The Lisbon StrategyThe Lisbon Strategy

Andrew Caruana GaliziaAndrew Caruana Galizia

Yixiang ZengYixiang Zeng

Patricia AbrudanPatricia Abrudan

Diana Sanchez MartinDiana Sanchez Martin

Andrea ProiettiAndrea Proietti

I. What is “The Lisbon Strategy” ?I. What is “The Lisbon Strategy” ?

Met in march 2000 in Lisbon, the head of Met in march 2000 in Lisbon, the head of states of government of the European states of government of the European Union have launched the objective to Union have launched the objective to ‘become the most competitive and ‘become the most competitive and dynamic knowledge society in the world’ dynamic knowledge society in the world’ by 2010. The measures that have been by 2010. The measures that have been selected and acted upon since then are selected and acted upon since then are known as ‘The Lisbon Strategy’known as ‘The Lisbon Strategy’

The new challengeThe new challenge

The European Union is confronted with a The European Union is confronted with a quantum shift resulting from globalisation quantum shift resulting from globalisation and the challenges of a new knowledge-and the challenges of a new knowledge-driven economydriven economy

The Union must shape these changes in a The Union must shape these changes in a manner consistent with its values and manner consistent with its values and concepts of society and also with a view to concepts of society and also with a view to the forthcoming enlargement.the forthcoming enlargement.

The new challengeThe new challenge

The rapid and accelerating pace of change The rapid and accelerating pace of change means it is urgent for the Union to act now means it is urgent for the Union to act now to harness the full benefits of the to harness the full benefits of the opportunities presented. opportunities presented.

The Union's strengths and weaknessesThe Union's strengths and weaknesses(How was in the 2000)(How was in the 2000)

The Union is experiencing its best macro-The Union is experiencing its best macro-economic outlook for a generation. economic outlook for a generation.

The euro has been successfully The euro has been successfully introduced and is delivering the expected introduced and is delivering the expected benefits for the European economy. benefits for the European economy.

The internal market is largely complete The internal market is largely complete and is yielding tangible benefits for and is yielding tangible benefits for consumers and businesses alike.consumers and businesses alike.

The Union's strengths and weaknessesThe Union's strengths and weaknesses(How was in the 2000)(How was in the 2000)

The forthcoming enlargement will create The forthcoming enlargement will create new opportunities for growth and new opportunities for growth and employment. employment.

The Union possesses a generally well-The Union possesses a generally well-educated workforce educated workforce

Growth and job creation have resumed.Growth and job creation have resumed.

The Union's strengths and weaknessesThe Union's strengths and weaknesses(How was in the 2000)(How was in the 2000)

Than 15 million Europeans are still out of Than 15 million Europeans are still out of work. work.

The employment rate is too low and is The employment rate is too low and is characterised by insufficient participation characterised by insufficient participation in the labour market by women and older in the labour market by women and older workers. workers.

The services sector is underdeveloped, The services sector is underdeveloped, particularly in the areas of particularly in the areas of telecommunications and the Internet. telecommunications and the Internet.

The Union's strengths and weaknessesThe Union's strengths and weaknesses

Total employment rate % Total employment rate % The employment rate is calculated by dividing the number of persons aged 15 to 64 in employment by the totalThe employment rate is calculated by dividing the number of persons aged 15 to 64 in employment by the total

population of the same age group. The indicator is based on the EU Labour Force Survey population of the same age group. The indicator is based on the EU Labour Force Survey

0

10

20

30

40

50

60

70

80

2000 2001 2002 2003 2004 2005

EU (25 countries)

EU (15 countries)

Euro area

Euro area (12 countries)

United States

Japan

The Union's strengths and weaknessesThe Union's strengths and weaknesses(How was in the 2000)(How was in the 2000)

There is a widening skills gap, especially There is a widening skills gap, especially in information technology where increasing in information technology where increasing numbers of jobs remain unfilled. numbers of jobs remain unfilled.

With the current improved economic With the current improved economic situation, the time is right to undertake situation, the time is right to undertake both economic and social reforms as part both economic and social reforms as part of a positive strategy which combines of a positive strategy which combines competitiveness and social cohesion.competitiveness and social cohesion.

II. Innovation and the Lisbon II. Innovation and the Lisbon strategystrategy

ObjectiveObjective

To define the innovation To define the innovation process and innovation process and innovation policy, and present an policy, and present an action programme for action programme for the Community and the the Community and the Member States.Member States.

Innovation and the Lisbon Innovation and the Lisbon strategystrategy

The innovation conceptThe innovation concept

1.1. PurposePurpose2.2. DefinitionDefinition3.3. Importance of innovation for Importance of innovation for

companiescompanies4.4. Innovation policyInnovation policy5.5. The challengesThe challenges

Innovation and the Lisbon Innovation and the Lisbon strategystrategy

6. 6. The framework for innovation policyThe framework for innovation policy

77. Other actions. Other actions : : Improve the business environment Improve the business environment The public sector in the EU is both a source The public sector in the EU is both a source

and user of innovation even if obstacles do still and user of innovation even if obstacles do still remain.remain.

Creation of clusters and centres of learning.Creation of clusters and centres of learning.

Innovation and the Lisbon Innovation and the Lisbon strategystrategy

Action plan: Action plan: The Member States and the The Member States and the Commission shall therefore develop a Commission shall therefore develop a framework for action which contains framework for action which contains priorities and objectives.priorities and objectives.The Commission and the Member States The Commission and the Member States will set up a coordination procedure, and will set up a coordination procedure, and will intensify mutual learning and will intensify mutual learning and cooperation to develop innovation in the cooperation to develop innovation in the EU. EU.

III. Review of the Lisbon StrategyIII. Review of the Lisbon Strategy

A mid-term look at the Lisbon strategy A mid-term look at the Lisbon strategy shows the outcomes to be somewhat shows the outcomes to be somewhat disappointing, particularly with regard to disappointing, particularly with regard to employment. employment.

The Commission proposes a simplified The Commission proposes a simplified coordination procedure and a focus on the coordination procedure and a focus on the national action plans (NAP). national action plans (NAP).

Switch of emphasis away from the medium Switch of emphasis away from the medium and long term in favour of the urgent action and long term in favour of the urgent action needed in the Member States.needed in the Member States.

III. Review of the Lisbon StrategyIII. Review of the Lisbon Strategy

November 2004 report "Rising to the November 2004 report "Rising to the challenge: the Lisbon strategy for growth challenge: the Lisbon strategy for growth and employment“: and employment“:

• lack of political resolvelack of political resolve

• inability to complete the internal market in goods inability to complete the internal market in goods

• Inability to establish the market for services. Inability to establish the market for services.

• poor coordination of a top-heavy agendapoor coordination of a top-heavy agenda

III. Review of the Lisbon StrategyIII. Review of the Lisbon Strategy

1.1. February 2005: "Working together for February 2005: "Working together for growth and jobs. growth and jobs. A new start for the Lisbon A new start for the Lisbon strategystrategy“:“:

re-launching policy priorities, particularly with regard to re-launching policy priorities, particularly with regard to growth and employment.growth and employment.

Member States should appoint a "Mr" or "Ms Lisbon" at Member States should appoint a "Mr" or "Ms Lisbon" at government levelgovernment level

a a single Lisbon report at EU and at national levelsingle Lisbon report at EU and at national level

III. Review of the Lisbon StrategyIII. Review of the Lisbon Strategy

2.2. 20 July 2005: Common actions for 20 July 2005: Common actions for growth and employment: growth and employment:

The Community Lisbon Programme :The Community Lisbon Programme :

Covers 3 main areas: Knowledge and innovation for growth, Knowledge and innovation for growth, Making Europe a more attractive place to invest and work, Making Europe a more attractive place to invest and work, Creating more and better jobs. Creating more and better jobs.

III. Review of the Lisbon StrategyIII. Review of the Lisbon Strategy

33.. 20 April 2005 20 April 2005 "" Mobilising the brainpower of EuropeMobilising the brainpower of Europe””

enabling universities to make their full enabling universities to make their full contribution to the Lisbon Strategy:contribution to the Lisbon Strategy:

knowledge triangle: - educationknowledge triangle: - education - research - research - innovation- innovation

III. Review of the Lisbon StrategyIII. Review of the Lisbon Strategy

THE CORE MODERNISATION AGENDA: THE CORE MODERNISATION AGENDA:

Attractiveness: Attractiveness: - the imperative of quality and excellence- the imperative of quality and excellence

Governance: Governance:

- the need for better system and institutional - the need for better system and institutional managementmanagement

Funding: Funding:

- the need for higher and more efficient - the need for higher and more efficient investmentinvestment

III. Review of the Lisbon StrategyIII. Review of the Lisbon Strategy

1.1. 22-23 March 2005: 22-23 March 2005: Presidency conclusions of the Spring Presidency conclusions of the Spring

European Council in Brussels concerning European Council in Brussels concerning the mid-term review of the Lisbon strategy:the mid-term review of the Lisbon strategy:

saw the adoption of the simplified Lisbon objectivessaw the adoption of the simplified Lisbon objectives conclusions refer to nearly 100 different objectives.conclusions refer to nearly 100 different objectives. objectives stress the implementation of the reforms objectives stress the implementation of the reforms

needed for growth and employment.needed for growth and employment.

IV. A New start for the Lisbon IV. A New start for the Lisbon StrategyStrategy

More growth More growth More and better jobsMore and better jobs Better governanceBetter governance

A New start for the Lisbon A New start for the Lisbon StrategyStrategy

More More growth growth

Make the European Union (EU) more Make the European Union (EU) more attractive to investors and workers attractive to investors and workers

Encourage knowledge and innovationEncourage knowledge and innovation

A New start for the Lisbon A New start for the Lisbon StrategyStrategy

More and better jobsMore and better jobs::

Modernise social protection systemsModernise social protection systems Improve the adaptability of the workforce and Improve the adaptability of the workforce and

business sectorbusiness sector Invest more in human capital by improving Invest more in human capital by improving

education and skillseducation and skills

A New start for the Lisbon A New start for the Lisbon StrategyStrategy

better governancebetter governance::

Labour market policies (The Luxembourg Labour market policies (The Luxembourg process)process)

Microeconomic and structural reforms (The Microeconomic and structural reforms (The Cardiff process)Cardiff process)

Macroeconomic and budgetary measures Macroeconomic and budgetary measures (The Cologne process)(The Cologne process)

V. ConclusionsV. Conclusions

Europe must commit itself to higher-value Europe must commit itself to higher-value industries with greater knowledge content.industries with greater knowledge content.

This requires a restructuring and This requires a restructuring and revitalisation of the outdated education revitalisation of the outdated education system and research for innovationsystem and research for innovation..

ConclusionsConclusions

The Lisbon Strategy was a vision for The Lisbon Strategy was a vision for Europe; with long term goals and Europe; with long term goals and achievements but with an unrealistic achievements but with an unrealistic deadline set for 2010. deadline set for 2010.

The re-launch of the Lisbon Strategy in The re-launch of the Lisbon Strategy in 2005 ignored the long term goals and 2005 ignored the long term goals and implemented short term policies with implemented short term policies with immediate results. immediate results.