Master of European Studies, MES University of Zagreb, 2007 LISABON STRATEGY PRIORITIES IN IMPLEMENTATION AND RELEVANCE

2. Content of presentation The initial vs. revised Lisbon Strategy Priorities and achievements Instruments and activities Current stage of implementation How to bridge the delivery gap? How is Croatia prepared to achieve Lisbon strategy goals? Strategic documents Institutional aspects Implementing mechanisms Positioning

3. The Lisbon Strategy � starting points The Lisbon goals Lisbon European Council, 2000 � �to become the most competitive and dynamic knowledge-based economy in the world by 2010, capable of sustainable economic growth with more and better jobs and greater social cohesion� Barcelona European Council, March 2002 - �raise the overall R&D investment to 3% of GDP by 2010, of which 2/3 from private sector� The redefined Lisbon strategy �Working together for growth and jobs � A new start for the Lisbon Strategy� (March 2005)

4. Why redefined Lisbon strategy? Weaknesses in approach and implementation To wide and ambitious goals, overloaded agenda Lack of strong leadership Lack of �ownership� Delay in implementation, insufficient progress Lack of appropriate implementing mechanisms Challenge of catching up with fast-growing competitors The way out More focused strategy with concrete activities Stronger implementing mechanisms �Prioritising� goals Partnership between the EC and MS

6. Prioriteti � revidirani Lisabon Usluge � cine 80 novostvorene vrijednosti Unije, a samo 20% intra-EU trgovine. Usluge � cine 80 novostvorene vrijednosti Unije, a samo 20% intra-EU trgovine.

7. Prioriteti � revidirani Lisabon Dalje se razvijaju Akcijski planovi, napr. za poticanje istra�ivanja i inovacija. Plan pokrece 19 inicijativa za promoviranje inovacija i istra�ivanja (redefiniranje dr�avnih potpora, efikasnija za�tita intelektualnog natjecanja, jacanje ulaganja u istra�ivanja, stvaranje pulova inovacija, jacanje partnerstva sveucili�ta+industrija. 1% dodatnih privatnih ulaganja u u R%D znaci 0,17% rasta produktivnosti. Dalje se razvijaju Akcijski planovi, napr. za poticanje istra�ivanja i inovacija. Plan pokrece 19 inicijativa za promoviranje inovacija i istra�ivanja (redefiniranje dr�avnih potpora, efikasnija za�tita intelektualnog natjecanja, jacanje ulaganja u istra�ivanja, stvaranje pulova inovacija, jacanje partnerstva sveucili�ta+industrija. 1% dodatnih privatnih ulaganja u u R%D znaci 0,17% rasta produktivnosti.

8. Prioriteti � revidirani Lisabon

10. Obligations of the EU and member states EU Community Lisbon Programme New Integrated guidelines for growth and employment Annual Progress report Coordination of implementation Member states National Reform Programmes (NRPs) National Lisbon coordinators Implementation!!!

11. Lisbon 06: priority areas for action European Spring Council, 2006: priorities Investing more in knowledge and innovation Unlocking business potential, especially of SMEs Getting people into work Efficient, secure and sustainable energy

12. 1. Investing more in knowledge and innovation Promote polices and actions aiming to achieve 3% objective for R&D spending by 2010. Adopt FP7 and CIP (Competitiveness and Innovation Programme). Establish European Research Council aimed at raising excellence of the best research teams. Create single, competitive and open European labour market for researchers. Develop a broad-based information strategy for Europe that translates investment in knowledge into products and services. Develop comprehensive Lifelong Learning strategies (MS) and EU Lifelong Learning Programme 2007-2013 Facilitate universities� access to complementary sources of funding. Develop managerial skill and competencies for the people involved to transfer the research results to business community.

13. 2. Unlocking business potential, especially of SMEs Develop national strategies to foster competitiveness, innovation and productivity Explore options for establishing measurable targets in specific sectors for reducing administrative burdens by 2006 Establish by the end of 2007 a �one-stop-shop� or arrangements with equivalent effect Reduce the average time for setting up a business, especially an SME, with objective of being able to do this within one week anywhere in the EU by the end of 2007 recruitment of a first employee should not involve more than one public administration point.

14. 3. Getting people into work  Reduce unemployment from a peak of 9% at the end of 2004 by roughly 1% in 2007 Adopt a real lifecycle approach to employment by: reducing early school leaving for 10% by 2010; ensuring that at least 85% of 22 years old should have completed upper secondary education; offering job to every young person who has left school or university, apprenticeship or additional training within six months of becoming unemployed by the end of 2007, and within 4 months by 2010; implementing policies to promote women�s employment; approved the European Pact for Gender Equality; increasing availability of quality childcare in line with MS� own national targets; implementing active ageing strategies, consider incentives for prolonging working lives, gradual retirement, use of part-time work and improvements to the working environment. pursuing reforms by MSs in labour market and social policies, integrated approach; establishing the European Globalisation Adjustment Fund (1 January 2007)

15. 4. Efficient, secure and sustainable energy Electricity and gas markets to be open to all consumers by July 2007 (already the aim); Better cooperation between grid and gas pipeline systems in member states, enabling functioning of one European network; Stimulation research on energy efficiency, renewables and on clean energy technologies and incentives to promote their use; Common operational approaches for crisis situations, Develop common external policy approach and furthering energy dialogue between the EU and its MSs on the one hand, and their main partners.

16. Stronger implementing mechanisms Integrated guidelines for growth and employment Macro and Microeconomic guidelines, Employment guidelines Open method of coordination (OMC) Exchange of best practice instruments Peer reviews Quanntitative and qualitative indicators (benchmarks, scoreboards) Soft method � defining goals + indicators + evaluations + monitoring Effects???

17. New governance three years cycle Integrated guidelines presented by the Commission in April 2005, for period 2005-2008 Broad Economic Policy Guidelines (BEPGs, Treaty art. 128) + Employment Guidelines (EGs; Treaty art. 99) National Reform Programmes prepared by member states (end of November 2005, followed by annual reports) Commission progress report January 2006

18. Integrated guidelines for growth and jobs (2005-2008) Macroeconomic guidelines (1) To secure economic stability. (2) To safeguard economic sustainability. (3) To promote efficient allocation of resources. (4) To promote greater coherence between macroeconomic and structural policies. (5) To ensure that wage developments contribute to macroeconomic stability and growth. (6) To contribute to a dynamic and well-functioning EMU. Microeconomic guidelines (7) To extend and deepen the internal market. (8) To ensure open and competitive markets. (9) To create a more attractive business environment. (10) To promote a more entrepreneurial culture and create a supportive environment for SMEs. (11) To expand/ improve European infrastructure, complete agreed priority cross-border projects. (12) To increase and improve investment in R&D. (13) To facilitate innovation and the take-up of ICT. (14) To encourage sustainable use of resources, strengthen synergies between environmental protection and growth. (15) To contribute to a strong industrial base. Employment guidelines (16) To implement employment policies intended to achieve full employment, improve quality and productivity at work, and strengthen social and territorial cohesion. (17) To promote a lifecycle approach to work. (18) To ensure inclusive labour markets for job-seekers and disadvantaged people. (19) To improve matching of labour market needs. (20) To promote flexibility combined with employment security, reduce labour market segmentation. (21) To ensure employment-friendly wage and other labour cost developments. (22) To expand and improve investment in human capital. (23) To adapt education and training systems in response to new competence requirements.

19. Lisbon strategy and candidates

20. Lisbon strategy and Copenhagen criteria Barcelona Summit (2002) Lisbon Stratagy seen as an incentive for candidates to implement objectives as a two-way learning process Western Balkans Lisbon objectives do not constitute additional criteria or economic objectives ...but the Lisbon objectives will be reflected in the EU policies towards the region in the areas that can be consideres priorities under European/Accession Partnerships Lisbon strategy priorities should be differently interpreted by each country, taking into account the level of development and the individual stage of rapprochement to the EU Implemenation of Lisbon goals is complementary to fulfilment of Copenhagen criteria

21. Implementation of revised Lisbon strategy ... and candidates Kokov izvje�taj kao kljucni zadatak nala�e razvoj nacionalnih politika zemalja clanica, koje treba podr�avati europska struktura. Nacionalne i europske politike (ukljucujuci i proracun) moraju odra�avati ciljeve Lisabona. Europsko vijece ima kljucnu ulogu u daljnjem napretku Lisabona. MS � pripremaju nacionalne programe, ukljucuju gradane i interesne grupe u proces EK � nadzire, izvje�cuje i podr�ava proces svojim politikama i aktivnostima. Socijalni partneri � va�na ulogaKokov izvje�taj kao kljucni zadatak nala�e razvoj nacionalnih politika zemalja clanica, koje treba podr�avati europska struktura. Nacionalne i europske politike (ukljucujuci i proracun) moraju odra�avati ciljeve Lisabona. Europsko vijece ima kljucnu ulogu u daljnjem napretku Lisabona. MS � pripremaju nacionalne programe, ukljucuju gradane i interesne grupe u proces EK � nadzire, izvje�cuje i podr�ava proces svojim politikama i aktivnostima. Socijalni partneri � va�na uloga

22. Priorities in Croatia�s reforms: converging Lisbon goals Croatia�s economic policy objectives relevant for implementing Lisbon goals: Maintaining stable macroeconomic environment Raising the level of competitiveness Accelerating growth and employment Social prosperity in a competitive market economy (growth, development, employment, social inclusiveness and justice) Message of new strategy: achievemnt of growth, development, employment, social inclusiveness and justice.Message of new strategy: achievemnt of growth, development, employment, social inclusiveness and justice.

23. Current stage of implemenating Lisbon A comprehensive programme to implement Lisbon objectives (Action Programme) has not been developed Some of the aims and activities leading to it�s implementation introduced in different strategic documents Lisbon Coordinator appointed (?)

24. Strategic documents relevant for implementing Lisbon objectives Croatia does not have a coherent Lisbon Action Plan Some of the aims and activities leading to it�s implementation introduced in different strategic documents Strategic Development Framework (2006-13) adopted JIM � Joint Inclusion Memorandum National Programme for Integration into EU (anually) Pre-accession Economic Programme, PEP (anually) Economic & Fiscal Policy Guidelines (2006-08) E-Croatia Programme 55 Recommendations for Raising Croatia�s Competitiveness Programme of Incentives for SME (2004-08) + Operative plan (2006) Croatian Programme for Innovative Technological Development National Strategy for Development of Intellectual Property (2005-10) ... other Existing documents cover only partly Lisbon agenda Need for development operational action plan/plans for implementing Lisbon goals targets, instruments, dealines, responsibilities E-Croatia Programme � efforts to transform Croatian society into an information society 55 Recommendations for Raising Croatia�s Competitiveness , Annual Reports� in May2006. NCC will issue a specia edition of Rep�ort � Competitiveness Barometer (selected key indikators in direct correlation with the goals and principles of Lisbon Stratf+gy (Barometer will be prepared on annual basis) E-Croatia Programme � efforts to transform Croatian society into an information society 55 Recommendations for Raising Croatia�s Competitiveness , Annual Reports� in May2006. NCC will issue a specia edition of Rep�ort � Competitiveness Barometer (selected key indikators in direct correlation with the goals and principles of Lisbon Stratf+gy (Barometer will be prepared on annual basis)

25. Developing implementation instruments Measures, deadlines, implementing bodies Adopting Lisbon instruments Integrated guidelines for growth and employment Open method of coordination Benchmarks Monitoring Social dialogue, partnership, commitment to reforms

26. Open method of coordination (OMC) Croatia has so far not enough promoted mechanisms implemented through OMC Identification, implementation and spreading best practice of achieving convergence towards common EU goals Process of mutual learning aiming to develop coherent policies Qualitative and quantitative indicators, benchmarks Scoreboards (innovation, or enterprise policy scoreboard) Competitiveness reports, or composite indicators on knowledge society in areas such as R&D and human capital Soft approach - evaluation, monitoring, reporting

27. Open method of coordination (OMC) Existing strategic documents and actions taken demonstrate orientation towards Lisbon and Barcelona goals, but neither timetable nor benchmarking scheme has been developed yet

28. Benchmarks Indicators only partly registered by National Statistics Bureau Need to further develop system of collecting and monitoring qualitative and quantitative indicators Example: Innovation benchmark - rather weak and underdeveloped area, lack of resources of CBS (financial support, man-power, premises) Activities in progress: preparations for participation in EU benchmark programmes and system of monitoring indicators (EU benchmark programmes for innovation) Support from the PHARE programme EU benchmark programmes for innovation: CIS/EIS: Community Innovation survey/European Innovation Scoreboard Trend ChartEU benchmark programmes for innovation: CIS/EIS: Community Innovation survey/European Innovation Scoreboard Trend Chart

29. Selected structural indicators (EU-25, Croatia and candidates/acceding countries, 2004) Kokov izvje�taj kao kljucni zadatak nala�e razvoj nacionalnih politika zemalja clanica, koje treba podr�avati europska struktura. Nacionalne i europske politike (ukljucujuci i proracun) moraju odra�avati ciljeve Lisabona. Europsko vijece ima kljucnu ulogu u daljnjem napretku Lisabona. MS � pripremaju nacionalne programe, ukljucuju gradane i interesne grupe u proces EK � nadzire, izvje�cuje i podr�ava proces svojim politikama i aktivnostima. Socijalni partneri � va�na ulogaKokov izvje�taj kao kljucni zadatak nala�e razvoj nacionalnih politika zemalja clanica, koje treba podr�avati europska struktura. Nacionalne i europske politike (ukljucujuci i proracun) moraju odra�avati ciljeve Lisabona. Europsko vijece ima kljucnu ulogu u daljnjem napretku Lisabona. MS � pripremaju nacionalne programe, ukljucuju gradane i interesne grupe u proces EK � nadzire, izvje�cuje i podr�ava proces svojim politikama i aktivnostima. Socijalni partneri � va�na uloga

30. Ranking and Scores of Potential EU Member Countires

31. Lisbon Scores:Comparing EU and Accession Countries

32. R&D: investing more in knowledge and innovation Need to increase the overall R&D investment (EU goal 3% of GDP by 2010, of which 2/3 from private sector) Expenditure on R&D low: more than 1% of GDP (EU average 1.9%) targeted share public/private sector 1:2 (Croatia 2:1) Action Plan for increasing R&D expenditure in preparation (complementary to EU Action Plan 3%) identify R&D targeted level of expenditure for R&D (eg. 2% in 2010, share 1:1) develop overall strategy to achieve targets, coordinated measures, concrete actions, mechanisms for monitoring implementation and results Need to participate in the OMC in favor of the 3% objective (CREST) Innovation - positive (but limited) results achieved HITRA, Croatian Programme for Innovative Technological Development should be coordinated with measures involving all the components of the National Innovation System (NIS)

39. Unlocking business potential, especially SME - achievements Introducing �one-stop-shop� concept� HITRO.HR service shortening the duration procedure of establishing a company (six days) HITRORez Web page: Business Navigator (June 2006) Competitiveness barometer (NCC, 2006) E-Croatia Programme � efforts to transform Croatian society into an information society 55 Recommendations for Raising Croatia�s Competitiveness , Annual Reports� in May2006. NCC will issue a specia edition of Rep�ort � Competitiveness Barometer (selected key indikators in direct correlation with the goals and principles of Lisbon Stratf+gy (Barometer will be prepared on annual basis) E-Croatia Programme � efforts to transform Croatian society into an information society 55 Recommendations for Raising Croatia�s Competitiveness , Annual Reports� in May2006. NCC will issue a specia edition of Rep�ort � Competitiveness Barometer (selected key indikators in direct correlation with the goals and principles of Lisbon Stratf+gy (Barometer will be prepared on annual basis)

40. Lessons for Croatia Lisbon strategy is not obligatory for candidates: voluntary adoption of good practice Identification of own priorities:respecting national and regional differences, defining specific, individual goals Negotiations on EU membership prioritisation of the Lisbon strategy goals in defferent area (R&D) participation in implementig mechanism (OMC) Adopting best practice of new MS (National Reform Programmes) Croatia best positioned as compared with EU candidates

41. Conclusions Lisbon strategy goals remain the main reform framework for EU, relevant for Croatia Raising awareness and understanding on Lisbon agenda goals and implementation mechanisms during accession process necessary Prioritisation and seequencing goals according individual situation and needs Development of the system of collecting and monitoring qualitative and quantitative indicators necessary, corresponding to structural indicators (EUROSTAT) Croatia should speed-up preparations to implement Lisbon goals (�umbrella� programme with specific action plans) Adopting the best practice Although Croatia has not developed Lisbon Action Plan, a broad mix of policies exist that work in the same direction. But, they are neither fully coherent nor coordinated Signigicant progress made but ... further action needed

42. Thank you for your attention!