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'Wise men' chief admits EU failure on growth agenda

Published 25 March 2009
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Felipe González, chairman of a reflection group on the future of Europe, recognised yesterday (24 March) that the Lisbon Strategy for Growth and Jobs, launched in 2000 with the objective of transforming the Union into the world's most competitive knowledge-based economy by 2010, has failed.

González, who was Spanish prime minister from 1982 to 1996, decided to call a spade a spade and described the Union's flagship plan as a failed project. 

Ironically, he was speaking at a public event organised by a think-tank named after the Lisbon Strategy: the Lisbon Council. 

Speaking in Spanish and insisting that he was only outlining his personal views, González made a passionate appeal for a "new resetting of relations" and a "social pact for the 21st century". 

The current world economic crisis should be grasped as an opportunity to move Europe on from the state of "sweet decadency" in which it has lived for years, Gonzalez argued. 

"I think Europe would not have reacted to the challenges it is confronted with had the crisis not hit. Maybe this will be the chance to reassess and re-establish social relations, industrial relations, our education systems: a new analysis, ten years after Lisbon, and see why Lisbon failed," González said. 

Wrong diagnosis 

By the time the Lisbon Strategy was launched in March 2000, European leaders had made a "wrong diagnosis" of the Union's problems, the Spanish politician further argued. He referred to poor analysis of Europe's education systems and misguided comparisons of social security costs between the EU and the US, which led EU leaders to adopt a flawed strategy. 

"Nobody thought of listing the top 20 US companies in 1980 and checking how many of them were in the same ranking in 2000, and doing the same comparison for Europe. The painful conclusion is that there is no mobility in Europe, upwards and downwards, in the world of business opportunities," he said. 

'Corporate rigidity'

What's more, González insisted that EU societies tend to function with excessive corporate rigidity. 

"Maybe we are paying for decades of post-WWII success. Corporate rigidity includes rigidity of trade unions and of political parties, left and right, which themselves do not allow the mobility, upwards and downwards, of industrial initiative," González said. 

The chairman of the reflection group also observed that in the US, there is no such concept as "small and medium-sized enterprise". In the US, all enterprises start small, but in Europe, it is impossible to find the next Bill Gates hiding in someone's garage as the municipal council would probably prohibit that, he said amid laughter from the audience. 

No details of how 'reflection group' will work 

Some people in the room seemed disappointed that Gonzalez had analysed Europe's past mistakes, rather than revealing how the reflection group on the future of Europe would conduct its work. 

The former Spanish PM mentioned how on the same day, the group had been holding its fourth session since its establishment five months ago. 

Answering a question from EurActiv as to how the reflection group was planning to communicate, Gonzalez adopted a defensive stance, explaining that there were many limitations, including the group's small budget, which did not even cover interpretation expenses. 

As for whether the group would "go public" (EurActiv 22/01/09), González would only say that at the moment members needed to discuss between themselves. He nevertheless admitted that a debate could take place after the summer. 

Background: 

The European Council of 14 December 2007 decided to establish a "reflection group" of prominent personalities selected on the basis of merit, to identify the key issues which the Union is likely to face in the future and how these might be addressed. 

Former Spanish Prime Minister Felipe González was named chair of the group, while Vaira Viėe-Freiberga, a former president of Latvia, and Jorma Ollila, former CEO of Nokia, were named vice-chairs. 

At the 15-16 October 2008 EU summit, it was decided that the group would consist of 12 men instead of nine (EurActiv 14/10/08). The other members of the group include: 

  • Lech Wałęsa, the historic leader of the Polish anti-communist movement 'Solidarność' and a former Polish president; 
  • Mario Monti, a former Italian competition commissioner; 
  • Richard Lambert, director-general of the Confederation of British Industry and a former editor of the Financial Times; 
  • Lykke Friis of the University of Copenhagen; 
  • Nicolas Notat, a French former leader of the CFDT trade union; 
  • Wolfgang Schuster, a German conservative and mayor of Stuttgart; 
  • Rainer Muenz, an Austrian economist; 
  • Rem Koolhaas, a Dutch architect, and; 
  • Kalypso Nicolaidis, a Greek professor. 
  • The group's secretary general is Dr. Žiga Turk of Slovenia, who keeps an online diary on Blogactiv.eu. 

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