Deepening the EU Lisbon Strategy for Growth and Jobs

The Lisbon Strategy for Growth and Jobs is the necessary backbone for the European response to globalisation while further deepening the way to create the wealth that can give practical meaning to core European values of social inclusion and of European and international solidarity.

Furthermore, increasing the EU’s adaptability to provide for the sustainable well-being of its citizens are the main themes of a European Commission discussion paper for EU Heads of State and Government at the Lisbon informal summit on 18-19 October, adopted by the Commission.

The paper fulfils the request of this year’s Spring European Council for an interim report on the Lisbon Strategy. It argues that Europe is already achieving notable successes in shaping globalisation, under the broad approach agreed at the Hampton Court summit in October 2005 and centred on the Lisbon Growth and Jobs Strategy, renewed in the spring of 2005 after its original launch in 2000. But globalisation is constantly evolving. So Europe must ensure that its external and internal policies are mutually reinforcing and be ready to refine them in the light of events, such as changes in energy markets or the recent financial instability.

Commission President José Manuel Barroso said that “the EU’s raison d’être for the 21st century is crystal clear: to equip Europe for a globalised world. In order to do so, we must invest in people, in growth and jobs, in energy security, in fighting climate change, in giving consumers a fairer deal, in stepping up cooperation to fight crime and terrorism. European leaders now need to maintain the vision and redouble their ambition.

“Protectionism cannot make Europe wealthier. Protectionism would impoverish, not protect our citizens. But we are not naïve. We are no soft touch. We can and will require a level playing field. We want others to open more. The challenge is to protect without being protectionist. We have showed how to do this only a few weeks ago, with our proposals for completing the internal market for energy.”

Among the political objectives identified in the discussion paper are: boosting economic reforms to build sustained prosperity; widening opportunity for citizens by ensuring better access to employment, education, social services, health care and other forms of social protection; tackling poverty in Europe and abroad; adopting and implementing the Directives the Commission will propose in December to meet targets for reducing greenhouse gases and using renewable energy sources; building a 21st century internal market based on the single market review the Commission will publish in November; making legal migration into the EU a motor for wealth creation; and stemming illegal migration.

The paper makes clear that the EU, a single market of 500 mln people, the world’s largest exporter of goods and services and its largest importer of goods, is a major beneficiary of an open world economic system. This gives Europe a lever as a force for good in tackling global issues and in making sure international trade governance and global regulatory standards reflect Europe’s interests.

Also referred to in the paper is the Commission’s comprehensive review of the functioning of European Monetary Union nearly 10 years after the launch of the euro.

The review will present ideas on how policies, coordination and governance can help the euro area to work to best effect. The paper points out that the euro has already proved an anchor of stability that has protected the EU economy as a whole, not only the euro area. Reforms carried out during the last years have made Europe’s economies more resilient, have already helped them remain healthy in the face of high energy prices and will also help them weather the recent financial market storm.