PDF to HTML - Convert PDF files to HTML files

Europaudvalget 2004-05 (2. samling)
Det Europæiske Råd 22-23/3 2005 Bilag 17
Offentligt

merne af Folketingets Europaudvalg

stedfortrædere.

Journalnummer

400.C.2-0

EUK

21. marts 2005

Til underretning for Folketingets Europaudvalg vedlægges i forbindelse med Det Europæiske

Råd i Bruxelles den 22.-23. marts 2005 Kommissionens meddelelse til Europa-Parlamentet og

Rådet om bedre regulering for vækst og jobs i EU, 5990/05+ADD1+ADD2.

5990/05

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

COUNCIL OF

THE EUROPEAN UNION

Brussels, 8 February 2005

5990/05

ECOFIN 28

SOC 34

AG 4

MI 6

COMPET 14

IND 8

RECH 14

EDUC 11

ENV 43

COVER NOTE

from:

date of receipt:

to:

Subject:

Secretary-General of the European Commission,

signed by Ms Patricia BUGNOT, Director

8 February 2005

Mr Javier SOLANA, Secretary-General/High Representative

Communication to the Spring European Council: Working together for growth

and jobs - A new start for the Lisbon Strategy

Delegations will find attached Commission document COM(2005) 24 final.

________________________

Encl.: COM(2005) 24 final

5990/05

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.2.2005

COM(2005) 24 final

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

{SEC(2005) 192, SEC(2005) 193}

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

TABLE OF CONTENTS

Foreword .................................................................................................................................... 4

Growth and jobs: A New Start for the Lisbon Strategy ............................................................. 4

Executive Summary ................................................................................................................... 8

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.

Growth and jobs centre stage ..................................................................................... 13

Building a european partnership for growth and employment................................... 15

Actions to deliver growth and jobs ............................................................................ 16

A Lisbon Action Programme for the Union and the Member States ......................... 16

Making Europe a more attractive place to invest and work ....................................... 17

Extend and deepen the Single Market ........................................................................ 17

Ensure open and competitive markets inside and outside Europe ............................. 19

Improve European and national regulation ................................................................ 19

Expand and improve European infrastructure............................................................ 20

Knowledge and innovation for growth ...................................................................... 21

Increase and improve investment in Research and Development .............................. 21

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 ...... 26

Increase the adaptability of workers and enterprises and the flexibility of labour

markets ....................................................................................................................... 28

Investing more in human capital through better education and skills. ....................... 28

The impact on growth and jobs .................................................................................. 30

Making the partnership deliver on growth and jobs................................................... 31

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

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 toget-

her 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

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 consolida-

tes economic stability and deepens the potential of economic integration. We have conso-

lidated 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 de-

velopment than any other region of the world.

We have done this by acting in partnership – Europe’s institutions, government and ad-

ministrations 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 toget-

her; a vision, confirmed in the Constitution, of ensuring “the sustainable development of

Europe based on balanced economic growth and price stability, a highly competitive soci-

al market economy, aiming at full employment and social progress and a high level of pro-

tection and improvement of the quality of the environment”.

The past 50 years have seen extraordinary progress, but in a changing world Europe can-

not 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 capab-

le 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 con-

ditions 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 conditi-

ons since Lisbon was launched, it also results from a policy agenda which has become

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

overloaded, failing co-ordination and sometimes conflicting priorities. For some this sug-

gests that we should abandon the ambition of 5 years ago. The Commission does not ag-

ree. 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 renew-

ed 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 chai-

red 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 overar-

ching 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

reinforcing, they target complementary actions, use different instruments and produce

their results in different time frames.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

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 fi-

gures. 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 chal-

lenge. 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 rigou-

rous 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 deli-

vering these reforms. They must become part of national political debate.

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.



Third, we need to

simplify and streamline Lisbon.

This means clarifying who does

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.

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

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

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 Perspecti-

ves 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.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

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 vigoro-

us 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 con-

sensus 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.

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).

A renewed Lisbon Action Programme

This Report does not attempt to rewrite the Lisbon strategy, but it does identify new ac-

tions at European and national level which will help to see our Lisbon vision is achieved.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

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

Expand and improve European Infrastructure



We must extend and deepen the internal market. Member States must im-



prove

implementation of existing EU legislation

if businesses and con-

sumers 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 con-

sumer 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 relati-

onships.

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, biotech-

nology and eco-innovation should help them to do this.



More investment by both the

public and private sector spending on re-

search and development.

At EU level, we need the early adoption by the

European Parliament and Council of the next

Research Framework pro-

gramme

and of a

new programme for competitiveness and innovati-

on.

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 medi-

um-sized businesses.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files



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 Re-

search 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 pro-



gramme

ahead of the Spring 2005 European Council identifying their con-

tribution 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 the-

re, 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

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 deve-

lop its priorities in responding to the demographic challenge that we face.

Member States and the social partners must improve the

adaptability of

the 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 ap-

proach 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

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

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 Pro-

gramme

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 le-

vel.

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 for-

ward a

Lisbon Action Programme.

In addition, the Commission is proposing an integrated approach to

streamline the exi-

sting Broad Economic Policy and Employment Guidelines

within a new econo-

mic and employment cycle.

In future, an integrated set of Guidelines alongside the Lis-

bon Action Programme will be used to move the reform agenda forward. These will co-

ver 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 po-

licy issues without being encumbered by the multitude of sectoral reports which are cur-

rently 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

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

– Approve the new arrangements for governance of the Lisbon Strategy set out in this Re-

port, 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.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

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

. 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

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 im-

plement 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 part-

ners and civil society and all Community institutions. They should all 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.

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.

Sound macroecono-

mic conditions are

the starting point for

success.

Sound macroeconomic conditions and policies

Sound macroeconomic conditions are essential to underpin a credible effort to incre-

ase 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 eco-

nomy, while ensuring that Member States can play a full role in creating conditions

Report from the High Level Group on the Lisbon Strategy, chaired by Wim Kok, November 2004.

http://europa.eu.int/growthandjobs/index_en.htm.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

for long-term growth.

Productivity and employment

More and better

jobs….

…enhanced compe-

titiveness through

productivity growth

…

…must go hand in

hand.

Open international

markets matter.

The Lisbon strategy gives equal importance to increasing both employment and pro-

ductivity, through enhanced competitiveness.

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 impro-

ving 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 industria-

lising economies will make a significant contribution to growth 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.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

The responsibility

must be shared

between the EU

and national level.

Against the backdrop, pushing forward our policy agenda relies on action at both

Union and national level. Success depends on shared responsibilities and shared ow-

nership. This is why a partnership is indispensable.

UILDING A EUROPEAN PARTNERSHIP FOR GROWTH AND EMPLOYMENT

The Commission has just recently proposed building a partnership for European re-

newal

. 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 Stra-

tegy 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:

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 to-

gether – after all, everyone's individual input is essential to ensure collective

success. The scale of the challenges is such, and our economies so interde-

pendent, 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 suf-

ficiently in terms of delivery, particularly at national level. Mobilisation is pos-

sible 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 sing-

le national action programme – following broad consultation – and a single

national report on the Lisbon Strategy (see point 4).



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 commit-

ment of every partner.



Growth and jobs –

the first example

of our Partnership

for European

renewal.

To succeed we

must take Lisbon

forward by ….

…mobilising sup-

port…

…spreading own-

ership…

…and strengthen-

ing priorities.

CTIONS TO DELIVER GROWTH AND JOBS

3.1.

A Lisbon Action Programme for the Union and the Member States

Three main are-

as…

…will simplify

At the heart of the proposed partnership for growth and jobs is a

Lisbon Action Pro-

gramme.

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

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

COM(2005) 12, “Strategic objectives 2005-2009. Europe 2010: a partnership for European renewal –

Prosperity, solidarity and security”.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

our approach…

…setting out who

does what, by

when and how we

will judge pro-

gress.

All EU Institu-

tions have a role

to play.

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 parti-

cular, 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 Euro-

pean Economic and Social Committee, the Committee of the Regions or in the finan-

cial field the European Investment Bank.

As regards the national level, the Commission will be a facilitator through benchmar-

king, 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 speci-

fic situation, are expected to make firm commitments within their own national action

programmes. These should cover concrete measures, including a time-table and pro-

gress indicators. The Commission will continue to monitor and assess the progress

made, using the new method of reporting and coordination described below.

Member States

must make firm

commitments.

SEC(2005) 192, “Lisbon Action Plan incorporating EU Lisbon Programme and recommendations for

actions to Members States for inclusion in their national Lisbon Programmes”,

http://europa.eu.int/growthandjobs/index_en.htm.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

3.2.

Making Europe a more attractive place to invest and work

We need a better

environment for

our small and

medium-sized

businesses.

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.

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 em-

ployment. There are just too many obstacles to becoming an entrepreneur or starting a

business, and, therefore, Europe is missing opportunities. Encouraging more entrepre-

neurial initiative implies promoting more entrepreneurial attitudes. The balance bet-

ween 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

Completing the Single Market,

particularly in the area of services, regulated profes-

sions, energy, transport, public procurement and financial services remains a crucial

task. Providing high quality services of general interest to all citizens at affordable pri-

ces 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.

Removing remaining barriers will create new opportunities for market entrants and the

resulting competition will spur investment and innovation. This is all the more impor-

tant against a backdrop of stagnating intra-EU trade in goods and stalling price con-

vergence.

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. The Commission will return to this issue later in

2005.

We need to extend

and deepen the

internal market...

…spur investment

and innovation….

Making the most

of services of

general economic

interest

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

…and national

administrations

have a central

role.

Finally, Member States should ensure that their own regulatory systems are better attu-

ned 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 conditi-

ons (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 entrepre-

neurs.

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 soluti-

ons 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 demon-

strates 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 stake-

holders 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 sec-

tors.

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 com-

petitiveness 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 co-

operate fully with Parliament and with Council in search for pragmatic solu-

tions 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 agree-

ment on a

common consolidated corporate tax base

and its implementa-

tion. 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 important proposal and

rapid progress towards a workable solution that supports innovation must

be pursued.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

3.2.2.

Competition is of

fundamental im-

portance.

Ensure open and competitive markets inside and outside Europe

Member States

must reduce and

redirect State aid.

EU business also

needs open global

markets.

Competition is of fundamental importance for the whole partnership for growth and

jobs.

EU competition policy has played a key role in shaping European compe-

titive 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 regulato-

ry 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 sec-

tors 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 bilate-

ral 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. Ensu-

ring 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 coun-

tries 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

Cutting unnecessary costs, removing obstacles to adaptability and innovation and more

competition and employment friendly legislation will help create more conducive con-

ditions for economic growth and improved productivity. This comprises measures

such as simplification, well shaped legislation and efforts to reduce the burden of ad-

ministrative costs. The right regulatory framework will also strengthen consumer con-

fidence and help them contribute to growth. Regulatory burdens also disproportiona-

tely 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 un-

necessary 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 condi-

tions for economic growth, employment and productivity by improving

quality of legislation, thereby creating the right incentives for business, cut-

ting unnecessary costs and removing obstacles to adaptability and innovati-

on.

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

The right regula-

tory framework

helps business

and builds con-

sumer confidence.

We must remove

unnecessary bur-

dens

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

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 methodolo-

gy of how to carry out impact assessments.

– The cumulated burden of regulation, difficult market access and insuf-

ficient 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 in-

novation inhibiting obstacles in key sectors. A special attention will be

given to burdens for small and medium sized enterprises.

3.2.4.

A modern infra-

structure facili-

tates trade and

mobility.

Expand and improve European infrastructure

The Single Market needs to be equipped with

modern infrastructure

to facilitate tra-

de 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 loca-

tions. 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.

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 indus-

tries 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 indu-

stry and consumers enjoying the benefits, wherever their location, of lo-

wer prices, greater choice and a guarantee of high quality services of ge-

neral interest to all citizens.

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

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 drives

productivity

growth.

Knowledge and innovation for 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

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 effec-

tive public expenditure, more favourable framework conditions and powerful incenti-

ves 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 in-

vestment is crucial and Member States should take full advantage of the

possibilities that the new State aid framework.

A key building block should also be a co-ordinated European approach

improve the tax environment for R&D.

This is an increasingly im-

portant factor encouraging business to spend more on investment re-

search and development in other countries. This will primarily be im-

portant for the growth of high-tech small and medium sized enterprises

throughout the Union.

At EU level the

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 excel-

lence of the research base through the future

European Research

Council,

composed of independent world-class scientists, selecting re-

search 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, li-

mited 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

We must close the

EU’s R&D in-

vestment gap

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

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 re-

sources

EU investment

should play its

part.

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 pro-

pose guidelines to improve their research collaboration and technology transfer with

industry. It will address the question of how to enable European universities to compe-

te 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 mar-

ket for academics, students and knowledge itself.

In order to achieve greater synergies between research, structural and cohesion fun-

ding, 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, univer-

sities 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”, promo-

ted in our research program so that we get more ideas out of the lab and into work-

shop. This will be facilitated by strengthened links between the regional funds, the

research framework programme and the new Competitiveness and Innovation Pro-

gramme.

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 Tech-

nology”

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.

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 priva-

te and public sectors. Information and Communication technologies provide the back-

bone 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: Eu-

ropean Information Society

will stimulate the take-up of ICTs, to continue the

eEu-

rope 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.

Lasting success for the Union depends on addressing a range of

resource and en-

vironmental 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

Investment in new

technologies…

…is crucial to

push up produc-

tivity, while….

i2010: European

Information So-

ciety can stimu-

late ICT use

We must also meet

resource and

environmental

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

challenges...

of the world see high rates of economic growth combined with rapid rise in their po-

pulation. 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 syner-

gies from environmental technologies and energy efficiency.

These will be supported by increased research and technology dissemination

efforts, including leveraging private finance through the European Invest-

ment Bank, to promote the development and uptake of low carbon techno-

logies.

…Eco-innovation

will hold the key.

3.3.3.

A strong industri-

al base can keep

us at the cutting

edge of science

and technology.

Contribute to a strong European industrial base

Galileo and aero-

nautics stand as

examples of where

public-private

partnerships have

delivered.

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 breakt-

hroughs such as our experience with GSM enable Europe to set international stan-

dards. In order to enhance and sustain an economic and technological leadership Eu-

rope 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 public private partnerships, should be develo-

ped 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 struc-

tural 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

the basis of those technologies that are not only fundamental to Europe’s

sustainable development model, but will also contribute to industrial com-

petitiveness. Their scale justifies additional EU funding, which in turn will

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

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 coopera-

tion with the main stakeholders (Member States, research community, indu-

stry, 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.

Europe needs

more and better

jobs...

…but de-

mographics are

putting our em-

ployment record

under further

pressure.

Creating more and better jobs

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 un-

checked, 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 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…

…and shape the

right policies for

both the young

and for older

workers.

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 em-

ployment and giving incentives to stay longer in the workforce all require the moderni-

sation 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 structu-

ral 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

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

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 unem-

ployment

such as better vocational training and the development of

apprenticeships, and measures to ensure that young unemployed peo-

ple be given particular attention in active labour market policy

measures. Also under this heading, actions aimed at improving facili-

ties for childcare and for elderly and disabled as well as extension of

parental leave for fathers will contribute to a more harmonious combi-

nation of work and family life.



In the policy area “Increase investment in human capital through bet-

ter 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 econo-

my. 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 young-

er generations by

opening up new career prospects.

The moderni-

sation

of social

protection

systems is

also im-

portant.

Member

States should

set national

targets for

employ-

ment…

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.

Finally, the

social partners

are asked to promote the integration of people exclu-

ded 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.

…and we

need the

support of the

social part-

ners.

3.4.2.

Increase the adaptability of workers and enterprises and the flexibility

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

of labour markets

A high degree

of adaptabil-

ity will boost

our perfor-

mance and

help people

into jobs.

We must

remove barri-

ers to mobili-

ty.

In rapidly changing economies,

a high degree of adaptability is also vital to

promote productivity growth and to facilitate job creation in rapidly gro-

wing sectors.

Increasingly, new firms and SMEs are major sources of job creation

and growth in Europe. More flexibility combined with security will require a grea-

ter ability of workers and enterprises to anticipate, trigger and absorb change. Gre-

ater adaptability should also contribute to ensuring that wage labour cost develop-

ments 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

re-

move obstacles to labour mobility

arising from occupational pension schemes

and work on the co-ordination of admission policy for economic migrants. Adop-

tion of proposed legislation to further mobility in the professions, the adoption of

a European Qualifications Framework in 2006 and the promotion of equal oppor-

tunities (recast proposal) are also of fundamental importance.

3.4.3.

Investing more in human capital through better education and skills.

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 eco-

nomy. 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.

investment

in education

and skills is

a further

factor.

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Life long

learning is a

priority.

EU funding

has a role to

play.

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 imple-

mentation. It must also be endowed with a budget consistent with its aims. Mem-

ber States must fulfil their commitment to put in place

Lifelong Learning Stra-

tegies by 2006.

The Community will contribute to the objective of more and better jobs by mobil-

ising 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 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 co-

hesion programmes, the Commission proposes a more strategic approach in an

effort to ensure that their content is targeted on growth and jobs. Strategic guide-

lines 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 cir-

cumstances.

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 ex-

ploitation 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.

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

3.5.

Lisbon deliv-

ers growth in

medium- and

longer-term.

The impact on growth and jobs

A Single

Market in

services could

add 0.6% to

GDP and

increase the

employment

rate by

0.3%...

…investing in

knowledge

and education

should boost

our capacity

to innovate,

…

…and the

right ap-

proach to

employment

could raise

the participa-

tion rate by

1.5%.

The mutually

reinforcing

nature of

these individ-

ual steps

means that

the overall

impact could

be much

higher.

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 pro-

vide a comprehensive assessment of the effects of the whole Lisbon Action Pro-

gramme at this stage, it is now widely recognised that the type of measures envisa-

ged in this Action Programme can make an essential contribution to increasing the

growth potential in the medium- and longer-term

Making Europe a more attractive place to invest and work

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 em-

ployment in the long run.

Knowledge and innovation for growth

Investing in the knowledge should increase the capacity of the EU to innovate and

to produce and use new technologies. An increase in the share of R&D expenditu-

res in GDP from 1.9% to 3% (in order to reach the Lisbon target by 2010) would

result in an increase of 1.7% in the level of GDP by 2010. Investment in human

capital is also necessary because highly skilled people are the ones who are best

equipped to work with the most productive capital and to implement organisatio-

nal 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 percen-

tage points to the annual EU GDP growth rate.

Creating more and better jobs

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 polici-

es 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 stra-

tegy 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 imple-

mented, 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.

See “The costs of non-Lisbon. An issues paper”, draft working document of the services of the Commission.

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

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 challen-

ge 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 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 na-

tional 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 nati-

onal Lisbon programme. This programme sets out the reform actions and tar-

gets appropriate to the conditions prevailing in the member states. It should be

prepared and adopted by governments following discussions with their natio-

nal parliaments.



Member States would appoint a Mr or Ms Lisbon at government level

charged with co-ordinating the different elements of the strategy and presen-

ting 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 un-

der 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. Ag-

reement on their importance is sought to enable rapid progress with decision

making and, subsequently, their implementation.



The simplification in reporting structures would be mirrored at EU lev-

el by

integrating in a single package the existing Treaty based eco-

nomic 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:

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 opini-

on on the Strategic Annual report to be taken into account by the 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

We are revamping

the way Lisbon is

delivered, …

… through a sin-

gle national Lis-

bon programme

for growth and

jobs,…

…a Mr or Ms

Lisbon in national

Governments,

…a single report-

ing structure…

…alongside an

EU Lisbon

Programme, and

….

a single integrat-

ed package for

economic and

employment co-

ordination.



Member States

must show their

commitment.

The European

Council sets the

direction…

…drawing on the

views of the Eu-

ropean Parlia-

ment…

SEC(2005) 193, “Delivering on Growth and Jobs: a new and integrated economic and employment co-

ordination cycle in the EU”,

http://europa.eu.int/growthandjobs/index_en.htm.

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

…and the Com-

mission drives the

process forward.

The Social Part-

ners should play a

special role.

This new 3 year

cycle starts in

2005.

This structures

our partnership

and ensures

change will hap-

pen.

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 pro-

grammes 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 commit-

ments 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 pro-

gress made and to the exchange of best practices within the Member States. The Part-

nership 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 sepa-

rately.

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 exi-

sting 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 em-

ployment 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 diffe-

rent levels of the partnership and build on complementarities with and between the

Member States. For example, Member States will be confirming national R&D expen-

diture 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 se-

venth framework 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 propo-

sals 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.

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 chal-

lenges 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

…allowing us

to reap the bene-

fits of coherent

action

in different areas

and at different

levels.

Above all, people

need to under-

stand why Lisbon

matters.

…and this must

be explained at

EU and national

level.

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Commission for its part will be treating this agenda for growth and jobs as a central

communications priority throughout its mandate.

COUNCIL OF

THE EUROPEAN UNION

Brussels, 8 February 2005

5990/05

ADD 1

ECOFIN 28

SOC 34

AG 4

MI 6

COMPET 14

IND 8

RECH 14

EDUC 11

ENV 43

COVER NOTE

from:

date of receipt:

to:

Subject:

Secretary-General of the European Commission,

signed by Ms Patricia BUGNOT, Director

8 February 2005

Mr Javier SOLANA, Secretary-General/High Representative

Lisbon Action Plan incorporating EU Lisbon programme and recommenda-

tions for actions to Member States for inclusion in their national Lisbon pro-

grammes - Companion document to the Communication to the Spring Europe-

an Council 2005 (COM(2005) 24 final) Working together for growth and jobs

Delegations will find attached Commission document SEC(2005) 192.

________________________

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Encl.: SEC(2005) 192

5990/05 ADD 1

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.2.2005

SEC (2005) 192

LISBON ACTION PLAN INCORPORATING EU LISBON PROGRAMME AND

RECOMMENDATIONS FOR ACTIONS TO MEMBER STATES FOR INCLUSION

IN THEIR NATIONAL LISBON PROGRAMMES

Companion document to the Communication to the Spring European Council 2005

{COM (2005) 24 final}

Working together for growth and jobs

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

The fiches enclosed provide a draft Lisbon Action Programme.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 1:

Extend and deepen the Internal Market

Completing the Single Market, particularly in the area of services, regulated professions, public procure-

ment and financial services remains a crucial task. So does better implementation and enforcement of

legislation already decided. A fresh political impulse to the Single Market can be expected to make a

significant contribution to growth and jobs as the removal of remaining barriers will create new opportu-

nities for market entrants. The resulting greater competition will also spur investment and innovation.

This is all the more important against a backdrop of stagnating intra-EU trade in goods and stalling

price convergence. Part of making the most of the Internal Market in EU-25 relies on Member States

taking greater ownership and working together in partnership in order to make it easier to trade and

invest. In this context, Member States should ensure that their own regulatory systems are better attuned

to the needs of an EU-wide market.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 1: Extend and deepen the Internal Market

OLICY

EA-

SURE AT

OMMUNITY

LEVEL

Free movement of

services:

Remove

the

remaining barriers

to trade and in-

vestment in services

within the Euro-

pean Union

NSTRUMENT

OADMAP

ROGRESS

NDI-

CATOR

(

IF EXISTING

)

MPACT ON JOBS

AND GROWTH

Legislation

Administrative

cooperation

Transparency

national regulation.

Legislation

- Currently: directi-

ve on Services un-

der negotiation in

Council and Parlia-

ment.

- By the end of

2005,

common

position.

- Respect agreed

timetables for libe-

ralisation of energy

and transport mar-

kets, including 3rd

railway

package,

access to seaport

services

- In 2005, proposal

to extend the Direc-

tive 98/34 to ser-

vices. - By 2007,

adoption.

Increase in trade and

investment in services

within the EU

Reduction in administrati-

ve costs of regulation

Establish mechanisms to

support

administrative

cooperation

Removing restrictions and

simplifying administrative

procedures will create

important business op-

portunities for cross bor-

der services activity and

thus free up enormous

growth and job creation

potential.

Prevention of the creation

of new barriers



to the freedom to

provide

intra-

Community

ser-

vices,



to the freedom of

establishment

service providers.

Increased

regulatory

transparency and surveil-

lance.

Free movement of

goods:

Revision of the

New Approach

Legislation

VAT payments

Legislation

- In 2005, Commis-

sion proposal to be

adopted.

- In 2006, Adoption

of the new legislati-

on.

- 2004: proposal to

simplify the current

VAT

compliance

obligations.

The

proposal

would

provide for a "one-

stop-shop" system

where a trader could

fulfil all his VAT

obligations for EU-

wide activities in the

Member State in

which he is establis-

hed.

- By 2005: It is

Limitation of use of dero-

gatory facilities provided

by existing directives

Improving internal mar-

ket through strengthened

coherence and efficiency

of existing New Ap-

proach directives.

VAT being the main area

of Community tax legisla-

tion, it is also the key area

for simplification. Accor-

ding to the European Tax

Survey, 14% of SMEs and

10% of large companies

have not carried out VAT

taxable activities in ano-

ther Member State (where

they do not have a per-

manent

establishment)

solely because of the VAT

compliance requirements.

Reduction of compliance

costs for companies car-

rying out VAT taxable

activities in other member

states

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

REACH proposals

Legislation

important that the

Council finds the

necessary unanimity

for adoption.

- 2005: Commission

to work with Euro-

pean Parliament and

Council to ensure a

marked improve-

ment in health and

environment positi-

ve impact on com-

petitiveness

and

innovation, reduce

the burden on

SMEs,

improve

overall workability

and reduce animal

tests.

- 2006: Common

Position.

- First half 2005:

adoption of 10

Company

Law

Directive

(cross-

border mergers).

- 2006: adoption of

Company Law

Directive (transfer

of company seat)

- Mid-2005: Com-

mission to adopt

proposal for a Di-

rective on the legal

framework

for

payments systems.

- Early 2006: Com-

mission to adopt

proposal

for

framework Directi-

ve on clearing and

settlement of securi-

ties actions.

- July 2005: Com-

mission to adopt

Green Paper on

Asset Management.

- 2006/7: based on

the

stakeholders

consultation above,

Commission

make proposals to

develop a function-

ing EU single mar-

ket for investment

funds.

- Agreement on the

Common Consoli-

dated Tax Base and

- Increase in intra-EU

trade in chemicals

- Number of registrations

of chemicals

Limited but positive im-

pact on R&D expenditu-

res.

Free movement of

capital:

Modernisation of

company law to

facilitate cross bor-

der mergers and

takeovers.

Legislation

Increase in cross border

mergers and company

investment

The actions aim to contri-

bute to economic growth

by improving the conditi-

ons for cross border eco-

nomic activity.

Consolidate

and

complete the inte-

gration of the fi-

nancial

services

markets.

Legislation

Creation of an integrated

EU wide infrastructure

for payments and financial

services.

Reduction in cost of capi-

tal and financial interme-

diation.

Cross border registration

and management of in-

vestment funds.

Improved framework for

cross border trading and

investment, diversification

of investment portfolios,

and wider access to capital

at lower cost. This will

boost cross border trade

and investment.

Consolidate cor-

porate tax base

Legislation

Overcome the obstacles

posed by 25 different tax

arrangements that hinder

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

its rapid implemen-

tation

cross-border business and

hamper the exploitation

of the full benefits of the

Internal Market

ECOMMENDED

ACTIONS

EMBER

TATES

Effective timely and

correct implementation

and enforcement of

internal market legisla-

tion*

OSSIBLE

INSTRUMENT

Recommendation

Internal

Market

Scoreboard

Infringements

Networks

Information

sy-

stems

Administrative

cooperation

NDICATIVE

ROADMAP

- Member States

need to meet the

transposition

targets agreed long

ago by the Euro-

pean

Council.

Dutch Presidency

has asked each MS

to set its own date

for reaching the

targets.

- Legislative pro-

cess needs to be

complemented by

networking

and

mutual assistance

between Member

States (supported

by modern infor-

mation systems)

and by the scree-

ning of domestic

legislation

for

compatibility with

EU rules in order

to make the in-

ternal market work

better in practice.

March 2004: adop-

tion of the new

legislative package

of public procu-

rement Directives.

The package aims

to simplify the

existing system.

By 31 January

2006:

Member-

States implement

them into national

law.

ROGRESS

NDI-

CATOR

(

IF EXISTING

)

MPACT ON JOBS

AND GROWTH

The aim is to implement

legislation in such a way

that it makes the free

movement of products

and services work more

simply and better.

Reduction in infringe-

ments.

Increase in infringements

settled by referral to

SOLVIT.

Reduction in transposition

deficit.

Number of MS screening

own legislation

Number of MS participa-

ting in pilot Internal Mar-

ket information system

* mandatory

Effective and efficient

application of EU

public

procurement

rules through simpli-

fication, better compli-

ance

and

procurement.

* mandatory

Legislation

Best practice

Redress

mecha-

nisms

Supervision

Administrative

cooperation

Increase in tenders publis-

hed

Increase in cross border

participation in tenders

Fall in costs of procure-

ment

Increase in electronic

tendering

Effective application of

legislation will lead to

increased competition in

public

procurement

markets which represent

more than 16% of

GDP. This will foster

the competitiveness of

firms operating in those

markets and according

to some studies could

reduce prices by up to

30%.

Other related issues

Patents, including Community patent

Mobility in the professions

Priority 6 “Facilitate innovation, the uptake of ICT and the

sustainable use of resources”

Priority 10 “Providing incentives for the acquisition of skills,

knowledge and human capital”

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area – 2:

Ensure open and competitive markets inside and outside

EU competition policy has played a key role in shaping European competitive

markets and this will continue in the enlarged Europe in particular through proac-

tive enforcement and a state aid reform regarding innovation, R&D and risk capi-

tal. At the same time, European companies are facing more and more international

challenges (the emergence of new international competitors, US competition …)

and EU trade policy needs to ensure that they can have access to third markets and

compete on a fair basis. In summary, open markets, both in Europe and globally,

are crucial to generating higher growth rates.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 2 – Ensure open and competitive markets inside and outsi-

de Europe

OLICY

EA-

SURE AT

OMMUNITY

LEVEL

Completion of an

ambitious

agree-

ment

the

framework of the

Doha-Round

NSTRUMENT

International agre-

ement

OADMAP

- Approving the DDA end

2006 – early 2007.

ROGRESS

NDICATOR

MPACT ON JOBS

(

IF AVAILA-

BLE

)

AND GROWTH

Continued

market

opening and improved

market access for EU

products and services

to third countries,

through a significant

reduction of industrial

tariffs and restrictions

in services; New or

improved and clarified

trade rules and disci-

plines, notably as re-

gards trade facilitation,

trade-defence instru-

ments or non-tariff

measures;

increased

predictability, simpli-

fication and transpa-

rency of third country

measures affecting EU

exports;

clarification

and extension of geo-

graphical indications,

increasing the profile of

GI-protected EU pro-

ducts in third markets.

Supports multilateral

market opening by

pursuing further market

access for EU industrial

and agricultural produ-

cts as well as EU ser-

vice providers. Creation

of rules in a vast num-

ber of areas to secure

trading conditions for

EU firms.

Verify situation within

Member States and by

third country concer-

ned.

Completion of bila-

teral and regional

FTAs

International agre-

ement

- Concluding a wide-reaching

free trade agreement with

Mercosur (Brazil, Argentina,

Uruguay and Paraguay)

- Concluding a wide-reaching

free trade agreement with the

Gulf Cooperation Council

(Saudi Arabia, Oman, Qatar,

UAE, Bahrain and Kuwait)

- Study the possibility of adop-

ting a new EU trade instru-

ment (compatible with existing

WTO or bilateral commit-

ments) to motivate/give in-

centives to third countries to

commit themselves to open up

their public procurement mar-

kets to EU suppliers.

- Assess how to arrive at a

level playing field, e.g. through

the application of the principle

of reciprocity.

A level playing field

government

procurement

EU legislation and

international Agre-

ements (WTO and

bilateral)

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

A new drive for

regulatory and ad-

ministrative

con-

vergence

International agre-

ement,

Global standards,

Bilateral relations,

International co-

operation

Selective

sectoral

competition scree-

ning and competiti-

veness assessments

Sectoral enquiries

and assessments in

key markets im-

portant for the

Lisbon Strategy.

Reform of the State

aid architecture

Commission’s

policy instruments

- Strengthening the US EU

Guidelines for regulatory co-

operation and transparency

and adoption in 2005 of a

forward looking strategy for

EU US cooperation as set out

in the 2004 Dromoland Castle

Economic Statement.

- Rapid conclusion of an agre-

ement with Canada (TIEA).

- Driving forward the agreed

agenda with ASEAN through

TREATI

- Increased respect for intellec-

tual property rights (IPR)

including improved enforce-

ment (implementation of the

IPR enforcement strategy

adopted in November 2004 by

the Commission)

- Reinforced bilateral and

multilateral cooperation on

competition policy and trans-

port policy (TEN’s, aviation,

GALILEO, maritime safety)

- Carry out market enquiries

and competitiveness asses-

sments in key sectors for the

Lisbon Strategy in order to

ascertain the underlying rea-

sons for dysfunctional mar-

kets, by examining all features

of the market that might re-

strict competition, including

with a view to assessing the

impact of EU legislation on

competition and competitive-

ness.

- Adoption of reviewed texts

by end 2006

Facilitation of access to

markets through stan-

dardised rules and

practices.

Improved competitive

situation for European

right holders.

Concluded

enquiries

and

assessments

Removing

existing

impediments for EU

businesses to compete,

innovate and grow.

Prevent

incumbents

from pursuing restricti-

ve strategies to protect

themselves

against

more dynamic and

innovative competitors

- State aid as

percentage of

GDP

Horizontal

state aid dedica-

ted to “Lisbon”

objectives as a

percentage of

total state aid

Enhances

Member

States’ abilities to sup-

port innovation, and

access to risk capital.

Better targeted State

aid. Redirection of

public resources to

socially more valuable

activities; reduce State

aid that distorts compe-

tition and thereby im-

pedes necessary struc-

tural change Particular-

ly important in this

context is to facilitate

access to risk capital

and public financing in

the areas of innovati-

on, R&D and en-

vironment.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

eCustoms: Introdu-

ce modern proces-

ses and procedures

into customs legis-

lation and practice

Legislation

- Launch of pluriannual eCus-

toms programme and adoption

of the Modernised Community

Customs Code.

Reduced administrative

burden and compliance

costs. Cost reduction of

1-2% per transaction

can be expected both

for traders and admini-

stration.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

ECOMMENDED

ACTIONS TO

EMBER

TATES

State-aid reduction and

redirection

remaining state aid to

horizontal

“Lisbon”

objectives

OSSIBLE

INSTRUMENT

National budgets

NDICATIVE

ROADMAP

ROGRESS

N-

DICATOR

(

IF AVAILABLE

)

- State aid as percen-

tage of GDP

- Horizontal state aid

dedicated to “Lisbon”

objectives as a per-

centage of total state

aid

MPACT ON

JOBS AND

GROWTH

Redirection of public

resources to socially

more valuable activi-

ties; reduce State aid

that distorts competi-

tion and thereby

impedes

necessary

structural change.

Identify and remove

barriers to effective

competition

and

bottlenecks to produ-

ctivity growth on

national level

Selective competition

and

competitiveness

screening

National sectoral

enquiries

and

remedies

- Carry out market enqui-

ries; also to assess the

impact of national regula-

tion on competition.

Remedial actions taken at

national level

Other related issues

Review of State aid framework

Pro-Active Competition Policy

Priority 6 “Facilitate innovation, the uptake of ICT and the

sustainable use of resources”

Priority 7: “Contributing to a strong European industrial base”

Central Policy Area - 3:

Improve European and national regulation

Better regulation has a significant positive impact on the framework conditions for economic growth, em-

ployment and productivity by cutting costs and removing obstacles to flexibility and innovation. More

competition friendly legislation would also help create more conducive conditions for economic growth and

improved productivity. This comprises measures such as simplification and efforts to reduce the burden of

administrative costs. An appropriate regulatory framework will also strengthen consumer confidence and

thereby contribute to growth. Furthermore, it is crucial to ensure and, where necessary, improve of the

role of national administration in providing adequate conditions for the market (e.g. e-governance, fight

against corruption).

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 3: Improve European and national regulation

OLICY

EA-

SURE AT

OM-

NSTRUMENT

MUNITY LEVEL

Outside expertise on

Commission deci- - By end 2005: putting in

quality and metho-

sion

place a mechanism to

dology of carrying

advise the Commission

out Impact Asses-

on quality of the Impact

sment.

Assessment.

OADMAP

ROGRESS

NDI-

CATOR

MPACT ON JOBS

GROWTH

Improvement of the

regulatory environment

will enable firms to

compete more effecti-

vely on all markets, also

making market entry

easier for new firms,

thus creating more

firms, and more jobs.

Improvement of the

regulatory

environ-

ment, will enable firms

to compete more effec-

tively on all markets,

also making market

entry easier for new

firms, thus creating

more firms, and more

jobs. Reduction in

administrative burden

directly

linked

Community legislation

at EU and national

level will improve the

regulatory

environ-

ment, enabling firms to

compete more effecti-

vely on all markets,

making market entry

easier for new firms,

thus creating more

firms, and more jobs.

Assessing the com-

Commission

petitiveness effect of

decision

new

legislati-

ve/policy proposals

through the Com-

mission’s

Impact

Assessment

(IA)

instrument.

Commission

decision

- By June 2005: Estab-

lishment of

internal

mechanisms to ensure

that all major Commissi-

on legislative and policy

proposals that may im-

pact business are accom-

panied by thorough IA

analysis on the basis of

the agreed methodology .

% of Commission propo-

sals accompanied by an

IA, increased use of regu-

latory alternatives.

Adoption of revised

guidelines and launch of

- By March 2005: Formal pilot projects

adoption of revised IA

guidelines

Commission

decision

Interinstitutional

agreement

- By March 2005, appro-

val of pilot projects for

improving the assessment

of administrative costs

and incorporation of an

agreed approach to mea-

sure administrative costs

in the Impact Assessment

system before the end of

2005;

Better application of IA

throughout the legislative

process and increased

performance in terms of

response to external

demands for transparency

on law making process.

Commission deci- - Assessment by the three

sion

institutions of the proper

implementation of the

interinstitutional agree-

ment.

- By spring 2006, annual

report on impact asses-

sment progress in the EU

and in Member States

Principles

and - Improved internal me-

minimum

stan- chanisms within the

dards for consulta- Commission services to

tion

make sure that the propo-

sals submitted to the

Commission fulfil the

Consultation

% of proposals subject to

extensive external consul-

tation, strengthening of

input from stakeholders,

increased confidence in

EU legislative procedures.

Improvement of the

regulatory environment

will enable firms to

compete more effecti-

vely on all markets, also

making market entry

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

minimum standards.

Simplification

Commission deci- - Annual simplification

sion

rolling programme, laying

down clear targets to be

met within specified

deadlines

Enforcement

the Interinstitutio- - Establishment of a fast

nal agreement

track procedure for rele-

vant cases in Council and

(Art. 34 of the Interin-

stitutional agreement)

Number of EU directives

and regulations simplified

(or annulled), reduction in

number of pages of the

Community

acquis;

easier for new firms,

thus creating more

firms, and more jobs.

Improvement of the

regulatory environment

will enable firms to

compete more effecti-

vely on all markets, also

making market entry

easier for new firms,

thus creating more

firms, and more jobs.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

ECOMMENDED

ACTIONS TO

EMBER

TA-

TES

Governance

Regulatory

management

and

policy

OSSIBLE

NSTRUMENT

OMC

NDICATIVE

OADMAP

Adoption of indicators

(based on proposal

contained in Commis-

sion Communication).

ROGRESS

N-

DICATOR

Number of Indicators

(and level) adopted and

put into place, start of

scientific data collecti-

on by MS and follow-

up monitoring to as-

sess progress with

regard to BR in the

MS. Better identificati-

on of progress achie-

ved at MS and EU

level to tackle BR is-

sues.

- Progress achieved by

MS as measured with

Regulatory

Quality

indicators

Number of Member

States with fully functi-

oning IA in place The

relevant indicators of

regulatory quality can

be used to ensure a

harmonised analysis,

strengthening

and

diffusing knowledge of

IA practices in MS,

putting in place similar

approaches for con-

ducting EU’s and MS

impact assessments.

Strengthened coordi-

nation of simplification

priorities between the

Commission and the

MS will measure results

of MS programmes in

reducing administrative

burdens, and will redu-

ce the need for Com-

munity intervention to

harmonise

divergent

national

regulatory

requirements

Strengthen role of

national legislator as to

how best reconcile the

interest of the free

movement in a border-

free EU with other

public policy objectives

MPACT ON JOBS

GROWTH

Improvement of the

regulatory environment

will enable firms to

compete more effecti-

vely on all markets,

also making market

entry easier for new

firms, thus creating

more firms, and more

jobs.

Impact Assessment

OMC

- Regular reviews on

progress achieved by

MS in putting in place

regulatory policy prac-

tices and ad-hoc fol-

low up structures,

including those ensu-

ring the highest level

of quality public ser-

vice

- Regular reviews of

progress made by MS

in conducting IA on

their own legislative

initiatives and regular

reviews of methodo-

logies applied at nati-

onal level on IA

Improvement of the

regulatory environment

will enable firms to

compete more effecti-

vely on all markets,

also making market

entry easier for new

firms, thus creating

more firms, and more

jobs.

Simplification

Active role to be

played by the

Competitiveness

Council

- Establishment of a

monitoring system to

review progress achi-

eved by MS in the area

of reduction of admi-

nistrative burdens

- Encourage MS to

develop comprehensi-

ve simplification pro-

grammes

- Consider the intro-

duction of an ‘Internal

Market compatibility

test’ to be applied to

national

legislatives

initiatives

OMC

Improvement of the

regulatory environment

will enable firms to

compete more effecti-

vely on all markets,

also making market

entry easier for new

firms, thus creating

more firms, and more

jobs.

OMC

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 4:

Expand and improve European infrastructure

A modern infrastructure is an important competitiveness factor in many enterprise decisions, affecting the

economic and social attractiveness of locations. Also, infrastructure investments in the new Member Sta-

tes will encourage growth and lead to more convergence, in economic, social and environmental terms. Gi-

ven the long term effects of infrastructure, decisions in this field should significantly contribute to sustai-

nability. Finally, we need to pursue the already decided liberalisation in key sectors (such as energy and

other network industries) as an essential lever for ensuring the best use of physical infrastructure for the

benefit of both industry and consumers

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 4: Expand and improve European infrastructure

OLICY

EA-

SURE AT

OMMUNITY

LEVEL

TENs

including

Quick Start Pro-

grammes

NSTRUMENT

Expenditure

EIB loans

OADMAP

Mobilise the current and

2007-2013

Budget

(TENS budget line,

Cohesion funds and

ERDF, guarantee in-

struments)

Completing

the

Trans-European

Networks (including

the motorways of the

sea)



The decision on the

2004 TEN Guide-

lines estimated the

cost of entire net-

work at €600 bn, to

be built by 2020.



30 priority projects

decided by the Par-

liament and Council

which will cost € 225

bn.

Achieving

cross-

border interconnecti-

ons.



By 2010, ‘quick

start’ works on 30

sections

projects

costing €38 billion

should be built.



15 TEN energy pro-

jects costing €10 bil-

lion until 2010.



The development of

electricity

cross-

border interconnect-

ors

8 projects with €14

billion for high-speed

and mobile communi-

cations

networks,

R&D and innovation.



Possible legislation

on digital tachograph



R&D on multimodal

real-time information



Standardisation:

questions for univer-

sal on-board unit



European Railway

Traffic Management

Systems (ERTMS)



by spring 2005,

ROGRESS

N-

DICATOR

(

IF AVAILABLE

)

MPACT ON JOBS

AND GROWTH

Significant

(although

mainly in the longer-

term).

A sustainable infrastruc-

ture taking into account

the economic and social

attractiveness of locati-

ons, as well as impro-

ving social and geogra-

phical cohesion and

protection of the en-

vironment is a competi-

tiveness factor in many

enterprise decisions.

The EU’s involvement

is concentrated on

cross-border projects

as these are the projects

where there is less ent-

husiasm

from

the

Member States (resul-

ting in greater funding

problems) but which

can contribute the most

to creating a real in-

ternal market.

The Barcelona Euro-

pean Council fixed the

target of 10% of instal-

led capacity for electri-

city cross-border inter-

connections.

Intelligent

Trans-

port Systems, logis-

tics and intermoda-

lity

Legislation

Expenditure

Standardisation

Legislation

OMC (co-ordinated

deployment plan)

Estimates for the

increase in road safety

suggest that a combi-

nation of ITS measu-

res can contribute to

the target to halve the

number of fatalities by

2010

Indicators for reduced

congestion and impro-

ved vehicle security

Individual measures will

have a limited impact

on jobs and growth.

Reduced

Congestion

(getting additional capa-

city from existing infra-

structure – whether on

the ground or in the air;

reducing bottlenecks)

with resulting environ-

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

adoption of further

Technical Specifica-

tions for Interopera-

bility for conven-

tional rail)



SESAME: Moderni-

sation of ATM infra-

structure.

Definition

phase

Summer 2005-2007;-

Implementation

phase to start in

2007;- COM pro-

posal on governance

structure for imple-

mentation phase 2Q

2005

mental benefits.

Improved safety (such

as controlling the spa-

cing between trains and

emergency braking)

Reduced purchase and

maintenance costs. The

objective is to reach a

reduction in costs of 30

to 50 %.

Competitiveness:

ERTMS and the railway

interoperability directi-

ves will create a market

of €15 billion by 2010

SESAME will result in

the development of an

ATM network that will

be interoperable world-

wide and that will deli-

ver efficiency, punctua-

lity, safety, security and

environmental benefits

at an affordable cost –

in the face of the strong

air traffic growth which

will stress current air

traffic

management

(ATM) infrastructure

well beyond its current

capacity.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

ECOMMENDED AC-

TIONS

EMBER

TATES

Transposition and applicati-

on of the liberalisation Direc-

tives*

OSSIBLE IN-

STRUMENT

Framework Legislati-

on Secondary legisla-

tion in Member States

OMC (co-ordination

of Regulatory bodies)

Legislation

Expenditure

Electronic Fee collec-

tion: development of

an EU norm

NDICATIVE ROADMAP

ROGRESS

NDICATOR

(

IF AVAILABLE

)

* mandatory

Evolution of market prices (no

taking account of exogenous fac

tors)

Evolution of cross-border supply o

energy services

Reduction in the market share o

incumbent operator

- Timetables for building key TEN

links, as well as complementary infra-

structure

(see above)

Digital Tachograph: completion of

tests to connect to the Tachonet sy-

stem

TENs and Quick Start Pro-

grammes

Intelligent Transport System

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Related issues

Research

Climate change - The European Climate Change Pro-

gramme (ECCP) s

Environmental technologies

Energy efficiency

Technology Platforms

Priority 5 “Increase and improve investment in Research and

Development”

Priority 6: “Facilitate innovation, the uptake of ICT and the susta-

inable use of resources”

Priority 6: “Facilitate innovation, the uptake of ICT and the susta-

inable use of resources”

Priority 6: “Facilitate innovation, the uptake of ICT and the susta-

inable use of resources”

Priority 7: “Contributing to a strong European industrial base”

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central policy area 5:

Increase and Improve investment in Research and Development

In advanced economies such as the EU, knowledge, including R&D, is a key driver of productivity

growth. The EU invests about a third less in R&D than the USA – this is largely due to less private

sector R&D. Annually the USA spends about €80 billion more on business R&D than the EU.

More favourable framework conditions for both public and private R&D and better co-ordination across

Member States and with the EU level could contribute to ensuring faster progress towards the target of

3% of GDP for R&D expenditure. In fact a strong competitive pressure provides powerful incentives for

companies to continuously engage in innovation and R&D.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central policy area 5: Increase and Improve investment in Research and Deve-

lopment

OLICY

EASU-

RE AT

OMMUNITY LE-

VEL

Gain leadership in key

technological

areas

through the new R&D

framework program-

me with

- a doubled budget

-an increase in indu-

stry participation

-increased focus on

industrial needs

NSTRUMENT

OADMAP

ROGRESS

NDICATOR

(

IF AVAILABLE

)

MPACT ON

GROWTH AND

JOBS

Increased leverage on

European R&D and the

creation of a knowledge

Europe

Political signal to focus

public funding on know-

ledge.

Contribution to public

R&D funding

Expenditure

July

2004-Oct

- including initiati-

2004: Public consultation.

ves under article

2005: FP7 propo-

169 and 171 and a

sed by Commission

new risk sharing

including actions for:

mechanism with

- Researchers : Marie Cu-

EIB

rie scheme

- Frontier knowledge :

European Research

Council

- Research cooperation,

including coordination of

national programmes and

Joint Technology Initiati-

ves, building on the work

of European Technology

Platforms

- Research capacities: in-

frastructures, measures

for the regions, SMEs,

etc.

2006, adoption of

FP7 by the Council and

the Parliament by co-

decision

- Adoption of EU

frameworks to:



Make research

careers more at-

tractive, including

in the private sec-

tor



Ensure an op-

timal EU-wide use

of fiscal incentives

in favour of R&D

(identify best prac-

tices and constra-

ints in Community

law and where

appropriate,

re-

commend tax me-

asures)



Improve

re-

search collaborati-

on and technology

transfer between

public

research

and industry

2005: adoption of new

framework of state aids to

. Public and

private

R&D

funding levera-

ged through the

FP (double the

research

policy budget)

. Share of indu-

stry in FP7

Improve

conditions

for investment in re-

search:

- research careers

- fiscal incentives

- relations between

public research and

industry

EU Guidelines or

recommendations

. GERD as a %

of GDP (finan-

ced by industry,

govern-

ments)

Industrial

R&D

invest-

ment

score-

board

. Human re-

sources in S&T

. Use of fiscal

incentives.

. Public-private

partnerships

and technology

transfer

Increased private in-

vestment in research,

increased coherence and

impact of national poli-

cies (e.g. fiscal schemes),

creation of an internal

market for researchers

and better access to

skills and technologies

by industry.

Enhance possibilities

for Member-States to

Framework

state aid

. State aid sco-

reboard

Better national support

to R&D

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

support R&D.

Enhance EU attracti-

veness for R&D activi-

ties

- Fast track visa and

work permit arrange-

ments for third country

researchers.

Legislation

Recommendation

R&D

- Directive+ 2 recommen-

dations proposed in 2004.

- June 2004: agreement on

a common orientation on

the recommendations.

- Nov 2004, adoption by

the JHA of a general

common orientation on

the directive.

- By end 2008 transpositi-

on by the MS of the direc-

tive

- Number of

researchers.

Attract qualified resear-

chers from third coun-

tries.

ECOMMENDED

ACTIONS

EMBER

TATES

Implement policies to

achieve national tar-

gets contributing to

the overall 3% target

OSSIBLE

N-

STRUMENTS

OMC

3% action plan

NDICATIVE

ROADMAP

- Strengthening OMC

based on the results of the

first cycle

- Implementation of mea-

sures according to each

MS’ timetable

ROGRESS

NDICATOR

(

IF AVAILABLE

)

MPACT ON

GROWTH AND

JOBS

Approaching the 3% of

GDP objective for

R&D investment while

better taking into ac-

count the diversity of

MS.

. GERD as a %

of GDP (finan-

ced by industry,

govern-

ments)

. Snapshots of

MS R&D tar-

gets and bud-

gets

Other related issues

Reform of the state aid architecture

Priority 2 “Ensure open and competitive markets inside and outsi-

de Europe”

EIB Innovation 2010 initiative.

Priority 6 “Facilitate innovation, the uptake of ICT and the sustai-

Support to regional innovation…)

nable use of resources”

Foster knowledge Absorption by enterprises

Priority 6 “Facilitate innovation, the uptake of ICT and the sustai-

nable use of resources”

Promoting the development and uptake of environ- Priority 6 “Facilitate innovation, the uptake of ICT and the sustai-

mental technologies

nable use of resources”

Energy efficiency and low carbon technology

Priority 6 “Facilitate innovation, the uptake of ICT and the sustai-

nable use of resources”

Climate change

Priority 6 “Facilitate innovation, the uptake of ICT and the sustai-

nable use of resources”

Increase the high technology content of the EU indu- Priority 7: “Contributing to a strong European industrial base”

stry

Education policy

Priority 10 “Providing incentives for the acquisition of skills,

knowledge and human capital”

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 6:

Facilitate innovation, the uptake of ICT and the sustainable use of re-

sources

In advanced economies such as that of the EU, innovation is the principal determinant of productivity

growth. In turn, competition and tax policy play a crucial role in determining innovation especially in the

context of rapidly changing technology. By obtaining more output from given inputs, 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.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 6: Facilitate innovation, the uptake of ICT and the sustai-

nable use of resources

OLICY

E-

ASURE AT

OMMUNITY

LEVEL

Creation of a

patent

giving

Community

wide protection

N-

STRU-

MENT

Legislation

Court

infrastruc-

ture

ROGRESS

NDI-

OADMAP

– Adoption of the

Community Patent

Regulation

CATOR

(

IF AVAILABLE

)

Number of Community

Patents granted

MPACT ON JOBS AND

GROWTH

Community patent will provide

protection in 25 Member States

for around the same price as is

currently paid for protection in

just 5 Member States, thus

encouraging patenting, exploita-

tion of research and diffusion

of knowledge

Enhances the creation and

growth of innovative enterpri-

ses, easing the development of

new knowledge-based industri-

es; improves competitiveness

by leading to an increase in

innovation and resource effici-

ency

Facilitate access

to finance for

innovative en-

terprises

Legislation

– Revision of the

legal framework for

State aid:



Mid-2005:

State aid and in-

novation



End-2005:

Risk capital



End-2005:

Regional State

aid guidelines pe-

riod after 2006

- End-2005: Communi-

cation on Venture

Capital:



Lift legal, adminis-

trative and tax

barriers to the

cross-border ac-

tivity of venture

capital funds;

and



Improve exit

mechanisms to

encourage in-

vestment.

– Amount of venture

capital raised and in-

vested per year in the

EU; number of recip-

ient companies

–

Number of innova-

tive start-ups; growth

rates of innovative

enterprises

– Perceived im-

portance of access to

finance as an obsta-

cle to entrepreneur-

ship (annual Euroba-

rometer survey on

entrepreneurship)

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Expenditu-

– Mid-2005: Adop-

tion of High Growth

and Innovative

SME Facility (GIF)

within CIP

–

European Invest-

ment Bank: Innova-

tion 2010 initiative

Foster knowled-

ge absorption by

enterprises

Expenditu-

– Business Innovation

Support Scheme, to

evaluate technology

needs of SMEs and

subsequently to

carry out transna-

tional technology

transfer projects

(see also policy ar-

ea 5)

– Amount of venture

capital raised per

year through Struc-

tural and Rural De-

velopment Funds –

financed venture cap-

ital schemes

– Number of regions

implementing

measures to facilitate

start-ups’ access to

finance with the

ERDF

– Number of young

innovative enterpris-

es participating in

FP7

– Number of SMEs

benefiting from GIF

– Number of regions

implementing tech-

nology transfer

measures with public

support or from the

ERDF

Quick start project to enhance

SME participation in the know-

ledge economy.

Networ-

king

Foster regional

innovation

Expenditu-

re: Structu-

ral Funds

– End-2005: Commu-

nity strategic guide-

lines on cohesion

– End-2006: Decision

on operational pro-

grammes

Networ-

king

– 2005: Innovating

Regions in Europe:

launch new regional

innovation actions,

including Mutual

Learning Platform

– Number of trans-

national technology

agreements through

Innovation Relay

Centres

– Share of Structural

Funds committed for

R&D and innovation

activities from 2007

to 2013

– Number of regions

implementing inno-

vation-related sup-

porting actions

– Number of trans-

regional co-

operations in the

field of innovation

More efficient innovation sy-

stems and regional develop-

ment.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

World-class ICT

and media sec-

tors

Legislation



2005/6: review of

regulatory frame-

work for electronic

communications

2005: Revision of

Community rules in

the area of ICT

standardisation



– Indicators on the

competitiveness of

ICT and media sec-

tors: number of com-

panies, service diver-

sity, consumer pric-

es…

– Indicators on the

take-up of ICT by

enterprises, house-

holds and admin-

istrations

Strategic sectors contributing

to the competitiveness and

growth of EU economy High-

quality information infrastruc-

tures, goods and services

Jobs in high added-value sec-

tors maintained and created in

the EU



Recom-

mendati-

ons

Expenditu-

From 2005: re-

view/ adoption of

other EU law rele-

vant (e.g. IPR/ digital

rights management,

software patentabil-

ity, TV without fron-

tiers)



2006: Action Plan

for high-tech start-

ups and eSkills in the

framework of i2010

initiative



2005-2010: stimu-

late investment

through EU support

to R&D (IST in FP7)

and deployment (ICT

policy support fund)

Technology push



Increase R&D,

Dissemination effort

on eco-innovation in

6th and 7th FP



Technology plat-

forms related to envi-

ronmental technolo-

gies



Establish an EU-

wide system for test-

ing and verifying en-

vironmental technol-

ogies.

Market Pull



Mobilise EU funds

for co-financing in-

vestment capi-

tal/venture capital for

eco-innovation



Establish perfor-

mance targets for key

products, services

and processes



Green Public pro-

curement



Remove market

barriers and envi-

ronmentally-harmful

subsidies

Environmental

technologies

Expenditure

Co-

ordination

European

Energy

Efficiency

Initiative

(Green

Paper 2005)

Legislation

– Progress in the im-

plementation

ETAP reflected in

national implementa-

tion reports

– Market growth for

environmental goods

and services

– Indicators on eco-

efficiency, on the

market penetration of

environmental tech-

nologies

Will improve EU competitive-

ness through eco-innovation by

encouraging new investment

opportunities, market develop-

ment and uptake, and exploiting

economies of scale.

More efficient use of resources

(i.e. improved productivity);

EU competitiveness in growing

world market for environmental

technologies

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Energy efficien-

Expenditure

and

re-

Coordinati-

newable energy

Legislation

(i.a. through

European

Climate

Change

Programme)

Technology push

(R&D, Dissemination)



Financing: increase

R&D, Dissemination

funding



Low carbon tech-

nology investment

fund (EIB)



Technology Plat-

forms related to low

carbon technologies

(e.g. hydrogen and

photovoltaics)

– General energy end-

use savings target of

1% per year

– Energy savings target

for the public sector

of at least 1.5% per

year

– Energy intensity

improve-

ment/benchmark

– Agricultural and

forestry area allocat-

ed to renewable re-

source production

Will improve EU competitive-

ness by ensuring a more effici-

ent use of energy, including

fossil fuel resources

Help the EU remain a global

leader in low carbon technolo-

gies

Improve security of energy

supply / reduced dependence

on imported fossil fuels.

Market Pull



Energy

Services

Directive



Buildings

Di-

rective



Emission trading :

review 2006



Eco-design

di-

rective



Energy efficiency

standards for energy-

using Products - im-

plementation daugh-

ter directives



Energy labelling

including Energy

Star (extension of

scope)



Incentive schemes

and fiscal instru-

ments



Intelligent Energy

Europe Programme



Clean vehicles



Hydrogen

pilot

project

ECOMMENDED

ACTIONS TO

EMBER

TA-

TES

Reduce the cost of

patenting

NSTRUMENT

Adoption of best

practice

Expenditure

OSSIBLE

NDICATIVE

ROADMAP

– Reduction in

the cost of pa-

tenting by:



adoption

of best prac-

tice in pro-

cessing de-

mands and

enforcement;



changing

the fees

ROGRESS

N-

DICATOR

(

IF AVAILABLE

)

MPACT ON JOBS

AND GROWTH

Encourages

patenting,

exploitation of research and

knowledge diffusion. Of a

particular significance for

SMEs.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Promote technology

development

and

innovation via public

procurement

Promoting

eco-

efficient innovation

Public

procure-

ment policy

Co-ordination

Expenditure

2006: Recommen-

dations on the use

of public procure-

ment to create

“lead markets” for

new technologies



National

roadmaps for

ETAP imple-

mentation



Co-ordinating

R&D activities in

eco-innovation



Promoting

Green Public

Procurement na-

tionally



Removing

market barriers

and review envi-

ronmentally

harmful subsi-

dies



Mobilising risk

funding: estab-

lishing green in-

vestment funds,

transfer of good

practices



Promoting

eco-efficient

production sys-

tems and clean

products

Enhances the development

of new technologies

Stimulates new markets

– Benchmarks and

appropriate indi-

cators – to be

developed under

national

roadmaps.

Will improve EU competi-

tiveness

through

eco-

innovation (see above)

More efficient use of re-

sources (i.e. improved

productivity);

EU competitiveness in

growing world market for

environmental technologies

– Progress in envi-

ronmental fiscal

reform.

– Number of com-

panies registered

under an Envi-

ronmental Man-

agement System

– Turn-over of

products under

eco-label

Use of Life cycle

analysis

– Increase in RTD

expenditure for

energy and

transport and

share in total

RTD expenditure

– Kyoto target

2008-2012: bur-

den sharing tar-

get

– Renewables

target 2010 :

12% of primary

energy sources

– Renewables

Subtargets : elec-

tricity

sector

21%;

biofuels

(5.75

transport fuels)

Climate Change -

Expenditure

The European Cli-

Legislation

mate Change Pro-

gramme (ECCP)

Technology push :

R&D, Dissemina-

tion



Financing :

increase R&D,

Dissemination

funding

Market Pull



Emission trad-

ing - national

implementation



Renewable

energy :

implementation

RES-E Directive

and biofuels

directive

More efficient use of ener-

gy, including fossil fuel

resources

Becoming one of the most

energy efficient economies

Remain a global leader in

low carbon technologies

Improve security of energy

supply

Related issues

Integration of financial markets

Competition, access to markets

Priority 1 “Extend and deepen the Internal Market”

Priority 2 “Ensure open and competitive markets inside and

outside Europe”

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Reform of the state aid architecture

Research

Technology

Clusters

Skills and education

Priority 2 “Ensure open and competitive markets inside and

outside Europe”

Priority 5 “Increase and improve investment in Research and

Development”

Priority 7 “Contributing to a strong European industrial base”

Priority 10 “Providing incentives for the acquisition of skills,

knowledge and human capital”

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area – 7:

Contributing to a strong European industrial base

In order to be an economic and technological leader, Europe must have a strong industrial capacity, par-

ticularly by exploiting fully its technological potential in key areas through 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 is an exception and this approach is still visible in aeronautics – in both

cases bringing significant benefits to the European economy. Such approaches, possibly using public pri-

vate partnerships, could usefully also 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.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area – 7: Contributing to a strong European industrial base

OLICY

EA-

SURE AT

OMMUNITY

LEVEL

Increase the high

technological con-

tent of the European

industry

- Enhancing the EU’s

industrial technology

capacity

NSTRUMENT

OADMAP

ROGRESS

MPACT ON JOBS

NDICATOR AND GROWTH

(

IF AVAILABLE

)

Technology

forms

plat-

- 2005: Establishing a strate-

gic RTD agenda (conclusions

from the dialogue in the 22

platforms)

- 2005: translating the strate-

gic agendas of the existing

platforms into the thematic

priorities of FP7 (see priority

- Support industrial

competitiveness

setting up major Eu-

ropean

technology

initiatives

Expenditures

Private-Public

partnerships

Applying the best

policy mix at secto-

ral level

Policy measures

- June 2005: Commission

report to the European

Council on the criteria, the-

mes and projects (in close

cooperation with stakehol-

ders).

- Mobilising funding from the

community, Member-States

and industry in the context of

the next framework program

(see priority 5).

- Concluded sectoral reviews

with decided EU policy ac-

tions.

- Implementation of identi-

fied sectoral policy mix.

Better response of

research activities to

market and societal

needs

Design of sectoral

research and innovati-

on strategies through

sectoral dialogue taking

into account the speci-

fic challenges of the

sectors (steel, biotech-

nologies; ICT…)

Ensure coherence and

complementarity bet-

ween the Community

and the Member States.

Expenditures

- July 2004: within the pro-

gramming of structural funds,

foresee a reserve fund (1% of

Objective 1 funds, 3% of

Objective 2) being put aside

for intervention in case of

unexpected shocks.

July 2004: proposal to reserve

a part of a Growth Adjust-

ment fund (1 bn/year) in the

Financial Perspectives (1a.

Funds for Competitiveness

for growth and employment).

- By 2006, adoption by the

council.

Identification of struc-

tural challenges (skills,

sustainable production,

regulatory

environ-

ment,

international

competitiveness…).

The framework condi-

tions differ from sector

to sector. Measures will

be adapted to the spe-

cific needs of a given

sector, but remain

horizontal.

This fund should facili-

tate the re-conversion

of workers most af-

fected by structural

changes and allow

intervention in case of

unexpected

shocks.

Will take the likely

impact of openness

into account.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

ECOMMENDED

ACTIONS

EMBER

TATES

Promoting local and

regional clusters

OSSIBLE

INSTRUMENT

OMC + cohesion

policy

NDICATIVE ROAD-

MAP

. Promote the creation of

new companies from univer-

sities.

. Improve the interface bet-

ween industry and research

centres.

ROGRESS

NDICATOR

(

IF AVAILABLE

)

MPACT ON JOBS

AND GROWTH

Consolidate the indu-

strial basis; improve the

competitiveness

regions through indu-

strial clusters.

To link the use of co-

hesion funds with the

National Lisbon Policies

Actions to anticipate

structural changes

National Strategic

Plans – cohesion

policy

(to be

linked with Natio-

nal Lisbon Polici-

es)

Other related issues

Modernisation of company lax

Proactive Competition policy

Sector enquiries on competition and competitiveness

International dimension of industrial policy (access to

market…)

Friendly business environment

Public support to business research

Eco-innovation and environmental technologies

Skill shortages

Policy1 “Extend and deepen the Internal Market”

Policy 2 “Ensure open and competitive markets inside and outside

Europe”

Policy 2 “Ensure open and competitive markets inside and outside

Europe”

Policy 2 “Ensure open and competitive markets inside and outside

Europe”

Policy 3: “Improve European and national regulation”

Policy 5 “Increase and improve investment in Research and Deve-

lopment”

Policy 6: “Promote innovation, the uptake of ICT and the sustai-

nable use of resources”

Policy 10 “Providing incentives for the acquisition of skills, know-

ledge and human capital”

Central Policy Area - 8:

Attract more people into employment and modernise social protection

systems

Raising employment levels is the strongest means of generating growth and promot-

ing socially inclusive economies. This is all the more necessary because of the de-

cline in the working age population over the next decades. The challenge is to attract

more people into the labour market through Active Labour Market Policies and ap-

propriate incentives. Moving people into employment and giving incentives to stay

longer in the work force all require the modernisation of social protection systems.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 8: Attract more people into employment and modernise so-

cial protection systems

OLICY

EASU-

RE AT

OMMUNITY

LEVEL

Promote equal oppor-

tunities

NSTRUMENT

Ensure full imple-

mentation of acquis

Legislation

OADMAP

- Adoption of pending

recast proposal on the

implementation of the

principle of equal op-

portunity and equal

treatment of men and

women in matters of

employment and oc-

cupation

- By 2006: Streamline

existing

processes;

adoption of common

objectives

covering

inclusion and pensions

and health care reforms;

simplified

reporting;

strong emphasis on

implementation

- Mid 2006: submission

National

Re-

ports/Plans

- July 2005: public hea-

ring following the pub-

lic debate stimulated by

the Green Paper “on an

EU approach to mana-

ging economic migrati-

- End 2005: policy plan

on legal migration

- 2006: legislative in-

strument

ROGRESS

N-

DICATOR

(

IF AVAILABLE

)

MPACT ON

JOBS AND

GROWTH

Increase participati-

on rate

Other impact: social

cohesion

Gender gaps including

pay-gap

Increase the effecti-

veness of policy co-

ordination in t he

social

protection/

social inclusion area

Coordination in the

field of social pro-

tection/social inclu-

sion

Coordination of ad-

mission policy for

economic migrants

Legislation

Extent of transparency

and coherence in

admission policy for

third country nationals

Better social protec-

tion systems will

enable and encoura-

ge people to take

advantage of labour

market and entre-

preneurial opportu-

nities, to extend

their working life

and to become less

dependent on bene-

fit

Avoid shortages of

specific skills and

mismatch of de-

mand and supply in

the labour market

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Promote

inclusive

labour markets:

- Promote the in-

tegration of pe-

ople

excluded

from the labour

market;

- Promote the in-

tegration of le-

gally

resident

migrant workers

Social Dialogue

(Consultation of

social partners,

Member States

and other stake-

holders

further EU ac-

tion to promote

integration , Art.

138)

OMC

European Em-

ployment Stra-

tegy

Adoption and follow-

up to the social partners

consultations

Unemployment

gaps

between EU and non

EU nationals

Educational attainment

of migrants children

Increase labour supply,

increased contribution

of migrants to the

economy

Other impact: Support

most

disadvantaged

people in society (dis-

abled people, people

with caring responsibi-

lities,..)

and

fight

poverty

ECOMMENDED

ACTIONS

EMBER

TATES

Set national level

employment targets

in line with overall

EU targets

OSSIBLE

N-

STRUMENTS

National commit-

ment to a target

level, to be used as

overall frame in

setting

individual

measures

NDICATIVE

ROADMAP

- Targets to be proposed

by MS in national action

plans in the light of the

Community target set in

the EES

ROGRESS

NDI-

CATOR

(

IF AVAILABLE

)

MPACT ON

JOBS AND

GROWTH

Bring employ-

ment closer to

full

employ-

ment. Monitor

national

em-

ployment per-

formance aga-

inst the target

set.

Reduce unem-

ployment rate.

Increase growth

potential

reducing struc-

tural

unem-

ployment.

Other impact:

Enhance social

cohesion.

Employment

national level

rates

Improve use of Active

Labour Market Poli-

cies (ALMP) to redu-

unemployment

rates, in particular

long-term

unem-

ployment

Expenditure

Legislation

European Employ-

ment Strategy

- Improvement of em-

ployment services to

ensure that every unem-

ployed person is offered

a new start.

-strengthen conditionali-

ty of unemployment

benefits

- Income tax credits

Increase female par-

ticipation in the la-

bour market

Expenditure Legisla-

tion

Social dialogue

European Employ-

ment Strategy

- Childcare facilities and

care facilities for elderly

and disabled

- Extension of parental

leave for fathers

Reduce youth unem-

ployment

Expenditure

European Employ-

ment Strategy

Better

vocational

training/apprenticeships

- Youth initiative (see

box on European Youth

Initiative).

- Rate of unemployment

and long-term unemploy-

ment

- Access to ALMP measu-

res at 6 months for 25

years old or less and 12

months for others.

- % of long-term unem-

ployed participating in

active measures (25% by

2010)

- Marginal effective tax

rates

Female

participati-

on/employment rate

- provision of childcare

facilities (90% for children

between 3 and school age;

33% for 0 to 3 years old)

- care facilities for elderly

and disabled

Unemployment rate for

15-24 years old

Increase labour

market partici-

pation

and

employment.

Other impact:

Enhance social

cohesion.

Lower unem-

ployment

Other impact:

Enhance social

cohesion.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Develop active age-

ing strategies

Legislation

European Employ-

ment Strategy

OMC

Reform of Pension

and Health care sy-

stems

OMC in the field of

social

protection

and social inclusion

Legislation

- Suppression of early

labour market exit

incentives

including

public aid for pre retire-

ment schemes; improved

incentives and working

arrangements for longer

working lives; allow

addition of pension

benefits and wage

- Submit reports on

reform progress regar-

ding

pensions

and

health/long-term

care

systems in mid-2006 to

support the common

objectives to modernise

social protection systems

- employment rate for age

class 55-64

- average exit age from the

labour market

- theoretical replacement

rates for early/deferred

retirement

- Long-term financial

sustainability

(including

private pension schemes)

- Replacement rates for

early/deferred retirement

(to assess employment

incentives)

- Healthy life expectancy

- Risk of poverty including

for older people

Increase labour

market partici-

pation of older

workers

Other impact:

improve

adequacy and

financial sustai-

nability of pen-

sion systems

Well designed

and sustainable

social protecti-

on systems will

minimise bene-

fit dependency

creating

strong incenti-

ves to seek

work, to take

entrepreneurial

risks and to be

mobile. Clear,

long-term re-

form strategies

create

con-

fidence and an

economic cli-

mate

favourable for

consumption,

investment and

growth.

Other related issues

Education

Priority 10 “Increase investment in human capital through better

education and skills”

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 9:

Improve the adaptability of workers and enterprises and the flexibility

of labour markets

In rapidly changing economies, a high degree of adaptability is vital to promote

productivity growth and to allow employment to be re-allocated towards rapidly

growing sectors. Increasingly, new firms and SMEs are major sources of job creation

and growth in Europe. More flexibility combined with employment security will facil-

itate a greater ability to anticipate, trigger and absorb change. Greater adaptability

should also contribute to ensuring that, wage developments do not exceed productivi-

ty growth over the cycle and reflect the labour market situation.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central Policy Area - 9: Improve the adaptability of workers and enterprises and

the flexibility of labour markets

OLICY

EASURE

OMMUNITY LE-

VEL

Promote labour mobili-

ty by removing obstac-

les to labour mobility

arising from occupatio-

nal pension schemes

NSTRUMENT

Legislation

OADMAP

- By 2007: adoption by

the Council of legislati-

on on portability of

occupational pensions

ROGRESS

NDICATOR

(

IF AVAILABLE

)

MPACT ON

JOBS AND

GROWTH

Workers will be more

likely to pursue em-

ployment opportuni-

ties where the best

use of their producti-

ve potential can be

made

Geographical mo-

bility within the EU

ECOMMENDED

ACTIONS

EMBER

STATES

Ensure

employment-

friendly wage and other

labour costs develop-

ments in line with pro-

ductivity at sectoral and

regional level

Promote flexibility com-

bined with security in the

labour market

Transform

undeclared

work into regular em-

ployment

OSSIBLE

N-

STRUMENTS

Institutional arran-

gements to allow the

alignment of wages

with productivity

European Employ-

ment Strategy

Social dialogue

Legislation

European Employ-

ment Strategy

Implementation of

legislation European

Employment Stra-

tegy

Open Method of

Coordination

NDICATIVE

ROADMAP

ROGRESS

NDICATOR

(

IF AVAILABLE

)

MPACT ON

JOBS AND

GROWTH

Avoid loss of firms’

cost competitiveness;

improve the match

between jobs and

skills; and create

incentives for in-

vestment in human

capital.

Reduce segmentation

and rigidities and

facilitate transitions

in the labour market.

Improve the overall

business

environ-

ment,

better

matching of workers

and jobs.

Other impact: im-

prove sustainability

of public finances

and social protection

schemes

- Unit labour costs

by sector

- Monitor types of

contracts, duration and

transitions in the la-

bour market

Labour

market

segmentation

(indicator to be

defined)

- Undeclared work

and the informal

economy in % of

GDP

Other related issues

Long term unemployment rate

Ensure the best policy mix at sectoral level to facilitate

structural changes

Life Long Learning (active ageing strategies)

Priority 8 “Attract more people into employment and modernise

social protection systems”

Priority 7 “Contributing to the creation of a strong European

industrial base”

Priority 10“Increase investment in human capital through better

education and skills”

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central policy area- 10:

Increase investment in human capital through better education and

skills

Structural change and productivity growth require a continued investment in a highly skilled and adap-

table workforce. Economies endowed with a skilled labour force are better able to create and make effec-

tive use of new technologies, such as Information and Communication Technology (ICT). Educational

attainment in Europe falls short of what might be required to ensure that skills are available in the la-

bour market and that new knowledge is produced that is subsequently diffused across the economy. The

emphasis on the importance of life long learning and knowledge in economic life also reflects the reali-

zation that advancing educational attainment and skills makes an important contribution to social co-

hesion.

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Central policy area- 10: Increase investment in human capital through better edu-

cation and skills

OLICY

EASURE

OMMUNITY LE-

VEL

Promote geographical

and occupational mobi-

lity

NSTRUMENT

Legislation; admi-

nistrative coopera-

tion

Europass

OADMAP

First half 2005: adoption of

Directive on recognition of

professional qualifications.

2006: proposal for Euro-

pean

qualifications

framework.

ROGRESS

NDICATOR

(

IF AVAILA-

BLE

)

- Increase in

cross

border

provision

services

and

establishment;

create networks

promote

cooperation

between compe-

tent authorities

(for

regulated

professions)

- objective: 3

million

Euro-

pass delivered

by 2010.

- Level of EU

expenditure on

education and

training

- Level of priori-

ty given to edu-

cation

and

training in nati-

onal ESF ac-

tions plans

- Yearly follow-

up of agreed

indicators and

benchmarks in

the field of

education and

training

MPACT ON

JOBS AND

GROWTH

- Promoting the deve-

lopment of the Euro-

pean labour market

through better trans-

parency and recogni-

tion of qualifications

and competences.

- Better resource

allocation of qualified

professionals will raise

productivity and pro-

duce better economic

performance in the

medium term.

- Modernisation of

economic structures,

fostering of real con-

vergence and improve

competitiveness of the

beneficiary Member

States.

- Enhanced and more

coherent EU financial

support to mobility

and modernisation of

education and training

systems.

- Improving excel-

lence, innovation, and

relevance to enterpri-

ses’ needs of Euro-

pean higher educati-

on.

Support Lisbon-related

objectives in the area of

employment, education

and training

Expenditure

European Social

Fund

Community pro-

gramme (Structural

and Rural Deve-

lopment

funds,

education

and

training program-

mes);

European

Em-

ployment Strategy

Open method of

co-ordination.

- By end 2005: adoption of

lifelong learning program-

- Adoption of the new ESF

Regulation and Commissi-

on guidelines for use of EU

funds in line with the Lis-

bon strategy’s priorities

- two-yearly reports to

European Council from

2006

- By mid-2005: Commission

proposals for EU strategy

to support quality and at-

tractiveness of European

Higher Education

- By mid-2005: Commission

proposal for a European

initiative on Youth (see box

in text).

ECOMMENDED

ACTIONS

EMBER

TATES

Putting in place national

strategies for lifelong lear-

ning by 2006

OSSIBLE

INSTRUMENT

European

Em-

ployment Strategy

OMC

NDICATIVE

ROADMAP

- Annual monitoring

on the basis of EU

targets and indicators

in the framework of

the EES

- Report on progress

in Member States’

two-yearly Education

and Training 2010”

report

ROGRESS

N-

DICATOR

(

IF AVAILABLE

)

Monitor on the basis of

labour market statistics.

Progress towards agreed

EU benchmarks

MPACT ON

JOBS AND

GROWTH

- Improve economic

performance through

greater adaptability of

the labour force to

changing technological

circumstances

- Equipping all Euro-

peans with the know-

ledge, skills and compe-

tences in order to

succeed in the know-



12,5% of the

adult

working

age

population

participating in

lifelong learning

less than 10%

early school leav-

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

Improve the quality, rele-

vance and attractiveness of

vocational education and

training

European

Em-

ployment Strategy

OMC

Substantially raise per capi-

ta investment from public

and private sources in hu-

man resources and improve

the efficiency of investment

Expenditure;

European Em-

ployment Strategy

OMC

- Annual monitoring

on the basis of EU

targets and indicators

in the framework of

the EES

- Report on progress

implementing

national

priorities

agreed in the Maa-

stricht Communiqué

(of December 2004)

in Member States’

two-yearly “Educati-

on and Training

2010” report

- Annual monitoring

on the basis of EU

targets and indicators

in the framework of

the EES

- Report on priorities

for reform and in-

vestment as part of

two-yearly reporting

(Education

and

training 2010).

ers



85% of 22 year-

olds having com-

pleted upper sec-

ondary education



reduce by at least

by 20% (com-

pared to 2000)

the % of low-

achieving

year-olds in read-

ing literacy



raise number of

graduates

MSTE in the EU

by at least 15%

by 2010.

- Increased participati-

on in vocational edu-

cation and training.

ledge-based society.

Supporting the social

inclusion of disadvan-

taged groups

Increasing the rele-

vance of vocational

education training to

labour market requi-

rements.

Improve basic skills

and the employability

of young underachi-

evers; improve the

pool of skills and

strengthen employee

adaptability.

- Level of education

spending as a propor-

tion of GDP and of

total

government

budget;

- Existence of national

level targets for increa-

sed overall levels of

investment in human

resources

- Private expenditure

on education; monitor

on the basis of educa-

tion statistics

Increase the quality

of workforce and

returns on invest-

ment in human re-

sources

Raise

productivity

and

economic

growth through the

contribution of hu-

man capital

Other related issues

Employment

Adaptability

Priority 8 “Attract more people into employment and modernise social

protection systems”

Priority 9 “Improve the adaptability of workers and enterprises and the

flexibility of labour markets”

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

COUNCIL OF

THE EUROPEAN UNION

Brussels, 8 February 2005

5990/05

ADD 2

ECOFIN 28

SOC 34

AG 4

MI 6

COMPET 14

IND 8

RECH 14

EDUC 11

ENV 43

COVER NOTE

from:

date of receipt:

to:

Subject:

Secretary-General of the European Commission,

signed by Ms Patricia BUGNOT, Director

8 February 2005

Mr Javier SOLANA, Secretary-General/High Representative

Delivering on growth and jobs: a new and integrated economic and employ-

ment co-ordination cycle in the EU - Companion document to the Communica-

tion to the Spring European Council 2005 (COM(2005) 24 final) Working to-

gether for growth and jobs

Delegations will find attached Commission document SEC(2005) 193.

________________________

Encl.: SEC(2005) 193

5990/05 ADD 2

DG G I

PSJ/rm

PDF to HTML - Convert PDF files to HTML files

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.2.2005

SEC(2005) 193

ELIVERING ON GROWTH AND JOBS

A NEW AND INTEGRATED ECONOMIC AND

MPLOYMENT CO

ORDINATION CYCLE IN THE

Companion document to the Communication to the Spring European Council 2005

{COM (2005) 24 final}

Working together for growth and jobs

A new start for the Lisbon Strategy

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

ELIVERING ON GROWTH AND JOBS

A NEW AND INTEGRATED ECONOMIC AND

MPLOY-

MENT CO

ORDINATION CYCLE IN THE

The Kok report underlined that the governance of the Lisbon strategy must be improved

and streamlined.

Improved delivery mechanisms

are therefore required. These delivery

mechanisms relate, to a large extent, to the question of how the EU economic and em-

ployment coordination process is organised.

The

integrated approach

to economic and employment policy coordination proposes a

number of changes with the aim of rationalising and simplifying the existing economic

and employment coordination process and reporting (see appendix 1 and 2). These pro-

posals rely on the existing economic and employment coordination cycle and in addition

allow the integration of a number of existing processes dealing with structu-

ral/microeconomic reform issues.

The starting point is for

action programmes at EU and Member State level

to be

drawn up reflecting the priorities identified in the Communication. This will allow the

Commission to support the reform process in the Member States whilst at the same time

driving it forward at EU level. Progress on these EU and national action programmes

would be monitored closely by the Commission and evaluated at the Spring European

Council.

1.2

LANNING

ACTIONS AT THE

INTEGRATED APPROACH

AND THE

EMBER

TATE

LEVEL

TOWARDS AN

The EU level

A number of important policy measures in the central policy areas outlined in the Com-

munication have to be taken at EU level, under the so-called “Community method”. The-

se measures are grouped into a Union Action Plan which could be known as the

Lisbon

Action Programme”.

The effective and successful implementation of this programme

will be crucial for the credibility of the renewed Lisbon strategy.

1.3

The Member State level

At Member State level, it is proposed that

National actions programmes

be established,

to integrate many of the existing initiatives and become the cornerstone of a simplified

reporting system.

The Broad Economic Policy Guidelines (BEPGs) are the central Treaty-based instrument

for coordinating economic policies in the Union, the Employment Guidelines (EGs) are

the central Treaty-based instrument for employment policies. These instruments are the-

refore the logical vehicles to provide consistent guidance to transform the Partnership for

Growth and Jobs, and its individual policy measures, into national policy initiatives. On

the basis of the orientations contained in the Mid Term Review Communication, the

Commission will provide a new set of guidelines in its Recommandation for the BEPGs

in 2005 (see appendix 1). Similarly, the priorities relating to employment policies would be

set out in the Employment Guidelines and recommendations.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

The integrated guidelines package

The BEPGs and the Employment Guidelines would be integrated in an “Integrated

Guidelines Package” containing 5 chapters. Apart from a political introduction (Chapter

I) and conclusion (Chapter V), the package would have two clearly separate parts. Part 1

(Chapters II and III) would contain the BEPGs (based on article 99 of the Treaty) for the

coordination of economic policies. Part 2 (Chapter IV) would contain the Employment

Guidelines (based on article 128 of the Treaty). Part 1 would be further divided in two

chapters dealing respectively with macro- (Chapter II) and microeconomic issues (Chap-

ter III). Chapter IV would exclusively deal with employment issues and should be consi-

stent with the BEPGs as set out in the Amsterdam Treaty protocol

Integrated Guidelines Package

Chapter I: Introduction

Part 1

Broad Economic Policy Guidelines

(Art. 99)

Chapter II:

Chapter III:

Macro

Micro

Part 2

Employment Guidelines

(Art. 128)

Chapter IV:

Employment

Chapter V: Conclusion

It should be noted that budgetary surveillance will be the object of a separate process un-

der the Stability and Growth Pact. Given its specificity, further efforts will be made to

exploit the synergies with other processes, in particular with regard to the BEPGs.

After the adoption of the BEPGs and Employment Guidelines, Member States would, on

the basis of these guidelines, produce a single

national action programme.

The guide-

lines will leave Member States enough flexibility to cater for specific policy requirements

at national level.

The economic and employment coordination cycle: a new start in 2005

In 2005, the BEPGs and Employment Guidelines will be adopted as a package after the

Spring European Council with the aim of informing the national Lisbon programmes to

be submitted by the Member States in the autumn. This will be the beginning of a

three-

year coordination cycle (2005-2008, see appendixes 2 to 5).

The aim is to ensure a

sufficiently stable framework for the discussions in the European Council allowing all

stakeholders to concentrate on the effective implementation of the revised Lisbon stra-

tegy. While a so-called “light” review will be undertaken in the first two years (2006 and

2007), a more “in-depth” review is planned for 2008. The “light” review will be included

in an

EU Annual Progress Report

and the “in-depth” review will be grouped together

in an

EU Strategic Report (2008),

which will mark the start of a second three- year cy-

cle.

Given the need to ensure that Member States develop the appropriate policy mixes in

their national Lisbon programmes to cater for their own national specificities and given

the need to

enhance the Member States’ ownership of the reform process,

the new

set of BEPGs and Employment Guidelines in 2005 will remain rather general. They will

The Amsterdam Treaty protocol says that the newly created sectoral instrument of employment guide-

lines “shall be consistent with the broad guidelines adopted pursuant to Article 99(2).

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

therefore not include new country specific guidelines or recommendations. However, the

existing country specific recommendations would remain valid (“in the background”) and

would only be revised, if necessary, in 2006 on the basis of the national Lisbon program-

mes due in the autumn of 2005. Indeed, since the Member States will adopt their national

Lisbon programmes in the autumn of 2005, the Commission will be in a position to re-

port in early 2006 on the programmed reforms across the Union in its first EU Annual

Progress Report. Reporting on actual implementation in the Member States on their nati-

onal Lisbon programmes will be included in the 2007 Annual Progress Repor. The EU

Strategic Report planned in 2008 will then provide an in-depth review of the implementa-

tion of the renewed Lisbon strategy and suggest detailed amendments where necessary. At

that stage, it may be deemed necessary to review the planning and reporting process in

order to assess whether further streamlining is required.

Shaping the national Lisbon programmes

It is proposed that these national Lisbon programmes be

organised in a standardised

format in three parts:

the first dealing with macro-economic and budgetary policy mea-

sures (with the aim of providing sound macroeconomic conditions), the second with la-

bour market policies and the third with structural/microeconomic reform issues. The

programmes should remain sufficiently flexible as instruments, allowing Member States to

tailor them to their specific needs. As far as the macroeconomic part is concerned, it

should be underlined that – under the current framework – the stability and convergence

programmes would be submitted in the autumn in parallel with the national Lisbon pro-

grammes but they would continue to be a separate document. The employment chapter

would rely on the existing treaty-based national employment action programmes. The

integration of these action programmes in the national Lisbon programmes should

strengthen the employment focus of the renewed Lisbon Strategy. The chapter on struc-

tural/microeconomic policies will need to be developed on the basis of the existing mi-

croeconomic part of the BEPGs. This chapter will include the structural funds strategic

programmes setting out for each Member State the priorities for EU expenditure in the

regional programmes. These priorities will be closely related to the priorities identified in

the Communication.

Member States should commit themselves to discussing these national Lisbon program-

mes with their

social partners

and adopting them by the government after a debate in

their

national parliament.

The

European Parliament

should be closely involved in the

renewed Lisbon strategy, participating fully in the debate and providing guidance to the

Council and the Member States. Given the integrated nature of the guideline package, the

European Parliament should be invited to comment on the whole package before the

European Council endorses it. This will allow the Parliament to build on the existing

practice of issuing an opinion in early spring on the Employment Guidelines as foreseen

under Article 128. In keeping with the inter-institutional agreements, the Presidents of the

European Parliament, the Council and the Commission should meet to discuss legislative

programming regarding the implementation of the Community Lisbon Programme.

2.1

TREAMLINING REPORTING AT THE

AND

EMBER

TATE LEVEL

The EU level

At the EU level, there will only be one report on the progress of the EU concerning the

implementation of the actions in the Union action programme. This document could be

based on existing reports, such as the Internal Market Strategy Implementation Report

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

and monitoring tools such as the Internal Market Scoreboard. It will be integrated in the

overarching EU Annual Progress/Strategic Report (see below).

2.2

The Member State level

National reporting will be streamlined

covering macroeconomic and budgetary mat-

ters, microeconomic or structural reforms and employment issues. For the reporting on

the structural reforms area, Member States could rely to a large extent on the existing na-

tional reports on structural reform in the context of the Cardiff process. While national

reporting on macroeconomic issues needs to be further developed, reporting in the em-

ployment area can build on existing reporting related to the national action programmes

on employment. The Commission will summarise and assess the progress achieved by

Member States with their national Lisbon programmes in its EU Annual Pro-

gress/Strategic report. Furthermore, the Commission will review the Open Method of

Coordination processes related to the Lisbon strategy with a view to establishing their

value added in the context of this renewed delivery and reporting structure. This implies

that satellite OMC- and other sectoral processes can feed into the national Lisbon pro-

grammes to the extent that they directly relate to growth and jobs. Those processes that

would no longer feed into the renewed Lisbon structure could be maintained for other

policy purposes outside the Lisbon strategy.

The structure of reporting will reflect the structure of the integrated guidelines package

and cover macro-, micro- and employment issues. It will allow a more productive invol-

vement of the Competitiveness Council in discussions on micro-economic/structural re-

form while Council for Economic and Finance Affairs and the Council for Employment

and Social Affairs Council would respectively focus more on macroeconomic and em-

ployment issues.

EVELOPING AN INTEGRATED

STRATEGIC REPORT FOR THE

UROPEAN

OUNCIL

On the basis of this streamlined reporting cycle the Commission would draw up in Janua-

ry an

Integrated Report

to the Spring European Council setting out the progress being

made on the Lisbon strategy. This report will follow the structure of the integrated guide-

lines package and include an assessment of the Union Lisbon Programme. While in the

first two years of the three-year economic and employment coordination cycle the Inte-

grated Report would be called EU Annual Progress Report (“light” review), in the third

year it would be labelled EU Strategic Report (“in-depth” review). In this report, the

Commission would also make proposals for amending the BEPGs, the Employment

Guidelines and the Union Lisbon Programme, if necessary. It will be an important ele-

ment of simplification to ensure that the Integrated Report is adopted at the same time as

the Commission’s proposals for the BEPGs and Employment Guidelines, i.e. ahead of

the Spring European Council.

The Integrated Report would encompass the current Commission Spring report, as well

as a number of reports on the implementation of guidelines established at the European

level such as BEPG implementation report and Joint Employment Report. In addition,

the report would also cover the progress made with regard to the implementation of the

EU Lisbon Programme. A

unified and integrated report at the European Council

level

would allow political ownership to be taken at the highest level. Orientations on

these matters provided by the European Council would subsequently be reflected in

changes of the BEPGs, the Employment Guidelines and the national and Union Lisbon

programmes.

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

APPENDIX 1

CO-ORDINATION PROCESS: PROPOSAL FOR SIMPLIFICATION

LISBON COORDINATION PROCESS - TODAY

Political

Orientarions

Lisbon

Review

Guidelines

Policies

Progress Reports

Synthesis Reports

Nat. Reform

programmes

(Agenda 2010)

BEPGs

EGs

Spring

European

Council

Conlusions

2000

2001

2002

2003

2004

Employment

APs

Stab. + Conv.

Programs

Nat Action Plan

-Social inclusion

-Pensions

Cardiff Reports

Annual Report on

Structural Reforms

Commission

Spring

Report

Joint Employment

Report

BEPG

Implementation

Report

Nat. Report

Synthesis

-Social inclusion

-Pensions

-Eur. Charter…

EI-Scoreboard

EP-Scoreboard

OMC

-Pensions

-Eur. Charter

Internal Market

Strategy

IMS Implemen-

tation Report

IM-Scoreboard

Competitive-

ness Report

Commission

Spring

Report

LISBON COORDINATION PROCESS – SIMPLIFIED

Political

Orientarions

Guidelines

Policies

Progress Reports

Synthesis Reports

Lisbon Review

National Lisbon Programmes

BEPGs

EGs

National

Lisbon

Programmes

Reports

(forward looking) (backward looking)

Partnership

for Jobs

and Growth

EU Annual Progress Report /

EU Strategic Report

Community

Lisbon

Programme

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

APPENDIX 2: NEW COORDINATION CYCLE

Proposal for year t

Winter

JANUARY

EU Annual Progress Report

in t, based on National Lisbon

Programmes in year t-1, incl.

draft JER and BEPGs IR

Commission proposal for

integrated guideline package

(EGs and BEPGs)

FEBR/MARCH

Input Council

Formations

integrated

guideline

package

-ESPHCA

-ECOFIN

-(COMP) and

EP on whole

Spring

MARCH

Spring

European

Council

endorsement

integrated

guideline

package

Summer

APRIL

Council

adopts

Integrated

guideline

package

ECOFIN

adopts BEPGs

ESPHCA

adopts EGs

Autumn

Winter

National Lisbon

Commission

Programmes

(backward / reviews

forward looking) based on implementation

EGs + BEPGs and incl.

nat. act. plans on empl.

Stab. and conv. progr.

submitted separately

Existing cycle of economic and employment coordination 2003-2005

Winter

Spring

Summer

Autumn

Winter

European Council

General polical orientations

BEPG, EG + IMS (March)

European Council

endorses Guideline

package. BEPG, EG +

IMS. (June)

Member States report on

implementation: Stab.

and conv. programmes

(oct.-dec) and nat. action

plans on employment)

Commission review

on the

implementation

Commission.

Implementation Package:

BEPG, EG. In addition,

IMS (January)

Commission

Guideline package

BEPG, EG. In addition IMS (April)

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

APPENDIX 3: PHASING IN (2005)

Proposal for year 2005

Winter

JANUARY

Implementation package

(BEPGs IR, draft JER and

IMS)

Spring

MARCH

Spring European

Council

provides

orientations on

integrated

guideline package

APRIL

Commission

proposal

for

integrated

guideline

package sent to

Council and EP

Summer

JUNE

European

Council

endorses

integrated

guideline

package

ECOFIN

adopts BEPGs

ESPHCA

adopts EGs

Summer

Autumn

Winter

First national Lisbon

programmmes

(forward

looking) based on

EGs + BEPGs and incl.

nat. act. plans on empl.

Stab. and conv. progr.

submitted separately

Commission

reviews

implementation

Existing cycle of economic and employment coordination 2003-2005

Winter

Spring

European Council

General polical orientations

BEPG, EG + IMS (March)

Autumn

Winter

European Council

endorses Guideline

package. BEPG, EG +

IMS. (June)

Member States report on

implementation: Stab.

and conv. programmes

(oct.-dec) and nat. action

plans on employment)

Commission review

on the

implementation

Commission.

Implementation Package:

BEPG, EG. In addition,

IMS (January)

Commission

Guideline package

BEPG, EG. In addition IMS (April)

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

APPENDIX 4: PHASING IN (2006)

Proposal for year 2006

Winter

JANUARY

EU Annual Progress Report

based on National Lisbon

Programs of 2005 (forward

looking), incl.

draft JER and BEPGs IR

Commission proposal for

integrated guideline package

(EGs and BEPGs)

FEBR/MARCH

Input Council

Formations

integrated

guideline

package

-ESPHCA

-ECOFIN

-(COMP) and

on whole

Spring

MARCH

Spring

European

Council

endorsement

integrated

guideline

package

Summer

APRIL

Council

adopts

Integrated

guideline

package

ECOFIN

adopts BEPGs

ESPHCA

adopts EGs

Autumn

Winter

National Lisbon

programmes

(backward

looking) based on

EGs + BEPGs and incl.

nat. act. plans on empl.

Stab. and conv. progr.

submitted separately

Commission

reviews

implementation

Existing cycle of economic and employment coordination 2003-2005

Winter

Spring

European Council

General polical orientations

BEPG, EG + IMS (March)

Summer

Autumn

Winter

European Council

endorses Guideline

package. BEPG, EG +

IMS. (June)

Member States report on

implementation: Stab.

and conv. programmes

(oct.-dec) and nat. action

plans on employment)

Commission review

on the

implementation

Commission.

Implementation Package:

BEPG, EG. In addition,

IMS (January)

Commission

Guideline package

BEPG, EG. In addition IMS (April)

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

APPENDIX 5: PHASING IN (2007)

Proposal for year 2007

Winter

JANUARY

EU Annual Progress Report

based on National Lisbon

Programs of 2006 incl.

draft JER and BEPGs IR

Commission proposal for

integrated guideline package

(EGs and BEPGs)

FEBR/MARCH

Input Council

Formations

integrated

guideline

package

-ESPHCA

-ECOFIN

-(COMP) and

on whole

package

Spring

MARCH

Spring

European

Council

endorsement

integrated

guideline

package

Summer

APRIL

Council

adopts

Integrated

guideline

package

ECOFIN

adopts BEPGs

ESPHCA

adopts EGs

Autumn

Winter

National Lisbon

programmes

(forward

and backward looking)

based on

EGs + BEPGs and incl.

nat. act. plans on empl.

Stab. and conv. progr.

submitted separately

Commission

reviews

implementation

Existing cycle of economic and employment coordination 2003-2005

Winter

Spring

Summer

Autumn

Winter

European Council

General polical orientations

BEPG, EG + IMS (March)

European Council

endorses Guideline

package. BEPG, EG +

IMS. (June)

Member States report on

implementation:

Stab.

and conv. programmes

(oct.-dec) and nat. action

plans on employment)

Commission review

on the

implementation

Commission.

Implementation Package:

BEPG, EG. In addition,

IMS (January)

Commission

Guideline package

BEPG, EG. In addition IMS (April)

Fejl! Ukendt betegnelse for dokumentegenskab.

PDF to HTML - Convert PDF files to HTML files

APPENDIX 6: PHASING IN (2008)

Proposal for year 2008

Winter

JANUARY

First EU Strategic Report

based on National Lisbon

Programs of 2007 incl.

draft JER and BEPGs IR

Commission proposal for

integrated guideline package

(EGs and BEPGs)

FEBR/MARCH

Input Council

Formations

integrated

guideline

package

-ESPHCA

-ECOFIN

-(COMP) and

on whole

package

Spring

MARCH

Spring

European

Council

endorsement

integrated

guideline

package

Summer

APRIL

Council adopts

Integrated

guideline

package

ECOFIN

adopts BEPGs

ESPHCA

Adopts EGs

Autu

National L

programm

and backw

based on

EGs + BE

nat. act. pl

Stab. and

submitted

Existing cycle of economic and employment coordination 2003-2005

Winter

Spring

European Council

General polical orientations

BEPG, EG + IMS (March)

Summer

Aut

European Council

endorses Guideline

package. BEPG, EG +

IMS. (June)

Member Sta

implementat

and conv. p

(oct.-dec) an

plans on em

Commission.

Implementation Package:

BEPG, EG. In addition,

IMS (January)

Commission

Guideline package

BEPG, EG. In addition IMS (April)