JOINT CONTRIBUTION TO THE SPRING COUNCIL 2004
Next March 25th, the European Council will hold its annual Spring meeting. This will be the fourth time that we meet to discuss the agenda for economic reform launched in Lisbon in 2000. This Spring Council will take place in a special context. Ten new countries are to join the European Union in less than forty days, in an historic enlargement which brings the European Union new opportunities and dynamism.
There is a growing consensus in Europe in favour of economic reform. The EU economy is showing signs of recovery, improving the sluggish performance of the last few years. These opportunities should be seized to underpin the nascent economic growth by implementing the reforms our economies demand. We note and endorse the sense of urgency as expressed by the Commission in its Spring report. We should increase our efforts pursuing the reforms needed to meet the Lisbon goals in 2010.
We fully support the Irish Presidency in moving forward the Lisbon agenda by bringing back the dynamics in the Lisbon-strategy. The European Council debate will be particularly important. The European Council must send a clear message of confidence in the economic recovery; and, above all, one of determination to increase our efforts to meet the Lisbon goals in 2010.
There are several aspects that deserve a special attention, and which must be a priority objective in our discussions:
First, more and better jobs . We must make further efforts if we are to meet the employment targets set in Lisbon and Barcelona. This is made clear in the excellent report from the Employment Taskforce chaired by Wim Kok, which makes clear and urgent recommendations to the EU and its Member States.
The European Council must give a political impulse to this initiative and invite the Member States to commit themselves to its implementation. The European Union needs more flexible labour markets. The effective implementation of the Taskforce Report's recommendations is vital. We do not need new mechanisms or processes. What we need is to incorporate the recommendations of the Kok Taskforce into the European Employment Strategy, and fully involve the annual Spring Council in the peer-review process.
Second, how to promote innovation and R+D . Research must translate into innovative products and services, adapted to the needs of a growing economy. To do this, we must use public research and development funds more efficiently and actively promote private sector involvement. In particular, we should focus in the following priorities: developing public and private sector partnerships, fostering international technological cooperation and exchanges, benchmarking the best tax incentive schemes for business innovation, and promoting the market for venture-capital.
Third, regulation, markets and competitiveness. The European Union's legislative initiatives must seek the necessary balance between legitimate objectives of regulation and their impact on competitiveness, thus avoiding excessive burdens to business, especially SME's. As recently agreed by the European Council under Italian Presidency in areas such as chemicals or climate change, we should develop cost-effective ways of implementing EU-decisions.
Furthermore, European legislation should be correctly and timely transposed into national law. Member States should increase their efforts to reach the transposition target of 98,5% set in Barcelona.
In addition, the completion of the Transeuropean Networks as foreseen in the Initiative for Growth represents a pre-requisite to sustain the competitiveness in an enlarged Europe.
Finally, a well functioning market for services will be of crucial importance to European competitiveness. Substantial progress should be made with the framework directive on services.
Fourth, the preparation of the mid-term review of the Lisbon strategy. 2005 marks the halfway point of the ten-year agenda. It is therefore a relevant time to draw up a balance and give it new impetus.
As rightly indicated in the Commission's 2004 Spring Report, the challenge for this second stage will be the active and targeted implementation of reforms. In this context, we should define a consistent method for remedying existing deficits in implementing reforms, and also improve the use of structural indicators, so as to provide a more adequate and fair image of annual progress in each Member State. The mid-term review however, should not deflect our attention in 2004 from implementing the necessary structural reforms.
Fifth, economic recovery must respect the principles of macroeconomic stability . Our commitment to sound budget policies should not be questioned. The Stability and Growth Pact is an essential element of economic governance in our Economic and Monetary Union and a necessary condition to sustained economic growth that we all pursue, and its rules must be applied consistently and in a non-discriminatory basis. Sound policies are vital also in the longer run when we will find ourselves challenged by the impact on both the economy and public finances of the ageing population.
The European Union needs to develop fully its economic potential. We must make the most of the opportunities offered to us, and show our commitment to the objectives we have all agreed: sound public finances, sustained growth, full employment and preservation of the environment.
José María Aznar |
Jan-Peter Balkenende |
Silvio Berlusconi |
José-Manuel Durao Barroso |
Leszek Miller |
Juhan Parts |