1. RCC 3rd Anniversary 7 March 2011, Sarajevo From Lisbon Strategy to Europe 2020: Relevance for candidates and potential candidates Dr. Višnja Samardžija Institute for International Relations - IMO, Zagreb

2. The book, and beyond… From the Lisbon Strategy to Europe 2020, published by IMO, Zagreb in 2010 Supported by the Delegation of the EU to the Republic of Croatia Editors: Višnja Samardžija and Hrvoje Butković Authors: IMO and external experts Content: strategic perspectives, thematic issues, glossary Available at: http://www.imo.hr/node/1231

3. Europe 2020: S mart, sustainable, inclusive growth Exit strategy from economic crisis, EU facing global challenges Continuity in implementing Lisbon-type strategy reforms High expectations New dynamism, raising competitiveness on European level, better coordination with other EU policies, better distribution of labour stronger financial support… Old and new mechanisms (OMC, IGs), European economic governance

4. Lisbon Strategy – EU, external competitors and Croatia Performance in key areas (WEF, 2010)

5. Top priorities: Europe 2020 headline targets

6. Innovation Union Youth on the move Digital Agenda for Europe Resource efficient Europe Industrial policy for the globalization era Agenda for new skills and jobs European platform against poverty Europe 2020 flagship initiatives

7. Europe 2020 Integrated Guidelines …from 24 to 10

8. EU 2020 governance Different priorities for structurally different member states - not one size fits for all approach Financing EU2020 - financial perspective, EU funds, national level EU2020 & common policies (reformed cohesion policy, CAP, other) EU2020 & other strategies (Danube strategy) Partnership between EU member states, Commission, Council Governance mechanisms Open method of coordination (OMC) Soft method Defining goals, guidelines, indicators, evaluation, monitoring Integrated guidelines Exchange of good practice New economic governance

9. New European economic governance: EU and beyond… Fiscal consolidation, structural reforms Strengthening rules of fiscal and budgetary discipline - ex- ante dimension Stronger monitoring on fiscal policies and coordination of national economic policies Better coordination with Stability and Growth Pact (SGP) rules Budget deficit and public debt high above envisaged! European Semester Eurozone - European Stabilisation Mechanism, permanent crisis mechanism, early warning system, readiness for eventual future crisis management

10. Obligations and responsibilities of EU member states Stability and Convergence Programme Submission before adoption of national budgets – debate on public finances and fiscal policy National Reform Programme Elements for implementation surveillance of EU2020 – according thematic areas Regional and local level – policy implementation related to EU2020

11. Relevance of EU umbrella strategies for candidates / potential candidates? Lisbon strategy - goals considered as priorities in Accession / European Partnerships Not additional criteria but relevant in reforms and EU negotiations LS principles integrated into candidates national strategic documents, to be considered in reforms Participation in OMC - learning dimension Common goals, evaluation, joint review process, coaching, peer review, benchmarking exercise, indicators Deepening policy dialogue with EU, strengthening institutional capacities Developing strategic approach to policy development Support from pre-accession funds (IPA; IPA Multi-Beneficiary)

12. EU2020 & candidates …Europe 2020 strategy is not only relevant inside the EU, it can also offer considerable potential to candidate countries and our neighbourhood and better help anchor their own reform efforts. Expanding the area where EU rules are applied will create new opportunities for both the EU and its neighbours (European Commission, 2010)

13. Transferring Lisbon goals into candidate countries reality Strategic documents - Croatia Strategic Development Framework (2006-13) Strategic Coherence Framework – SCF (2007- 13); National Strategic Reference Framework – NSRF (2012-13) Pre-accession economic programmes – PEP (Economic and fiscal programmes - EFP) Joint Inclusion Memorandum (JIM); Joint Assessment of Employment Policy Priorities (JAP)

14. Croatia: Framework for implementing Pre-accession funds (2007-2013)

15. 3. Implications for Croatia Croatia: National strategic framework for accession (EU2020)

16. OMC: Learning platform for SEE participation in EU governance Regional platforms were established for most important areas of LS /EU2020! Regional activities Investment compact (Investment Reform Index, SME Policy Index, working methods) Steering platform on researc h for WB, Regional Research Strategy eSEE Initiative (Agenda Plus) Other… Regional initiatives CEFTA Energy Community Transport Treaty Other…

17. Why is EU2020 relevant for SEE region? Strategic thinking Commitment to common goals helps to change national policies Creation of regional economic governance regime Identifying own priorities and aims in different areas, prioritization Adoption of good practice OMC - strategic documents, action plans, Improving system of monitoring and collecting indicators, harmonised with EU structural indicators (EUROSTAT) Support of European Commission, implementation!

18. Performance of SEE countries in different areas

19. Acceding countries development level GPD per capita at current prices (EUR) Source: Eurostat, Pocketbook on candidates and potential candidates, 2010

20. GDP growth rate in candidates/potential candidates at constant prices (national currency) relative to previous year (%) 1998200020072008 EU-273.03.92.90.9 Croatia2.13.05.52.4 The former Yugoslav Republic of Macedonia3.44.55.9: Turkey:6.84.70.9 Albania9.06.76.0: Bosnia and Herzegovina::6.05.4 Montenegro::10.7: Serbia0.75.36.9: Kosovo under UNSCR 1244/99:::: Iceland6.34.35.61.3 Source: Eurostat, Pocketbook on candidates and potential candidates, 2010

21. Global Competitiveness Ranking (WEF, 2008-2010) COUNTRY 20102008 COUNTRY 20102008 EU-15EU-12 Sweden24Estonia3332 Germany57Czech Republic3633 Finland76 Greece8367SEE countries Montenegro49 65 BRIC countriesCroatia77 61 China2730Macedonia79 89 India5150Albania88 108 Brazil5864Serbia96 85

22. Scores of EU and SEE countries according to selected Lisbon criteria (WEF, 2006 and 2010)

23. Gross domestic expenditure on R&D relative to GDP, 2007 (%) (1) Eurostate estimate. (2) 2004 instead of 2007 data. Source: Eurostat, Pocketbooks, 2010

24. Gross domestic expenditure on R&D (% GDP) Source: Pocketbook on candidate and potential candidate countries, 2009 edition. EUROSTAT Lack of comparable data!

25. Comparative r anking according performance in technological readiness, education and innovation ( Global Competitiveness Inde x, N=133) Source: The Global Competitiveness Report 2009-2010, WEF Note: GCR based on survey and hard data of 133 countries

26. Proportion of population aged 18-24 having not completed upper secondary education, 2008 (%) (currently not in any education or training) Note: Data for several countries not available. Source: Eurostat, Pocketbooks, 2010 Reducing early school leavers?

27. Proportion of population aged 20-24 having completed at least upper secondary education, 2008 (%) Note: Data for several countries not available. Source: Eurostat, Pocketbooks, 2010 Goal: to increase proportion of young population with upper secondary education

28. Proportion of persons aged 25-64 participating in education and training, 2000 and 2008 (%) Note: Data for several countries not available. Results of survey – participation in education and training at any time within a four week period prior to being surveyed. Source: Eurostat, Pocketbooks, 2010

29. Building knowledge based society: challenge for SEE region Developing policies based upon new paradigms and new models for growth Increasing productivity and foster knowledge based regional competitiveness; towards more skill-intensive exports Changing priorities in national / regional agenda Designing integrated policies and strategies for SEE, from fragmented to integrated approach Strengthening regional cooperation in sectors of competitive advantage Encouraging transfer of knowledge, strengthening capacities for EU funded programmes (FP7, CIP…)

30. Europe 2020 SEE / Western Balkans 2020? EU2020 strategy – strong potential to anchor reforms and facilitate EU accession, meeting challenge of good governance Strengthening own strategic thinking in regional context Need to develop regional strategy 2020, corresponding to Europe 2020 Regional guidance in implementing reform + national targets Key issues – competitiveness, employment, education, research, innovations Regional initiatives / activities - asset for supporting reforms Reflect OMC - policy learning, benchmarking, common targets, peer reviews Croatia as a model for SEE countries RCC - Regional Cooperation Councils role!

31. Thank you for your attention!