1 Moving Towards a Knowledge-Based Economy: Progress Made Since the Lisbon EU Summit Knowledge Economy Forum III Budapest, March 23-26, 2004 Franz Kaps, Senior Partnership Advisor Europe and Central Asia Region, The World Bank

2 Lisbon EU Summit, March 2000: ”Our aim is for the European Union to become the most competitive knowledge-based society in the world by 2010.”

3 The Lisbon Strategy Objectives Main Themes: 1.Sustainable Growth 2.Social Cohesion 3.Environmental Protection

4 To review progress achieved since 2000, almost midway to 2010: European Commission’s Assessment as Endorsed by Irish Presidency: Implementation is Lagging Behind. Lack of Ownership by the Member States. Spring European Council, March 25-26, 2004

5 1.Improve Investments in Knowledge and Networks 2.Strengthen Competitiveness of EU Enterprises 3.Promote Active Aging Priorities for 2004

6 1.Quick Start Program: to promote investments in transport, energy, telecommunications, research, innovation and development. 2.Action for Growth Program: Increased investment in physical and human capital to complement structural reforms. Improve Investments in Knowledge and Networks

7 Relative Weakness of Private Sector Investment in R&D. To Enhance Synergies between Research and Industries. Strengthen Competitiveness of EU Enterprises

8 Encourage Older Workers to Remain in the Workforce. Priority to be given to training, retention and mobility of workers. Promote Active Aging

9 More Emphasis on Poverty Eradication and Social Inclusion. Protecting the Most Vulnerable Social Groups (gender equality). Social Inclusion

10 More Investments Needed in Knowledge Sectors: Research Innovation Education Training Summary

11 Report from the Commission to the Spring European Council Delivering Lisbon Reforms for the Enlarged Union, 02/20/ Draft Presidency Conclusions European Council 25/26 March 2004 Meeting the Lisbon Challenge For More Information