Commission hails EU reform progress, calls for more

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Despite much-improved results over the past two years, EU governments will have to focus more on “investing in people” and “unlocking SMEs’ business potential” in the next three years if they are to cope with the competitive challenge of globalisation, the Commission has said.

EU policies to boost jobs and growth in the 27 member states – the so-called Lisbon Strategy – are finally paying off, according to a report, published by the Commission on 11 December 2007, which will be delivered to Heads of State and Government when they meet for their annual Spring economic summit in March 2008. 

Economic growth jumped from 1.8% in 2005 to 3% in 2006 and employment rates reached 66% – close to the Lisbon target of 70%. 

The report, however, underlines that “not all member states have undertaken reforms with equal determination” and that reforms in some areas, such as opening up energy and services markets and tackling labour market segmentation, have lagged behind. 

It suggests that governments should continue on the same path they have been following so far but with a special focus on a few “high-impact actions”, including: 

  • Connecting at least 30% of the EU population and all schools to high-speed internet by 2010; 
  • improving basic learning skills, such as reading; setting targets to reduce early-school leaving; and; adapting school curricula in accordance with constant monitoring of companies’ skills requirements; 
  • increasing availability and affordability of quality childcare
  • adopting the Commission’s “blue card” proposal for a skills-based immigration policy (EURACTIV 24/10/07);
  • fostering SME growth by pushing through a comprehensive “Small Business Act“, aimed at cutting red tape, increasing SMEs’ access to European programmes and public procurement, and reducing barriers to cross-border activity through the creation of a European small company statute (EURACTIV 15/05/07). 
  • encouraging innovation by agreeing on an integrated patent  jurisdiction and a single affordable patent
  • facilitating the exchange of researchers with the introduction of a “researcher passport“; and; 
  • completing the internal market for energy, including setting mandatory energy reduction targets for government buildings and systematically including energy efficiency as the one of the award criteria for public procurement. 

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According to the European Commission, its package "makes clear in particular the need for an even higher priority for the social dimension, education and skills, information and communication technologies, flexicurity, energy and climate change". 

Commission President José Manuel Barroso said: "Complacency would be fatal to Europe's prospects of shaping globalisation. Much more remains to do. Progress is uneven between policy areas and some member states are moving much faster than others." 

The American Chamber of Commerce to the EU, however, welcomed the report, which it believes sets out "ambitious – but pragmatic and achievable – goals and actions" for the future. 

Mark Spelman, Chair of AmCham EU's Executive Council and Global Head of Strategy for Accenture nevertheless cautioned: "The Lisbon reforms are reaping benefits yet there is still much to be done to ensure that Europe does not lose out. We are making progress – such as on flexicurity – both at the Community and the member-state level but there must be no let up in the pace and nature of reforms. Europe and its citizens need the reforms to happen for a prosperous, dynamic and competitive future." 

Socialist members of the European Parliament, however, criticised the reform proposals, saying they were "globally insufficient". German MEP Udo Bullmann accused the Commission of "lacking the courage to propose concrete actions" to address the sizeable challenges that the EU is confronted with, including climate change, growing poverty, delocalisation or the recent financial crisis. 

After five years of dismal results, EU leaders, in March 2005, re-launched the bloc's Lisbon Strategy aimed at making it "the world's most dynamic knowledge-based economy by 2010".

Two essential elements of the "Lisbon renewal" included a greater emphasis on growth and jobs, and transferring more ownership of the strategy to the member states via national action plans. 

  • Mar. 2008: Commission report and recommendations to be presented to European leaders at the Spring summit.

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