete overhaul of how the
renewed Lisbon Strategy is implemented:
•
A single National Action Programme for growth and jobs,
adopted
by national governments after discussion with their parliaments would
help to get ownership and legitimacy at the national level would be
strengthened through the involvement of social partners and civil
society in the preparation of a national Lisbon programme. This
programme sets out the reform actions and targets appropriate to the
conditions prevailing in the member states. It should be prepared and
adopted by governments following discussions with their national
parliaments.
Member States would appoint a Mr or Ms Lisbon at government
level
charged with co-ordinating the different elements of the strategy
and presenting the Lisbon programme.
The
national Lisbon programmes
for growth and jobs would
become the major reporting tool on economic and employment
measures in the context of the Lisbon strategy. This will greatly
simplify the myriad of existing reports under the Open Method of Co-
ordination (OMC), which the Commission will review.
Priorities for action at Union level
have been identified and have
been set out in a separately published in a Community Lisbon Action
Programme. Agreement on their importance is sought to enable rapid
progress with decision making and, subsequently, their
implementation.
… through a
single national
Lisbon
programme for
growth and
jobs,…
…a Mr or Ms
Lisbon in national
Governments,
…a single
reporting
structure…
•
•
…alongside an
EU Lisbon
Programme, and
….
•
a single
integrated
package for
economic and
employment co-
ordination.
•
The simplification in reporting structures would be mirrored at EU
level by
integrating in a single package the existing Treaty based
economic and employment co-ordination mechanisms
(under the
Broad Economic Policy Guidelines and Employment Guidelines): this
will be done in a Strategic Annual report which will be published
annually in January.
Member States.
Delivery is the Achilles heel of the Lisbon strategy. The
proposals for improving the delivery mechanism could resolve many of the
difficulties. But they will only work if there is genuine commitment from
Member States.
Clear roles would also be assigned at the European level:
Member States
must show their
commitment.
The European
Council sets the
direction…
The European Council
would have overall responsibility for guiding the
process. An integrated approach for adopting guidelines for national
programmes for growth and jobs as well as for simplified reporting by
Member States on implementation will allow even stronger guidance from
the European Council.
The European Parliament
would also be involved in this process by giving
an opinion on the Strategic Annual report to be taken into account by the
30
…drawing on the
views of the
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European
Parliament…
Council. Presidents of the Parliament, the Council and the Commission could
continue to meet regularly, including before the Spring European Council, to
identify how the legislative proposals related to the Community Lisbon
Programme can be taken forward in the legislative process. The Commission
will also inform the European Parliament on a regular basis about its analysis
of progress made and measures adopted by the Member States.
The Commission
would support the Member States in drawing up their
Lisbon programmes and will put the necessary structures in place to facilitate
this process. It would evaluate the targets and measures adopted by the
Member States, draw attention to underlying difficulties and use its strategic
annual report to ensure the Union remains on track. This would be
complemented by the use of its powers under the Treaty to ensure correct
transposition of legislation and that Member States’ Lisbon commitments are
kept.
The role of the
social partners
will also be vital. Their support will be
crucial in areas such as active labour market policies, life long learning or
anticipating restructuring in industrial sectors. Therefore, the Commission
invites them to draw up their own multi-annual Lisbon programme for
growth and jobs using the powers granted to them under the Treaty. The
regular Tripartite Summit should be dedicated to the evaluation of progress
made and to the exchange of best practices within the Member States. The
Partnership for growth and jobs is, therefore, fully consistent with the
ambitions of the partnership for change adopted by the social partners at the
Tripartite Summit in March 2004.
This new 3 year cycle would be launched in 2005 with new more general
economic and employment guidelines being set, allowing member states to
tailor make their national Lisbon programmes to cater for their national
situations. A review would take place in 2008. A detailed overview of the
new approach to governance is being published separately.
In summary, the proposals to make the partnership deliver on growth and
jobs are based on a clear attribution of responsibilities allowing all actors to
take ownership of the actions under their responsibility. The new approach
clears away the jungle of existing reporting obligations. Essentially, it shifts
the focus from co-ordination through multi-lateral discussions between 25
Member States and the Commission, on individual policy themes (the Open
Method of Co-ordination), with a bilateral in depth dialogue between the
Commission and Member States on a commitment based national action
programme. This dialogue is framed by the existing Treaty based economic
and employment policy co-ordination tools – the Broad Economic Policy
Guidelines and the Employment Guidelines.
Finally, this approach will allow us to reap genuine synergies from action at
the different levels of the partnership and build on complementarities with
and between the Member States. For example, Member States will be
confirming national R&D expenditure targets in their Lisbon programmes
and setting out the actions they intend to take. At Community level, a
doubling of R&D expenditure is proposed under the seventh framework
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…and the
Commission
drives the process
forward.
The Social
Partners should
play a special
role.
This new 3 year
cycle starts in
2005.
This structures
our partnership
and ensures
change will
happen.
…allowing us
to reap the
benefits of
coherent action
in different areas
and at different
levels.
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programme and a number of policy measures are foreseen to facilitate R&D
expenditure in the Member States. Based on the national Lisbon programmes,
the Commission will, therefore, be able to annually evaluate progress towards
the 3% of GDP R&D expenditure target for the Union as a whole, make any
necessary proposals for adjusting policy instruments, give feedback to
Member States and, if necessary, report on serious difficulties to the
European Council.
Informing people
about Lisbon is an important step to creating a
commitment on all levels of government.
Above all, people
need to
understand why
Lisbon matters.
The challenge of making the case for reform does not stop with this Report,
nor even with the launch of the partnership for growth and jobs at the March
European Council. Lisbon’s ambitious agenda of reform must go together
with efforts to explain the challenges we face. The case for reform must be
made and remade, in order to capture the sense of urgency and show that that
we can offer a response – a distinct, European response. But getting this
message across requires a real and sustained effort.
This task must be shared by the European Institutions. But the prime
responsibility is at the Member States level, where messages can be tuned to
national concerns and national debates. This must involve all those with a
stake in Europe’s success – national parliaments, the regions, cities and rural
communities, as well as civil society. The Commission for its part will be
treating this agenda for growth and jobs as a central communications priority
throughout its mandate.
…and this must
be explained at
EU and national
level.
32