Europe 2020
Encyclopedia
Europe 2020 is a 10-year strategy proposed by the European Commission on 3 March 2010 for reviving the economy of the European Union
. It aims at "smart, sustainable, inclusive growth" with greater coordination of national and European policy. It follows the Lisbon Strategy
for the period 2000-2010, which was largely judged to be a failure.
should take to boost growth and employment. These are:
agreed on the key elements of the new strategy. President Herman Van Rompuy
who chaired the meeting pointed out that the strategy sums up the European model of social market economy with a strong environmental dimension.
The strategy elements were formally adopted on 17 June 2010.
In January, the Commission issues its Annual Growth Survey, which sets out EU priorities for the coming year to boost growth and job creation.
In March, EU Heads of State and Government issue EU guidance for national policies on the basis of the Annual Growth Survey.
In April, Member States submit their plans for sound public finances (Stability or Convergence Programmes) and reforms and measures to make progress towards smart, sustainable and inclusive growth (National Reform Programmes).
In June, the Commission assesses these programmes and provides country-specific recommendations as appropriate. The Council discusses and the European Council endorses the recommendations.
Finally, end of June or in early July, the Council formally adopts the country-specific recommendations.
Economy of the European Union
The economy of the European Union generates a GDP of over €12,279.033 billion according to the International Monetary Fund , making it the largest economy in the world...
. It aims at "smart, sustainable, inclusive growth" with greater coordination of national and European policy. It follows the Lisbon Strategy
Lisbon Strategy
The Lisbon Strategy, also known as the Lisbon Agenda or Lisbon Process, was an action and development plan devised in 2000, for the economy of the European Union between 2000 and 2010....
for the period 2000-2010, which was largely judged to be a failure.
Main targets
The strategy identifies five headline targets the European UnionEuropean Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
should take to boost growth and employment. These are:
- To raise the employment rate of the population aged 20–64 from the current 69% to at least 75%.
- To achieve the target of investing 3% of GDP in R&D in particular by improving the conditions for R&D investment by the private sector, and develop a new indicator to track innovation.
- To reduce greenhouse gas emissions by at least 20% compared to 1990 levels or by 30% if the conditions are right, increase the share of renewable energy in final energy consumptionEnergy consumptionEnergy consumption is the consumption of energy or power. It is covered in the following articles and categories:* World energy consumption* Domestic energy consumption* Fuel efficiency in transportation* Electric energy consumption* Electricity generation...
to 20%, and achieve a 20% increase in energy efficiencyEfficient energy useEfficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...
. - To reduce the share of early school leavers to 10% from the current 15% and increase the share of the population aged 30–34 having completed tertiary from 31% to at least 40%.
- To reduce the number of Europeans living below national poverty lines by 25%, lifting 20 million people out of poverty.
Flagship initiatives
These in turn are broken down into the following seven flagship initiatives:- Innovation Union: to improve framework conditions and access to finance for research and innovation so as to strengthen the innovation chain and boost levels of investment throughout the UnionEuropean UnionThe European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
.
- Youth on the move: to enhance the performance of education systems and to reinforce the international attractiveness of Europe's higher education.
- A digital agenda for Europe: to speed up the roll-out of high-speed internet and reap the benefits of a digital single marketSingle marketA single market is a type of trade bloc which is composed of a free trade area with common policies on product regulation, and freedom of movement of the factors of production and of enterprise and services. The goal is that the movement of capital, labour, goods, and services between the members...
for households and firms.
- Resource efficient Europe: to help decouple economic growth from the use of resources, by decarbonising the economy, increasing the use of renewable sourcesRenewable energyRenewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
, modernising the transport sector and promoting energy efficiencyEfficient energy useEfficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...
.
- An industrial policy for the globalisation era: to improve the business environment, especially for SMEs, and to support the development of a strong and sustainable industrial base able to compete globally.
- An agenda for new skills and jobs: to modernise labour markets by facilitating labour mobility and the development of skills throughout the lifecycle with a view to increasing labour participation and better matching labour supply and demand.
- European platform against poverty: to ensure social and territorial cohesion such that the benefits of growth and jobs are widely shared and people experiencing poverty and social exclusion are enabled to live in dignity and take an active part in society.
Initial reactions
Reactions to the initiative were not very positive. There was scepticism about the Commission's ability to convince the 27 EU member states that these were the right priorities, the business community did not seem to find any strong incentives and Germany did not welcome further proposals on governance.European Council agreement
On 26 March 2010, the European CouncilEuropean Council
The European Council is an institution of the European Union. It comprises the heads of state or government of the EU member states, along with the President of the European Commission and the President of the European Council, currently Herman Van Rompuy...
agreed on the key elements of the new strategy. President Herman Van Rompuy
Herman Van Rompuy
Herman Achille Van Rompuy is the first long-term and full-time President of the European Council...
who chaired the meeting pointed out that the strategy sums up the European model of social market economy with a strong environmental dimension.
The strategy elements were formally adopted on 17 June 2010.
The European Semester
Monitoring progress and ensuring the active involvement of EU countries are key elements of the strategy. This is done through the European Semester, an annual cycle of macro-economic, budgetary and structural policy coordination. The key stages in the European semester are as follows:In January, the Commission issues its Annual Growth Survey, which sets out EU priorities for the coming year to boost growth and job creation.
In March, EU Heads of State and Government issue EU guidance for national policies on the basis of the Annual Growth Survey.
In April, Member States submit their plans for sound public finances (Stability or Convergence Programmes) and reforms and measures to make progress towards smart, sustainable and inclusive growth (National Reform Programmes).
In June, the Commission assesses these programmes and provides country-specific recommendations as appropriate. The Council discusses and the European Council endorses the recommendations.
Finally, end of June or in early July, the Council formally adopts the country-specific recommendations.
External links
- Europe 2020 – Official EU Site
- Friedrich-Ebert-Stiftung, Study Group Europe: Paving the way for a sustainable European prosperity strategy February 2010 (PDF, 135 KB)
- Europe 2020 – proposals for the Post-Lisbon strategy: progressive policy proposals for Europe's economic, social and environmental reneval, Friedrich-Ebert-Stiftung, May 2010 (PDF 228 KB)
- The Lisbon Council (economic thinktank) – Europe 2020
- Björn Hacker/Till van Treeck: What influence for European governance? The reformed stability and growth pact, the Europe 2020 strategy and the "European Semester", Friedrich-Ebert-Stiftung, December 2010 (PDF 115 KB)
- Progress on the European Semester in 2011