The Evolution of EU Social, Employment, and Economic Growth Policies: A Critical Analysis of the Lisbon Strategy
The Evolution of EU Social, Employment, and Economic Growth Policies
The Lisbon Strategy: A Decade of Ambition and Disappointment
Employment was at the heart of a special European Council meeting held in Lisbon in March 2000. This summit set a ten-year strategic goal for the Union: “to become the most competitive and dynamic knowledge-based economy in the world, capable of sustaining economic growth with more and better jobs and greater social cohesion.”
Specific goals included raising the employment rate from an average of 61% in 2000 to as close as possible to 70% by 2010 and increasing the number of women in employment from an average of 51% to 60% by the same year. Various strategies were identified to achieve these goals, many focusing on innovation, entrepreneurship, and the information society. Progress was to be reviewed and updated each spring by the European Council.
Mid-Term Review and the Kok Report
As the mid-term review of the Lisbon Strategy (also known as the Lisbon Process or Lisbon Agenda) approached, it became clear that progress was disappointing. In response, the March 2004 European Council established a high-level group of experts, chaired by former Dutch Minister Wim Kok, to investigate ways to revamp the Strategy.
The Kok Report, “Facing the Challenge: The Lisbon Strategy for Growth and Employment,” concluded that member governments lacked the commitment to implement necessary structural measures. It recommended narrowing the goals, making them more specific, and addressing difficult issues like cutting taxes, liberalizing services, and restructuring social protection schemes, pensions, and labor markets.
A New Start and the Re-launch of the Lisbon Strategy
The Kok Report heavily influenced a 2005 Commission communication, “Working Together for Growth and Jobs – A New Start for the Lisbon Strategy.” The Commission agreed that the Strategy needed sharper focus and identified specific measures, including further internal market reforms, increased research and development spending, proactive competition rules, and direct employment policies.
The March 2005 European Council welcomed the communication and re-launched the Lisbon Strategy. The headline goal of becoming “the most competitive and dynamic knowledge-based economy in the world” was dropped, and a higher priority was given to social market aspects.
Challenges and the Legacy of the Lisbon Strategy
Despite revisions, the Lisbon Strategy struggled to achieve its objectives. High unemployment, low growth rates, under-investment, and insufficient innovation persisted. As discussions began for a successor plan, “Europe 2020,” there was little indication of a radical departure from the Lisbon Strategy.
Familiar themes emerged: knowledge-based growth, empowering innovators and investors, aligning labor market skills with employer needs, creating a more inclusive society and connected economy, and emphasizing green growth. However, concerns remained about addressing the core issue of the Lisbon Strategy’s failings: the lack of strong mechanisms to ensure targets were met.
Key Observations and Intertwined Policies
Several key points merit highlighting:
- Interlinked Policies: Social, employment, and economic growth policies, while distinct, have become increasingly intertwined, particularly within the context of the Lisbon Strategy.
- Evolving Perspectives: The integration of social policy with employment and economic growth policies reflects the evolving perspective on social policy within the EU context.
The Lisbon Strategy, despite its shortcomings, served as a catalyst for integrating these policy areas and highlighted the complex challenges of achieving sustainable economic growth, full employment, and social cohesion within the European Union.