Kok review of Lisbon strategy: excellent on diagnosis, weak on remedies

The long-awaited mid-term review of the Lisbon strategy brings very
few new ideas to the table to revitalise the stalled process of
essential economic and social reforms.

Wim Kok’s report takes a gloomy view on the progress made in the
last four years just as  Romano Prodi did recently
(see EURACTIV 3 November 2004). The report,
which is to be adopted by the Commission on 3 November, states that
the “disappointing delivery” is due to “an overloaded agenda, poor
co-ordination and conflicting priorities” but it blames mainly the
lack of political will by the member states.

The report provides a very good analysis of the reasons for lack
of progress on the Lisbon agenda. It paints a mixed picture as some
progress was made: the employment rate rose from 62.5 per cent in
1999  to 64.3 per cent in 2003 and overall female employment
rose considerably too. But it says that ‘net job creation’ stopped
in 2001 and that the target of 70 per cent employment rate by 2010
will be difficult to reach. 

The Kok report rejects proposals for the 2010 deadline target to
be lifted. It also explicitly states that the EU should not become
a “copy-cat of the US”. It highlights the external challenges (US
and Asian growing economies), describes the overwhelming internal
challenge of a ‘greying’ or ageing Europe and points to the EU-10
enlargement  as another source of concerns and
opportunities.

The Lisbon strategy is too broad to be understood, says the
report. “Lisbon is about everything and thus about nothing.
Everybody is responsible and thus no-one. The end result of the
strategy has sometimes been lost. An ambitious and broad
reform-agenda needs a clear narrative, in order to be able to
communicate effectively about the need for it.” All member states
have to take ownership of Lisbon and the Commission must be
prepared to name and blame those that fail as well as ‘fame’ the
ones that succeed.

The Kok report then goes on to make policy recommendations in
five areas:

• Knowledge society:
o To attract and keep the best researchers: an action plan to
reduce the administrative obstacles for moving to and within the EU
for world class scientists and researchers and their dependants.
(to be implemented by Spring 2006);
o To make R&D a top priority: establishment by end 2005 of
a European Research Council;
o To promote innovation: agree before the 2005 Spring Summit
on the Community Patent (an earlier version of the report mentioned
the possibility of English-only for the patent, but this was
dropped in the final version).

• Internal Market
o Faster transposition of internal market legislation:
Commission to produce full list of legislation awaiting
transposition (sorted by worst offender);
o Remove obstacles to free movement of services by end
2005;
o Adopt remaining legislation of Financial Services Action
Plan.

• Improve climate for entrepreneurs
o Better lawmaking by continuing to carry out impact
assessments of future legislation (for competitiveness and
sustainable development);
o Member states to reduce time, effort and costs for setting
up a business by end of 2005.

• Build an adaptable and inclusive labour market
o Implement the recommendation of the European Employment
Taskforce in 2003
o National strategies for life-long learning by 2005;
o Member states to develop a comprehensive active ageing
strategy by 2006 (“radical policy and culture shift away from early
retirement”).

• An environmentally sustainable future
o Environment and competitiveness as win-win: promote
development of eco-innovations and national road maps for the
implementation of the EU’s Environmental Technology Action Plan
(ETAP);
o National action plans for ‘greening’ public procurement.

In order to make Lisbon work, the report presented 8 further,
general recommendations:
• Focus on growth and employment “to underpin social cohesion
and sustainable development” [is in conflict with the ‘triple
bottom line’ of sustainable development, where each dimension
(economic, social and environment) is equal –  note by the
editor];
• Partnerships for reform with stakeholders, citizens, social
partners and public authorities;
• National action plans for reforms before end of 2005 (to be
debated with national parliaments and social partners);
• These national plans to take into account the Broad Economic
Policy Guidelines and Employment Guidelines decided at EU level
(before July 2005);
• European Parliament to set up a standing committee on Lisbon
strategy;
• EU budget to be reshaped to reflect Lisbon priorities;
• Improve the process for delivery by simplification (only 14
key indicators instead of more than 100) and naming, shaming and
faming;
• Commission’s communication strategy to be reviewed before
Spring Council 2005.

Read more with Euractiv

Put the social pillar back into Lisbon, urge NGOs

Social NGOs have carried out their own review of the Lisbon strategy, criticising the lack of progress made in creating 'more and better jobs' and fostering 'social cohesion'.