1. Preparation of the National Reform Programmes in the context of Europe 2020 Gerard de Graaf SG Pierre Vigier RTD.C3

2. Two pillars structure Integrated macro-economic surveillance: – Objective: stable macroeconomic environment conducive to sustained and balanced growth – Actors: MOEs/MOFs, coordinated by DG ECFIN and steered by ECOFIN – Instruments: Multilateral fiscal and macro-financial surveillance and preventive guidance Thematic coordination: – Objective: smart, sustainable and inclusive growth – Actors: Relevant ministries and DGs (e.g. Research) coordinated at national and EU level and steered by relevant Council formations (e.g. COMPET) – Instruments: Flagship initiatives, monitoring of growth- enhancing reforms and Community leviers

3. European Semester in steady state Council of Ministers European Commission European Parliament European Council Annual economic summit JanuaryMarchApril February MayJuneJuly Adoption of National Reform Programmes (NRPs) & Stability and Convergence Programmes (SCPs) Autumn: Peer review at EU level Autumn: Decisions at national level Debate & orientations Endorsement of guidance Finalisation & adoption of guidance Member States Annual Growth Survey Proposals for policy guidance (invitations / recommendations) Debate & orientations Spring forecast

4. Headline indicators (EU and national):  R&D intensity targets  Innovation indicator Europe 2020 Integrated Guidelines (EU):  IGn°4: Optimising support for R&D and innovation, strengthening the knowledge triangle and unleashing the potential of the digital economy Self-assessment tool (Member States):  Review national research and innovation systems using a set of commonly agreed policy features  Identify key challenges and critical reforms Framework for reforming national systems

5. Content and format:  Political statement  Macro-economic scenario  Macro-economic surveillance  Thematic coordination: Key measures to attain each national target  Horizontal and methodological issues Implementation and monitoring:  Robust monitoring tools  Exchange of good practice  Involvement of social partners and other stakeholders  Specific provisions for 2010: light NRP  Outline key challenges  Present priority reforms to support growth Operational guidelines for NRPs

6. Commission:  proposes and implements EU level measures  assists Member States with their reform process and support the exchange of good practice  monitors & reports (annually) on progress achieved  (where appropriate) proposes country-specific recommendations to assist Member States ERAC, in coordination with EPG:  fosters progress by MS in implementing Innovation Union Competitiveness Council:  meets once per semester as "Innovation Council“ to take stock of progress and identify new needs  takes decisions, eg on flagship actions  provides input for the Spring European Council Different institutional competences

7. ERAC and EPG to advise Member States as well as Commission and Council Distinguish activities linked to the annual Europe 2020 cycle from those related to the development of ERA and the evidence base Deliver clear added value by focusing involvement on a selected number of Europe 2020 milestones Possible roles of ERAC/ EPG in Europe 2020

8. 1.Annual report on progress of Innovation Union adopted by Commission (Autumn)  ERAC and EPG consulted on the overall orientation of the report during its preparation  ERAC and EPG to undertake a policy mutual learning exercise just after its adoption 2.Commission's Annual Growth Survey adopted early each year  ERAC and EPG to discuss implication for R&I policies 3.Competitiveness Council preceding the Spring European Council (“Innovation Council”)  ERAC and EPG to prepare a timely input to COMPET in relation with EPC (similar to EPC -> ECOFIN) Possible milestones for ERAC/EPG input

9. Creation of a joint ERAC-EPG sub-group  Objective: assess progress with implementation of Europe 2020 in the area of research and innovation, identifying bottlenecks and exploring solutions  Composition: senior officials involved in NRPs and Innovation Union at national level  Reporting: both to ERAC and EPG Adaptation and use of ERAC instruments  Policy mutual learning exercises: to be organised along a limited number (3 or 4) of key challenges drawn from NRPs  Peer reviews: methodology to be adapted to reflect the self- assessment tool (pilot exercise in Slovenia) Possible implementation modalities