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THE GOVERNMENT OF THE REPUBLIC OF SLOVENIA INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Lisbon Strategy Matevž Hribernik Ptuj, 26 September 2008 ‣ We are all facing the same challenges ‣ Our economies are strongly interlinked, and a common currency in the €-zone ‣ No Member State can succeed alone- together we can! ‣ Division of labour between the EU-level and Member States ‣ Partnership is at the heart of the Lisbon Strategy 2 INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT ‣ The Lisbon Strategy is an action and development ‣ ‣ plan for the European Union. Original aim was to make the EU "the most dynamic and competitive knowledge-based economy by 2010". It was set out by the European Council in Lisbon in March 2000, adopted for a ten-year period. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT ‣ The main fields are economic, social, and ‣ environmental dimension. The Lisbon Strategy is heavily based on the economic concepts of: ‣ ‣ ‣ Innovation as the motor for economic change (based on the writings of Joseph Schumpeter) The "learning economy" Social and environmental renewal ‣ Under the strategy, a stronger economy will create employment in the EU, alongside inclusive social and environmental policies, which will themselves drive economic growth even further. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Sluggish growth Behind goals on most fields Slow pace of structural reforms No political ownership INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT ‣ no hierarchy of priorities ‣ too many priorities = no priorities ‣ changing priorities from one year to the next ‣ too many targets ‣ unclear governance INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT 1. Ranking of priorities → growth and jobs 2. Three year cycle 3. Only 2 targets 4. New governance (‘partnership’): → 3 % R&D spending → 70 % employment rate → national reform programmes based on integrated guidelines → Community Lisbon programme at EU Level → Commission monitoring of progress: a single annual report to the Spring European Council → Lisbon National Coordinators (“Mrs/Mr Lisbon”) INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT The 2006 Spring European Council agreed four priority areas: ‣ ‣ ‣ ‣ More R&D and innovation A dynamic business environment Equipping people to adapt to change Integrated EU energy policy INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Favourable macroeconomic conditions – reduced A fairly positive cycle – better regulation, unlocking Further attention needed – improve competition Improved assessment methodology More ownership on national level budget deficits and public debt business potential, tax reforms, fostering innovation, structural improvements in labour markets (services and network industries) , implementing flexicurity, ageing population –> pension and health care systems, debt reduction, investing in innovation and human capital INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Complacency is dangerous - push for reforms where progress was limited Reforms needed to overcome economic shocks INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Lisbon 1.0 (2000) Lisbon 2.0 (2005) ◦ most competitive economy in the world ◦ Japan and USA ◦ growth and jobs ◦ looking inward if it's not broken don't fix it … update it Lisbon 2.1 (2008) Lisbon 3.0 (post 2010) INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT a strong boost for the strategy, for reforms to make Europe more ◦ dynamic, ◦ creative, ◦ entrepreneurial, while remaining caring ◦ for people and ◦ environment INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT si.nergy (1) innovation and creativity (2) business environment (3) caring for people (4) caring for the environment (4) caring for the environemnt global dimension (new) (3) caring for people European Union dimension (2) business environment member state dimension (1) innovation and creativity open method of coordination citizen, local dimension (!) INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Start of second cycle of the renewed LS ◦ Member States to respond to guidelines from now on with action plans ◦ Concern for citizens increasingly in the foreground, call for a new Social Agenda ◦ The main focus is on the free movement of knowledge and creativity establishment of “fifth freedom” high-speed internet access for all schools by 2010 ◦ The importance of small enterprises and the single market for European competitiveness ◦ Ambitious timeline for adoption of Climate and Energy Package INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Strategic Report Integrated Guidelines Community Lisbon Program National Reform Programs Country Specific Recommendations Council Conclusions … framework for other policies INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Connection between the Lisbon strategy and cohesion policy Involvement of stakeholders – partnership approach (Lisbon Monitoring platform – CoR) Keyword is sustainability INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Europe needs a development strategy also after 2010 Innovation will not be enough anymore, creativity is the key a better implementation at territorial level and clarify the roles of stakeholders Main challenges: Globalisation - offers new opportunities, but also puts increasing pressure on people and on business Demographics - we will need growth and jobs to address the effects of an ageing population INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT European care for people and environment Values such as well designed, fair, environmentally friendly, nice, trustworthy … Europe's role in the globalized world is to century of European values! ◦ shape values … dealing with conflict, addressing climate change, agreement among generations, social sensitivity, global empathy … valuing design, brand, intellectual property ◦ project these values to the rest of the world ◦ creating products fitting this world view, exporting products INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT THANK YOU! More information: [email protected] References: ◦ Presentations of dr. Žiga Turk, minister, Office for Growth ◦ www.eu2008.si ◦ European Commission