1. COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 2.2.2005 COMMUNICATION TO THE SPRING EUROPEAN COUNCIL Working together for growth and jobs A new start for the Lisbon Strategy Communication from President Barroso in agreement with Vice-President Verheugen From page 1 to page 6

2. Growth and jobs: A New Start for the Lisbon Strategy Just think what Europe could be. Think of the innate strengths of our enlarged Union. Think of its untapped potential to create prosperity and offer opportunity and justice for all its citizens. Europe can be a beacon of economic, social and environmental progress to the rest of the world.

3. free circulation of people, goods and services (the last one is not realized) internal market EUROPE security and dependability of infrastructure EURO – single currency Results at political level enlargement strengthening of economical system values of Europe policy economy European technical rules there are some problems linked to the bad applications and to the lack of appropriate control Democracy, status of right, human rights, minority rights Market’s sistem About 31 sectors (like agriculture, industry, policy, ecc.)

4. Europeans have every reason to be positive about our economic potential. The successes of the second half of the 20th century have left a strong legacy developed economies in the world unique political Union of stable and democratic Member States Single Market a single currency that consolidates economic stability and deepens the potential of economic integration consolidated social model standards of basic education are high and the science base is historically well developed dynamic and innovative companies with extraordinary competitive strength sustainable development than any other region of the world

5. Europe and the challenges of the new millennium During the Portuguese presidency of the European Union, 23rd and 24th March 2000, an extraordinary session of the European Council, the organization that assembles the Heads of State and Government of the member States took place in Lisbon. The purpose of the summit conference was to agree on a strategic objective for the Union, to face the challenges of the new millennium. These changes would have concerned every aspect of the life of the citizens and were requiring a radical transformation of the economic and social system. The advice has established that the aim, to reach within 2010, would have been «"to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion.» The achievement of this aim would have required a global strategy. The Lisbon strategy includes provisions direct to promote scientific research, education, professional training, the access to the Net and the online transactions, but also the reform of the European social security systems. Every year, in spring, the European Council is assembled to verify the progress accomplished in the putting into effect this strategy.

6. Today –new aims to face the challenges of the new millennium – to work against the fall of the European economy at global level Different from that created at the birth of EU Different aims  Only 6 country  with a different approach to the idea of UNION and agreement of a growth - TOGETHER globalisation International competition Raising interdependence between the different economies and the birth of a new global economy Europe – if it is united – may have a stronger role Europe – if it is united – may impose herself in international questions and face the biggest country (like USA and Japan)

7. Europe’ problems difficult economic conditions – because of the cohabitation of very different economies – ideologies – culture a policy agenda which has become overloaded failing co-ordination and conflicting priorities ageing population global competition

8. For some this suggests that we should abandon the ambition of 5 years ago. The Commission does not agree. our model for European society, our pensions, our quality of life will rapidly be called into question Europe’s performance has diverged from that of our competitors in other parts of the world.

9. we have yet to put in place the structures needed to anticipate and manage better the changes in our economy and society we still need a vision for society which can integrate both the ageing and the young for the development of our workforce where current dynamics cast a shadow over both long-term growth and social cohesion Europe’s performance has diverged from that of our competitors in other countries of the world. Their productivity has grown faster and they have invested more in research and development

10. European Council of 02 February 2005 The Lisbon strategy shows the outcomes to be somewhat disappointing, at mid-term look, and particularly with regard to employment. In order to improve the strategy, the Commission proposes a simplified coordination procedure and a focus on the national action plans (NAP) In other words the Commission has therefore decided to focus attention on the action to be taken rather than targets to be attained. The date of 2010 and the objectives concerning the various rates of employment are thus no longer put forward as priorities

11. Summarizing, five years after the launch of the Lisbon strategy, the Commission finds the results to date somewhat disappointing and the European economy has failed to deliver the expected performance in terms of: 1. growth 2. productivity and employment 3. job creation has slowed 4. there is still insufficient investment in research and development

12. 1. make the European Union (EU) more attractive to investors and workers by building up the internal market, improving the European and national regulations by ensuring open and competitive markets within and outside Europe by extending and improving European infrastructures 2. encourage knowledge and innovation by promoting more investment in research and development by facilitating innovation, the take-up of information and communication technologies (ICT) and the sustainable use of resources by helping to create a strong European industrial base 3. more and better jobs attract more people to the employment market and modernise social protection systems improve the adaptability of the workforce and business sector, and increase the flexibility of the labour markets in order to help Europe adjust to restructuring and market changes invest more in human capital by improving education and skills 4. better gouvernance labour market policies (the Luxembourg process) microeconomic and structural reforms (the Cardiff process) macroeconomic and budgetary measures (the Cologne process Accordingly, in order to stimulate growth, employment and more and better jobs, the Commission intends to:

13. European Council of 02 February 2005 "Working together for growth and jobs. A new start for the Lisbon strategy" Communication from President Barroso in agreement with Vice- President Verheugen The Lisbon strategy shows somewhat disappointing, at mid-term look (employment) In order to improve the strategy, the Commission proposes a simplified coordination procedure and a focus on the national action plans (NAP) to focus attention on the action to be taken rather than targets to be attained The date of 2010 and the objectives concerning the various rates of employment are thus no longer put forward as priorities Except the figure of 3% of GDP to be devoted to research and development by 2010 European economy has failed to deliver the expected performance in terms of: Growth productivity and employment job creation has slowed insufficient investment in research and development

14. make the European Union (EU) more attractive to investors and workers encourage knowledge and innovation creating more and better jobs better governance by building up the internal market, improving the European and national regulations by ensuring open and competitive markets within and outside Europe by extending and improving European infrastructures by promoting more investment in research and development by facilitating innovation, the take-up of information and communication technologies (ICT) and the sustainable use of resources by helping to create a strong European industrial base attract more people to the employment market and modernise social protection systems improve the adaptability of the workforce and business sector, and increase the flexibility of the labour markets invest more in human capital by improving education and skills labour market policies (the Luxembourg process) microeconomic and structural reforms (the Cardiff process) macroeconomic and budgetary measures (the Cologne process)

15. KEY-WORDS KEY WORDS extraordinary session of the European Council - the organization that assembles the Heads of State and Government of the member States  enlarged Union  simplified coordination procedure  the national action plans (NAP)  mid-term look  Globalisation: interdependence between the economies of the world and the birth of a new global economy  International competition  progress

16. others  single Market  single currency  beacon of economic - developed economies - economic stability - potential of economic integration - social and environmental progress - stable and democratic  consolidated social model - social security systems- sustainable development  the purpose – the aim – the goal  Strengths – Development – Objectives – Priorities - rates of employment (tasso) - human capital – business – skills - goods

17. And others scientific research  education - knowledge  growth - productivity employment – innovation  job creation – investors – workers - professional training  internal market - infrastructures - communication technologies (ICT) - the sustainable use of resources - industrial base

18. Others expressions to agree on a strategic objective  to took place in Lisbon  to face the challenges of the new millennium  to focus attention on the action to be taken rather than targets to be attained  to promote  to put into effect this global strategy  to put to practice  to move on