By Andy Klom European Commission Office in Wales 17 November 2010, Cardiff University

1. THE EU’s NEW GROWTH & RESEARCH STRATEGIES: Implications for Welsh Academia of Europe 2020 and the Innovation Union. By Andy Klom European Commission Office in Wales 17 November 2010, Cardiff University

2. Who are we: EC Office in Wales • Representation: Voice of Europe • Representation: Eyes & Ears of Europe • The 5 P’s: Politics/Press & Media/Public Affairs/Public Diplomacy/General Public. • Commissioner visits to Wales. • No management of funding. • Like a small embassy.

3. Who are we: Network within EU • EC has 35 Representations within 27 EU members. • 27 national representations and 8 regional ones. • Regionals in Barcelona, Milano, Munich, Bonn, Marseille, Edinburgh, Belfast, Cardiff. • Coordinated through DG Communication, but working for the whole European Commission. • Coordinating with European Parliament Information Offices-where present, and with National and Devolved Governments-where possible.

4. Content • 1) Europe 2020 • 2) Innovation Union • 3) Consequences

5. 1. Europe 2020 • New medium-term macro-economic strategy • Successor to the Lisbon Agenda 2000-2010 • Proposed March 2010 by the EC • Endorsed by Council and the EP June 2010 • Follow-up Members Autumn 2010 • Flagship initiatives by EC Autumn 2010

6. 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 6

7. Why a European strategy? • ● 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 • In addition, the crisis in Greece has more than ever underlined the interdependences in the eurozone area • 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 7

8. 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 (climate change, demography, energy security, long-term economic outlook) 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 8

9. Europe 2020: a holistic approach • Fiscal consolidation (Member States) • Structural reforms: transformation of our economies to create new growth and jobs • Robust and safe financial sector (EU level) We must do this simultaneously

10. 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 (foreign trade) Stability and Growth Pact (SGP) EU and national Budgets & new financing instruments 10

11. 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 11

12. 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 12

13. EU tools in support of Europe 2020 EU monitoring and guidance Annual Growth Survey Annual policy guidance Macro, thematic and fiscal surveillance EU flagship initiatives Digital Agenda(May 2010) Youth on the Move (Sept. 2010) Innovation Union (Oct. 2010) New Industrial Policy (Oct. 2010) New Skills and Jobs (Nov. 2010) Platform against Poverty (Dec. 2010) Resource Efficiency (Early 2011) EU levers for growth and jobs EU financial support Single market relaunch Trade and external policies

14. 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

15. February January March April May June July Annual policy cycle (as of 2011) European Commission Annual Growth Survey Policy guidance including possible recommendations Autumn: Peer review at EU level Council of Ministers Debate & orientations Finalisation & adoption of guidance Debate & orientations European Parliament European Council Annual economic & social summit Endorsement of guidance Adoption of National Reform Programmes (NRPs) & Stability and Convergence Programmes (SCPs) Autumn: Decisions at national level Member States

16. Europe 2020: towards a successful implementation • Member States to submit draft National Reform Programmes by 12 November and final NRP by April 2011 • Commission to present the remaining flagship initiatives in the coming months. • Commission to issue proposals on EU-level tools to improve framework conditions: deepening the Single Market , new trade strategy, budget review.

17. 2. Innovation Union • Comprehensive innovation strategy • One of the seven flagship initiatives (sole EU focus) • Linking up with main EU growth focus: Smart/sustainable/inclusive • Three main goals: • 1) Europe as world-class science performer • 2) Innovation Partnerships (public/private) • 3) Remove bottlenecks (expensive patenting, market fragmentation, standards, skills shortages)

18. Innovation Union to do’s • Continue/step up investment in education, R&D, innovation and ICTs • Modernize education systems at all levels, more world-class universities • European Research Area to be completed in 4 years- free movement of knowledge • Access to EU programmes to be simplified, linkage of funding (EIB, ERC, ERDF)

19. Innovation Union to do’s • Get more innovation out of research: cooperation science – business • Remove barriers for business- ideas to market • Work better with international partners- opening access to R&D programmes • Spend 3% of EU GDP on R&D by 2020= Creates 3.7 M jobs, raises GDP by € 800 B in 2025

20. 3. Consequences • EU specific focus 2010-2014-2020 • FP-7, FP-8, all focussed on Europe 2020 targets • Innovation Union to deliver on 2020 targets • Budget Review: change period from 7 to 10 yr (2024) • Budget Review: change of categories/mix • Budget Review: change of resources/own resources • Cohesion Policy linked to Europe 2020, linked to targets/criteria/NRP, conditionality

21. Consequences continued • Future of FP-8 linked to Europe 2020 • Future of Cohesion Funding linked to 2020 • Budget review shaking up spending categories • Strong conditionality requirements • Opportunities for Welsh academia (focus) • Need for preparation, orientation, awareness • Need for partnerships, EU coverage

22. Conclusions • So get involved now (pre-2014) • React to consultations (ongoing) • Get more awareness of EU priorities/focus • Get involved in networks/partners/lobbying • Prepare now, position yourself now

23. Thank you/Diolch yn fawr • For more information and documents: www.ec.europa.eu/eu2020 soon to be replaced by: www.ec.europa.eu/europe2020 • Or for more about the EC Office in Wales: www.ec.europa.eu/wales