Editor's note

A new drive for a closer cooperation is instigated by the preparation for the “EU strategic plan” for the next decade, called EU-2020 strategy. The European Commission is to replace the expiring Lisbon Agenda valid for the previous decade of 2000-10 with a new one for the next decade. The previous ten years in the Union’s development have shown that national protectionist trends were often more efficient for the EU members than their cooperative efforts. Hence, the Lisbon Agenda failed to reach its ambitious aims of making the EU “most efficient economy in the world”.

In order for the second decade’s strategy to be more realistic, the Commission made a four-month public debate about the EU-2020 strategy, which appeared as a reasonable framework for the member states to indulge in “common efforts” for the Union’s economic policy. The crisis of 2007-2010 has shown that member states economies are much more interrelated than it was thought before; and closer coordination of their economic policies is needed, rather than previously viewed “traditional integration” efforts in the Communities.

For the “common good”

The main requirement for the new “decade’s strategy” to be a benefit of all and successful is that the strategy shall be of interest and advantage to participating members –separately and in general. For this to happen, the strategy’s “ingredients” have to be, first, in line with the member states’ national priorities and, second, the “common measures” shall reflect the “common good”. That is, the common measures shall somehow be of advantage to the single member states.

It seems that the EU-2020 strategy draft prepared this spring is in line with the both mentioned “ingredients”.

The major part of the 2020 strategy, certainly, reflects growth patterns in the EU social market economy. It is for the common good that the EU-2020 Strategy sets out 3 priority areas in the EU and the member states’ social market economy over the next decade. These priorities are both interlocking and mutually reinforcing:

• smart growth (fostering knowledge, innovation, education and digital society);
• sustainable growth (making our production more resource efficient while boosting our competitiveness), and
• inclusive growth (raising participation in the labour market, the acquisition of skills and efforts to combat poverty).

These European efforts for “smart and sustainable growth” with increased employment require decisive steps on political and governments’ level and mobilisation of all potentials from all actors across Europe.

Progress towards these objectives will be measured against five headline EU-level targets, which Member States will be asked to translate into their national economic policy targets reflecting the following priorities:

- 75 % of the population aged 20-64 should be employed;

- 3% of the EU's GDP should be invested in R&D;

- the "triple-20" climate/energy targets should be met (energy efficiency, pollution reduction and renewable energy sources);

- the share of early school leavers should be under 10%, and at least 40% of the younger generation should have a degree or diploma;

- 20 mln less people should be at risk of poverty.

Major EU initiatives

In order to meet the targets, the Commission proposed that the EU-2020 agenda would consist of a series of flagship initiatives. Implementing these initiatives is a shared priority, and actions will be required at all levels: EU institutions, the member states, local and regional authorities. These initiatives are the following:

- Innovations, which mean re-focusing R&D and innovation policy on major challenges, while closing the gap between science and market, and turning inventions into products. For example, the Community Patent could save companies € 289 mln each year.

- Youth mobility, which means enhancing the quality and international attractiveness of Europe's higher education system by promoting student and young professional mobility. As a concrete action, vacancies in all member states should be more accessible throughout Europe and professional qualifications and experience properly recognised.

- A digital agenda for Europe, which means delivering sustainable economic and social benefits from a Digital Single Market based on ultra fast internet. All Europeans should have access to high-speed internet by 2013.

- Resource-efficient Europe, which means a constant shift towards resource efficient and low-carbon economy. The EU should stick to its 2020 targets in terms of energy production, efficiency and consumption. This would result in € 60 bln less in oil and gas imports by 2020.

Member states’ industrial policy shall be oriented towards green growth, i.e. the EU's industrial base must be competitive in the post-crisis world, promoting entrepreneurship and developing new skills, which would create millions of new jobs.

- New skills and jobs, which means creating the conditions for modernising labour markets, with a view to raising employment levels and ensuring the sustainability of European social models, and

- EU actions against poverty, aimed at ensuring economic, social and territorial cohesion by helping the poor and socially excluded and enabling them to play an active part in society.

The EU-2020 strategy proposals need approval by national leaders at the end of March. Detailed national targets would be set later this year.

Priorities for the Baltics

The same urgent drive for cooperation, which is envisaged in the EU-2020 strategy -rather than integration – is a must for the three Baltic States. Some common projects have already been implemented among the three newcomers, but still more would be needed. The closer these states are, the better is their position in the European Union.Therefore, the “Baltic Course” is an inevitable perspective; the quicker politicians in these countries realise the imperative, the better. 

Estonia is regarded as a first, out of the three Baltic States, candidate for membership in the EU’s eurozone-club; it is expected to enter common currency’s 16 member states in 2011-12. However, the shaky position of some of the old members, e.g. Spain, Portugal and particularly Greece, has shown that membership’s responsibility can be a tough burden.