Swiftly raise growth potential EU
A consultation on the strategy will be launched 24 November,
with a final proposal to be released in January next year once the
new European Commission is in place. The new strategy is due to
replace the EU's flagship Lisbon Agenda for growth and jobs, which
was adopted in the Portuguese capital in 2000 and expires next
year. EU leaders are expected to adopt the revised strategy in
March 2010.
Next week's consultation document takes the economic
and financial crisis as a starting point, saying the EU's
first task in the coming years will be to emerge from the
recession. "The remaining problems in the financial
system need to be solved swiftly in order to raise the EU's
growth potential," the paper argues. "Access to credit and
efficient financial market supervision will be crucial for the
recovery."
Commission spokesperson Mark English said there will not be any
detailed proposals to come out of the discussion paper because
the EU executive is still acting in a caretaker capacity
before a new team is nominated in January next year. "You know the
institutional situation has been very uncertain," English told
Euractiv, referring to delays in ratifying the Lisbon
Treaty. "We are not in a position to make concrete proposals for
now."
Exit strategy
Nevertheless, the Commission document already lists a number of
key challenges. The first will be to balance the "continued need
for fiscal support" for economic growth in the short term with "the
need to restore sustainable public finances and macroeconomic
stability" in the long run, the Commission warns.
The stability and growth pact, which limits public deficits in
the member states to 3% of Gross Domestic Product (GDP), "will play
an important role" in returning to sustainable growth levels, the
EU executive stresses. Although the current draft gives no
indication as to the timetable for reforms, the 2020 strategy is
therefore effectively seen as the EU's exit strategy from
the economic crisis.
"Member states will need to redirect public expenditure towards
the thematic objectives of EU 2020 so that the necessary
investments in Europe's future can be made," the Commission says,
arguing that "room can be found to invest in sustainable growth"
despite the current strain on public finances.
EU member states firmly in control
The new strategy places EU member states firmly in control of
the agenda, saying the European Council of heads of
state should "fix a small number of headline objectives and
define the corresponding policy action to be pursued at EU and
member state level in partnership".
"The cornerstone of the future strategy should be the European
Council since it is the body which at European level ensures the
integration of policies, manages interdependence between member
states and the EU."
For each objective, member states would "set their individual
targets for five years corresponding to their national
situations and their starting points". The Commission would monitor
implementation every year, with both a thematic and country
review. The European Parliament could also take on a greater
role by expressing its views on the 2020 strategy before March next
year, the Commission adds.
Four key priorities
The paper defines four key priorities for 2020:
- Innovation and knowledge: The "engine for
sustainable growth" is knowledge and technology, the Commission
argues, saying the EU needs to move to "a value economy". "In a
fast-changing world, what makes the difference is innovation in
both products and processes."
- Fighting exclusion: With unemployment set
to hit double-digit figures in 2010, the Commission recommends
"empowering people" in order to create new jobs. "The
transformation of the EU towards a greener, knowledge-based economy
will boost new job creation and help reduce high levels of
unemployment," it argues. Transition between jobs and training
periods will require a major effort to prevent people falling out
of the system, and to ensure social cohesion, it says.
- Green growth: With higher energy prices
and greater competition for natural resources, European businesses
need to adapt, the Commission warns. "More efficient use of
resources, energy, and the application of new, greener technologies
will stimulate growth, create new jobs and services and help the EU
meet its environmental and climate goals," it argues.
- Digital Europe. Developing a "smart, upgraded
transport and energy infrastructures to improve
competitiveness".