The state of the Union in 2009 : the key achievements of the Barroso Commission.
Date: 2009-07-03
Institutions: Directorate-General for Communication
Subjects: European Commission, President of the Commission, activity report

The state of the Union in 2009: 
the key achievements of the 
Barroso Commission

European Commission

European Commission 
Directorate-General for Communication 
Publications
B-1049 Brussels

Manuscript completed in May 2009
Illustrations: © EC (p.12: © Reporters/AP Photo)

Luxembourg: Oﬃ  ce for Oﬃ  cial Publications of the European Communities, 2009

40 pp. — 14.8 cm x 21 cm

ISBN-978-92-79-12581-2
DOI 10.2775/19693

© European Communities, 2009

Reproduction  is  authorised.  For  any  use  or  reproduction  of  individual  photos,  permission  must  be 
sought directly from the copyright holders.

Printed in Belgium

PRINTED ON WHITE CHLORINE-FREE PAPER

The state of the Union in 2009: 
the key achievements of the 
Barroso Commission

‘Th  is Commission, the ﬁ rst of an enlarged Union 
of 27 Member States, has faced some of the most 
challenging times the European Union has ever 
experienced, at a time of huge economic and social 
change. Our record shows that we have held fast to the 
core values and core goals that have made the Union so 
successful, and will leave a powerful contribution to the 
future development of the European project. 
I am particularly proud of our response to the 
economic and ﬁ nancial crisis, our ambitious agenda 
to ﬁ ght climate change and the creation of a real 
European energy policy. We are now taking the lead 
in shaping globalisation with European values and in 
promoting the European interest worldwide.’

José Manuel Barroso
President of the European Commission

May 2009

The state of the Union in 2009: 
the key achievements of the Barroso Commission

Uniting Europe: stability and prosperity for a Union of 27

Th  e Barroso Commission took oﬃ  ce just months after the accession of 
10 new Member States, the biggest EU enlargement ever, followed by 
the accession of Romania and Bulgaria in 2007. Th  e near-doubling of the 
number of Member States increased the dynamism but also the diversity 
of the EU, bringing in new political perspectives and traditions, diﬀ erent 
historical experiences, and new divergences in economic development. 
Th  ese proved both an asset and a challenge for the process of European 
integration. 

Many observers thought that eﬀ ectiveness and ambition would necessarily 
suﬀ er in a larger EU (and a larger college of Commissioners). Th  e 
Barroso Commission proved the contrary: the extension of the single 
market to continental level worked smoothly, and policies ranging from 
trade to agriculture or energy now enjoy the critical mass of support 
from 27 Member States. EU cohesion policy, refocused on improving 

3

long-term competiveness, has driven forward economic modernisation 
across Europe. Th  e renewed social agenda has updated social policy for 
today’s Europe. 

Major new legislation has been agreed on the initiative of the Barroso 
Commission to put the single market ﬁ rmly at the service of citizens, 
for instance through enhancing passenger rights in transport, cutting 
mobile phone charges or facilitating cross-border payments. At the same 
time, in line with its commitment to better regulation, the Commission 
has simpliﬁ ed the EU rulebook, proposing to remove almost 10  % of 
legislation from the statute book.

Enlargement has enhanced the dynamism of Europe’s economy, giving a 
new impetus to the Lisbon strategy for growth and jobs. Th  e perspective 
of joining the euro has acted as a catalyst for reform in many countries. 
Enlargement of the euro area has brought membership of the euro to 
16 countries, with many others keen to join. Th  e stability of the euro, 
reinforced by a revised Stability and Growth Pact, has acted as a major 
protective shield for Europe during the ﬁ nancial and economic crisis. 

Th  e reforms of the last years have put Europe in better shape to respond 
to the current economic and social crisis. But the EU has also been 
able to react to the changed outlook. Th  e European economic recovery 
plan balances an immediate stimulus with the demands of long-term 
sustainable growth. It goes hand in hand with a fundamental overhaul 
of Europe’s ﬁ nancial system, and makes the most of the single market’s 
role as one of the key drivers for European economic recovery. Initiatives 
like the European Globalisation Adjustment Fund target speciﬁ c help 
to Europeans in hardship, doubly important in the global recession. In 
overcoming the crisis, Europe can build on the major strides it has made 
over the last years towards a knowledge economy, through innovations 
like the European Institute for Technology and unprecedented increases 
in the resources devoted to research.

Europe today also oﬀ ers more freedom and security to citizens across 
the continent than was the case ﬁ ve years ago. Free borders have been 

4

extended to nine new Member States: 400 million citizens now enjoy 
passport-free travel across 25 countries. Whilst border controls have been 
upgraded to make Europe’s external borders more secure, EU Member 
States have stepped up the coordination of their eﬀ orts to ﬁ ght crime, 
combat terrorism and to improve judicial cooperation across Europe. 
Th  e new comprehensive approach to migration combines increased 
opportunities for legal migrants into the EU with the promotion of 
their integration into European societies, and the ﬁ ght against illegal 
migration and human traﬃ  cking.

Securing Europe’s future prosperity: paving the way towards 
a low-carbon economy

Th  e last couple of years have seen a revolution in Europe’s approach 
towards climate change and energy. With the ambitious package of 
legislative measures prepared by the Barroso Commission and approved 
by the European Parliament and the Council in 2008, Europe showed 
itself ready to give global leadership: to tackle climate change, to face 
up to the challenge of secure, sustainable and competitive energy, and 
to make the European economy a model for sustainable development 
in the 21st century. Europe is the ﬁ rst economy in the world to put in 
place legally binding measures that will allow it, by 2020, to reduce 
greenhouse gas emissions by 20 %, to increase the share of renewables 
in energy consumption to 20 %, and to boost energy eﬃ  ciency by 20 %. 

Th  e EU’s climate and energy package represents a green ‘new deal’. It 
shows that it is possible to design climate-friendly policies that also act 
as drivers for growth and jobs. Moving to a low-carbon economy will 
encourage innovation, provide new business opportunities and create 
new green jobs. Th  is policy also reduces the exposure of the EU economy 
to rising and volatile energy prices, geopolitical risks and risks related to 
inadequate supply chains that are not keeping up with global demand 
growth. Finally, it places us in a good position ahead of the International 
Climate Change Conference in Copenhagen.

5

Moreover, Europe has made major strides towards a common energy 
policy, putting in place a true internal market, and tackling the vulnerability 
of gas supplies by a Europe-wide energy grid and rules for solidarity in 
a crisis. Almost 4 out of €5 billion of the speciﬁ c Union contribution to 
Europe’s economic recovery plan are devoted to funding trans-European 
energy infrastructure.

Shaping globalisation 

Europe’s place in the world rests not only on its scale, with 27 countries 
bringing together half a billion citizens. It is also committed to a shared 
view of the world: democratic, free trade, outward looking, responsible 
and non-confrontational. It has all the assets to take a lead in reforming 
global governance to address the challenges of globalisation, such as 
poverty, global health issues, migration, environmental protection or 
terrorism. Over the last ﬁ ve years, the EU has demonstrated its capacity 
to help bring solutions to the crises in Georgia, the Middle East and 
Africa. It has shown moral and political leadership in the context of the 
ﬁ nancial crisis, with the G20 agenda reﬂ ecting European priorities and 
solutions; and is leading by example in the climate change negotiations. 

At the same time, it has invested in regional stability in its neighbourhood 
and has promoted eﬀ ective and ambitious partnerships with global powers 
to defend the European interest and European values. Transatlantic 
relations, the partnership with Africa, and the approach to emerging 
powers such as China, India and Brazil all show a conﬁ dent and eﬀ ective 
EU, valued as a reliable partner.

6

1. The challenges in 2004

Th  is Commission started its work against the background of a rapidly changing 
Europe. Just a few months before, the EU had completed an enlargement 
unprecedented in its scale and ambition. Ten new Member States had joined the 
Union, and it was preparing to complete this enlargement with the accessions 
of Bulgaria and Romania at the start of 2007. 

Th  is enlargement demanded reforms to the EU’s priorities and its way of 
working. A near-doubling of Member States brought extra diversity, with all 
the richness, and the complexity, that follows. It meant incorporating new 
political perspectives and historical experiences into the Union’s approach. It 
meant institutional adjustments and tackling new divergences in economic 
development. Th  is process of adaptation needed attention and sensitivity, to 
reshape policies and practices without losing the momentum of EU action.

Th  e consolidation of an enlarged Europe took place against the backdrop 
of a challenging political environment. Divisions over foreign policy had 
created tensions in the EU’s approach to external relations. Th  ere were 
doubts about the eﬀ ectiveness of key policy tools such as the Lisbon 
strategy and the Stability and Growth Pact. In particular, the EU was 

7

soon to see the rejection of the Constitutional Treaty by two Member 
States, forcing the Union to re-examine the way it had intended to 
ensure that enlargement was accompanied by a more democratic and 
eﬃ  cient Union — and to demonstrate once more why the EU deserves 
the conﬁ dence of Europe’s citizens. 

Th  ese pressures inside Europe were matched by a growing realisation 
of the importance of globalisation. As new global powers emerged and 
societies across the world had to adapt to a new interdependence, Europe 
could not allow itself to neglect the new realities. Tackling issues like 
energy security, climate change, and migration — as well as facing up 
to the challenge of economic crisis — required a European response. 
As a champion of open markets and heavily reliant on trade, the EU 
faced the imperative of shaping globalisation to bring beneﬁ ts for the 
European economy and European society. 

Member states of the European Union

Candidate countries

8

2. Serving Europe’s citizens

Th  e European Union exists to serve its citizens. Its principles, values 
and objectives are set out in the Treaties. But these must result in direct 
beneﬁ ts for European citizens, delivered in a way which fully respects 
Europe’s democratic traditions.

Th  e single market was built around the four key freedoms of goods, 
services, capital and persons. Th  ese freedoms are not abstract economic 
ideals. Th  ey represent freedom for individuals to travel, work, invest, 
and go about their business within the European Union. On this basis 
the EU has built a commitment to ensure high standards for citizens 
as consumers and travellers, and to play its part in providing the public 
service of increasing citizens’ safety and security.

9

2.1.  Creating opportunities for Europeans

Th  e economic crisis has underlined how the single market is essential to 
help consumers and workers facing the hardship of economic downturn.

Open borders in Europe

Th  e single market has already delivered great beneﬁ ts to Europeans in 
terms of consumer choice and lower prices. Th  e single euro payments 
area has made it as easy to make payments in another part of the euro 
area as to make them at home. Telecoms show how access for new 
market  entrants  and  a  careful 
watch over the market can bring 
lower prices for all. Th  e Barroso 
Commission proposed new rules 
on ‘roaming’ which have brought 
aﬀ ordable and transparent pricing 
for  all  cross-border  calls,  with 
price cuts of up to 60 %. Overall, 
mobile call prices fell by 14 % in 
2006–07 alone.

The Commission worked with nine 
Member States to make possible 
the lifting of border controls in 
December  2007,  creating  new 
freedom for people and quicker 
and easier travelling.

Today,  over  400  million  people 
live  in  the  Schengen  area.  It 
covers 22 EU Member States plus 
Iceland, Norway and Switzerland. 
This  freedom  to  travel  inside 
Europe has been accompanied by 
measures to ensure that security 
is not compromised as a result. 
The  Commission  has  proposed 
common  standards  of  external 
border control, and strengthened 
cooperation  through  Frontex 
(the  European  Agency  for  the 
Management  of  Operational 
Cooperation  at  the  External 
Borders). This has made a major 
contribution  to  the  protection 
expected by citizens.

10

A strong and consistent line in the 
enforcement of EU competition 
rules ensures that companies and 
states compete fairly, that they 
do  not  break  the  law  to  drive 
competitors  out  of  the  market 
and do not conspire to exploit 
consumers. As a result, in 2008 
alone, competition enforcement 
has  saved  consumers  more 
than €11 billion and led to over 
€3 billion in ﬁ nes. For example, in 
2008 the Commission levied the 
largest cartel ﬁ ne in EU history 
— nearly €900 million — on a 
glassware company. For ﬁ ve years, 

it had kept the cost of car windows artiﬁ cially high by agreeing prices 
with its competitors.

Consumers also need to have proper protection when things go wrong. 
Air and rail passengers now have a right to compensation after long delays 
or cancellations. Th  ere are new rules to stop hidden charges in airline 
websites — as well as a blacklist of airlines which fail to oﬀ er minimal 
safety guarantees. Th  e ‘single European sky’ will lead to shorter and safer 
ﬂ ights. EU rules are also being used to ensure that bank depositors enjoy 
more rights and are guaranteed more compensation if hit by ﬁ nancial 
crisis. Consumers can be surer than ever before that the rights they 
enjoy in one Member State will be mirrored in others.

A major contribution that the EU can make is to give citizens the ability 
to work throughout the Union. Part of the enlargement process has 
been a gradual increase in the freedom of citizens from newer Member 
States to work beyond their borders, a process which will be complete 
by 2011. Citizens also need the conﬁ dence that in moving to work from 
one Member State to another, they will enjoy a basic set of rights. Th  is 
is the goal of initiatives on non-discrimination and rules on minimum 
rights like maternity leave, as well as rules for temporary agency workers 
to ensure that such workers enjoy fair treatment. 

11

 
Th  e beneﬁ ts of mobility go beyond the workplace. Europeans should be 
able to feel at home anywhere in the EU. Th  e extension of the Schengen 
area to include 25 countries has extended the borderless Europe to millions 
of citizens. Th  e 1.7 million students who have passed through the Erasmus 
programme have enjoyed the unique experience of learning in another 
Member State. Th  e disabled have been given more rights to guarantee 
minimum standards when they travel. And proposals for cross-border 
patient care would ensure that moving within Europe is not an obstacle 
to oﬀ ering good healthcare for all. 

2.2.   Protecting Europeans 

Even a secure and prosperous society needs action to protect its citizens 
from risks. When the EU acts so that households do not have their energy 
cut oﬀ  or that future generations are confronted by the worst ravages of 
climate change, it is looking ahead and tackling risks in good time. When 
it identiﬁ es future skill sets and promotes technologies for tomorrow’s 
markets, it protects businesses 
and jobs from the risk of falling 
behind  in  the  global  economy. 
And when it liberalises in areas 
like postal services or transport, 
the EU acts at the same time to 
preserve public service standards 
through deﬁ ning obligations to 
protect consumers’ interests.

In a Europe with a single market 
and open borders, the European 
Union  also  has  a  particular 
responsibility to ensure that extra 
freedom does not have negative 
side-eﬀ ects.  Th  at  is  why  the 
freedom to move inside the EU 
is accompanied by measures to 

12

promote eﬀ ective cooperation between police and justice authorities 
across Europe. Th  e European arrest warrant for serious criminal oﬀ ences 
was agreed to replace the previous web of extradition arrangements 
between Member States. In making procedures faster and simpler, 
and in ensuring decisions are taken without political interference, it 
has helped to ensure that justice is eﬀ ectively and fairly pursued across 
national borders. Th  ere have also been measures to allow exchange of 
DNA information, as well as increased help to victims of terrorism. 

European cooperation can help to protect citizens in many diﬀ erent 
ways. Pooling civil protection resources means that help can be brought 
more quickly to the victims of natural disaster. Concerted action in the 
avian ﬂ u crisis ensured that the risks to health were minimised. A new 
information system ensures that health authorities across the EU are 
immediately alerted to new risks.

Responding to emergencies together

Solidarity is central to the way the EU works. So when one part of the EU 
faces a major natural catastrophe, it is natural for the EU to help. In the hours 
following a crisis, a mechanism set up by the Commission brings together 
civil protection teams from Member States to help local emergency 
services. This mechanism is now triggered some 20 times a year. And an 
EU Solidarity Fund has been set up to help long-term reconstruction — 
intervening 34 times since 2004, in 18 diﬀ erent Member States, with total 
support of €700m.

A typical example of this two-stage support came when forest ﬁ res ravaged 
Greece in 2007. Nineteen diﬀ erent oﬀ ers of assistance were taken up, to 
provide ﬁ reﬁ ghting teams, equipment, planes and helicopters. And the 
Commission put in place almost €90m to meet the cost of cleaning up 
areas hit by the disaster, and restoring essential services.

13

2.3.   The EU as a working democracy

Citizens have a right to expect the highest standards of democratic 
legitimacy and accountability from the institutions of the European Union. 
At the core of this are the two pillars of democratic representation in the 
EU: the European Parliament — as directly-elected representatives of the 
citizens — and the Council and European Council — as the voice of the 
Member States. Th  e Treaty of Lisbon will reinforce this democratic core 
still further with more powers for the European Parliament, a greater 
role for national parliaments, and the introduction of a citizen’s initiative 
enabling direct petitioning with 1 million signatures.

Th  e European Commission’s accountability to the other institutions will 
also be reinforced by the Treaty of Lisbon. Already, the Commission 
devotes particular attention to public accountability through the European 
Parliament. It responds to over 7 000 parliamentary questions every 
year, and appearances by Commissioners in the Parliament are now 
a regular feature of EU politics, with over 400 appearances in plenary 
sessions every year. Th  e Commission now also gives special recognition 
to the importance of national parliaments: since November 2004, 
Commissioners have met with national parliaments and their committees 
on some 500 occasions, and in 2006 set up a special mechanism to ensure 
a privileged dialogue with national parliaments. Th  is dialogue has been 
used on over 400 occasions so far.

Th  is Commission has actively encouraged participative democracy and 
dialogue. Th  rough its Plan D initiative, launched in October 2005, it has 
created new forums and developed new processes allowing individuals and 
organisations in all 27 Member States to become more actively involved. 
An innovative example of this new approach are the citizens’ consultations, 
culminating in a citizens’ summit in Brussels in May this year.

14

Th  e Commission also seeks to apply the highest standards of public 
service to the way in which it works. 

Th  is includes promoting a high degree of openness through rules on 
access to information and on consultation. Th  e Commission’s European 
transparency initiative set up a new framework for relations with lobbyists 
and brought more transparency on the beneﬁ ciaries of EU funds. Public 
consultations are now a standard feature of all major policy initiatives, 
giving everyone a chance to inﬂ uence policy at an early stage — over 
100 such consultations are now launched each year. And key proposals 
are worked through with a publicly-available impact assessment to 
ensure that the economic, social and environmental consequences of 
action have been carefully thought through.

At the same time, the Commission has been working to simplify the 
EU rulebook and make it more accessible for citizens. Some 1 300 acts 
have been proposed for removal from the statute book, some 10 % of 
the total, with more to follow. 

15

Th  e  EU’s  democratic  responsibilities  also  include  sound  ﬁ nancial 
management. Th  e European Commission has been working with the 
European Court of Auditors to cut rates of error and to have the controls 
in place to prevent misuse of funds. With 80 % of the EU’s budget paid out 
by national authorities, cooperation with Member States’ authorities is a 
vital part of moving forward. An example of progress was in the Court’s 
decision to give a clean bill of health to the 2007 accounts.

16

3. A springboard for Europe’s future

Europe’s success tomorrow relies on its actions today. Th  e European 
Union is built on the foundations of core values and agreed long-term 
goals such as open societies and open economies. It has proved able to 
translate these into concrete steps that take many years of preparation 
and implementation. Th  e basis of the EU as a marketplace was put in 
place in the years leading up to 1992, and since then it has been extended, 
updated and reﬁ ned year by year. Th  e resilient and reliable euro we know 
today was built on many years of bringing diﬀ erent economies together. 
Enlargement required a careful partnership to prepare new Member 
States to take on the responsibilities of membership, and the EU is now 
reaping the beneﬁ t: both old and new Member States have enjoyed 
more prosperity and more security as a result. Economic integration 
has reached the stage that 80 % of exports from the 12 newer Member 
States go to the 15 ‘old’ EU countries, while the last decade has seen the 
share of EU-15 exports taken by the 12 newcomers grow by over 50 %. 

Th  e long-term challenges facing Europe today are diﬀ erent in nature 
and shape, and require new types of response. Global competition is 
intensifying, providing both an opportunity and a test. Knowledge 

17

and innovation are becoming more and more central to commercial 
success. An ageing population requires society to adapt. Th  e limits to 
the supply of essential resources, like energy, are clearer than ever. And 
climate change threatens future generations with the spectre of huge 
damage to our environment, our livelihoods and our stability. Sustainable 
development requires the EU to chart the right path forward.

Over the past ﬁ ve years, the European Union has tackled these challenges 
head on. It has shown its capacity to bring change and reform, balancing 
diﬀ erent interests and diﬀ erent concerns. It has set out a vision for 
the European economy which plays to Europe’s strengths in terms of 
knowledge and a robust social model. It has agreed a spending programme 
where for the ﬁ rst time, over half the EU budget will be devoted to 
competitiveness and jobs. It has successfully enlarged the euro area to 
four new Member States. It has taken another major step on the path 
of bringing agricultural policy in line with the realities of today’s rural 
communities. It has agreed the most comprehensive programme ever 
seen worldwide to ready Europe for a low-carbon future. Th  e result 
is that the foundations are now in place to take Europe forward with 
conﬁ dence.

18

3.1.   Economic reform and social justice

Th  e economic crisis has shown the human cost of recession. Families 
and businesses across Europe have been hit by job cuts, falling incomes 
and empty order books. Public services, pensions and social protection 
are all being squeezed by a fall in government revenue. And the results 
of increasing deﬁ cits to give room for economic stimulus will be felt 
well into the next decade.

Encouraging growth and jobs has been at the top of the EU’s priorities. 
Th  e European Commission set the scene by revitalising the Lisbon 
strategy for growth and jobs. Th  is strategy is all about helping to deliver 
a more competitive economy, create more jobs and give the best deal for 
consumers: an economy ready to take advantage of the opportunities of 
globalisation. Amidst the ﬁ nancial and economic crisis there was a need 
to complement the Lisbon strategy for growth and jobs with short-term 
measures creating immediate eﬀ ects, starting with rescue operations in 
the banking sector, then providing the framework for a targeted ﬁ scal 
stimulus at national and European level, and ﬁ nally creating the conditions 
for the return to normal lending by addressing the problem of impaired 
assets in the banking sector. Furthermore, the Commission has also led 
the reform of ﬁ nancial markets, proposing a more eﬀ ective architecture 
for supervision, and putting forward measures in areas including capital 
requirements, credit ratings agencies, hedge funds and private equity, 
to re-establish conﬁ dence and restore the demand for credit. 

19

One of the top priorities before and beyond the crisis remains investing 
in people, in innovation and research, and creating the right climate for 
businesses to reach new markets and create new jobs.

Investing in people means creating a highly skilled workforce able to adapt 
to changing demands. Th  e EU has championed education and lifelong 
learning as a pathway not only to personal fulﬁ lment, but to growth. 
Th  ere are now nearly 3 million more students in higher education than 
in 2000. Th  ere are almost a third more graduates in maths, science and 
technology. And the number of adults in learning activities has risen to 
almost 10 %. Th  e European Social Fund is now supporting training for 
some 9 million people every year, with action in every Member State. 
At the same time, the EU has set out how ﬂ exicurity can oﬀ er the right 
balance to today’s workers, creating obligations to develop employability 
whilst encouraging a ﬂ uid labour market. 

Training for the future

The Commission acted quickly to 
bring support to workers in the 
face of job losses. For example, the 
closure of the MG Rover factory in 
the United Kingdom meant some 
6 000  lost  jobs.  Together  with 
national and regional authorities, 
the Commission has brought direct 
support from the Structural Funds:  
this action helped to ensure that 
within four months of the closure, 
2 000 of the redundant workers 
had found new jobs.

20

Th  e  EU  also  faces  a  huge 
demographic  challenge.  Every 
year, the numbers retiring from 
the working population outstrip 
the  number  of  young  people 
joining  the  workforce.  Since 
2002,  up  to  2  million  people 
have  migrated  to  the  EU  each 
year, helping to bridge this gap. 
Without  such 
immigration, 
projections suggest that the EU 
of 2060 could see its workforce 
drop to almost half current levels, 
making it impossible to sustain 
today’s tax and pension systems. 
Immigration  raises  social  and 
structural issues which need to 
be taken into account. But the 
EU has spearheaded a debate to 
put the issue in its global context, 

underlining the need to take the labour force implications into account, 
as well as practical measures like a ‘Blue card’ to identify legal migrants.

Taking Europe into space 

The Commission and the European 
Space Agency are working together 
to  make  satellite  navigation  of 
direct beneﬁ t to citizens: it can be 
used to give warning of natural 
disasters,  to  control  borders,  to 
monitor  ﬁ sheries,  to  improve 
transport management, to help safe 
transport of hazardous substances 
and reduce accidents. It rests on 
cutting edge technology, creating 
thousands of jobs. 

The EU’s Galileo project will put 
30  satellites  into  space  and  be 
able to oﬀ er position precision of 
less than a metre. It is the prime 
example of a common European 
industrial project, showing how 
European technological excellence 
can oﬀ er a global lead attracting the 
interest of many global partners. 

Innovation  and  research  are  a 
pathway to maintain and enhance 
Europe’s position as one of the 
foremost centres of knowledge 
in  the  world. Th  is  has  a  direct 
knock-on beneﬁ t for European 
companies, as well as furthering 
society’s ability to tackle challenges 
in  areas  like  health,  transport 
and food security. Th  e EU is now 
working to make the most of the 
pool  of  researchers  in  Europe. 
It brings together cutting-edge 
research teams from across the 
EU in a European research area, 
pooling  resources,  achieving 
critical  mass,  and  sharing  the 
results. EU research projects have 
brought key breakthroughs in the 
last few years: such as ﬁ nding new 
drugs to combat tuberculosis, or 
learning how to measure trends 
in the polar ice cap. 

At  the  same  time,  the  EU  has 
been looking at new ways to bring 
expertise  together  and  create 
poles of excellence. Th  at is why the 
Commission set up the European 
Institute  of  Innovation  and 
Technology, a unique experiment 
in bringing together the worlds of 
education, research and business 

21

to spark new ways of stimulating creativity and harness it for commercial 
use. Th  e ﬁ rst ‘knowledge and and innovation communities’ will soon 
be chosen, tapping expertise from diﬀ erent sectors to bring a new 
perspective to challenges like green technology.

Europe also needs an environment where entrepreneurs are encouraged 
to set up and grow businesses. With 80 % of jobs in the last ﬁ ve years 
created in small and medium-sized enterprises, the single market must 
be allied to a proactive strategy of smoothing the path for business 
growth. Th  e result has been that start-up times for new businesses have 
been cut from six weeks to one in most Member States, with the costs 
cut by a third. Th  e Small Business Act set out 10 concrete steps to help 
Europe’s small and medium-sized industries to grow.

With the single market needing a common framework of rules, the EU 
has a responsibility to ensure that these rules entail the lightest possible 
burden on business. Part of the EU’s ‘better regulation’ programme aims 
at cutting the burdens on business, with savings of €30 billion now in 
the pipeline. Most Member States have now signed up to follow the 
EU’s common goal of reducing burdens by 25 % by 2012. For example, 
removing the need for micro-enterprises to prepare annual accounts 
equates to savings for business of €7 billion a year.

Th  is action has had a direct impact on jobs, with nearly 6.5 million new 
jobs created between 2005 and 2007. But the downturn has underlined 
how it is essential that the EU plays its part in providing the solidarity so 
fundamental to the European model of how society should work. Th  at 
is why the Commission set up the European Globalisation Adjustment 
Fund, to bring direct help to those facing new global competition and 
losing their jobs. Th  e extra investment in human capital will pay dividends 
once recovery leads to a demand for the right skills in the right place. 

Th  e EU has also taken on a special responsibility to promote cohesion 
and the development of Europe’s poorer regions. Th  e current generation 
of cohesion policy is projected to create 1.4 million jobs in 15 Member 
States. A proactive approach to rural development has helped to address 

22

the trend of rising unemployment and increased depopulation — with this 
decade seeing a net increase in rural populations. Th  e Commission has 
also pioneered a new approach to maritime policy, where the particular 
needs of maritime regions and the maritime environment are recognised 
and addressed.

3.2.   Sustainable energy

Every European has a stake in Europe’s energy resources. If energy 
supplies fail, Europe has seen how quickly households and businesses 
can suﬀ er. If they are too expensive, the vulnerable in society suﬀ er and 
Europe’s competitiveness is hit. And with over half the EU’s greenhouse 
gas emissions coming from power stations, Europe can never address 
climate change without a sustainable energy policy.

In 2005, the EU therefore decided to give a new priority to secure, 
sustainable and competitive energy. Th  is means oﬀ ering a vision capable 
of driving an EU energy policy into the next decades. Since then, it has 
been putting the building blocks in place:

•  a true single market in energy, making full use of the potential of a 
Europe-wide market — competition needs to work properly so that 
consumers get the best deal and essential infrastructure is not held 
back by fragmented national markets;

•  agreeing  a  target  of  a  20 % 
savings  in  energy  eﬃ  ciency 
has  held  out  the  prospect 
of  cutting  demand  to  ease 
pressure on prices and reduce 
dependence on imports; as well 
as a dedicated programme to 
cut energy waste in buildings, 
the Commission’s programme 
of new standards for products 

23

from light bulbs to tyres to televisions will make a huge diﬀ erence to 
energy bills;

•  direct measures to get the infrastructure in place and the international 
agreements ﬁ xed to have diverse and reliable imports, and to ensure 
that energy can be moved where needed inside the EU;

•  agreement to develop carbon capture and storage, to allow future 
generations to reconcile using Europe’s stocks of oil, gas and coal with 
the imperative of cutting greenhouse gases;

•  a binding 20 % target for renewable energy by 2020 to boost home-
grown clean power and put Europe at the cutting edge of strategic 
technology — backed up by a major programme of research investment 
into new forms of clean energy.

Th  ese measures add up to a comprehensive, long-term programme 
to bring reliable and aﬀ ordable energy to European households and 
businesses.

Tomorrow’s energy today

The Commission has supported energy security and promoted the use of 
renewable energies consistently. Of particular importance was the targeted 
support to strategic infrastructure through the €5 billion package from 
the Community budget in the framework of the economic recovery plan. 

24

3.3.   Leading by example on climate change

In 2008, on the basis of a Commission proposal, the European Union 
took a historic decision: to agree a target of a 20 % cut in greenhouse 
gases by 2020, and to put in place the steps needed to make this happen. 
From 2013, the quantity of greenhouse gases industry can emit will be 
cut, year by year. Companies which fail to cut emissions will have to buy 
‘allowances’ on the market, and these allowances will become more scarce, 
and more expensive, every year. So the incentive will become stronger 
and stronger to invest in clean technology. Th  is will be a major driver for 
European technological innovation and new jobs in the coming decades. 

Th  ese  cuts  in  greenhouse  gas 
emissions  showed  that  Europe 
was  ready  to  make  the  most 
radical step towards addressing 
climate change yet seen. It was 
explicitly  timed  to  inspire  the 
UN climate change negotiations 
in  Copenhagen  in  December 
2009,  showing  global  partners 
that credible and concrete action 
was possible, and that — with the 
right design — building a low-
carbon society could be part of 
economic modernisation, not a 
drag on economic growth. And as 
an added incentive to promote an 
international agreement, the EU 
agreed to raise its commitment 
from a 20 % cut to a 30 % cut, if 
others followed its ambition. 

25

4. Global Europe 

Globalisation  has  led  inexorably  to  a  more  interdependent  and 
interconnected world. Th  is brings a new challenge — as it becomes 
clear that many of the EU’s key goals can only be met with a mix of 
domestic and international action. Competitiveness, energy security, 
climate change, migration — these are all issues where action within 
Europe alone will never be enough. But the same internationalisation 
has also given Europe an opportunity, as other countries look beyond 
their borders, for cooperation and inspiration. 

Over the course of the last decade, the EU has remained consistent in 
its approach to the rest of the world. And the underlying principles of 
the EU’s external action have become more and more the mainstream 
of global opinion. Th  e beneﬁ ts of trade openness are recognised as 
central to prosperity. Even under the extreme stress of economic 
crisis, there is a widespread recognition of the risks of protectionism. 
Multilateral processes like the G8 and the G20 are seen as indispensible 
to a solution. Th  e millennium development goals have crystallised a 
common responsibility towards developing countries — a responsibility 
which the EU, as the world’s largest development aid donor, has 

27

continued to champion. And the EU’s action on climate change has 
sought to inspire a global commitment to cut greenhouse gas emissions 
through precise and enforceable targets. Th  e interests of Europeans 
demand a strong global Europe as much as the 21st century world 
needs a strong Europe.

4.1.   The European Union and global governance

During  the  last  ﬁ ve  years,  the  EU  has  been  able  to  make  a  major 
contribution to global governance. European standards have been in 
the vanguard of global eﬀ orts to address climate change and tackle 
the economic crisis. Th  e European experience of regional integration 
has given weight to principles of openness and multilateralism at the 
global level. Th  e European Union and the European Commission have 
been a constant presence in the World Trade Organisation, in the UN 
negotiations on climate change, and in all cases we have tried to lead by 
example. Th  e Commission’s presence has been reinforced in G8 and G20 
meetings during the current mandate, and now includes participation 
in the Financial Stability Board.

As trader, investor and exporter, Europe’s prosperity rests heavily on its 
economic relations with the rest of the world. Th  e enlarged EU is now 
the largest integrated economic area in the world, accounting for more 
than 30 % of the world’s GDP and more than 17 % of world trade. One 
of the disappointments of recent years has been the failure to conclude 
the Doha Development Round. But the EU is recognised to have been in 
the forefront of eﬀ orts to reach agreement, in the interests of developed 
and developing countries alike.

And the EU’s external economic relations have not stood still in the meantime. 
Th  e past ﬁ ve years have seen major advances, meaning that EU businesses 
have been able to trade more, invest more, and build new commercial 
alliances worldwide. Th  is progress has been built on a clear commitment 
that trading partners’ access to the EU market carries with it obligations in 
terms of fair competition and reciprocity in market access. 

28

Th  e result has been that European 
companies can do business more 
easily.  Action  has  improved 
market access in several areas, 
from lifting restrictions on exports 
of  cosmetics  to  Korea  and  on 
drink sales in Malaysia to ensuring 
a level playing ﬁ eld for ﬁ nancial 
information providers in China. 
In addition, early interventions 
have prevented several potential 
barriers to enter into force — as 
in the case of high airport fees 
in Brazil. EU standards are also 
acting as the inspiration for the 
global marketplace — EU rules on 
cosmetics, for example, are now 
used by ASEAN, Mercosur and 
China. Such changes have a direct 
knock-on to growth and jobs. 

At the heart of the EU’s ability 
to  promote  this  agenda  is  the 

Spreading European 
standards worldwide

The  work  of  the  Commission 
and  EU  industry  in  developing 
standards inside the EU has paid 
oﬀ  with the decision of partners 
across the world — from South 
America to China to Australia — to 
take EU standards as inspiration. 

An example is lifts, now a standard 
feature  of  oﬃ  ce  blocks  and 
apartment buildings throughout 
the world. This is a huge market: 
but one where safety standards are 
critical. So there is a big advantage 
in EU standards being taken on 
board as global standards — with 
EU  manufacturers  being  able 
to  export  to  standards  already 
familiar at home.

29

strength that comes from working together. Th  e ‘open skies’ agreement 
took advantage of the EU’s critical mass to reach agreement between 
the world’s two biggest markets — the result is a liberalisation of 
transatlantic air travel that could mean €12 billion in economic beneﬁ ts 
and 80 000 new jobs. 

But the EU is not only committed to building prosperity at home through 
global action. It is also second to none in oﬀ ering humanitarian aid and 
promoting economic and social development for the poorest on the globe. 
Th  e EU and its Member States account for 60 % of global development aid. 
Th  e Commission’s humanitarian intervention oﬃ  ce has brought support 
to over 100 countries since 2004, with around 150 million people helped 
every year. Th  e EU has also shown itself able to respond to particular 
crises: faced with the sharp rises in food prices in 2008, the Commission 
proposed the setting up of a special €1 billion food aid facility. Th  is 
support was directed in particular to help farmers buy seed and fertiliser 
to rebuild developing countries’ own food production capacity. 

Reconstruction in the wake of disaster

When the tsunami struck in December 2004, the Commission immediately 
recognised the imperative to respond. Within 24 hours of the disaster, the 
Commission had ensured that the ﬁ rst humanitarian aid was on the ground 
in Asia. Over 1 million people received food aid; some 42 000 families 
were given shelter; and repairs to boats and ﬁ shing tackle meant more 
than  20 000  ﬁ shermen  were  back  at  work  within  a  year.  In  parallel, 
a €350 million programme of long-term reconstruction helped to rebuild 
the damage to coastal communities. 
The breadth of the EU eﬀ ort included 
a  particular  eﬀ ort  to  ensure  that 
conﬂ ict  did  not  undermine  the 
reconstruction eﬀ orts: for example, 
helping to ﬁ nance the mediation 
which led to a peace agreement in 
Aceh, demobilising combatants and 
monitoring the ceaseﬁ re.

30

As well as the quantity of aid, EU support must be well targeted and 
well coordinated. Targeting means working with recipients to ensure 
that funds will be well spent and will act as a multiplier for countries’ 
own eﬀ orts at political, social and economic reform. Coordination 
means working to ensure that diﬀ erent donors’ eﬀ orts work together 
to maximise results. EU development policy has been modernised to 
maximise its impact and to promote a truly mutual relationship between 
the EU and developing countries.

Finally, it has established its credentials as a positive force, mixing 
humanitarian aid, conﬂ ict resolution and democracy-building to make 
a real diﬀ erence to some of the most diﬃ  cult global conﬂ icts. In East 
Timor, in Chad, in Georgia, the EU has been able to make a decisive 
contribution to the peaceful resolution of conﬂ ict. It has undertaken some 
40 election observer missions over the past ﬁ ve years, as well as a wide 
variety of missions to support the long-term democratic infrastructure 
of partner countries.  

31

4.2.   European Union as a promoter of regional stability 

Th  e EU has a special interest in the stability and prosperity of its 
neighbours. Th  e pull of the EU as a good example is also particularly 
strong in its neighbourhood. Th  e ability of the EU to attract others who 
wish to share the beneﬁ ts of stability and prosperity is a powerful force. 
It has helped to build trade, to strengthen democratic institutions, and 
to lessen political tensions. Th  e EU is pursuing enlargement negotiations 
with Croatia and Turkey, and has recognised the candidate status of the 
former Yugoslav Republic of Macedonia. Five other countries in the 
western Balkans have been recognised as potential candidates. So all 
these countries are working actively to come closer to the EU’s standards, 
to the beneﬁ t of their own citizens in terms of democratic reforms and 
economic development.

A similar eﬀ ect is working with a wider ring of countries in Europe’s 
neighbourhood. Th  e European neighbourhood policy is an innovative 
mix of aid, political support and economic integration. Th  e 16 partners 
involved beneﬁ t from access to the internal market and special trade 
concessions, as well as ﬁ nancial support. And at the same time, the 
policy raises the bar for democratic reform. In the shape of the Barcelona 
Process: Union for the Mediterranean, and the Eastern Partnership, the 
EU now has two dedicated political processes to draw the political and 
economic threads together, and provide strategic direction. Th  e result 
is that the EU now enjoys a platform to tackle issues like economic 
development, migration and democratisation which will determine the 
future of the European continent for decades to come.

4.3.   Partnerships with global powers 

Th  e past few years have seen a deepening of the EU’s investment in its 
relationship with key global partners — both to defend the European 
interest, and to work together to bring common solutions to global 
problems. It has annual or biannual summits at the highest level with 
partners from China to Brazil, from Japan to South Africa. Th  e bilateral 

32

relationship with the United States has a particular place in these relations: 
in 2007, a new Transatlantic Economic Council was set up, and in the 
most recent EU–US meeting in Prague, both the President of the United 
States and the President of the European Commission recognised the 
need to deepen the Atlantic Agenda for Globalisation. 

A new era in EU–African 
relations

In 2006, the European Commission 
met the Commission of the African 
Union in Addis Ababa, Ethiopia. 
This meeting was proof of a new 
phase in Europe’s relations with 
Africa.  It  showed  how  mutual 
interests and common projects 
had evolved from the traditional 
development  relationship  to 
cover such core policy interests 
as energy, migration, infrastructure 
and health. 

A mature political relationship is 
an essential part of the picture. 
President  Barroso  had  already 
signalled Europe’s willingness to 
engage  by  visiting  Darfur  and 
raising  the  EU’s  humanitarian 
support to €340 million: this was 
backed up at the summit by the 
launch of an innovative African 
peace  facility  (APF)  to  support 
African peacekeeping operations. 

Th  e Commission has also held 
executive-to-executive meetings 
with the governments of China, 
Russia  and  the  African  Union. 
It  has  been  in  the  forefront  of 
the creation and reinforcement 
of  strategic  partnerships  with 
emerging  powers,  taking  rela-
tions with China, India and Brazil 
(with which a ﬁ rst summit took 
place) to a new level. Relations 
with Africa have been a particular 
focus, with a new partnership of 
equals to put relations with Africa 
on  a  deeper  footing.  Th  e  EU–
Africa Summit in 2007 in Lisbon 
pioneered a new phase in relations 
by bringing leaders together on a 
continental scale. 

Th  ese partnerships ﬁ t into a vision 
of  a  multilateral  global  order, 
founded on international rules and 
institutions and on the cooperation 
between  world  and  regional 
powers. At the institutional global 
level, the EU’s common interest 
in the international political and 
economic  system  is  cemented 
by  the  role  of  the  European 

33

Commission as a permanent member of the G8 and G20. Th  e inﬂ uence 
of the EU as ‘problem solver’ on the global stage has been brought to 
the fore in global eﬀ orts to tackle the economic crisis. 

34

5. Europe — working together

Th  e EU’s achievements over the past ﬁ ve years are the fruit of a mix of 
factors as diverse as Europe itself. Th  ey reﬂ ect the variety of skills and 
strengths in diﬀ erent parts of Europe. Th  ey rest on a range of tools at 
the EU’s disposal, from consensus-building, to the EU budget, to EU law. 
Th  ey result from the diﬀ erent contributions of the diﬀ erent players in 
the EU’s institutional mix. 

In 2007, the European Union celebrated 50 years of European integration. 
Th  is anniversary underlined how much has changed: a Europe uniﬁ ed 
once again, with 27 Member States; an economic landscape transformed 
by globalisation; societies made more complex and ﬂ uid through 50 years 
of social and technological change. 

But it also put the spotlight on what had made possible 50 years of 
achievement: the ability of the EU to develop through these changes on 
the basis of a common direction and common values — and as a result, 
to reach goals more successfully together than would be possible apart. 
Th  is is as true in tackling the economic crisis, energy security or global 
challenges today as it was for Europe’s founding fathers.

35

As the EU’s remit has spread to new areas of policy, as the complexity of 
the issues it tackles has grown, and as EU enlargement has brought new 
diversity to the EU itself, it has become more and more clear that it is 
only through integration and political and institutional partnership that 
the EU can progress. To promote growth and jobs, to ensure security, 
to tackle climate change, to play a full part in global governance — all 
these goals can only be secured through mobilising forces at diﬀ erent 
levels of government and society. 

Today’s Europe is a mature EU, which has put in place the key building 
blocks for prosperity and social justice, and now has to ensure that they 
are adapted to new circumstances — a Europe focused on serving the 
interests of its citizens, on addressing the long-term challenges we face 
today, and on maximising Europe’s global impact. Working together, 
the European Union achievements over the past ﬁ ve years have secured 
more prosperity, solidarity and security for Europeans today, and laid 
the foundations to deliver the right Europe for the future.

36

The members of the European Commission 2004–09

José Manuel Barroso
President

Margot Wallström
Vice-President

Institutional relations and
communication strategy

Jacques Barrot
Vice-President

Justice, freedom and security
(previously transport)

Antonio Tajani
Vice-President

Transport

Stavros Dimas

Environment

Danuta Hübner

Regional policy

Dalia Grybauskaitė

Financial programming and
budget

38

Günter Verheugen
Vice-President

Enterprise and industry

Siim Kallas
Vice-President

Administrative aﬀ airs,
audit and anti-fraud

Viviane Reding

Information society and media

Joaquín Almunia

Economic and
monetary aﬀ airs

Joe Borg

Fisheries and maritime
aﬀ airs

Janez Potočnik

Science and research

Ján Figel’

Education, training, culture
and youth

Louis Michel

Development and
humanitarian aid

Neelie Kroes

Competition

Benita Ferrero-Waldner

External relations and
European neighbourhood policy

Vladimír Špidla

Employment, social aﬀ airs
and equal opportunities

Olli Rehn

Enlargement

László Kovács

Taxation and
customs union

Mariann Fischer Boel

Agriculture and
rural development

Charlie McCreevy

Internal market and
services

Andris Piebalgs

Energy

Meglena Kuneva

Consumer protection

Leonard Orban

Multilingualism

Androulla Vassiliou

Health

Catherine Ashton

Trade

39

Commissioners who left before May 2009

Markos Kyprianou

Health and consumer protection
replaced by
 Androulla Vassiliou in April 2008 

Franco Frattini

Vice-President
Justice, freedom and security
replaced by 
Antonio Tajani in June 2008

Peter Mandelson

Trade
replaced by 
Catherine Ashton in October 2008 

40

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