Financial Management and Financial Services - European Scrutiny Committee Contents


7   EU policies until 2020

(31210)

16016/09

COM(09) 647

Commission Working Document: Consultation on the Future "EU 2020" Strategy

Legal base
Document originated24 November 2009
Deposited in Parliament11 December 2009
DepartmentHM Treasury
Basis of considerationEM of 6 January 2010
Previous Committee ReportNone
Discussed in CouncilEuropean Council 10-11 December 2009
Committee's assessmentPolitically important
Committee's decisionCleared

Background

7.1  In 2000 an action plan, known as the Lisbon Agenda or Lisbon Strategy, was launched to "make Europe, by 2010, the most competitive and the most dynamic knowledge-based economy in the world". In 2005 the action plan was relaunched for the remainder of the decade as the Lisbon Strategy for Jobs and Growth.

7.2  From time to time, particularly at the start of a new term of office, the Commission sets out its ideas for future EU policies generally or for particular areas.

The document

7.3  This Commission Working Document has been published to seek the views of citizens, organisations and public authorities on the future "EU 2020" Strategy as a successor to the current Lisbon Strategy for Growth and Jobs. It sets out broad proposals for policies over the next ten years intended to enable the EU to make a full recovery from the economic crisis, while speeding up the move towards "a smarter, greener economy". It describes the need for structural reform in the Union, proposes some policy priorities and highlights possible delivery mechanisms.

7.4  The need for structural reform is attributed to:

  • the threat of unemployment rising to double digit figures in 2010 — a level not seen for a decade;
  • the need "to shape the next generation of public policies in a very different set of circumstances";
  • a call for "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"; and
  • the challenge of an ageing society.

The policy priorities proposed are:

  • creating value by basing growth on knowledge;
  • empowering people in inclusive societies; and
  • creating a competitive, connected and greener economy.

And the delivery mechanisms highlighted are:

  • fully exploiting the single market;
  • setting "EU 2020" in a global context, for example working with the G20 and the World Trade Organisation;
  • supporting growth through full use of the Stability and Growth Pact;
  • reflecting political priorities in public budgets, including the EU budget; and
  • establishing clear governance to make the new strategy effective.

7.5  The document was sent to the relevant sectoral Councils on 7 December 2009 and discussed at the European Council on 10-11 December 2009. The European Council's Conclusions recorded that it "takes note of the consultation launched by the Commission on the future strategy and looks forward to discussing an ambitious proposal as early as possible in 2010 with a view to full discussion in the European Council, including at its 2010 Spring meeting".[32] The public consultation is to close on 15 January 2010 and the Commission intends to present a formal proposal for a strategy early this year, possibly following an informal European Council on 11 February 2010, with a view to adoption of the strategy at the Spring European Council.

The Government's view

7.6  The Economic Secretary to the Treasury (Ian Pearson) says that the Government welcomes the Commission's launching of a public debate on the policies needed to enable the Union to make a full recovery from the economic crisis and speed up the move towards "a smarter, greener economy". He notes that the Working Document:

  • "picks up on a number of the themes that the Prime Minister has been pressing with European colleagues"; and
  • is in line with the call of the December 2010 European Council for an "ambitious and revamped new strategy" focused on the reforms needed to boost Europe's sustainable growth potential.

He comments that this focus includes "sustainable public finances … preserving investment and social welfare, … inclusive and efficient labour markets", a strengthened internal market, and external trade and openness, as well as "the benefits offered by a greener economy, the improvement of the business climate … and the enhancement of the knowledge base". He adds that the European Council agreed that further reflection was needed "on how to improve coordination of economic policies and … enhance national ownership" and that the Government will continue to work with EU partners on the details of such a strategy. Finally the Minister notes that there are no financial implications at this stage but draws attention to the statement in the document that "these new priorities need to be reflected in budgetary policies. The Commission intends to take them up in the [EU] budget review it will publish next year and in its proposals for the next multi-annual financial framework".

Conclusion

7.7  Whatever plan is adopted to follow on from the Lisbon Strategy for Jobs and Growth will be an important determinant for a range of EU policies in the years up to 2020. Thus, while we are content to clear this present consultative document, we are clear that we will wish to recommend the Commission's formal proposal, once published and deposited, for debate before the Spring 2010 European Council. Meanwhile, if the Government decides to respond to the call for comments on the Commission Working document, we should wish to see the response as soon as possible.


32   See http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/111877.pdf.  Back


 
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