Nota Bene: It had been hoped to cover the proposal for a Services Directive in this edition – in light of current developments, this will be reviewed as an Annexe in the March 2005 Brussels Brief.  The current draft Directive text is on: http://europa.eu.int/eur-lex/en/com/pdf/2004/com2004_0002en03.pdf

EUROPEAN COMMISSION 5-YEAR STRATEGY

Jose Manuel Barroso, President of the European Commission presented the five-year strategy for the European Commission to the European Parliament and to the Economic and Social Committee at the beginning of 2005

His key message was one of renewal and working in partnership.

Primary issues were to be:

(1)   The adoption of the Constitution, which he considered “critical to the democracy, transparency and effectiveness of the EU.

(2)   Need for early agreement on the EU budget, the so-called “financial perspectives” for 2007-2013

(3)   The need for greater public involvement in the “European project”.

Objective 1: Prosperity, necessary to create a dynamic economy and achieve the “overarching goal” of “sustainable development”, that is to say “ … based on balanced economic growth and price stability, a highly competitive social economy, aiming at full employment and social programmes and a high level of protection and improvement of the quality of the environment”.

In the light of declining growth and persistently high unemployment levels, the first action required would be restoring growth and job creation.

Objective 2: Solidarity, Commission measures in this regard include:

(1)   revised social agenda;

(2)   Communication on Sustainable Development setting out guidelines for an EU approach (broad vision, long-term assessment, dealing with negative trends in climate, health, ageing societies; improvements in integrating actions);

(3)   Climate Change Communication emphasising need to make best use of scarce resources.

Objective 2: Security, the fight against crime and terrorism, effective control of external frontiers, management of asylum and immigration and dealing with human trafficking.  The EU’s role in reducing and/or responding to the impact of natural disasters, environmental or health crises, transport and energy threats.

Mr. Barroso then outlined the role of the EU as an active global player.  Over the next 5 years the intention was for the EU to pursue a policy of partnership at international level.  He provided three examples: (i) a stable and prosperous region, (ii) a stronger, single international voice for the Union, promoting multilateralism and a reinforced role for the United Nations and (iii) improved relations with key partners to include a new strategy for Africa and a new approach to trans-Atlantic relations.

Jobs and Growth initiative – Europe seeks to undertake economic reform:

This initiative leads on from the mid-term review of the 10-year Lisbon Agenda which in 2000 expressed its aims to make the EU "the most competitive and dynamic knowledge-driven economy by 2010".   Reform is taking place but there are concerns that the process is not going fast enough and that the ambitious targets set at Lisbon will not be reached.  Europe is faced with an ageing population and intensifying global competition: increasing productivity growth and employment is a pre-requisite..

In early February the Europe Commission set out a practical action programme for the EU and its Member States to generate sustained economic growth and more and better jobs.  According to the Commission, the growth and jobs strategy could boost European GDP by 3% by 2010 and create over 6 million jobs.

Aims and contents of the jobs and growth strategy:

AIM: to make Europe a more attractive place to invest and work

TO BE ACHIEVED BY:

·         Focus on completing key Single Market initiatives such as a balanced agreement on services, regulated professions, energy, public procurement and financial services, a balanced agreement on REACH[1], taking into account the impact of the competitiveness and innovation and SMEs.

·         Ensure open and competitive markets inside and outside Europe: redirect State aids towards sectors with high growth potential, create a SME friendly business environment, create access to third markets, simplify European and national regulation.

·         Improve European and national regulation to reduce the burden of administrative costs.

·         Expand and improve European infrastructure.

·         Continue to push for a Community patent and to move forward on a consolidated corporate tax base.

AIM:  To achieve growth through innovation and a knowledge-based economy  

TO BE ACHIEVED BY:

·         Reach a 3% GDP target for R and D expenditure.

·         Promote the uptake of Information and Communication Technologies (ICT).

·         Promote the development of innovation poles linking regional centres, universities and businesses.

·         Boost European Technology Initiatives through public-private partnerships.

·         Promote energy efficient and low emission eco-innovations.

·         Contribute to a strong European industrial base through mobilising public and private partnerships.

·         The Commission is proposing the creation of a European Institute for Technology to attract the best minds, ideas and businesses to Europe.

AIM:  Job creation and achieve growth through a better educated and trained work-force

TO BE ACHIEVED BY:

·         Attracting more people into employment – emphasis on reducing youth unemployment (European Youth initiative) and modernising social protection systems.

·         Increasing the adaptability of workers and enterprises and the flexibility of labour markets through removing obstacles to labour mobility.

·         Great investment in human capital through better education and skills by reforming the EU Structural Fund and Cohesion Fund.

WHO WILL BE RESPONSIBLE FOR WHAT?

The Action Programme makes a clear distinction between actions at Member States and European Union level: it identifies responsibilities, sets deadlines and measures progress. Governments are advised to appoint a “Mr or Ms Lisbon” to take charge of implementation.

Delivery mechanisms will be simplified: there will wide consultation and then one single national action programme and one single national implementation report.

ONE SERIOUS PROVISO - AMBITION HAS A COST: