Resolution on the follow-up of the Lisbon Strategy
Date: 2003-12-18
Institutions: European Economic Area
Subjects: competitiveness, economic and social cohesion, economic growth, economic policy

C 308/18

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Official Journal of the European Union

18.12.2003

In connection with the debate on the European
4.7.
Convention and the White Paper on European Governance,
the EU is seeking to enter into more direct communication
with civil society and civil society organisations, as well as
local and regional authorities, in the context of the decision-
making processes at EU level. Both the EEA and the EU have at
their disposal bodies, such as the EESC and the EEA-CC, which
enable the various groups making up civil society to be
consulted on a one-off basis.
In order to heighten public
awareness in all the eighteen EEA States of the whole range
of EU processes and enhance public acceptance of the decisions
to be taken, it would be a good idea to improve further the
public availability in the EEA of decisions in electronic form
and to ensure that ordinary people throughout the EEA are
involved in the implementation process at an early stage.

With a view to building a more competitive and forward-
looking Europe,
the European Union and the European
Economic Area need to place even more emphasis on the
principles of freedom, democracy and solidarity.

A new EEA Agreement

4.8.
should create a balanced
relationship between the contracting parties and, with regard
to fisheries, agriculture and financing, ensure that the principles
enshrined in the existing EEA Agreement are continued in an
enlarged EU.

4.9.
the
The EEA Consultative Committee underlines
particular importance of enlarging the EU and the EEA simul-
taneously. The Committee looks forward to welcoming all the
accession countries in the EU and the EEA on 1 May 2004.

RESOLUTION ON THE FOLLOW-UP OF THE LISBON STRATEGY

(2003/C 308/08)

1. BACKGROUND

The Consultative Committee of the European Economic
1.1.
Area (EEA-CC) is composed of representatives of the key socio-
economic interest groups in the eighteen EEA Member States.
The Committee acts as a voice for workers, employers and
organisations representing various interests in these countries
and forms part of the EEA institutional set-up.

The following resolution on the Follow-up of
the 11th meeting of

the
1.2.
Lisbon Strategy was adopted at
the
EEA-CC in Brussels, on 20 March 2003. The rapporteurs
were Mr Peter J. Boldt
from the European Economic and
Social Committee (EESC) and Ms Katarina Sætersdal from the
EFTA Consultative Committee (EFTA CC).

2. THE LISBON STRATEGY

Those who question the relevance of

2.1.
the Lisbon
Strategy should consider the following points: a European
country that does not participate in the effort to be part of
the most competitive knowledge-based economy in the world
might be ignored by investors. At the same time competitive
economies are the prerequisite for more and better jobs and a
strengthened European social model. This is why the EEA
Social Partners and other representatives of civil society urge
the EEA states to continue, and step up, their follow-up of the
Lisbon Strategy.

lies

2.2.
The Lisbon Strategy will make the Union stronger and
provides it with an opportunity to show global leadership. It
remains the right course for an enlarged European Union. Its
added value
in its coordinated, comprehensive and
mutually reinforcing approach. Past achievements — ten
five years of a European
years of
Employment Strategy, and four years with the third phase of
the EMU and the first anniversary of the arrival of the euro —
show the Union's capacity to deliver ambitious reforms.
In
many areas, they are already driving growth and job creation
within flexible, strong and open markets.

the Internal Market,

2.3.
The importance of the Lisbon strategy is proclaimed by
the EEA-EFTA States. On 18 February, as Chairman of EFTA,
Prime Minister Bondevik, sent a letter to the President of the
European Council, Prime Minister Simitis; stating that
‘The
EEA-EFTA States value the close cooperation with the EU
[. . .] and look forward to identifying further means of coop-
the Lisbon
eration to achieve the important objectives of
Strategy.’

2.4.
Successfully transforming the Union by the end of the
decade depends on improving the Union's potential to grow.
This requires action that increases employment and improves
productivity. While progress has been seen in almost all areas
of the Lisbon agenda, it has generally neither been fast enough
nor sufficiently coordinated to produce the results that Heads
of State and Government signed up to three years ago.

2.5.
The Lisbon strategy also embraced the macroeconomic
dimension. The main problem in achieving the strategic goals
has been the slow economic growth, slack productivity growth
and falling investments. This poor performance has been a
problem for reaching the short-term goals in the Lisbon
strategy.

2.6.
The EEA Consultative Committee agrees that the Lisbon
strategy must continue to lay the foundations for new oppor-
tunities for future generations.

3. EUROPE NEEDS SOCIALLY RESPONSIBLE ENTERPRISES,
SOCIAL COHESION AND AN ENVIRONMENTAL FRIENDLY
PRODUCTION AND CONSUMPTION

The EEA-CC urges enterprises to take their corporate
3.1.
social responsibility seriously, i.e. to look for environmentally
friendly
rights,
including core labour standards as defined by the ILO, make
life-long learning a reality for their workforce and participate in
the efforts to increase the R & D intensity in Europe.

alternatives,

production

human

respect

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The European experience is that social cohesion, social
3.2.
dialogue, tripartite cooperation and functioning social networks
are central elements of the European model and important for
adaptability and productivity growth and in creating an
inclusive and socially stable environment for companies and
citizens alike.

3.3.
The EEA-EFTA states and the EU must make the
responsibility for the environment an integral part of all
policies,
including
from the utilisation of natural resources,
energy conservation, to the protection of biodiversity and the
atmosphere.

3.4.
These efforts are all the more urgent taking the forth-
coming enlargement(s) of the EU and the EEA into account.

4. ENLARGEMENT AND THE LISBON STRATEGY

4.1.
Ten years after it was signed, the EEA Agreement still
performs satisfactorily in that it fulfils the objective formulated
at the outset. However, the context in which the Agreement
operates has changed considerably with wide-ranging changes
to the EC Treaty introduced at Maastricht and Amsterdam, in
addition to the challenges in the Lisbon Strategy. All these
changes affect the functioning of the Internal Market.

The Lisbon strategy will assist the ten countries that
4.2.
join the European Union in 2004 in their efforts to
will
sustain a healthy economic outlook and favourable growth
prospects, to improve employment and social cohesion and
to prepare the transition to a knowledge-based economy. In
spite of the progress made in recent years,
the ten future
Member States face a real challenge in contributing to the
achievement of the Lisbon targets. All acceding countries will
have to further intensify their efforts in order to contribute to
the realisation of the Lisbon strategic goal.

4.3.
The acceding countries have already come a long way
in making the transition to market economies. They are already
integrated in terms of international trade and
relatively well
to
efforts
have generally made good progress
improve the functioning of the economy. Nevertheless,
the
need for further efforts on structural reforms is apparent if
an enlarged Union is to achieve the strategic goal of Lisbon.

in their

4.4. While the challenges
faced by the acceding and
candidate countries do not differ fundamentally in nature
from those in the current Member States, the scale of these
challenges is in general greater. In particular, these countries
have low employment rates and high unemployment rates and
on the whole, competition is still relatively limited.

The new open method of coordination entails a shift
5.2.
from traditional regulations, directives and decisions which
given their EEA relevance would be incorporated into the
EEA Agreement. The new open method of coordination
implies extensive use of guidelines, quantitative and qualitative
indicators, benchmarks and fixed timetables to achieve the
goals. As members of
the EEA-EFTA States are
already involved in a number of initiatives. However, a large
part of
through new
the Lisbon initiatives are carried out
mechanisms where the EEA-EFTA States have no access.

the EEA,

for

shows

the Council

indicators used by the Commission to
5.3.
The structural
spring
the progress
monitor and assess
Summit
the development both between the EU
countries, but also compared with the US and Japan. There
focus on the member countries' performances.
is a clear
However, on some
indicators, both the US and the
EEA-EFTA countries perform better than most EU member
states. The Commission could therefore benefit from looking
at the functioning of framework conditions also in other areas.
Third-country
comparable
benchmarks and valuable best practices from which to learn.

partners may

trading

have

5.4.
According to The World Competitiveness Scoreboard
2002 Finland, Luxembourg and the Netherlands were the
most competitive countries in the world next to USA, with
Denmark as no. 6 and the other EU countries
ranking
between no. 10 and 36. Of the new member states, Estonia
and Hungary ranked higher than the least competitive present
member states. However, the Lisbon goal for 2010 will be
more of a challenge for the accession countries. This does
not mean that achieving the Lisbon Agenda for the current
member states will be easy. The current EEA-18 should do
their utmost
top
performers. In this way, the whole average will be pulled up.

to reach the highest

levels of global

per

The

average

productivity

5.5.
is
approximately the same in EU-15 as in the USA but will fall
somewhat after enlargement. But at the same time the potential
to catch up is much greater in the new member states, so
productivity growth might not be a problem,
if overall
economic growth kicks off.

hour worked

6. EMPLOYMENT

6.1.
The Commission states that despite the rise in unem-
ployment in response to the downturn, there are strong signs
that reforms over the last five years have produced important
structural changes in many, but not all, European labour
markets. Nevertheless, performance varies considerably and
reforms have not been pursued in a sufficiently comprehensive
way in all Member States.

5. THE OPEN METHOD OF COORDINATION IN THE LISBON
STRATEGY

An important and integral part of the Lisbon Strategy is

5.1.
the new open method of coordination.

6.2.
The picture is also mixed as regards progress towards
providing the workforce with the skills needed to drive a
knowledge-based economy or
the
number of jobs, but their quality as well; both crucial factors
for better productivity.

improving not only

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The EEA-EFTA social partners support a European-wide
6.3.
focus on lifelong learning as a means of raising people's oppor-
tunities in a knowledge-based economy. The ageing population
and higher levels of education of younger generations mean
that opportunities for all age groups must be ensured if
significant increases in qualification and skills levels are to be
achieved. Lifelong learning can contribute to the development
of an inclusive society and the promotion of equal oppor-
tunities. The EEA-EFTA states have good scores in all of the
structural indicators on employment and unemployment rates,
and for Iceland an especially high rate on the lifelong learning
indicators. Using the open method of coordination,
lessons
could be learned looking at best practices also in the
EEA-EFTA states.

7. REFORMS OF

PRODUCT,

SERVICE AND CAPITAL

MARKETS

7.1.
Significant parts of the Internal Market have worked
well over the last decade. But in others the benefits have had
less impact. This is why the Lisbon strategy targets areas such
as services, public procurement,
financial
services and the modernisation of competition rules, as well
as in certain areas of
taxation. Agreement on important
reforms for many of those has however been seen over the
last twelve months.

transport, energy,

A risk — in contrast to last year's European Council in
7.2.
Barcelona — is not the lack of decisions at European level, but
the failure by member states to ensure that agreed rules and
new policies are effectively implemented and applied. This
means that in many key areas the Union has yet to unleash
the full potential of the Internal Market. Each EEA member
state must do much more to ensure that agreed measures are
implemented properly and on time.

7.3.
Several of the structural indicators illustrate the effect of
the reforms in the Single Market, among them measures to
dismantle trade barriers and market reforms. The EEA-EFTA
states have substantially higher price levels than the EU-15,
but Norway has lower price levels both on telecommunication
and electricity. Reducing state aid is an important goal of the
strategy. Norway, however, has levels of state aid far above the
EU-level.

8. KNOWLEDGE, INNOVATION AND BUSINESS DYNAMISM

8.1.
Knowledge, innovation and business dynamism are keys
to opening up new opportunities for growth, stimulating
competition, and delivering new, more effective ways of
approaching common problems such as disease or climate
change. Many of the Union's knowledge industries have been
badly hit by current conditions, and business and industry as a
whole is still held back by a complex and incomplete regu-
latory environment. Business is not investing sufficiently in
knowledge and innovation. The proposed Community Patent

— a touchstone for the Union's commitment to innovation —
may soon have a breakthrough.

Research and development is of limited value if it fails
8.2.
to result in new products and processes. R & D should result in
value
framework
conditions and initiatives to promote commercialisation from
research and development are therefore of vital importance.

job opportunities. The

creation and

as

are

these

Despite current strains on national budgets, all EEA
8.3.
states
for more public and
should create the conditions
private investment in education, research and the knowledge
economy,
for medium-term and
essential
long-term growth. Fiscal and regulatory incentives, as well as
a competitive environment are therefore needed to ensure that
private spending follows these priorities. Establishing bridges
between knowledge and the market place and putting in
place the right environment for innovation is the new competi-
tiveness
co-ordinated and consistent
approach is needed if European businesses are to take
advantage of new opportunities, create jobs and drive growth.

challenge. A more

9. CONCLUSIONS

The EEA-CC strongly supports the Lisbon Strategy
9.1.
focus on economic, ecological and social sustainable devel-
opment. We share the vision of a comprehensive reform
agenda. Progress up till now has not been satisfactory, and
the EEA-CC urges all parties with responsibility to realise this
vision, to take the necessary steps for its success. The Lisbon
strategic goals cannot be achieved without full cooperation
between EEA governments and the social partners. The social
dialogue should be vigorously pursued throughout the EEA as
well as in the accession countries.

9.2.
A constructive approach to corporate social responsi-
bility is important to create a socially cohesive economy that
stimulates growth and opportunities, in a sustainable manner.
Lifelong learning needs to be made widely available, as it will
contribute to the development of an inclusive society and the
promotion of equal opportunities.
It is vital to continue a
strong focus on an employment strategy to create more and
better jobs.

Conditions that

stimulate innovation and entrepre-
9.3.
neurship are vital so that new and existing businesses thrive
in Europe. We wish to see smart innovators and entrepreneurs
choose Europe when deciding where to locate the businesses
which will commercialise their innovations.

9.3.1.
A willingness to accept risks and reward innovators is
lacking. Penalties for those who try and fail are high. Europe
needs a less hostile environment for entrepreneurs.

9.3.2.
Public authorities in Europe could encourage contact
between businesses and schools in order to awaken the entre-
preneurial spirit in Europe's youth.

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Conditions

from
9.3.3.
universities and colleges can be improved. There may be insuf-
ficient contact between business and the research communities.

commercialising

research

for

To improve the conditions for commercialisation and
9.3.4.
innovations the EEA-Consultative committee suggests that the
following elements are considered:

— Priority should be given to diminish legal and regulatory
hinders for innovation and entrepreneurship in businesses
and industries.

— We

should look at

the

availability of

seed capital

throughout Europe.

— Commercialisation could be promoted in universities and
and

securing ownership in innovations

colleges by

patenting and thereby income from new products and
processes.

— There is an urgent need for incentives that stimulate private
risk capital meant for start-ups. Private capital markets must
have incentives to promote commercialisation and the
creation of new firms.

— Business Angel Network, after

the common American
model should also be established in a broader fashion in
Europe. These networks help in commercialisation of inno-
vation and entrepreneurship.

— Commercialisation can be promoted by establishing well
functioning infrastructures. Exchange of best practice in
support of incubators is one example.