By Henrietta Billings - 3rd November 2004
Former Dutch prime minister Wim Kok has delivered a damning report on Europe's growth and competitiveness, warning that it will be "extremely difficult" for the EU to meet its 2010 targets.
Kok, who chaired a high level working group which compiled the report, warned that the EU was heading to miss its own commitments as the US and other countries forged ahead since the pledges were made four years ago.
The report paints a gloomy picture of EU competitiveness - blaming "slow progress" on national capitals and their unwillingness to act "with sufficient urgency".
It warns that budgetary constraints and the enlargement to the EU of ten relatively poor member states have not helped boost competitiveness targets.
But overall Kok blames the "disappointing delivery" on an "overloaded agenda, poor co-ordination and conflicting priorities", calling for better implementation to "make up for lost time".
"Halfway to 2010, the overall picture is very mixed and much needs to be done to prevent Lisbon from becoming a synonym for missed objectives and failed promises."
Kok blasts the "lack of determined political action" and calls on member states to "step up ... efforts considerably" with a league table of member states to be set up according to progress on 14 key indicators.
He said the EU also needed to make progress on the EU patent, rethink its attitude to early retirement and cut red tape for businesses.
EU businesses warned on Wednesday that Kok report must be taken seriously or the Lisbon Strategy risked being termed the "Lisbon Tragedy".
The report is "an alarming analysis which must be taken seriously by the member states and implemented quickly to avoid the Lisbon Strategy from becoming the "Lisbon Tragedy", said president of Eurochambres Christoph Leitl in a statement.
"We agree on the report that clearly identifies the weakest link towards the goal of making the EU the most competitive economy in the world - the lack of action by member states.
"We need to revive and redesign the 'strategy' to avoid dramatic effects for the economy and social welfare - the final responsibility for that belongs to the 25 prime ministers."
The so-called Lisbon Strategy was adopted in 2000 when the EU made a commitment to become the world's "most dynamic, knowledge based" economy by 2010.
The report is due to be included in the Mid-Term review of the Lisbon Strategy in January 2005 - under Luxembourg's EU presidency.
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