EU leaders are committed to relaunching the strategy for economic and social reform, writes Taoiseach Bertie Ahern.
In March 2000 the European Council, which met in Lisbon, agreed on a new goal for the European Union: to transform Europe into a competitive, dynamic and knowledge-based economy, characterised by a greater degree of social inclusion. At Gothenburg the following year, an environmental dimension was added to this goal to ensure that growth would be achieved sustainably.
Five years on, the outcome is mixed and there is general consensus that Europe needs to redouble its efforts to meet the challenge ahead.
Last week the European Council undertook the mid-term review of the Lisbon agenda - the strategy for economic and social reform.
The values underpinning European society require us to improve living standards and quality of life through strong economic growth, which in turn facilitates a high degree of social cohesion and environmental protection. The big challenge facing Europe at present is the widening growth gap with other major world economies. Failure to address it will see Europe experience economic decline with inevitable pressure on its social and environmental policies.
I and the other leaders of the European Union committed ourselves last week to relaunching the Lisbon agenda as a Partnership for Growth and Employment. But we have also endorsed action in two complementary areas - promoting social cohesion and sustaining development. The refocused strategy, therefore, goes hand-in-hand with the promotion of social and environmental objectives, which are crucial to Europe's success.
It would, therefore, be wrong to see the Lisbon agenda as being only about competitiveness. None of us wants Lisbon a la carte.
But economic dynamism is a necessary, but not sufficient, condition to build a better society.
Our support for the European social model remains unequivocal. The European Council last week welcomed the publication of the commission's new Communication on the Social Agenda which sets out the union's social priorities up to 2010. These priorities - which include promotion of quality employment, social protection and industrial relations, as well as adapting our systems of social protection to the requirements of our societies - will help to achieve the Lisbon agenda objectives of full employment and greater social cohesion.
In the negotiations on the new European Constitution, Ireland pressed for a new provision that obliges the union to take into account social objectives, including the fight against social exclusion and poverty in all policy areas. This provision explicitly places social objectives at the very heart of the union's activities in keeping with its social model.
To achieve greater growth, we need to improve our performance in the fields of knowledge and innovation.
We must complete the internal market, in particular the internal market for services. The draft services directive is aimed at removing barriers to the free movement of services. I believe this is crucially important both for the creation of new jobs and to stimulate growth and competitiveness. I support this directive's overall thrust, with proper regard for necessary standards.
We also have to recognise the global context in which we are operating. Europe must become more competitive in its actions as well as its words. The EU now competes directly with other regions of the world for mobile investment in knowledge and research. Our state aids regime must take account of this, so that EU countries are not at a disadvantage in competing for investment.
Ireland has a special interest in better regulation. We need to regulate effectively and ensure that red tape does not stifle growth and competitiveness. The European Council and the other institutions are committed to focusing on those areas where the greater benefits are likely to accrue, such as strengthening impact assessment and simplifying EU regulations in the interest of competitiveness.
The changes that have been agreed in the Stability and Growth Pact will also contribute to the achievement of the Lisbon objective. We now have a good overall package of reform measures that deals, in a balanced way, with our objective of growth and competitiveness. I have always held that growth and competitiveness are not ends in themselves. Rather, they are the means to secure social cohesion and a better quality of life.
A core objective for the EU and its member states must be the delivery of more and better jobs.
The report of the Employment Task Force, chaired by Wim Kok, and integrated in the Join Employment report, has provided us with a good basis to take firm action on employment. In taking action, it is critical that we pay attention to a number of structural challenges: namely adaptability, attracting more people into the labour market and investing in human capital.
At every level, we must increase the ability of workers and enterprises to respond to change. We must make work more attractive to particular groups, including women and older workers. We must make more effective investment in education, vocational training and the whole area of lifelong learning to equip people for employment in the knowledge society.
I believe it is worthwhile reflecting on the Irish experience in the recent past. Our policies on structural reform were key to promoting employment and stimulating investment. For an economy that was characterised throughout most of the 20th century by emigration and high unemployment, it is clear that our complementary socio-economic policies, underpinned by social partnership, played a crucial role in bringing about an almost incredible turnaround. I believe that what worked for Ireland can now work similarly for the European Union.
The Lisbon strategy is working - as is evident from the six million jobs created since 2000; from the opening of key markets to competition; and from the emergence of a knowledge-based economy in the public and private sectors. But, to tackle the global challenge and deliver the rates of growth, jobs and social cohesion that are still clearly necessary, we must do better, and do so in partnership with all of the stakeholders. Across Europe we need to engage national parliaments, social partners and civil society as a whole to achieve the necessary pace of progress.
This is why I called last year for member states to establish national reform partnerships. Our own well-developed social partnership process has shown us the value of engaging all of the players in the national reform process. I am pleased that the partnership theme has been followed through in the commission's communication this year.
The involvement of the partners at national level in the new action programmes and reporting systems will add a vital dynamism. In addition, the commitment of the social partners at EU level through the Tripartite Social Summit is a welcome expression of their interest and support for the new Partnership for Growth and Employment.
My view on delivering the Lisbon agenda is straightforward. We must act now to revitalise the European economy to ensure the ongoing success of European society. There are many important and complementary measures needed to achieve our objective. Let us not indulge in false arguments about which strand is more important, but instead strive to deliver the kind of Europe we all aspire to.