1. THE GOVERNMENT OF THE REPUBLIC OF SLOVENIA INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT Ptuj, 26 September 2008 Lisbon Strategy Matevž Hribernik

2. ‣ We are all facing the same challenges ‣ Our economies are strongly interlinked, and a common currency in the €-zone ‣ No Member State can succeed alone- together we can! ‣ Division of labour between the EU-level and Member States ‣ Partnership is at the heart of the Lisbon Strategy 2

3. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT ‣ The Lisbon Strategy is an action and development plan for the European Union. ‣ Original aim was to make the EU "the most dynamic and competitive knowledge-based economy by 2010". ‣ It was set out by the European Council in Lisbon in March 2000, adopted for a ten-year period.

4. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT ‣ The main fields are economic, social, and environmental dimension. ‣ The Lisbon Strategy is heavily based on the economic concepts of: ‣ Innovation as the motor for economic change (based on the writings of Joseph Schumpeter) ‣ The "learning economy" ‣ Social and environmental renewal ‣ Under the strategy, a stronger economy will create employment in the EU, alongside inclusive social and environmental policies, which will themselves drive economic growth even further.

5. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT  Sluggish growth  Behind goals on most fields  Slow pace of structural reforms  No political ownership

6. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT ‣ no hierarchy of priorities ‣ too many priorities = no priorities ‣ changing priorities from one year to the next ‣ too many targets ‣ unclear governance

7. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT 1. Ranking of priorities → growth and jobs 2. Three year cycle 3. Only 2 targets → 3 % R&D spending → 70 % employment rate 4. New governance (‘partnership’): → national reform programmes based on integrated guidelines → Community Lisbon programme at EU Level → Commission monitoring of progress: a single annual report to the Spring European Council → Lisbon National Coordinators (“Mrs/Mr Lisbon”)

8. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT The 2006 Spring European Council agreed four priority areas: ‣ More R&D and innovation ‣ A dynamic business environment ‣ Equipping people to adapt to change ‣ Integrated EU energy policy

9. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT  Favourable macroeconomic conditions – reduced budget deficits and public debt  A fairly positive cycle – better regulation, unlocking business potential, tax reforms, fostering innovation, structural improvements in labour markets  Further attention needed – improve competition (services and network industries), implementing flexicurity, ageing population –> pension and health care systems, debt reduction, investing in innovation and human capital  Improved assessment methodology  More ownership on national level

10. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT

11.  Complacency is dangerous - push for reforms where progress was limited  Reforms needed to overcome economic shocks

12. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT  Lisbon 1.0 (2000) ◦ most competitive economy in the world ◦ Japan and USA  Lisbon 2.0 (2005) ◦ growth and jobs ◦ looking inward  if it's not broken don't fix it … update it  Lisbon 2.1 (2008)  Lisbon 3.0 (post 2010)

13. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT  a strong boost for the strategy, for reforms  to make Europe more ◦ dynamic, ◦ creative, ◦ entrepreneurial,  while remaining caring ◦ for people and ◦ environment

14. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT open method of coordination citizen, local dimension (!) member state dimension European Union dimension global dimension (new) (1) innovation and creativity (2) business environment (3) caring for people (4) caring for the environment (1) innovation and creativity (2) business environment (3) caring for people (4) caring for the environemnt si.nergy

15. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT  Start of second cycle of the renewed LS ◦ Member States to respond to guidelines from now on with action plans ◦ Concern for citizens increasingly in the foreground, call for a new Social Agenda ◦ The main focus is on the free movement of knowledge and creativity  establishment of “fifth freedom”  high-speed internet access for all schools by 2010 ◦ The importance of small enterprises and the single market for European competitiveness ◦ Ambitious timeline for adoption of Climate and Energy Package

16. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT  Strategic Report  Integrated Guidelines  Community Lisbon Program  National Reform Programs  Country Specific Recommendations  Council Conclusions  …  framework for other policies

17. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT  Connection between the Lisbon strategy and cohesion policy  Involvement of stakeholders – partnership approach (Lisbon Monitoring platform – CoR)  Keyword is sustainability

18. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT  Europe needs a development strategy also after 2010  Innovation will not be enough anymore, creativity is the key  a better implementation at territorial level and clarify the roles of stakeholders  Main challenges:  Globalisation - offers new opportunities, but also puts increasing pressure on people and on business  Demographics - we will need growth and jobs to address the effects of an ageing population

19. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT  European care for people and environment  Values such as well designed, fair, environmentally friendly, nice, trustworthy …  Europe's role in the globalized world is to ◦ shape values … dealing with conflict, addressing climate change, agreement among generations, social sensitivity, global empathy … valuing design, brand, intellectual property ◦ project these values to the rest of the world ◦ creating products fitting this world view, exporting products  century of European values!

20. INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT THANK YOU!  More information: matevz.hribernik@gov.si  References: ◦ Presentations of dr. Žiga Turk, minister, Office for Growth ◦ www.eu2008.si ◦ European Commission