European Commission urges Member States to intensify efforts to help Europe become the world’s most competitive economy by 2010, January 2003

In its 2003 Spring Report on the implementation of the Lisbon strategy, the European Commission calls on the Member States to step up their efforts to implement reforms or risk not achieving the Lisbon objective of becoming the most competitive economy of the world by 2010.

Presenting the report to the European Parliament in Strasbourg on 14 January 2003 Romano Prodi, President of the European Commission said:

'Much potential remains untapped. The Lisbon goals are still well within reach but without greater political will there is no firm guarantee of success'

The annual report assesses the EU's progress in achieving the goals set by EU leaders at the European Council in Lisbon in March 2000, commonly referred to as the Lisbon strategy. The 2003 report suggests that the EU will not achieve its 2010 deadline for becoming 'the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion' if it looks to the United States to lead the way out of the current economic downturn instead, the report adds, the EU should rely much more on its domestic strengths'.

Although the report recognises that the current economic and political climate has made 'things considerably more difficult' it criticises the Member States for failing to implement new agreements and policies, particularly in the area of the internal market. The failure to establish a Community patent is cited as the worst example of lack of progress but it is just one of ten initiatives set out in last year's review that have not been met. The report also warns that important targets such as an integrated financial market by 2005 and liberalised gas and electricity markets for customers by 2007 have also yet to be achieved. There has also been little progress in any Member State towards the objective, agreed at the Spring European Council in Barcelona in 2002, of raising the effective retirement age by five years by 2010.

The report is particularly critical in the different performances of Member States in the implementation of EU legislation. France and Italy are two of the worst offenders, accounting for 30% of the cases of misapplication of community legislation whilst Greece and Germany still have 10 or more Directives, that are two years out of date to transpose. In contrast, Sweden, Finland, Denmark, the Netherlands and the UK are all set to meet the target of 98.5% of EU legislation being transferred. France, Germany and Italy are also criticised for failing to reform their public finances whilst Sweden, Finland and Denmark are consistently the best economic performers.

With the enlargement of the European Union scheduled for 2004, the report emphasises that whilst the Lisbon strategy remains an appropriate tool, it is crucial that the current Member States step up their efforts 'to keep the Union on track'.

In addition to the Spring Report on the implementation of the Lisbon Strategy, the European Commission also adopted a report on the success of the European Employment Strategy and another report on the implementation of the 2002 Broad economic Policy Guidelines on 15 January 2003. All three reports will be presented to the Spring European Council, which traditionally focuses on economic and social issues, due to take place in Brussels on 21 March 2003. The 2003 report on the Lisbon Strategy concludes by recommending to the Spring European Council to reinforce its central role in setting the direction of the EU's economic, social and environmental action, ensuring that a boost is given to knowledge and innovation and that final decisions are taken on the remaining Lisbon reforms.

Links:
European Commission:
	14.01.03:	Commission urges Member States to step up economic and social reform [IP/03/43]
	14.01.03:	Commission outlines new, more operational European Employment Strategy [IP/03/41]
	14.01.03:	Commission assesses implementation of 2002 Broad Economic Policy Guidelines [IP/03/38]
	14.01.03:	Speech: Investment in knowledge - the way forward [SPEECH/03/4]
	The Lisbon strategy
	Choosing to grow: Knowledge, innovation and jobs in a cohesive society. Report to the Spring European Council on the Lisbon strategy of economic, social and environmental renewal [COM(2003)5 final]
BBC News Online:
	14.01.03:	EU calls for faster economic reform
European Sources Online: Financial Times:
	15.01.03:	Brussels accuses Europe of backtracking on reforms
	14.01.03:	Broad economic policy guidelines
European Sources Online: In Focus
	European Council, Lisbon, 22-23 March 2000

Helen Bower

Compiled: Thursday, 16 January 2003

In its 2003 Spring Report on the implementation of the Lisbon strategy, the European Commission calls on the Member States to step up their efforts to implement reforms or risk not achieving the Lisbon objective of becoming the most competitive economy of the world by 2010.