Slow progress towards Lisbon

The Commission’s second implementation report on the Broad Economic
Policy Guidelines (BEPGs) for 2003-2005 shows little progress
towards the Lisbon goals.

The Commission’s second implementation report on the Broad
Economic Policy Guidelines (BEPGs) for 2003-2005 shows
encouraging progress on some areas in Belgium,
Denmark, Ireland, the Netherlands, Finland and the UK. In rest of
the member states the progress towards reaching the Lisbon
objectives has been rather limited. 

In 2004, respecting the policy guidelines seem to have been
particularly difficult:

  • one third of the member states have deficits exceeding 3 per
    cent of the GDP, increasing the average nominal deficit in the EU25
    to nearly 3 per cent of GDP.
  • long-term sustainability of public finances is not secured in
    the majority of the member states
  • the progress is clearly insufficient to reach all employment
    targets set for 2005/2010 
  • only few member states took measures to enhance the flexibility
    of the labour markets
  • productivity growth has slowed down
  • the pace of internal market integration has slowed down
  • only gradual progress towards the ‘knowledge-based
    economy’
  • the target of investing 3% of GDP in research by 2010 will
    not be reached (except in Sweden and Finland where it is already
    the case)
  • progress towards social sustainability limited

However, progress has been made on the following
points:

  • successful progress towards labour market reforms in Germany,
    Denmark, the Netherlands, Ireland and Austria
  • progress in liberalisation of network industries
  • more efficient competition policies  
  • progress in financial market integration
  • climate for doing business improved
  • actions towards improving environmental sustainability
    taken 

A Joint Employment Report for 2004-2005, also adopted on 27
January 2005, shows little progress towards the three objectives of
the European employment strategy: full employment, improving
quality and productivity at work, and strengthening social cohesion
and inclusion. The current employment rate in the EU is 63%,
falling short of the Lisbon target of 70% in 2010.

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In 2003 the Council adopted Broad Economic Policy Guidelines
(BEPGs) for 2003-2005. BEPGs set out the EU’s medium term economic
policy strategy to make Europe more competitive. The second
implementation report on the BEPGs, published on 27 January 2005,
concentrates on policy measures taken in the field since 2003
and includes, for the first time, the new member states
in 2004. 

This report on BEPGs is part of the 'implementation package'
measuring the progress towards the Lisbon targets. The
implementation package includes also a Joint Employment Report
(JER) and the Implementation report on the Internal Market
Strategy. This package of three reports provides essential
background information for the Commission's 2005 Spring Report and
the mid-term review of the Lisbon Strategy.

The Spring European Council will take place in 22-23 March
2005.

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