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EU Strategy 2020



The 5 targets for the EU in 2020

  1. 1. Employment
    • 75% of the 20-64 year-olds to be employed
  2. 2. R&D / innovation
    • 3% of the EU's GDP (public and private combined) to be invested in R&D/innovation
  3. 3. Climate change / energy
    • greenhouse gas emissions 20% (or even 30%, if a satisfactory international agreement can be achieved to follow Kyoto) lower than 1990
    • 20% of energy from renewables
    • 20% increase in energy efficiency
  4. 4. Education
    • Reducing school drop-out rates below 10%
    • at least 40% of 30-34–year-olds completing third level education (or equivalent)
  5. 5. Poverty / social exclusion
    • at least 20 million fewer people in or at risk of poverty and social exclusion

 

Official website of the European Commission:

http://ec.europa.eu/europe2020/index_en.htm

Introduction

The BBC writes that "the Europe 2020 strategy replaces the EU's Lisbon Strategy, which failed in its aim to make Europe the most dynamic knowledge-based economy by 2010." (BBC News, 3.March 2010 http://news.bbc.co.uk/2/hi/8547420.stm)

Commission president Jose Manuel Barroso acknowledged at the same time that the global financial crisis affecting not only Greece and Ireland, but also all other EU member states and their economies had simply "wiped away" much of the growth and employment generated by the European economy in the past decade. That is a claim in need of further interpretation especially in view of 'economic growth' not being the same as ensuring, for instance, full employment and a sound fiscal basis for the pension system besides all other social security measures in need to be taken if people are to feel secure.

As usual certain jargons abound in a certain period of time. Ten years ago it was 'sustainable development' but after 2002 and the failed summit in Johannesburg, a different buzz word started to come into fashion, namely 'smart houses', then 'smart markets' or even 'smart cities'. By 2010 when outlining the vision for the future, these terminologies are brought together to create the illusion of having a vision for Europe until 2020:

"We need to invest in smart, sustainable and inclusive growth. We need to concentrate our efforts on the most important levers," he said, warning against spreading EU resources too thinly. At the same time, unemployment especially amongst the young people has remained at alarming high level. Thus the EU needs to find ways how member states can work together by coordinating their fiscal, monetary and social policies and link them to education and culture as a way of finding novel and innovative ways to create job markets especially for the young. Without a chance to earn a steady income, young people will not invest in their future i.e. create families and settle down in order to sustain civil society through highly qualified and professional work and an ethical spirit which does uphold civil society in all its positive ramifications, including civil disobedience but also voluntary work to help those in need.

Instead the EU commission has altered the targets to make more acceptable the high rate of unemployment. This is revealed in setting for the 27 EU member states following targets:

 

So what is this 75% about? Does it mean 25% shall be unemployed? There are different ways of reading into that target all kinds of omissions for not only those no longer seeking a job, but also who have disqualified themselves or else were disqualified (by way of bad experiences) by the system e.g. the early drop outs from school and universities has risen as the level of good education has declined and the prospects of finding a job after completion of education diminished greatly.

For society to be affected in order to be concerned about the future of the younger generations, there has to be a transfer of both knowledge and experience to allow for both qualification and social innovation. This contrasts greatly with how football clubs organise their young recruits with the Barcelona team being cited as running a most successful home grown talent camp from the early ages on. But such organisations are exceptions to the rule and cannot replace the need for an entire society to participate in the socialisation process of the young so that they can gain from an early age insights into different types of work processes and decision making procedures.

Thus it is clearly not enough for Barrosso to state that "it is not acceptable in the modern age that nearly 80 million people in Europe live under the poverty line." As a matter of fact it should be examined whether or not societies are deliberately driven towards one third segmentations with one third under poverty line, one third in rich conditions and one third serving the other two thirds as waitress, taxi driver, nurse, social worker while this social reality is no where reflected in social analysis, not even in the assessment by Ulrich Beck of the "Risk Society". There prevail still the old notions of class society with many efforts being undertaken to get rid of this perception of society as advocated on the basis of Marx's analysis of Capitalism by those who are either on the Left or on the Right of the political spectrum our of preference to polarize society as if this would making the political choices any easier. The worker as a subject has disappeared with the loss of the industrial society as key complex which dictates the framework of negotiations and social relationships, and even the EU programme on industrial relations shows this lagging behind social developments.

Naturally the three groups can easily be outplayed against each other. That means politics in the one third society uses the symmetry of power based on economy, education and social capital (trust of other people in what one is doing a key component) to outplay these three groups in a way that they will only enter if at all asymmetrical relationships. This is expressed best by governments making compromises with the strongest components in society while being uncompromising with the weakest of all in society (Thanos Contargyris). It means that the unemployed or the youth are at ever greater risk to driven down the path of not merely asocial behavior, but can be criminalized and therefore be persecuted and thrown into jail. Heisig's book in Germany shows that the end of patience has been reached vis a vis a youth which sees no more any positive future in that society using old methods of punishment while unable to communicate social and other skills in need of if to adapt to an ongoing change of the present to a still unknown future.

It means in many areas of society there does not exist a cultural consensus about the 'rule of law'. This consensus has been derided by sociologists like N. Luhmann known for his interest in a totalitarian state. He left out the all important productivity of culture which can and does ensure that a consensus between people exists. The consensus shall be missed badly when seeking new solutions in an ever harsher climate as social protest will be declassified into social unrest and dealt with accordingly, namely without dialogue in a repressive manner.

Stuttgart '21 and the protest against a mega project planned and prepared without consultation of people who see this as another way of waste of money in order to keep just the big earners and construction companies happy, that shows really the limits of what can be imposed from above.

There are some remedies in sight provided this is done with foresight and an understanding that entering a creative process in need of to find new solutions is not the same as managing a repetitive production process allowing the replacement of workers by robots.

1. Patents as sign of innovation

The commission says that launching an EU-wide patent system could save companies 289m euros (£262m; $392m) annually. So far no target date has been set for such a system.

2. Improvement in social communication

European firms face translation costs of about 3,000 euros on each patent, making them 13 times more expensive in the EU than in the US, the commission says.

3. Environmental targets

It adds that sticking to the EU's low-carbon energy targets would save 60bn euros in oil and gas imports by 2020.

4. the fallacy of economic growth

The BBC's Europe business reporter Nigel Cassidy says that delivering economic growth in the face of spending cuts and continued anxiety on the debt and currency markets, is not going to be easy.

COMMISSION WORKING DOCUMENT
CONSULTATION ON THE FUTURE "EU 2020" STRATEGY
(Text with EEA relevance)

COMMISSION OF THE EUROPEAN COMMUNITIES
Brussels, 24.11.2009
COM(2009)647 final
COMMISSION WORKING DOCUMENT
CONSULTATION ON THE FUTURE "EU 2020" STRATEGY

"This is a time of deep transformation for Europe.
The worst economic and financial crisis in decades has hit Europe hard with a sharp economic
contraction. The unemployment rate is set to rise to double digit figures in 2010, a level not
seen for a decade.
Collective action to save the financial system and to boost demand and confidence through
public intervention has helped to prevent an economic meltdown. However, the crisis has
weakened our resilience. The EU now needs to make a stronger effort to work together to
make a successful exit from the crisis and to shape the next generation of public policies in a
very different set of circumstances.
The exit from the crisis should be the point of entry into a new sustainable social market
economy, a smarter, greener economy, where our prosperity will come from innovation and
from using resources better, and where the key input will be knowledge. These new drivers
should help us tap into new sources of sustainable growth and create new jobs to offset the
higher level of unemployment our societies are likely to face in the coming years. However,
we will only succeed if we design and implement a bold policy response. Otherwise the risk is
a period of low growth which can only make it harder for Europe to tackle the major
challenges we face today.
Delivering this sustainable growth requires agreement to an agenda that puts people and
responsibility first. The efforts of a decade which resulted in a reduction of unemployment
from 12% to 7% in the EU risk being undone by the crisis. We need new sources of growth to
replace the jobs lost in the crisis.
This new approach needs to take advantage of a world of globalisation and interdependence
which the crisis has underlined still further. The EU needs to work both at home an in
international fora like the G20 to seize the new opportunities essential to reach our 2020
objectives.
EU 2020 is being designed as the successor to the current Lisbon Strategy, which has been the
EU's reform strategy for the last decade and has helped the EU to weather the storm of the
recent crisis. EU 2020 builds on its achievements as a partnership for growth and job creation,
and renewing it to meet new challenges. It also draws on the benefits that have flowed from
the coordinated response to the crisis in the European Economic Recovery Plan. The
Commission considers that EU 2020 should focus on key policy areas where collaboration
between EU and Member States can deliver the best results, and on improved delivery
through better use of the instruments at hand.
The purpose of this consultation paper is to seek the views of the other Institutions and
stakeholders on a new approach. The Commission intends to adopt a formal Communication
addressed to the Spring European Council early in 2010. The successful delivery of the 2020
vision relies on a partnership for progress, combining Member States' commitment to take
action at national level, and the harnessing of Community instruments to make the most of the
potential at EU level. In its Communication, the Commission will therefore set out both the
action it considers needs to be taken at national level, and the detailed proposals for action
that it will propose at Community level."

Recognising constraints and facing new challenges
"A successful EU 2020 strategy must be built on a good analysis of the constraints facing
policy makers in the coming years, and on the correct identification of the challenges to be
tackled."
"The financial and economic crisis has taken a heavy toll on public finances, businesses,
employment and households. At all levels, public policy makers will have to find ways of
triggering economic dynamism with limited budgetary margin for manoeuvre. As public
sector deficits are brought back under control, public expenditure needs to be reshaped in
ways that enable us to reach the 2020 vision. Cutting spending in forward-looking areas such
as education and research would make this more difficult to achieve.
In developing a new vision and direction for EU policy, we need to recognise that conserving
energy, natural resources and raw materials, using them more efficiently and increasing
productivity will be the key drivers of the future competitiveness of our industry and our
economies."
"We also need to recognise the challenge presented by European demography: even prior to
the crisis, the change in our demography, with a lower proportion of young people in the
overall population, was expected to result in a substantially reduced potential growth by 2020.
The crisis has exacerbated the long-term social challenges Europe faces today, such as the
integration of an increasing immigrant population, social exclusion and child poverty, and
solidarity between generations in the context of an ageing society. In order to meet these
challenges, employment rates of both men and women will have to rise rapidly and social
protection systems will have to be modernised so that they provide an affordable response to
the future needs of our society."
"This implies that new policies must demonstrably contribute to social cohesion, tackling
unemployment and fostering social inclusion while securing well performing labour markets.
This requires rethinking education systems and labour markets, enhancing mobility and
boosting Europe’s dynamism to unleash our innovative and creative potential.
The challenge of becoming a smarter, greener economy will require increased policy
coordination to make the economy more competitive. Our social, economic and
environmental objectives must go hand in hand if we are to deliver on our thematic priorities
for 2020. In this paper, the Commission is seeking views on how the EU can set its priorities
in a ten year horizon that will allow the EU and national levels to work together to move
beyond the current crisis and to mobilise new sources of growth, ensuring social and
territorial cohesion, in line with the basic principles of the new Lisbon Treaty."

Key priorities for EU 2020
"To achieve a sustainable social market economy, a smarter and greener economy, Europe
needs to promote key, agreed priorities and to work on delivering them over several years. No
single Member State can successfully address these challenges alone. Nor is EU policy simply
the addition of 27 national policies. By acting together on a common vision, we can make the
whole more than the sum of its parts. This is an agenda for all Member States, large and
small, old and new, highly developed and still developing: the enlarged EU consists of
different levels of development and therefore different needs. But the EU 2020 vision is
relevant to all of them and can be adapted to different starting points and different national
specificities so as to promote growth for all."
"Huge opportunities exist for people and for businesses if they are equipped to take them. The
Commission's aim is for Europe to lead, compete and prosper as a knowledge-based,
connected, greener and more inclusive economy, growing fast and sustainably, creating high
levels of employment and social progress. To achieve this, Europe needs a strengthened and
competitive industrial base, a modern service sector and a thriving agriculture, rural economy,
and maritime sector. As ‘first mover’ in building this society of the future, Europe can derive
important benefits by developing competitive, innovative products, rolling out the
infrastructures of the future, entering new markets and creating new, high-quality jobs.
But the benefits go much wider. A Europe that is open to the world will continue to be a
model for others to follow, projecting its values and fostering stronger labour, environmental,
and safety standards around the globe. In this way, the EU can show global leadership in
demonstrating that – with the right policy framework in place and making full use of the new
actors and structures offered by the Lisbon Treaty – it is possible to combine the openness
needed to ensure ongoing economic dynamism with respect for the social and environmental
concerns of our citizens."


"The Commission considers that the key drivers of EU 2020 should be thematic, focused on
the following priorities:

  1. Creating value by basing growth on knowledge. Opportunity and social cohesion will be enhanced in a world where innovation makes the difference in both products and processes, harnessing the potential of education, research and of the digital economy;
  2. Empowering people in inclusive societies. The acquisition of new skills, fostering creativity and innovation, the development of entrepreneurship and a smooth transition between jobs will be crucial in a world which will offer more jobs in exchange for greater adaptability;
  3. Creating a competitive, connected and greener economy. The EU should compete more effectively and increase its productivity by a lower and more efficient consumption of non-renewable energy and resources in a world of high energy and resources prices, and greater competition for energy and resources. This will stimulate growth and help meet our environmental goals. It will benefit all sectors of the economy, from traditional manufacturing to new hi-tech start ups. Upgrading and inter-connecting infrastructure, reducing administrative burden and accelerating the market uptake of innovations will equally contribute to this goal. These priorities will guide EU policy making inside the EU and externally. The promotion of international co-operation and multilateral governance, including efficient, fair and rules based international trade and finance systems, will be an integral part of EU 2020.

The Commission is seeking views on the following priorities which it considers to be the key
drivers of EU 2020.

1. Creating value by basing growth on knowledge
Knowledge is the engine for sustainable growth. In a fast-changing world, what makes the
difference is education and research, innovation and creativity.
Strengthening education is one of the most effective ways of fighting inequality and poverty.
The high number of low achievers in basic skills (reading, mathematics and science) needs to
be addressed urgently to enhance the employability of young people and to bring them into
the world of work after school. Preventing early school leaving reduces future exclusion from
the labour market and the threat of future social exclusion. A greater emphasis on vulnerable
groups, gender equality and social cohesion is needed to ensure that no one is excluded from
knowledge.
Europe has some of the best universities in the world. But our ambition should be to have
many more and turn them into a true engine for knowledge and growth. This will not only
require investment but also reforms and where necessary consolidation, closer co-operation,
including with business, and a more open attitude to change. To assist in this process of
change, European universities should be benchmarked against the best universities in the
world. Raising the quality of Europe's universities and of their research should go hand in
hand with greater mobility of students to acquire new knowledge and languages, gaining
experience living and studying abroad and building networks. A new phase in the existing
programmes Erasmus, Leonardo and Erasmus Mundus should be considered, complemented
by national initiatives, giving all young people in Europe the possibility to spend part of their
educational pathway in other Member States.
An efficient, effective and well-resourced European Research Area is an indispensible part of
the EU 2020 vision. The EU needs to increase its research efforts by pooling resources, jointly
developing major research infrastructures across the EU and raising research quality to worldleading standards. It also needs to maximise and accelerate the practical benefits of research for Europe's businesses and SMEs - including through major public-private partnerships. The attractiveness and performance of Europe as a research location also depends on creating an internal market and attractive career prospects for researchers. The way forward is a research partnership between the EU and Member States which maximises synergy with other policy areas especially innovation and education. The EU needs to provide more attractive
framework conditions for innovation and creativity, including through incentives for the
growth of knowledge-based firms. Access to credit is a particular problem, not only in the
aftermath of the crisis but because some new sources of growth such as the creative industries
need new types of financing adapted to their business models. Innovative firms should be able
to have access to pooled public and private sources of growth capital, for example venture
capital; this needs to be coupled with administrative simplification and technical support to
promote the incubation and growth of small innovative firms.
A well-functioning system of intellectual property rights, which allows for efficient and costeffective protection, enables innovative business start-ups, provides authors with a transparent management of their rights, and helps universities and research institutions to raise capital through the commercialisation of their ideas and inventions is needed to develop the
creativity, knowledge and research capacity in Europe.
Building on its strengths in technology and knowledge, Europe should tap fully the potential
of the digital economy. The digital economy offers great opportunities for SMEs, both in the
production and services sectors, in their own right and as suppliers to larger companies. New
innovative start-ups generate new, often high value jobs right across the EU. They can play an
important role in regional development. That is why an ambitious European Digital Agenda
that takes concrete steps towards the completion of an Online Single Market will be a key
element in Europe's sustainable economic recovery and social development. The productivity
gains involved will stimulate innovation and creativity; make government services easier and
more efficient to deliver, and increase the opportunities for participation and democratic
expression. Internet access is becoming necessary for citizens to play a full part in daily life.
Europe needs effective policies on digital inclusion and skills, and to encourage active
participation and expression over the net.
The aim for 2020 is to achieve a genuine European Knowledge Area, underpinned by a
world-class knowledge infrastructure, in which all actors (students, teachers, researchers,
education and research institutions and enterprises) benefit from the free circulation of people,
knowledge and technology (the 5th freedom).

2. Empowering people in inclusive societies
In the post-crisis economy, many of the jobs that have been destroyed will not be replaced.
The transformation of the EU into a smarter, greener, more competitive economy will boost
new job creation and respond to high levels of unemployment. But while this transition takes
place, major efforts will be essential to prevent people falling out of the system, being
excluded, and to ensure social cohesion. In fact, new patterns are emerging where there are
several entries in and exits from the labour market during a working life, instead of the
traditional sequence (education, work, and retirement), offering more opportunities to people.
This requires a framework to organise these transitions and support them, possibly building
on some of the measures adopted during the crisis (e.g. short time work combined with
training).
New jobs requiring new skills will be created. Transition between jobs, between training and
jobs will have to be managed. This is where flexicurity should be deployed to the full. The
challenge is to find the best way to enhance on the one hand, the flexibility of labour markets
both on work organisation and on labour relations, and on the other hand, the security
provided by lifelong learning and appropriate social protection. Life long learning needs to be
much more accessible and universities should be more open to non-typical learners.
Skills are the key element for Europe's economic and productivity growth and for job
creation. Life long learning is the key element to ensure good transition between jobs and
occupations, and in avoiding long-term unemployment leading to loss of human capital. The
digital economy also offers new opportunities for distance learning as part of a lifelong
approach to learning and for forms of communication that are changing the world of work,
shrinking distances and making long distance work a real possibility in an increasing number
of jobs.
Ensuring that our workers have the skills to contribute to the knowledge-based economy is a
necessary, but not sufficient condition. Supply and demand need to be matched better. Labour
mobility must be promoted to ensure that people can take up new opportunities by moving to
where their skills are most needed. We should look ahead and match future skills better to
future needs, particularly for new types of jobs such as "green" jobs and other growth areas,
such as in the health sector. Finally, despite its substantial contribution to growth, the
potential of migration is not fully factored into policy making at EU or national level.
Employment rates of immigrants can be improved, particularly for specific categories such as
immigrants with low levels of education, women and those recently arrived.
Having a job is probably the best safeguard against poverty and exclusion. But alone it does
not secure a reduction in poverty levels or social inclusion. Modern social security and
pension systems, adapted to the crisis and to the ageing of the European population, will be
needed to provide an adequate level of income support and coverage to those temporarily out
of work. Tackling inefficient labour market segmentation is also one way of enhancing social
justice.
In order to create more jobs, a more entrepreneurial culture needs to take hold in Europe, with
a more positive attitude towards risk-taking and a capacity to innovate. Self-employment
should become a real option for those who may have recently lost their job. But this will
require removing disincentives, such as the unequal treatment of the self-employed under
most social security systems and disincentives to move to other Member States because of
lack of portability of social and pension rights.
The aim for 2020 is more jobs, higher employment rates of the working age population, better
jobs, with higher quality and increased productivity, and fairness, security and opportunities,
through a real chance for everyone to enter in the labour market, create new companies, and
manage labour market transitions through modern and financially sustainable social and
welfare systems.

3. Creating a competitive, connected and greener economy
Europe needs to remain competitive in the future world of relatively high energy prices,
carbon constraints and significantly greater resource competition. More efficient use of
resources, including energy, and the application of new, greener technologies will stimulate
growth, create new jobs and services and help the EU both to maintain a strong manufacturing
base and a vibrant services sector and to meet its environmental and climate goals . Securing
well functioning product, services and labour markets are a pre-condition for success.
Greening the economy is not only about the creation of new industries. It is just as important
to accelerate the modernisation of Europe's existing industrial sectors, many of which will
already be restructuring in the wake of the crisis. Achieving these objectives will be essential
if the EU is to compete in a world where all countries will be looking for solutions to these
challenges.
This means using the material inputs in the economy more efficiently, becoming more
productive by reducing pressure on resources. This means shifting our economy, through
targeted regulation (e.g. promoting energy-efficient products and systems), through emission
trading, tax reform, through grants, subsidies and loans, through public investment and
procurement policies, and through targeting our research and innovation budgets to this end.
Upgrading and inter-connecting infrastructures and ensuring effective competition of network
industries in the single market is key, to improve competitiveness and at the same time deliver
tangible benefits for consumers. It is crucial that Europe invests in sustainable high-speed
networks. Europe needs 100% broadband coverage as soon as possible, and needs to achieve
the roll-out of high speed internet through a massive programme of investment fibre networks
and wireless broadband.
Together with the roll-out of high speed internet, the development of smart, upgraded
transport and energy infrastructures contributes to multiple objectives including
decarbonisation, transport safety, energy security, and the competitiveness of our network
economy.
A rethink of transport policy will be needed in order to achieve such a comprehensive shift.
Better integration of transport networks, developing alternatives to road transport, promoting
clean technologies, and upgrading infrastructure will be essential elements. Big European
projects such as Galileo, GMES, and smart road, rail (ERTMS), and air traffic management
(SESAR) will play a key role in the integration of transport networks.
By 2030 the EU will have to replace half of its existing electricity plants. If we take the right
strategic investment decisions now, two third of our electricity generation could be both low
carbon and more secure by the early 2020s. In this context, the development of a European
electricity super-grid will enable a considerable increase in the share of renewable electricity
and decentralised generation. Improving energy efficiency will also be vital as it is the
cheapest way to reduce emissions and, at the same time, to increase the energy independence
of Europe.
Because of its important contribution to growth and jobs creation, and to the development of
innovation, a fresh approach to industrial policy is necessary to support industry by putting
the emphasis on sustainability, innovation and the human skills needed to keep the EU
industry competitive in world markets. Stable and foreseeable framework conditions should
help industry tackle the competitive challenges of the future. In the aftermath of the crisis,
firms in several sectors will need to tackle structural excess capacities and the EU will need to
facilitate restructuring in a socially acceptable way whilst maintaining a level playing field.
This calls for an integrated industrial policy that promotes competitive market mechanisms
and develops new sources of sustainable growth with an emphasis on innovation capacity,
eco-innovation, new enabling technologies and skills. This transformation will also provide an
opportunity to improve the regulatory environment, increase territorial cohesion and promote
better conditions for entrepreneurship, foster the development of SMEs and support their
growth potential and internationalisation.
In a period of industrial restructuring, state aid policy will play a key role in supporting the
transition to a smarter, greener economy. The state aid rules have been overhauled in recent
years. European companies have increased productivity and reaped economies of scale by
taking up the opportunities offered by the Single Market – now that adjustment is needed in
some sectors the Commission will be attentive to ensuring that the Single Market continues to
be the basis of EU growth and to combating the risk of national retrenchment.
The aim for 2020 is to meet our agreed objectives on climate change and energy, strengthen
our industrial base, fully unlock the potential of SMEs, and respond to the needs of the future,
by raising productivity and reducing pressure on resources.

Making it happen: starting with a successful exit from the crisis
The first task for the EU is obviously to make a successful exit from the crisis, promoting
overall exit strategies designed to secure balanced and sustainable growth and sound fiscal
policies. The recession and financial strains have had a bigger impact on those countries
which were already suffering from major imbalances or policy weaknesses at the onset of the
crisis. This diverse situation calls for a differentiated response, raising co-ordination issues.
The spill-over effects of the different responses across countries and policy areas call for
effective coordination in the EU. In particular, a level playing field needs to be preserved in
the financial and business sectors, and macroeconomic spill-over effects should be considered
in the EU coordinated exit strategy.
Financial resources have come under pressure as a result of the crisis. The remaining
problems in the financial system therefore need to be solved swiftly in order to support the
recovery. Access to credit and efficient financial market supervision will be crucial for the
recovery and the transition to the value economy will depend on the availability of capital to
finance innovation. New priorities need to be reflected in budgetary policies.
The key challenge is how to balance the continued need for fiscal support to demand in the
short run with the need to restore sustainable public finances and macroeconomic stability.
There is a risk that the recovery will be slow, and will not generate sufficient employment
growth to bring down high unemployment levels.

Making it happen: Harnessing existing instruments in a new approach
To make a successful exit from the crisis and deliver our EU 2020 objectives, the
Commission considers that we need a strategy for convergence and integration which
recognises more explicitly the advanced interdependence of the EU:

The challenge of becoming a sustainable social market economy, i.e. an inclusive, smarter,
greener economy, will require increased policy co-ordination, better synergies through
effective subsidiarity, and strengthened partnership between the EU and Member States in the
design and delivery of public policies. The integration of different policy instruments is
necessary, linking institutional reforms, better regulation, new initiatives and public
investment.

􀂾 Fully exploiting the single market
The framework of the single market gives us the size and the scale necessary to achieve these
objectives. It is the central tool which ensures that citizens reap real benefits from increased
competition and that companies operate on a level playing field – provided that the rules of
the single market are correctly implemented, including in sectoral policies. But the EU is still
not tapping all the benefits of its single market, conceived more than twenty years ago:
obstacles to cross-border activity remain, which in turn reduce consumer choice, price
competition and potential productivity. To gear the single market to serve the EU 2020 goals,
the EU needs well functioning markets where competition and consumer access stimulate
growth and innovation. Empowering people also means making markets work for people.
Citizens must be empowered to play a full part in the single market. This requires
strengthening their ability and confidence to buy goods and services cross-border, in
particular on-line.
The single market has evolved considerably since its original launch. It was conceived before
the arrival of Internet, before ICT became the one of the main drivers of growth and before
services became such a dominant part of the European economy. The emergence of new
services (e.g. on-line services, such as e-health) shows huge potential. The Commission
considers that to achieve the EU 2020 priorities, there is a pressing need to overcome the
fragmentation that currently blocks the flow of on-line content and access for consumers and
companies, and that the single market should be updated to respond to the demands of
tomorrow's economy.

􀂾 Setting EU 2020 in a global context
This new agenda is set in the context of globalisation which will remain one of the main
drivers for European dynamism in the next decade. The EU is not alone in recognising the
opportunities of a smart and green economy for enhanced competitiveness and prosperity;
other countries have identified similar priorities and are investing massively in green
technologies, ICT and smart grids. To stay ahead, the EU needs to be quick in seizing
opportunities and in anticipating and adapting to future trends. The crisis has underlined the
extent of interdependence in the European and global economies. To reach our objectives for
2020, we must act decisively in the G20 and international forums to promote the principles
underlying the sustainable social market economy in the global context.
International trade is one of the motors of growth, employment and investment in the EU. We
should act both under the WTO and via bilateral cooperation to ensure that barriers to
international flows of trade and investment are reduced, and to promote open and rules-based
global trade. We should also deepen our economic and political relations with key strategic
partners, placing particular emphasis on market access, access to energy and raw materials,
and progress on environmental and social objectives.

􀂾 Supporting growth through full use of the Stability and Growth Pact
The Stability and Growth Pact, in conjunction with other multilateral surveillance
instruments, will play an important role in guiding budgetary policies to achieve fiscal
consolidation and at the same time delivering the budgetary means to achieve sustainable
growth and jobs. While consolidating public finances, Member States will need to redirect
public expenditure towards the thematic objectives of EU 2020 so that the necessary
investments in Europe's future can be made. At a time of important fiscal constraints, it is all
the more important to invest scarce resources in sustainable growth. Investments and
structural reforms designed to deliver a smarter, connected and greener economy will generate
more revenues and will ease the consolidation of public finances.
At the same time, achieving a major transformation cannot be done without investment in
people and productive capacity. To develop the potential of the economy, structural reforms
should be fully implemented to create new sources of growth. A reinforced structural
reform agenda based on measures that raise potential growth and enhance productivity will
also benefit from coordination at EU level, in design and implementation, not least to fully
exploit the functioning of the single market.
Even in a time of necessary fiscal consolidation, the Stability and Growth Pact allows room
for investing in the future. This includes prioritising investments in R&D and new
technologies, in innovation, in high-quality education and skills development, and in 'smart'
networks; this means combining investments with modernising existing structures, including
enhancing the efficiency of public administration and by regulatory reform.

􀂾 Reflecting political priorities in our public budgets
Once agreed, these new priorities need to be reflected in budgetary policies. The Commission
intends to take them up in the budget review it will publish next year and in its proposals for
the next multi-annual financial framework. Similarly, Member States should also review their
public expenditures to improve quality and efficiency and, despite important fiscal
constraints, find room to invest in sustainable growth. At the same time, new financing
models (such as PPPs, leveraging EU or EIB funding) also need to be explored to pool
resources between the public and the private sectors and maximise impacts.

􀂾 Establishing clear governance to make the new strategy effective.
The strategy will be pursued through a partnership approach to deliver a limited set of key
objectives. Only through partnership can its specific actions and objectives be achieved since
action is essential at the EU, national and regional levels, and the interplay between these
levels which will allow the strategy to deliver its full potential. On the Council side, the focal
point of the future strategy should be the European Council since it is the body which ensures
the integration of policies, and manages the interdependence between Member States and the
EU. Drawing on the new provisions of the Lisbon Treaty, it should therefore steer the
strategy, making the key decisions and setting the objectives. Council formations like the
ECOFIN Council as well as the relevant thematic Councils would then implement these
decisions in an integrated way, each acting within its area of competence to deliver on the
longer term goals of the EU 2020 vision.
The Commission would like to see the European Parliament play a significantly greater role
in the new governance structure. Beyond its traditional role on the employment and integrated
guidelines, Parliament could be encouraged to express views on the EU 2020 strategy before
the Spring European Council.
The EU 2020 vision will need the active support of stakeholders such as the social partners
and civil society. Its take up across all the regions of the EU will also be crucial to its success
and the Commission would like to see national parliaments taking a particular interest in this
new strategy as it is developed.
The Spring European Council in 2010 should set the strategy on its course for the next 5 years
on the basis of a Commission proposal to be tabled in early 2010. The European Council
should fix a small number of headline objectives, and define the corresponding policy actions
to be pursued at EU and Member State level in partnership. The European Council's
conclusions, with the corresponding orientations for EU and Member States policies, would
thus become anchor for the integrated guidelines provided for under the Treaty.
For each of these objectives, Member States would be invited to set national objectives for 5
years corresponding to their different situations and their starting points. The Commission and
the European Council will monitor progress every year in Member States and at EU level.

 

Comments
The Commission invites comments and suggestions on the ideas outlined in this paper. They
should be sent to

EU2020@ec.europa.eu

by 15 January 2010.
The contributions received will be published on the internet, unless the author objects to
publication of the personal data on the grounds that such publication would harm his or her
legitimate interests. In this case the contribution may be published in an anonymous form.
Professional organisations responding to this consultation are encouraged, if they have not
already done so, to register in the Commission's Register for Interest Representatives
(http://ec.europa.eu/transparency/regrin/). This Register was set up in the framework of the
European Transparency Initiative with a view to provide the Commission and the public at
large with information about the objectives, funding and structures of interest representatives.

From: Hatto Fischer
Sent: Wednesday, December 16, 2009 4:10 PM
To: 'ECI-Consultation-citizen@ec.europa.eu'
Subject: re. consultation for EU strategy for 2010

Athens 16.12.2009

Visions and constraints – what strategy to propose for the EU until 2010

There are numerous set of constraints prevailing to make this exercise rather doubtful. One clear indication is the language in use, another the lack of validation as to what is being proposed and finally adopted, and there is missing any degree of openness to what would be a review of the successes and failures of the EU since the Lisbon agenda was adopted.

Another constraint is the outline given within which the EU thinks it can act and as always it is based on the assumption as to what shall enhance the extra European value. But basically no one knows any longer what this extra value is when the EU has succumbed to become a mechanism to distribute resources in a non transparent way.

The consequences of the rejection of the EU Constitutional Treaty in 2005 have not been drawn and examined, but instead the crisis of legitimacy of EU institutions smothered by the Lisbon Treaty which is now finally accepted but will reinforce the obvious flaws and weaknesses of the current institutional set-up. One apparent contradiction is already noticeable in this call for consultation by three types of actors: citizens, organizations and public authorities. We know very well that the prime principle of all citizens being equal with regards to EU institutions does not guarantee any say or influence upon the contents discussed and decided upon within these institutions. The fact that the Lisbon Treaty has been imposed from above underlines the crisis of legitimacy as shown in the most recent EU election when even fewer European citizens participated. The reason for the crisis is that representatives of states, and mainly non politicians determine and negotiate about these contents and this without any political debate being accessible to the public at large. Naturally the latter is an old demand ever so often repeated by newly appointed EU presidents but it says it all that such top posts are filled out of contrived reasoning of the member states acting more or less on their own, out of national interest and not at all interested in conceding too much power to Brussels. At the same time, the EU institutions and fore mostly the European Parliament has become a way to recycle politicians which have fallen into disgrace and therefore it becomes a clear message to all that many more politicians prefer to return to the national level as they feel to have there more to say than at European level. What is an ordinary citizen going to say to all that except for visiting the European Parliament. It was significant for me to be next to two other persons the only ones standing outside European Parliament when the results of the European election were announced. Clearly we three persons were outnumbered by the number of Television and Radio crews expecting a huge crowd to welcome the news.

For a strategy to be carried by all citizens, even if they do not agree with all parts or not at all, means some acknowledgement has to be given to those people who know how to work preferably in the dark and outside of any public glance. Since reform of the EU Commission was attempted under Prodi as of 1999 in the wake of the scandal which ousted Santer, little or nothing has become known to the outside world as to how successful the EU Commission has become to take up these reforms and to translate them into a working body of dedicated civil servants working in the name of Europe for realizing the interests of Europe. Now that is a huge task and here some clear problems have to be named before discussing the possible context within which such a strategy for 2010 could be formulated and evaluated before being adapted:

  1. The Constitutional Treaty was drafted in part by the Convention which engaged civil society in a meaningful dialogue with the prime conclusion by everyone being that at the very least all problems had been put on the table. The question is by what method will this performance be repeated so that all problems are put on the table and this being used as a way to establish some indicators or measures of what would be meaningful reform?
  2. It has been warned already that in the case of the Constitutional Treaty being adopted, most likely the only form of governance shall be the open method of cooperation and this as replacement of the either consensus or majority/minority voting system. Hence the key question is if this method has become a school for decision making independent from the treaty as it safeguards both the interests of the European Union as it caters well to the specific interests of the member states and numerous other agencies which have come into existence over the years to influence decision making at European level
  3. The transparency on lobbying has become a key initiative in this reform sense but does it really work when ever more citizens are left out of the picture?
  4. A basic tendency has been to cut the Commission’s ability to learn from the implementation of European programs and thereby much has given sway to a re-nationalisation of European projects with the outcome more and more in doubt as to what it means for Europe as a whole and in particular in terms of what is the realization of the European extra value. By being no longer in dialogue with ongoing projects, the European Commission has been robbed of ongoing learning experiences. The lack of experience means innovation in terms of really well formulated programs has decreased. This puts the European Commission at odds with its demand for furthering innovative forces in European societies. As a matter of fact, the European Commission as an administration no longer leads national administrations out of lethargy (one key reason for the current financial and political crisis), but has succumbed to the old fashioned form of bureaucratization of society. For instance, many EU projects can only be sustained if a) not dependent for a salary on the EU funding and b) acting within the bureaucratic framework conditions of member states. That leaves outside the scope of implementation NGOs, citizens’ initiatives and weakens altogether any chance of dissemination of information on a regular basis so that citizens can benefit from these outcomes of European projects.

I believe by not naming the problems faced by Europe in clear and understandable terms for all, no strategy formulation can be based on the visions citizens of Europe have themselves and thus the EU will face the dilemma of being considered a fiction with institutions in Brussels far away while having to make sense out of what it is doing. Before anything else this need to make sense out of a fiction which does not make sense should perceived as key problem. Everything else shall follow out of discussions of clarification provided it is not dominated in terms of both agenda and expertise language by those who are insiders to the European process and hence have little or not interest that the people outside of it really understand what is going on and where matters of policy complexity has to be dealt with in a way that is not singular to this locality or that but serves the common purpose of uniting Europe the best and most progressive way leaving free to image how else Europe could look like if not determined so much by member states and vested interests. Only then would it be possible to discuss the various wrong assumptions about growth and ways of dealing with the financial crisis e.g. how the banking system works to safeguard the value of the EU while at the same time all programs set to expand e.g. the infrastructure for transportation has become really incompatible with the demands for sustainable development. As long as policy contradictions are not a part of the definition of problem, the EU will end up being contra productive to its initial advantage of acting in the interest of the whole rather than being driven by specific interests. Yet something has happened that has reduced the EU much more to charges and suspicions of corruption and therefore once that role of being honest administration is gone, then even the ability to shame member states into compliance is gone and with it the chance of finding a regulative framework which is mainly innovative and persuasive rather than being compulsive. The key European extra value was in the past giving freedom to go beyond local interests. Whether or not this can be retained in the coming next ten years remains to be seen but it is doubtful with a very reductivistic philosophy in place that such a vision can be gained out of this consultation that future can be anticipated and responded to in the most creative, equally responsible way.

In any case best wishes for achieving at least something out of this consultation in order to have a strategy in place by the beginning of next year.

Yours truly,

Hatto Fischer

Poiein kai Prattein

Coordinator

Lycabettoustr. 23

Athens 10672

Greece

 


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