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EU ‘Lisbon Agenda’ gets social makeover

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Published 18 March 2008

While heads of states and government congratulated themselves on putting social and environmental concerns back onto the EU’s growth and jobs agenda at a Summit on 13-14 March, social NGOs blasted them for the "social emptiness" of their conclusions.

In response to increasing public concern on climate change, ageing population and social exclusion, EU heads of state and government said they had agreed to shift the Lisbon Agenda away from its purely "growth and jobs" focus of the past three years and to put the environment and citizens more "in the foreground". 

The move marks a turnaround from the last revision of the strategy, in 2005, when the social and environment pillars were broadly set-aside to nurture the bloc’s stagnating economy. But following two years of solid economic growth and job creation, EU leaders say it is time to pay more attention to the other challenges facing the bloc. 

"The new emphases of the strategy are, in essence, heightened concern for citizens and social issues, the response to climate change, and a more modern view of innovation and creativity," read a statement from the Slovenian EU Presidency after the meeting.

Key missions for the member states include solving the bloc’s skills shortage, notably by drawing up national action plans to reduce the number of early school leavers and improve basic reading skills, as well as through a common EU policy on migration. 

The European Council also called on the Commission to "present a comprehensive assessment of the future skills requirements in Europe up to 2020, taking account of the impacts of technological change and ageing populations". The aim is to better anticipate future needs of industry – notably in the area of climate and energy-efficient technologies – seen as a key business opportunity in the future. 

However, the Summit also stressed that, "given the increasing uncertainty about the international economic environment, we need to proceed resolutely with reforms". These include the pursuit of innovation and research objectives, with the removal of barriers to the free movement of knowledge by creating a "fifth freedom" (EurActiv 17/3/08), as well as the implementation of the "flexicurity" principle when reforming labour markets (see our LinksDossier on Flexicurity). 

Leaders also agreed to continue in their drive to reduce administrative burdens placed on businesses and to cut red tape hindering them from operating across the entire EU market. They said the approval of a "Small Business Act" aimed specifically at helping SMEs access new markets, through improved financing and support measures, would be a top priority. 

Positions: 

"We are pleased to note that we are on the right track with the planned reforms: in recent years we have created 6.5 million new jobs, the unemployment rate has fallen to less than 7% and the foundations of the European economy are sound," said Slovenian Prime Minister Jansa, whose country holds the rotating EU presidency. However he added: "We should not, however, rest on our laurels. The global economy is increasingly unstable; it is, therefore, important that we maintain a steady course." 

He said the Lisbon Strategy's focus would now "be on the needs of our citizens through enhanced social dimension and greater focus on education. We must also take care of the environment as the full potential of economic and social reforms can only be achieved in the synergy with sustainable and healthy environment." 

Georg Toifl, president of the European Association of Craft, Small and Medium-sized Enterprises (UEAPME) singled out labour market reforms should be a key priority. "With the 2010 deadline looming, Europe does not stand a chance to achieve the Lisbon goals unless it quickly improves the fluidity and reactivity of its labour markets […] Small enterprises must be able to offer to their staff a sufficient level of security, which is a precondition to remain an attractive employer. In addition, they must be sheltered from the unfair competition of undeclared work, which is particularly felt in labour intensive service sectors. Both issues must be addressed in the SBA and become a subject for social dialogue both at European and national level," he insisted.

The European Trade Union Confederation said it was high time for a renewed emphasis on social policies, saying: "The social dimension has been becalmed in the past decade." But General Secretary John Monks was unconvinced member states were doing enough. "In our view, social Europe is in retreat and it will be no surprise when the voices calling for protectionism become more strident. Support for the single market is dependent on support for Social Europe. That is the deal – and it is not working for us at the moment," he declared. 

The Social Platform said it was "outraged" by the European Council's conclusions, saying they showed "a lack of social and human commitment to the destiny of European citizens" and were "disconnected" from urgent problems facing European society, including rising inequalities, deterioration of working conditions, and a downgrading of social protection systems and public services.

 

Background: 

The annual Spring European Summit – this year chaired by current EU Presidency holder Slovenia on 13-14 March – is an occasion for European leaders to discuss the current state and future prospects for the EU economy. In 2000, the EU launched its ambitious "Lisbon Strategy" to become "the world's most dynamic knowledge-based economy by 2010". 

After five years of dismal results, EU leaders re-launched the strategy, in March 2005, to include a greater emphasis on growth and jobs and transfer more ownership to the member states via national action plans. 

While the latest progress reports point to much-improved results since then (EurActiv 12/12/07), they also warn against complacency in the face of increased competitive pressures, a soaring euro and energy prices, and a global economic slowdown caused by what is now being termed as a "recession" in the United States following the sub-prime mortgage crisis (EurActiv 11/02/08). 

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