EU claims progress towards Lisbon goals

The European Commission claimed to have taken “significant steps” towards its 2010 target of making the EU “the most dynamic and competitive knowledge-based economy in the world” – but chided the European Parliament and member-states to work faster. 

In a report on the EU’s so-called Lisbon Agenda, the commission said it has already adopted 75 of the 102 policy actions that it had planned to act on by 2007. The measures include changes to state aid laws to liberalize EU markets, new trade initiatives to open China and other markets to EU goods, and near-completion of a seven-year Framework programme to boost technology investment in Europe.

But it also cited foot-dragging by the Parliament or national governments on several pieces of proposed legislation – for instance, new laws for patents, pensions, the maritime and railway industries. “The onus is now on the European Parliament and Council to adopt these proposals as quickly as possible,” a Commission statement said.

Failing grades?

The study – an interim report card – is part of a process that began in 2000 at a Lisbon summit meeting to make Europe competitive in the global economy by 2010. In 2002 and again in 2005, the Commission developed detailed targets – such as boosting investment in R&D to 3 per cent of gross domestic product by 2010, compared to 1.9 per cent currently and 2.6 per cent in the U.S. In fact, senior Commission officials have started to admit publicly that they may not meet several of the targets – in part because of political opposition to change. For instance, a plan to reform EU patent law – a process that would lower Europe’s sky-high patent costs, but might also invite more foreign competition to entrenched national industries – once again hit a roadblock 20 October at a summit of EU leaders in Lahti, Finland.

Analysts independent from the Commission have been even more strident in their criticism of the EU’s slow progress. For instance, on 10 October the London School of Economics released a study concluding that “progress has been poor. The reality is that Europe will not achieve the objectives for 2010, if at all.” And the Lisbon Council, a Brussels think-tank focusing on the issue, recently published a report warning that, due to lack of investment in human capital, the gap in economic performance among EU members could widen to alarming levels – with Sweden and Ireland potentially enjoying living standards twice as high as those in Germany or Italy.

Indeed, the Commission’s own statement had an air to it of whistling in the dark. Its mechanical way of counting progress – 75 of 102 policy actions adopted – lumped together both major and minor initiatives, and made no assessment of the quality of the work completed so far. For instance, while it counts action on a new EU services directive as being on track for adoption later this year, in fact the original proposals to allow free movement of doctors, lawyers and other professionals have been so diluted by opposition from national politicians that its final economic impact may prove minor.

The Commission said it plans a further report on the subject 12 December, and "a more substantial review" will come in 2008.