Opinion of the Economic and Social Committee on a "Sustainable Development Strategy: Signals for Barcelona"

(2002/C 94/08)

On 29 November 2001 the Economic and Social Committee, acting under Rules 11(4), 19(1) and 23(3) of its Rules of Procedure, decided to draw up an own-initiative opinion on a "Sustainable Development Strategy".

The Sub-Committee on a Sustainable Development Strategy, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 8 February 2002. The rapporteur was Mr Cabra de Luna.

At its 388th Plenary Session held on 20 and 21 February 2002 (meeting of 21 February), the Economic and Social Committee adopted the following opinion by 95 votes in favour, 11 against and 21 abstentions.

1. Executive Summary

1.1. The Barcelona European Summit will have a critical importance for Europe's advance towards becoming the world's most dynamic, competitive sustainable knowledge-based economy(1). The ambitious objective set by the Lisbon Summit in 2000 was to be reached in ten years. The Barcelona Summit is an essential stage at which to take stock and review policies.

1.2. This is all the more so because the Lisbon strategy has been widened, as decided by the Göteborg Summit, to include the dimension of sustainable development, implying very long-term ambitions in shaping the good life for both present and future generations.

1.3. Since Lisbon, the world has seen new threats to our security and to our options for shaping the future. Our responsibility for global sustainable development has increased dramatically.

1.4. The Barcelona European Summit will be confronted with a twin set of issues: how to ensure progress towards the Lisbon and Göteborg summit objectives and at the same time lay the basis for the Union's active participation in global sustainable development

1.5. The Economic and Social Committee (ESC) emphasizes the determinant importance of the Barcelona Summit. The real progress towards reaching the Lisbon objectives is obviously and alarmingly inadequate. The EU is not keeping up the pace foreseen as needed for reaching the position of a region leading globally in competitiveness and skills.

1.6. Likewise alarming is the inadequate progress in making sustainable development a real overriding vision for the European Union. The very clear political statements of the Göteborg Summit have become background features, not front-line guiding principles.

1.7. The ESC finds this lack of progress deeply unsatisfying. It is not only seriously hurting the Union's long-term development and position, it is also hurting the image of the Union itself in the eyes of its citizens. The Lisbon strategy and the Göteborg decision on sustainable development have both clearly given added value to the Union's expectations of itself.

1.8. The ESC calls on the Barcelona Summit to reinforce the action programme and time-table of the Lisbon strategy and to ask the individual Councils to consider what additional measures are necessary to reach the overriding objective of becoming the world's most competitive economy. The Councils should report on this to the Seville Summit in June 2002.

1.9. The ESC calls on the Barcelona Summit to re-emphasise the importance of sustainable development as a new vision for the Union, and to instruct the relevant Councils to speed up implementation of legislation and other measures for progress with sustainable development. The ESC is particularly worried that the calls from the Göteborg Summit for "policy coherence" in the field of sustainable development have not achieved results, whether in the EU institutions or member States.

1.10. The ESC calls on the Barcelona Summit to fix the basic framework for the Union's contribution to global sustainable development, in particular with regard to the Euro-Med region and the World Summit in September this year.

1.11. Specifically, the ESC calls for urgent new measures in the following areas, in order to safeguard the Union's progress towards becoming a leading competitive region:

a) There is urgent need of new initiatives for enhancing employment, particularly among the younger generations. The ESC calls on the Barcelona summit to re-emphasise the need for national action programmes for job opportunities and training for the young bearing in mind the positive role which these schemes can have.

b) Quality in employment is an issue of renewed importance. The ESC calls on the Barcelona summit to confirm quality in employment as a key aspect of Union and national employment policies, and to ask the Commission to prepare an action plan for quality in employment, as well as for countering new health and safety risks in working life.

c) Cohesion: the ESC acknowledges the important contribution structural policy has played in improving Social and Economic Cohesion since 1988. Cohesion is a key factor in Sustainable Development and the ESC calls on the Barcelona Summit to emphasize the importance of pursuing an active degree of cohesion throughout the EU following enlargement and completion of the present funding period in 2006.

d) Market Opening: The ESC calls on the Barcelona Summit to move ahead with measures to open up markets as proposed by the Commission. The ESC wishes the Summit to launch an assessment of the social, environmental and employment consequences of the liberalisation of public services(2).

e) Environment: The ESC finds that the Union must develop more efficient methods for delivery of measures in the environment field, in particular in respect of greenhouse gas emissions, use of natural resources and food safety. What is needed nowadays is less new ideas than the capacity to make existing ones work.

f) Investing in knowledge: The Lisbon strategy is based on high ambitions as to investments in human resources. The ESC has taken note of the progress made by the EU Education and Research Councils. The ESC particularly points to the need for broad tripartite agreements concerning life-long learning and training, in order to secure both access and financing.

g) Investing in Research and Development is of crucial importance in the Lisbon strategy, all the more so since Europe has been lagging behind both the USA and Japan for long periods. The EU Research Council wants an increase in spending on research to increase from present 1,9 to 3 per cent GDP during this decade. The ESC would like to see plans, including education and training, for increasing the numbers of new scientists which such projections require.

h) The ESC finds that efforts for supporting entrepreneurship and small business in particular are still inadequate in relation to the major contribution they can bring to reaching the Lisbon objectives. The ESC strongly endorses the Commission's call to reinforce action along all ten lines of the European Charter for Small Business.

i) Decision-making: The ESC strongly supports the Commission in its call to the Council to make decision-making more effective and bridge the delivery gap between the Lisbon targets and actual achievements.

j) The ESC reaffirms, as the Göteborg Council also had noted, that sustainable development can only succeed if it is based on widespread public understanding and support throughout all elements of civil society, sustained by an active process of consultation and dialogue. There are still considerable shortcomings in this area and the Committee has not noticed any improvement in the situation since the Göteborg Council. It is itself contributing to this process and welcomes support for its work in this respect.

k) The ESC underscores the importance of the Social dialogue, and active participation of organized civil society, if the objectives of the Lisbon and Stockholm summits are to be reached.

2. General comments

2.1. The priorities of the Commission

The Committee wishes to draw attention to the Commission's priorities in areas where the Barcelona European Council is set to push for progress:

- To continue to develop employment policies, paying particular attention to active labour market reforms.

- To reform and remedy existing deficiencies in the main network industries and speed up integration of the financial markets.

- To increase investment in knowledge in order to safeguard future competitiveness and jobs.

2.2. The priorities of the Spanish Presidency

One of the priorities of the Spanish Presidency for its six month term of office is to give a fresh impetus to the Action Plan adopted at Lisbon, in particular by setting in motion liberalisation measures in certain strategic sectors, including:

- energy;

- telecommunications;

- transport;

- financial services;

and developing an employment and training policy capable of keeping pace with Europe's transformation into the most dynamic and innovative economy in the world on the basis of the principles of sustainability.

2.3. The situation as regards employment and training in the EU

The Committee supports moves to create quality employment as an objective of the European employment strategy.

Because they are unable to respond to the demands of today's society, current education systems no longer meet citizens needs. Citizens must have lifelong access to education and training, both in the interests of flexibility and to enable them to adapt to the requirements of a rapidly changing labour market. The Commission Memorandum on lifelong learning lists six key objectives for consideration and discussion in relation to implementing and developing this important concept. The ESC welcomed these objectives in opinion 1121/2001, and believes that they remain valid today:

- new basic skills for all, necessary for participation in the knowledge society;

- more investment in human resources;

- innovation in teaching and learning;

- valuing learning;

- rethinking guidance and counselling on learning opportunities;

- bringing learning closer to home (e-learning could be a very useful tool).

2.4. Social and cohesion aspects as investment for development

The first principle of the Rio Summit states that human beings are at the centre of concerns for sustainable development. The Lisbon approach took this basic idea and translated it to a European context: "people are Europe's main asset, and should be the focal point of the Union's policies".

2.4.1. Poverty and social exclusion

Combating these problems, which are common to all Member States, is fundamental to achieving sustainable development. Although some progress has been made, much still remains to be done.

In adopting the European Social Agenda the Nice European Council went some way towards achieving the Lisbon objectives. One of the key objectives of the Social Agenda should be to incorporate social policy in the wider context of the European sustainable development strategy.

The fight against poverty and social exclusion should focus on:

- creating the economic conditions for greater prosperity through higher levels of growth and employment;

- improved implementation of the European employment strategy;

- maintaining and improving the quality of work. Not just more jobs, but better jobs;

- creating quality indicators for work and combating social exclusion that truly reflect these concepts.

- continuing the use of Structural Policy as a means of support for those regions in greatest need.

In this sphere, as in others referred to in this opinion, the social economy (cooperatives, mutual societies, associations and foundations) can play an important role. Incentives should be put in place to encourage them to do so.

2.4.2. An ageing population

In all Member States, the increase in life expectancy and the falling birth rate are shifting the balance between people of working age and the rest of the population. The Committee would point out that this demographic trend towards an ageing population is a worrying matter which must be addressed with some care.

There are three basic problems:

- The need to guarantee the financial viability of the pensions system.

- The inevitable increase in demand for health services.

- The possible decline in economic growth.

Measures must be adopted to avoid social discrimination between the generations and increased poverty among the most elderly.

These measures should be aimed at:

- increasing employment in line with the Lisbon strategy (60 % for women and 70 % for men);

- promoting lifelong training;

- creating an active family support policy at national level that provides real social and economic choices in order to stimulate the birth rate in the Member States.

Although it is not yet known how enlargement will affect the average age of workers, in view of the significant increase in population that will result from the applicant States' accession it is clearly an important issue that must be addressed.

2.5. The environment

2.5.1. Combating climate change

In order to comply with the Kyoto objectives, we must have up-to-date information on the situation in each country so that the appropriate action may be taken. A standardised series of measuring instruments must be developed for use throughout the Community.

As previously stated, economic growth is essential. But it must be uncoupled from high energy consumption.

Energy efficiency must be promoted across all sectors of the European economy. We must also recognise that some areas have already made efforts in this direction.

Renewable energy sources must be promoted more actively and effectively than in the past, and the necessary measures for a task of this scale must be adopted.

Emissions of greenhouse gases from transport are growing at a faster rate than emissions from any other source. Action is needed, inter alia in the form of prices which reflect the real costs involved, further development of intelligent traffic management systems, improved infrastructure use and construction of new infrastructure together with moves towards less environmentally damaging transport modes. The measures proposed by the White Paper on transport policy(3) are certainly a step in the right direction towards sustainable transport.

2.5.2. Sustainable use of natural resources

The loss of biodiversity and the corresponding reduction in genetic resources are irreversible facts, with clear repercussions for future generations. Policies which have an unacceptable impact on natural resources (such as some types of fishing, arable and livestock farming and industry) must be reformed.

Reform of the CAP must take account of economic, environmental and social objectives. The first steps have already been taken, for example "agri-environmental" measures that have helped preserve biodiversity and reduce water pollution. It is clear that measures to restore consumers' confidence in food are also needed.

To improve the management of natural resources in the long-term we must have information on their current situation. This will enable us to detect much more easily whether consumption is exceeding the resource's capacity to regenerate.

A balance must be maintained, to ensure that natural means of ensuring sustainability continue to function. We must formalise effective arrangements for cooperation between the different sectors of the community, SMEs, cities, municipalities and organised civil society on the one hand, and the scientific community on the other, including the research community and development institutes.

An action plan must be launched to improve and simplify the current environmental rules. New legislation should be kept to a minimum, and efforts concentrated on ensuring compliance with the existing rules.

2.6. The opinion and support of European citizens

Society as a whole does not have sufficient information on the objectives and political measures adopted at Lisbon and Göteborg. There must be an effort to raise public awareness and encourage citizens and the institutions of civil society in which they may be involved to have their say on these essential policy questions and their impact.

We must promote a wide-ranging public debate involving organised civil society. The media must be invited to participate, so that they can take this civil dialogue to the citizens and thereby help to ensure that sustainable development is achieved in a democratic manner. The governments, municipalities and various bodies that make up civil society, as well as the Community institutions, must also be involved.

The Internet could be an extremely effective means of informing citizens about national sustainable development plans and strategies and channelling their feedback. This type of consultation must be accompanied by seminars with experts, reports and specific consultations, open debate and other ways of involving the public.

In this process of communication with society, both the European ESC and similar bodies at national level (the consultative bodies of the Governments of the various Member States) obviously have a fundamental role to play.

3. Specific comments

3.1. The indicators

While there is a general consensus on the need for a sustainable development strategy, regular information on its implementation and the progress achieved is equally important. In this way the effectiveness of the policies implemented by the Member States can be assessed.

It is essential to seek and identify representative and balanced indicators. The Barcelona Summit must adopt indicators for structural reform of the EU, so that the impact of the reforms in each country can be measured and the most appropriate policies and instruments for each country used.

Data must be selected, compiled and processed in an up-to-date and rigorous manner. There is thus a need for a coherent system to enable it to be interpreted clearly. Eurostat must be ready to respond to this need, and if it is not it must make the necessary preparations.

3.2. A competitive system of production

Sustainable development offers opportunities for entrepreneurship and job creation in sectors which have good long-term prospects, but require a high degree of competitiveness. There is a need for reforms which increase the efficiency and productivity of production systems.

We must embark upon an ambitious plan of liberalisation and increase the flexibility of the European economy, stepping up structural reform, while also taking account of the social aspects in the interests of equality. At the forthcoming Spring summit, it will be more important to make steady progress than to introduce innovative new approaches.

At Barcelona we must evaluate the progress made, consolidating those policies and measures that are going well and identifying those that are not working; priority can then be given to continuing the former. A short deadline (e.g. one year) should be set to re-assess the situation.

3.3. Meetings prior to the Barcelona summit

The ESC welcomes the proposal of the Spanish Presidency to hold discussions, with the active involvement of the ESC and other civil society organisations, prior to the Barcelona Summit.

It also supports the meeting with the social partners in the context of the social dialogue.

Brussels, 21 February 2002.

The President

of the Economic and Social Committee

Göke Frerichs

(1) European Council Lisbon of 23 and 24 March 2000 - Conclusion of the Presidency Point I-5 (COM (2002) 14 final - Executive summary paragraph 1).

(2) Directive 97/67/EC of the European Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service - OJ L 15, 21.1.1998. Directive 98/30/EC of the European Parliament and of the Council of 22 June 1998 concerning common rules for the internal market in natural gas - OJ L 204, 21.7.1998. Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity - OJ L 27, 30.1.1997. Directive 97/51/EC of the European Parliament and of the Council of 6 October 1997 amending Council Directives 90/387/EEC and 92/44/EEC for the purpose of adaptation to a competitive environment in telecommunications - OJ L 295, 29.10.1997. Directive 2001/12/EC of the European Parliament and of the Council of 26 February 2001 amending Council Directive 91/440/EEC on the development of the Community's railways - OJ L 75, 15.3.2001.

(3) COM(2001) 370 final.

APPENDIX

to the Opinion of the Economic and Social Committee

The following amendments, which received more than one-quarter of the votes cast, were defeated in the course of the debate:

Point 2 - General Comments (point 2.1 to 2.6)

Delete.

Result of the vote

For: 34, against: 54, abstentions: 14.

Points 2.1, 2.2, 2.3 and 2.4.2

Delete.

Reasons

Not relevant to the subject

Result of the vote

For: 37, against: 67, abstentions: 8.

Point 2.5.2

- second paragraph:

Delete the second sentence.

- third paragraph:

Delete.

Reasons

The European Environment Agency has produced a report to this effect: the information is available.

Result of the vote

For: 38, against: 55, abstentions: 10.

Point 3 - Specific Comments (point 3.1 to 3.2)

Delete (keep point 3.3).

Result of the vote

For: 34, against: 71, abstentions: 5.

Point 3.1

- second paragraph:

Delete the second sentence and replace with the following: "The Committee criticises the fact that the environmental indicators in the documents in question (total of seven) are still inadequate."

- third paragraph:

Delete.

Result of the vote

For: 40, against: 62, abstentions: 8.