Barroso set to unveil pact for EU research

By Anna McLauchlin

Date: 19/01/06

The European Commission will call on member states at the spring summit on 24 March to set targets for spending on research and development (R&D) and to draw up national rules making it easier for entrepreneurs to set up business.

President José Manuel Barroso will present his plans on Wednesday (25 January) in an annual report on the Lisbon Strategy to promote growth and jobs. That report will feed into discussions at the summit in March.

Specifically, Barroso has narrowed the Commission's aims into four priorities for the coming year.

Firstly the Commission will publish a 'Pact for Research and Development' that will set a common EU target for R&D spending.

Member states already have a target of 3% of gross domestic product (GDP) by 2010 but 2005 figures showed that spending has been slowing since 2000 and if trends continue the EU will only be investing 2.2% of GDP in R&D by 2010.

The Commission will ask each member state to fix R&D spending targets and on that basis publish a realistic EU-wide target.

The second priority is to boost small businesses in Europe. Barroso wants all member states to draw up rules by 2007 that will make it easier and cheaper to set up a business.

Measures are likely to focus on cutting the red tape involved in business creation.

Thirdly, EU leaders will be asked to consider the challenge posed by globalisation and increased competition, notably from Asia. Governments must deepen their labour market reforms and their commitment to life-long learning so that citizens can adapt to the changing marketplace.

'Flexicurity' - a term coined by the Danes to describe the combination of strong social security benefits with laws that make it easy to hire and fire employees - will also be important. Employment ministers will exchange initial views on this at their informal Employment Council in Villach (19-21 January).

Energy policy is the final priority for the coming year. Political enthusiasm has been growing for a common EU policy following the Russia-Ukraine pricing dispute, which is disturbing supplies to some EU states.

The Austrian presidency has already said the issue will be at the top of its agenda.

The Commission is expected to push for a reaffirmed commitment to its renewable energy targets (12% of all energy used by 2010) and its action plan on energy efficiency, which is also expected in the spring.

Article anticipates a European Commission annual report on the progress of the Lisbon Strategy, expected to be published on 25 January 2006. In the report, which was to feed into the Spring European Council in March 2006, the Commission was planning to identify four priorities: (1) a 'Pact for Research and Development' (2) support for small businesses in Europe (3) the challenge posed by globalisation and increased competition, notably from Asia and (4) energy policy.

European Commission: Growth and Jobs http://ec.europa.eu/growthandjobs/index_en.htm

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