By Chris Jones - 12th December 2006
EU member states are finally on the right track towards improving economic growth and boosting job creation, the European commission said on Tuesday.
Unveiling the annual assessment of progress towards the so-called Lisbon agenda goals, commission president José Manuel Barroso said there were clear signs of improvement.
“Europe is starting to embrace the changes that can make the current economic upturn last,” he said.
“But to get in shape for globalisation, every member state needs to pick up the pace and perform to its full potential.”
In a departure from previous years, the commission has decided to make country-specific recommendations for improving the progress of reform, allowing each member state to clearly see how it compares to the others.
“Member states can agree on what each of them needs to do – and then do it,” said Barroso.
“The improved economic outlook is a unique window of opportunity to speed up, not an excuse to sit back and relax. There is no room for complacency.”
He said that member states had asked that the commission refrain from publishing a “league table” of Lisbon performance - but the recommendations from the commission make it quite clear who is doing well and who is slacking.
The Lisbon agenda, launched with a fanfare in 2000, was designed to turn the EU into the world’s best-performing knowledge-based society by the end of the decade, focusing on economic growth, higher employment levels and sustainable development.
Yet within five years, EU leaders had agreed that they were not going to reach their ambitious targets, and decided to relaunch Lisbon, focusing primarily on the jobs and growth elements.
Each member state committed to drawing up detailed plans for implementing the revised strategy, which were submitted to the commission in the autumn.
The commission’s report is based on these plans and its own assessment of progress so far, and while the findings are largely positive, Barroso is keen to maintain the pressure on national governments by ‘naming and shaming’ the worst performers.
And there is certainly plenty of room for improvement in every area.
Investment in R&D has improved over the last year, but most member states are still falling far short of the three per cent of GDP threshold set in Lisbon.
Most member states still have far too much red tape, especially when it comes to setting up new companies and “expanding entrepreneurship”, and the commission is keen to wring a commitment out of member states to cut red tape by 25 per cent by 2012.
Europe’s diverse labour laws also need to be improved, the commission’s report suggests, in particular moving towards greater use of “flexicurity” – enabling people to quickly find new jobs rather than guaranteeing that they stay in their old one.
And the fourth priority area for Lisbon – energy and climate change – still needs lots of work, with a new commission report on energy sources and usage, due in January, expected to form the basis of significant reforms in 2007.
Have your say...
Please enter your comments below.