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The following essay has been written by an EU Tests user. Our experts have given some constructive
feedback which may be useful for anyone preparing for the written exam of the EU competition.

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Growth and Employment

in the light of the re-launched Lisbon strategy

1. Challenges – why a focus on growth and employment Comment [A1]: Overall a good quality
essay, nevertheless more personal views
or general evaluation would have been
1.1. Ageing population useful to avoid a simple description of
facts and argue for the importance of the
1.2. Globalisation Lisbon Agenda and its vital influence on
growth and jobs

2. Need for action – the right measures at the right levels

2.1. The national reform programmes

2.2. The Community Lisbon programme

3. Partnership for Growth and Employment - Priorities for 2007

4. Conclusion

Comment [A2]: A brief introduction about

the Lisbon Agenda and its background
In March 2005, the Spring European Council discussed the Commission’s mid-term review of would have been useful in the intro

Phase I (2000-2005) of the Lisbon strategy for economic, social and environmental renewal. The EU Comment [A3]: Further details about why
the need to revise the Lisbon strategy
would have been useful as well
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leaders decided to put growth and jobs at the top of Europe’s political priorities. The Commission
proposed a new approach to focus on economic growth and employment, launching the idea of a
“Partnership for Growth and Jobs” between the Member States and the Community.

1. Challenges – why a focus on growth and employment

According to the Commission’s Communication from February 2005, Europe, at present, faces
enormous internal and external challenges and urgent action is required to address them:

1.1. An ageing population will result in the shrinking of working-age population. Without compensatory
measures from increased labour productivity, the economic growth will drop dramatically and, together
with a rise in age-related expenditures, will put in danger the European social model.

1.2. The increasing globalization exposes Europe to increasing competition from abroad. Without an
increased R&D investment in Europe, towards the objective of 3% of GDP, the Europe will continue to
lag behind USA, China and Japan. Moreover, there is an increasing need for greater labour markets
adaptability.

As stated in the Communication of the Commission “Common Actions for Growth and
Employment” (May 2005), the goal of the renewed Lisbon strategy is to modernize the EU’s economies
and preserve the European social model in the face of increasingly global markets, technological change,
environmental pressures, and an ageing population.

2. Need for action – the right measures at the right levels

The key for a successful renewed Lisbon strategy is to define clearly responsibilities at the
national and the Community level in order to better match tasks and competencies.
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2.1. The national reform programmes

In many areas, the centre of gravity for action lies at Member State level – such as for
employment and labour market policies.

All Member States have drawn up national reform programmes on the basis of a single set of
Integrated Guidelines for Growth and Employment (drafted by the Commission in April 2005, together
with recommendations for Broad Guidelines for the economic policies and guidelines for the
employment policies).

The national reform programmes are the main tool to identify key challenges and to translate
the new Lisbon strategy into reform owned by Member States. In order to facilitate visibility and co-
operation, all Member States have appointed Lisbon coordinators (Mr/Mrs Lisbon). Comment [A4]: Consider adding “the so-
called”

2.2. The Community Lisbon programme

There are, however, goals which cannot be delivered by Member States acting alone, and where Comment [A5]: Seems to down-to-the-
point, some additional remarks would
Community action is required (research and innovation, internal market for services). have been useful

In December 2005, the European Council adopted the Community Lisbon programme (COM –
May 2005), which concentrates on key actions of high-value added: the support of knowledge and Comment [A6]: Order of words
ambiguous, rather: high value-added key
innovation, the reform of state-aid policy, the simplification of the regulatory framework, the actions
completion of Internal Market for services, the removal of obstacles to physical, labour and academic
mobility, the development of a common approach to economic migration. Comment [A7]: Consider adding a
comment or your own evaluation about
their importance, relevance etc., to avoid
a simple listing of key elements

3. Partnership for Growth and Employment – Priorities for 2007 Comment [A8]: In a hand-written exam
this issue will not be relevant,
nevertheless if you write a paper by
The partnership for growth and employment begun in 2005, with the European Council setting computer make sure the styles are
up the political priorities, and the Commission drafting the Community Lisbon programme and the uniform: headings above were also
underlined, here it is only bold
Integrated Guidelines covering the macro-economic, micro-economic and employment dimensions.

In 2006, both the Community and the Member States worked on the reform agendas, setting up
objectives and targets. The national reform programmes were finalized in 2006 and the Commission
assessed them, issuing the first Annual Progress Report (December 2006).

2007 will be the year of implementing the reform programmes within the framework of a true Comment [A9]: We are already in 2007 so
the wording should be revised
partnership.
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After 1 year of partnership, the Commission proposes to maintain the integrated guidelines as a Comment [A10]: Consider writing “one”
instead of using number
basis for the national reform programmes. However, the Commission has decided not to propose
formal, country-specific recommendations in response to the national programmes. The Commission set
its priority to build strong co-operation with Member States, based on ownership of the programmes by
Member States themselves.

On the basis of the annual national reform reports (2006), the Commission has identified 4
priorities for action, which should be implemented no later than the end of 2007: (a). investing more in
knowledge and innovation; (b). unlocking the business potential, especially of SMEs; (c). responding to
globalization and ageing; (d). an efficient and integrated EU energy policy. In each case, the Commission
identified responsibilities and suggested further actions that can be taken at the Members States and
the EU levels, as well as actions to be taken in common by Member States and the EU.

Examples of such needed cooperation between the Member States and the Community are:

Knowledge and innovation: Member States and the Commission should launch initiatives to
create Europe-wide lead markets in key technology sectors (based on the work of European Technology
Platforms). A European Institute for Technology should be set up.

Unlocking business potential (SMEs): Under the Competitiveness and Innovation Framework
Programme the financial instruments at Community level will be developed, to facilitate access to
finance, particularly for SMEs. Member States should better use the structural funds, especially the
future funding scheme for joint European resources for micro- to medium enterprises (JEREMIE).

Globalisation and ageing: The Commission will draft a report with a view to facilitating
agreement on common principles concerning modern labour laws, with a balance between flexibility
and employment (“flexicurity”). The Commission will work with Member States to devote a higher share
of structural fund spending to education and training; the European Social Fund and the new
Globalisation Adjustment Fund should support these efforts.

Efficient and integrated energy policy: The internal energy market should be strengthened, to
promote competitiveness and security of supply. Financial assistance is available through EU financial
instruments to help Members States achieve the 10% cross-border interconnection objective. The
development of a European framework of incentives to promote renewables could boost their use. The
Community and member States should speak with one voice in international for a and with third
countries supplying energy to the Community. Comment [A11]: Again consider adding
your own ideas/evaluation to avoid a
“dry” listing of Commission goals

4. Conclusion
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Doubtless, the national reform programmes and the Community Lisbon programme, taken Comment [A12]: Consider mentioning the
origins of the Lisbon Agenda and the
separately, can contribute to growth and jobs. In many cases, problems and challenges can be better challenges/achievements so far at this
identified and tackled by Member States, with due respect to their national traditions. In a number of point as well

cases, Member States developed successful responses to certain challenges which can be shared and
applied by other Member States as well.

There are, however, challenges which cannot be addressed at Member State level alone, and
where the success depends on coordinated action at both European and national level (common
challenges require common responses).

For the renewed Lisbon strategy to succeed, it is vital that Member States and EU measures
complement each other.