Lisbon Agenda

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The following essay has been written by an EU Tests user. Our experts have given some constructive feedback which may be useful for anyone preparing for the written exam of the EU competition. *******

Growth and Employment in the light of the re-launched Lisbon strategy

1. Challenges – why a focus on growth and employment 1.1. Ageing population 1.2. Globalisation

Comment [A1]: Overall a good quality essay, nevertheless more personal views or general evaluation would have been useful to avoid a simple description of facts and argue for the importance of the Lisbon Agenda and its vital influence on growth and jobs

2. Need for action – the right measures at the right levels 2.1. The national reform programmes 2.2. The Community Lisbon programme

3. Partnership for Growth and Employment - Priorities for 2007

4. Conclusion

In March 2005, the Spring European Council discussed the Commission’s mid-term review of Phase I (2000-2005) of the Lisbon strategy for economic, social and environmental renewal. The EU

Comment [A2]: A brief introduction about the Lisbon Agenda and its background would have been useful in the intro Comment [A3]: Further details about why the need to revise the Lisbon strategy would have been useful as well

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leaders decided to put growth and jobs at the top of Europe’s political priorities. The Commission proposed a new approach to focus on economic growth and employment, launching the idea of a “Partnership for Growth and Jobs” between the Member States and the Community.

1. Challenges – why a focus on growth and employment

According to the Commission’s Communication from February 2005, Europe, at present, faces enormous internal and external challenges and urgent action is required to address them:

1.1. An ageing population will result in the shrinking of working-age population. Without compensatory measures from increased labour productivity, the economic growth will drop dramatically and, together with a rise in age-related expenditures, will put in danger the European social model.

1.2. The increasing globalization exposes Europe to increasing competition from abroad. Without an increased R&D investment in Europe, towards the objective of 3% of GDP, the Europe will continue to lag behind USA, China and Japan. Moreover, there is an increasing need for greater labour markets adaptability.

As stated in the Communication of the Commission “Common Actions for Growth and Employment” (May 2005), the goal of the renewed Lisbon strategy is to modernize the EU’s economies and preserve the European social model in the face of increasingly global markets, technological change, environmental pressures, and an ageing population.

2. Need for action – the right measures at the right levels

The key for a successful renewed Lisbon strategy is to define clearly responsibilities at the national and the Community level in order to better match tasks and competencies.

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2.1. The national reform programmes In many areas, the centre of gravity for action lies at Member State level – such as for employment and labour market policies. All Member States have drawn up national reform programmes on the basis of a single set of Integrated Guidelines for Growth and Employment (drafted by the Commission in April 2005, together with recommendations for Broad Guidelines for the economic policies and guidelines for the employment policies). The national reform programmes are the main tool to identify key challenges and to translate the new Lisbon strategy into reform owned by Member States. In order to facilitate visibility and cooperation, all Member States have appointed Lisbon coordinators (Mr/Mrs Lisbon).

Comment [A4]: Consider adding “the socalled”

2.2. The Community Lisbon programme There are, however, goals which cannot be delivered by Member States acting alone, and where Community action is required (research and innovation, internal market for services). In December 2005, the European Council adopted the Community Lisbon programme (COM – May 2005), which concentrates on key actions of high-value added: the support of knowledge and innovation, the reform of state-aid policy, the simplification of the regulatory framework, the completion of Internal Market for services, the removal of obstacles to physical, labour and academic mobility, the development of a common approach to economic migration.

3. Partnership for Growth and Employment – Priorities for 2007 The partnership for growth and employment begun in 2005, with the European Council setting up the political priorities, and the Commission drafting the Community Lisbon programme and the Integrated Guidelines covering the macro-economic, micro-economic and employment dimensions.

Comment [A5]: Seems to down-to-thepoint, some additional remarks would have been useful

Comment [A6]: Order of words ambiguous, rather: high value-added key actions Comment [A7]: Consider adding a comment or your own evaluation about their importance, relevance etc., to avoid a simple listing of key elements Comment [A8]: In a hand-written exam this issue will not be relevant, nevertheless if you write a paper by computer make sure the styles are uniform: headings above were also underlined, here it is only bold

In 2006, both the Community and the Member States worked on the reform agendas, setting up objectives and targets. The national reform programmes were finalized in 2006 and the Commission assessed them, issuing the first Annual Progress Report (December 2006). 2007 will be the year of implementing the reform programmes within the framework of a true partnership.

Comment [A9]: We are already in 2007 so the wording should be revised

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After 1 year of partnership, the Commission proposes to maintain the integrated guidelines as a basis for the national reform programmes. However, the Commission has decided not to propose formal, country-specific recommendations in response to the national programmes. The Commission set its priority to build strong co-operation with Member States, based on ownership of the programmes by Member States themselves.

Comment [A10]: Consider writing “one” instead of using number

On the basis of the annual national reform reports (2006), the Commission has identified 4 priorities for action, which should be implemented no later than the end of 2007: (a). investing more in knowledge and innovation; (b). unlocking the business potential, especially of SMEs; (c). responding to globalization and ageing; (d). an efficient and integrated EU energy policy. In each case, the Commission identified responsibilities and suggested further actions that can be taken at the Members States and the EU levels, as well as actions to be taken in common by Member States and the EU. Examples of such needed cooperation between the Member States and the Community are: Knowledge and innovation: Member States and the Commission should launch initiatives to create Europe-wide lead markets in key technology sectors (based on the work of European Technology Platforms). A European Institute for Technology should be set up. Unlocking business potential (SMEs): Under the Competitiveness and Innovation Framework Programme the financial instruments at Community level will be developed, to facilitate access to finance, particularly for SMEs. Member States should better use the structural funds, especially the future funding scheme for joint European resources for micro- to medium enterprises (JEREMIE). Globalisation and ageing: The Commission will draft a report with a view to facilitating agreement on common principles concerning modern labour laws, with a balance between flexibility and employment (“flexicurity”). The Commission will work with Member States to devote a higher share of structural fund spending to education and training; the European Social Fund and the new Globalisation Adjustment Fund should support these efforts. Efficient and integrated energy policy: The internal energy market should be strengthened, to promote competitiveness and security of supply. Financial assistance is available through EU financial instruments to help Members States achieve the 10% cross-border interconnection objective. The development of a European framework of incentives to promote renewables could boost their use. The Community and member States should speak with one voice in international for a and with third countries supplying energy to the Community.

4. Conclusion

Comment [A11]: Again consider adding your own ideas/evaluation to avoid a “dry” listing of Commission goals

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Doubtless, the national reform programmes and the Community Lisbon programme, taken separately, can contribute to growth and jobs. In many cases, problems and challenges can be better identified and tackled by Member States, with due respect to their national traditions. In a number of cases, Member States developed successful responses to certain challenges which can be shared and applied by other Member States as well. There are, however, challenges which cannot be addressed at Member State level alone, and where the success depends on coordinated action at both European and national level (common challenges require common responses). For the renewed Lisbon strategy to succeed, it is vital that Member States and EU measures complement each other.

Comment [A12]: Consider mentioning the origins of the Lisbon Agenda and the challenges/achievements so far at this point as well