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European Commission Secretariat-General1
Europe 2020 Strategy
A NEW EUROPEAN STRATEGY FOR JOBS AND GROWTH
European Commission Secretariat-General2
Where Europe stands now ?The crisis has reversed much of the progress achieved since 2000 and
exposed Europe’s structural weaknesses :
– Sluggish structural growth
– Productivity gap
– High unemployment
– Levels of debt and limited fiscal room
The economic situation is gradually improving, but:
– Recovery is still fragile
– Global challenges intensify: competition from developed and emerging economies, global finance, climate change and pressure on resources
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European Commission Secretariat-General3
Economic Pressure (1/2)
European Commission Secretariat-General4
Economic Pressure (2/2)
European Commission Secretariat-General5
Some lessons from the crisis
• Never waste a good crisis!
• Lesson No 1 = interdependence EU steer needs to be ex ante Need for early warning and early action Monitoring and reporting
• Lesson No 2 = economic union Goes with currency union Divergences not sustainable long term
European Commission Secretariat-General6
Why a European strategy?
• In addition, the crisis in Greece has more than ever underlined the interdependences in the eurozone area
● The crisis showed that our economies are closely inter-linked
• If we want to counter the crisis and weigh globally, we must act in a more coordinated way
• Only the EU gives us the critical mass to have impact: - Activate all policy areas and levers in an integrated way- Exchange of best practices
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European Commission Secretariat-General7
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Europe 2020: EU after the crisis • Europe needs to be back on track : our short term priority is a
successful exit from the crisis
• Whilst taking a long-term vision: where Europe should be in 2020 – no time to waste to face challenges
• Therefore, a new strategy “Europe 2020” to return to growth, but a new type of growth
- smart, sustainable and inclusive growth- translating into high employment and social &
territorial cohesion
European Commission Secretariat-General8
Europe 2020: a holistic approach
• Fiscal consolidation • Structural reforms: transformation of our
economies to create new growth and jobs• Robust and safe financial sector
European Commission Secretariat-General9
Europe 2020: delivering reforms• 3 thematic priorities• 5 EU headline targets – translated into
national ones• 7 flagship initiatives – EU & national action• Mobilising existing EU instruments:
• Single market • External dimension• Stability and Growth Pact (SGP)• EU and national Budgets & new financing instruments
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European Commission Secretariat-General10
Europe 2020: 3 interlinked priorities
1.) Smart growth: developing an economy based on knowledge and innovation
2.) Sustainable growth: promoting a more efficient, greener and more competitive economy
3.) Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion
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European Commission Secretariat-General11
Europe 2020: 5 EU headline targets ( to be translated into national targets)
By 2020:
• 75 % employment rate (% of population aged 20-64 years)
• 3% investment in R&D (% of EU’s GDP)
• “20/20/20” climate/energy targets met (incl. 30% emissions reduction if conditions are right)
• Less than 10% school drop-out rates and at least 40% of the population aged 30-34 having completed tertiary or equivalent education;
• Lifting at least 20 million people out of the risk of poverty or exclusion
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European Commission Secretariat-General12
Example of R&D draft targets
*Note: no targets for IE, NL and UKSource: European Commission
European Commission Secretariat-General13
EU tools in support of Europe 2020
Single market relaunch
Trade and external policies
EU financial support
EU levers for growth and jobs
EU flagship initiatives
EU monitoring and guidance
Macro, thematicand fiscal
surveillance
Annual Growth Survey
Annual policy
guidance
Innovation Union
(Oct. 2010)
New Skills and Jobs
(Nov. 2010)
Digital Agenda
(May 2010)
Youth on the Move(Sept. 2010)
New Industrial
Policy (Oct. 2010)
Platform against Poverty
(Dec. 2010)
ResourceEfficiency(Jan. 2011)
European Commission Secretariat-General14
Europe 2020: A stronger governance architecture
• The European Council at the center of the strategy• A « European Semester » for economic policy
coordination: simultanous submission by Member States of NRP/SCP
• A robust monitoring process by the Commission/Council: annual growth survey, country specific recommandations and policy warnings
European Commission Secretariat-General15
A new architecture for policy coordination
European Commission Secretariat-General16
Annual policy cycle (as of 2011)
Council of Ministers
European Commission
European Parliament
European Council
Annual economic & social summit
January March AprilFebruary May June July
Adoption of National Reform Programmes (NRPs) & Stability and Convergence Programmes (SCPs)
Autumn:Peer review at EU level
Autumn:Decisions at national
level
Debate & orientations
Endorsement of guidance
Finalisation & adoption of guidance
Member States
Annual Growth Survey
Policy guidance including possible recommendations
Debate & orientations
European Commission Secretariat-General17
Europe 2020: towards a successful implementation
• Commission issued 7 flagships in 2010• Commission issued Annual Growth Survey January• Member States submitted National Reform
Programmes by April• Commission issued Country Specific
Recommendations on 7 June• European Council endorsed Country Specific
Recommendations on 24 June
European Commission Secretariat-General18
Annual Growth Survey 2011 (1/3)
Macro-economic stability
1. Implementing a rigorous fiscal consolidation
2. Correcting macro-economic imbalances
3. Ensuring stability of the financial sector
European Commission Secretariat-General19
Annual Growth Survey 2011 (2/3)
Structural reforms for higher employment
4. Making work more attractive
5. Reforming pensions systems
6. Getting the unemployed back to work
7. Balancing security and flexibility in labour
European Commission Secretariat-General20
Annual Growth Survey 2011 (3/3)
Frontloading growth
8. Tapping the potential of the Single Market
9. Attracting private capital to finance growth
10. Creating cost-effective access to energy
European Commission Secretariat-General
Country Recommandations
On public finances:• sustainability of public finances: greater ambition
needed• More needs to be done to reform the structure of tax
systems and to protect growth-enhancing expenditure items
• fiscal measures for reduction in budget deficits not specific
European Commission Secretariat-General
Country Recommandations
On labour markets:• Boost labour force participation:
– retirement age, early retirement– childcare
• Combat structural unemployment and integrate vulnerable groups:– payroll taxes – active labour-market policies
• Reduce youth unemployment and early school leaving:– labour contracts – links between education and employment
• Ensure that wages correspond to productivity
European Commission Secretariat-General
Country Recommandations
On structural reforms: • Business environment:
– excessive regulatory constraints – making it easier to start a business – facilitating access to finance, especially for SMEs
• Services sector:– Services Directive – competition and regulatory frameworks in network industries
• R&D and innovation:– incentives for private R&D investments – matching R&D and innovation with business needs
European Commission Secretariat-General24
Thank you
For more information and documents:
www.ec.europa.eu/europe2020
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