13. LISBON STRATEGY OF ECONOMIC, SOCIAL
AND ENVIRONMENTAL RENEWAL
(24223)
5454/03
COM(03)5
+ADD 1 and 2
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Commission Communication: "Choosing to grow: Knowledge, innovation and jobs in a cohesive society"—Report to the Spring European Council, 21 March 2003 on the Lisbon strategy of economic, social and environmental renewal; and two Commission Staff Working Papers.
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| Legal base: | —
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| Document originated: | 14 January 2003
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| Deposited in Parliament: | 28 January 2003
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| Department: | Foreign and Commonwealth Office
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| Basis of consideration: | EM 14 February 2003
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| Previous Committee Report: | None
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| To be discussed in Council: | 21 March 2003
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| Committee's assessment: | Politically important
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| Committee's decision: | Cleared, but relevant to the debate on a better environment for business in the EU, already recommended for debate
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Background
13.1 In March 2000, the Lisbon European Council agreed
to set a ten-year goal for making the EU a dynamic, competitive
economy, sustainable and knowledge-based, enjoying full employment
and social cohesion. It was also agreed at Lisbon that future
Spring European Councils should evaluate progress and mandate
work for the next year, on the basis of a report prepared by the
Commission. This is the third such report; we have considered
both of its predecessors.[28]
The Communication
13.2 The report reaffirms the importance and relevance
of the Lisbon strategy, which, in its words, "remains the
right course for an enlarged Union" despite the current much
less favourable political and economic conditions than those of
March 2000. While welcoming the achievements made to date, the
Communication states that progress generally has been neither
fast enough nor well-enough co-ordinated to meet the targets set
at Lisbon. It then addresses the various areas of the strategy
separately.
— Employment
13.3 Although there are welcome signs of structural improvements
in the employment market, performance varies considerably. Without
additional efforts, it appears unlikely that the intermediate
employment rate target for 2005 (67% of the working age population)
will be met. There has also been insufficient progress towards
meeting the goals related to keeping older workers in the workforce.
More progress is also required in providing workers with the skills
needed to drive a knowledge-based economy, and improving the quality
of jobs — both key factors for improved productivity.
— Boosting investment and productivity
13.4 The Commission reports that, in the area of market
reform, the problem is no longer the lack of decisions at European
level, but Member State failure to implement and apply new rules
and policies. One exception is the continued blocking of the proposed
Community Patent, which the Commission considers a "touchstone"
for the Union's commitment to innovation. The report emphasises
the need for Member States to create the conditions for more public
and private investment in education, research and the knowledge
economy, despite the current strains on their national budgets.
— Social cohesion
13.5 The report points out that there has been little
progress in reducing the numbers of early school leavers or tackling
gender inequality. Although most Member States are involved in
modernising their social protection systems, much more needs to
be done in order to ensure their long-term sustainability and
quality, particularly in the context of an ageing population.
This is an area where performance is likely to become significantly
more diverse in the early years of enlargement.
— Sustainable development
13.6 The Communication highlights the need to implement
Community environmental legislation and to complement it through
the use of economic instruments. Member States must ensure they
are on track to meet their Kyoto commitments. The Commission notes
the leading role taken by the EU in promoting sustainable development
on a global scale, but emphasises that decisions must now be transformed
into delivery.
— Enlargement
13.7 In a separate section on enlargement, the Commission
emphasises that the Lisbon targets remain valid for a Union of
25 or more. They are targets for the whole of the Union rather
than for individual countries. Additional efforts will, however,
be needed from existing Member States if the Union is to stay
on track.
— March 2003 Spring European Council
13.8 The Commission asserts that the European Council
must build on this report in setting the direction for the Union's
economic, social and environmental action. This year, the Council
has the opportunity to set priorities over the next three years
for three of the main policy instruments: the Broad Economic Policy
Guidelines, the revised Employment Guidelines and the Internal
Market Strategy. The report highlights three key considerations:
- the importance of boosting knowledge and innovation, underpinned
by investment in education, life-long learning and research;
- the need to deliver against the remaining Lisbon commitments
(with a timetable which ensures that all EU-level measures are
adopted before the European Parliament elections in June 2004);
and
- the need to reinforce the interaction between the Lisbon strategy
and macroeconomic policy.
The Staff Working Papers
13.9 The Staff Working Papers which accompany the Communication
contain more detailed analysis and sets of tables on the performance
of the Member States in relation to each of the structural indicators.
For the first time, data on the future Member States and the candidate
countries are included.
The Government's view
13.10 The Minister for Europe (Mr Denis MacShane) considers
that the Communication is welcome evidence of the Commission's
commitment to economic and social reform in the EU. The Government
agrees that, although a great deal has been achieved, much more
remains to be done. It agrees with the key considerations identified
in the report.
13.11 The Minister's only caveat lies with the Commission's
suggestions for new proposals. He points out that the Government
will wish to consider these measures carefully in terms of their
detail, appropriateness and likely contribution to the Lisbon
objectives. He identifies in particular transport infrastructure
charging, maritime safety, incentives to improve the take-up of
cleaner technologies, and revised legislation on chemicals and
pharmaceuticals.
Conclusion
13.12 The report provides a comprehensive picture
of progress, or lack of it, over the year. The detailed analysis
in the working papers is useful, and we welcome the inclusion
of data on the future Member States and the candidate countries.
13.13 We ask the Minister to ensure that, next year,
we are provided with a fuller Explanatory Memorandum. It would
be helpful to have more detail on the key findings in relation
to each area of the Lisbon strategy. It would also be useful to
have the Minister's view of the UK's performance, particularly
as indicated in the Communication's summary table showing the
frequency with which Member States appear within the top three
and bottom three of the structural indicators.
13.14 We are likely to question the Minister on the
outcome of the discussion on the Communication when he comes to
report to us on the Spring European Council. Meanwhile, we clear
the document, but it is relevant to the debate on a better environment
for business in the EU, already recommended for debate in European
Standing Committee C.[29]
28 (22159)
6248/01; see HC 28-x (2000-01), paragraph 14 (28 March 2001) and
(23186) 5654/02: HC 152-xxi (2001-02), paragraph 6 (13 March 2002). Back
29 (23989)
13982/02; see HC 63-vii (2002-03), paragraph 4 (15 January 2003). Back
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