Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Taking stock of the Europe 2020 strategy for smart, sustainable and inclusive growth

Early in 2010, the Commission proposed the Europe 2020 strategy which was launched as the EU’s strategy for smart, sustainable and inclusive growth. The aim was to improve the EU's competitiveness while maintaining its social market economy model and improving significantly its resource efficiency. When it was launched the Europe 2020 strategy was a front runner in advocating a growth model going beyond simply increasing GDP. Today many bodies promote smart, sustainable and inclusive growth as a crucial element of economic development.

The Europe 2020 strategy was initiated against a background of lower growth and productivity levels than in other developed countries and a rapidly deteriorating economic and social environment, in the wake of the worst global financial crisis the EU has ever faced. It drew the lessons from the Lisbon strategy for growth and jobs which was launched in 2000, renewed in 2005 and was in place until 2010. The founding document made it clear that the "short-term priority (was) a successful exit from the crisis", but that "to achieve a sustainable future", the EU needed "to tackle its structural weaknesses" and "already look beyond the short-term". The ambition was to "come out stronger from the crisis and turn the EU into a smart, sustainable and inclusive economy, delivering high levels of employment, productivity and social cohesion."

The strategy was conceived as a partnership between the EU and its Member States, with a set of goals focused around the priorities of smart, sustainable and inclusive growth, and a dedicated delivery system. It set out five interrelated headline targets for the EU to achieve by 2020 in the areas of employment, research and development (R&D), climate change and energy, education, and the fight against poverty and social exclusion. The targets were not exhaustive but considered exemplary of the kind of dynamic change advocated in the strategy.

To catalyse progress at EU level, the Commission set out seven flagship initiatives, which included specific work programmes in areas identified as important levers for growth. In addition, the strategy has served as a frame of reference for action at EU level in the areas of the Single Market, the EU budget for 2014-2020 and the EU’s external policy agenda.

Any review of the Europe 2020 strategy must take account of the financial and economic crisis of recent years and the EU's response to it. As the crisis spread and took on new forms, a particular challenge for the EU was to break the vicious circle between rising levels of sovereign debt, contagious financial instability and low or even negative growth. This required both short-term and systemic action, notably within the Euro area, such as the establishment of a lending capacity for countries in financial distress and stronger rules for economic governance as well as enhanced financial supervision and regulation.

A crisis on the scale of recent years required an immediate and strong policy response to supplement the longer-term aims of the Europe 2020 strategy. From its Annual Growth Surveys, where it set out EU-wide priorities for the coming year, to the presentation of targeted legislative proposals and the issuance of country-specific guidance, the Commission has been advocating a mix of actions to stabilise the financial sector combined with recovery strategies, fiscal consolidation efforts and structural reforms adjusted to country specificities and reflecting the interdependencies of EU economies.

To monitor and advance national implementation of the Europe 2020 strategy, Member States were invited to set their own targets and to spell out detailed actions as part of their national reform programmes. These programmes are reviewed annually at EU level as part of the European Semester of economic policy coordination. Conceived as a way to reinforce EU's economic governance, the first European Semester started early in 2011 and the mechanism has rapidly established itself as the new annual policy cycle of economic guidance and monitoring at EU level. Reflecting the partnership approach, there is regular dialogue with the European Parliament and the various formations of the Council.

Four years after launching the Europe 2020 strategy, the purpose of this Communication is to take stock. The European Council is expected to hold a first discussion at its meeting in March 2014, following which the Commission will launch a public consultation to gather the views of all stakeholders to help it develop the strategy for the 2015-2020 period.

• Primary Source

EUR-Lex: COM(2014)130: Follow the progress of this communication through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2014:130:FIN

ESO: Background information: Q&A: Taking stock of the Europe 2020 strategy for smart, sustainable and inclusive growth http://www.europeansources.info/record/memo-qa-taking-stock-of-the-europe-2020-strategy-for-smart-sustainable-and-inclusive-growth/

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