

potential career shifts, reduce unemployment and raise labour productivity. 

At EU level, the Commission will work: 
 To define and implement the second phase of the flexicurity agenda, together with European social 
partners, to identify ways to better manage economic transitions and to fight unemployment and raise 
activity rates; 
 To adapt the legislative framework, in line with 'smart' regulation principles, to evolving work patterns 
(e.g. working time, posting of workers) and new risks for health and safety at work; 
 To facilitate and promote intra-EU labour mobility and better match labour supply with demand with 
appropriate financial support from the structural funds, notably the European Social Fund (ESF), and to 
promote a forward-looking and comprehensive labour migration policy which would respond in a 
flexible way to the priorities and needs of labour markets; 
 To strengthen the capacity of social partners and make full use of the problem-solving potential of 
social dialogue at all levels (EU, national/regional, sectoral, company), and to promote strengthened 
cooperation between labour market institutions including the public employment services of the 
Member States; 
 To give a strong impetus to the strategic framework for cooperation in education and training involving 
all stakeholders. This should notably result in the implementation of life-long learning principles (in 
cooperation with Member States, social partners, experts) including through flexible learning pathways 
between different education and training sectors and levels and by reinforcing the attractiveness of 
vocational education and training. Social partners at European level should be consulted in view of 
developing an initiative of their own in this area; 


 To ensure that the competences required to engage in further learning and the labour market are 
acquired and recognised throughout general, vocational, higher and adult education and to develop a 
common language and operational tool for education/training and work: a European Skills, 
Competences and Occupations framework (ESCO). 

At national level, Member States will need: 
 To implement their national pathways for flexicurity, as agreed by the European Council, to reduce 
labour market segmentation and facilitate transitions as well as facilitatig the reconciliation of work and 
family life; 
 To review and regularly monitor the efficiency of tax and benefit systems so to make work pay with a 
particular focus on the low skilled, whilst removing measures that discourage self-employment; 
 To promote new forms of work-life balance and active ageing policies and to increase gender equality; 
 Promote and monitor the effective implementation of social dialogue outcomes; 
 To give a strong impetus to the implementation of the European Qualifications Framework, through the 
establishment of national qualification frameworks; 
 To ensure that the competences required to engage in further learning and the labour market are 
acquired and recognised throughout general, vocational, higher and adult education, including non 
formal and informal learning; 




 To develop partnerships between the worlds of education/training and work, in particular by involving 
social partners in the planning of education and training provision. 


 

 

Flagship Initiative: "European Platform against Poverty" 

The aim is to ensure economic, social and territorial cohesion, building on the current European year for 
combating poverty and social exclusion so as to raise awareness and recognise the fundamental rights of 
people experiencing poverty and social exclusion, enabling them to live in dignity and take an active part 
in society. 

At EU level, the Commission will work: 





 To transform the open method of coordination on social exclusion and social protection into a platform 
for cooperation, peer-review and exchange of good practice, and into an instrument to foster 
commitment by public and private players to reduce social exclusion, and take concrete action, 
including through targeted support from the structural funds, notably the ESF; 
 To design and implement programmes to promote social innovation for the most vulnerable, in 
particular by providing innovative education, training, and employment opportunities for deprived 
communities, to fight discrimination (e.g. disabled), and to develop a new agenda for migrants' 
integration to enable them to take full advantage of their potential; 


 To undertake an assessment of the adequacy and sustainability of social protection and pension 
systems, and identify ways to ensure better access to health care systems. 

At national level, Member States will need: 
 To promote shared collective and individual responsibility in combating poverty and social exclusion; 
 To define and implement measures addressing the specific circumstances of groups at particular risk 
(such as one-parent families, elderly women, minorities, Roma, people with a disability and the 
homeless); 




 To fully deploy their social security and pension systems to ensure adequate income support and access 
to health care. 


 

3. MISSING LINKS AND BOTTLENECKS 

All EU policies, instruments and legal acts, as well as financial instruments, should be 
mobilised to pursue the strategys objectives. The Commission intends to enhance key 
policies and instruments such as the single market, the budget and the EU's external economic 
agenda to focus on delivering Europe 2020's objectives. Operational proposals to ensure their 
full contribution to the strategy are an integral part of the Europe 2020. 

3.1. A single market for the 21st century 

A stronger, deeper, extended single market is vital for growth and job creation. However, 
current trends show signs of integration fatigue and disenchantment regarding the single 
market. The crisis has added temptations of economic nationalism. The Commission's 
vigilance and a shared sense of responsibility among Member States have prevented a 
drift towards disintegration. But a new momentum  a genuine political commitment - is 
needed to re-launch the single market, through a quick adoption of the initiatives mentioned 
below. Such political commitment will require a combination of measures to fill the gaps in 
the single market. 

Every day businesses and citizens are faced with the reality that bottlenecks to cross-border 
activity remain despite the legal existenceof the single market. They realise that networks are 
not sufficiently inter-connected and that the enforcement of single market rules remains 
uneven. Often, businesses and citizens still need to deal with 27 different legal systems for 
one and the same transaction. Whilst our companies are still confronted with the day-to-day 
reality of fragmentation and diverging rules, their competitors from China, the US or Japan 
can draw full strength from their large home markets. 

The single market was conceived before the arrival of Internet, before information and 
communication technologies became the one of the main drivers of growth and before 
services became such a dominant part of the European economy. The emergence of new 
services (e.g. content and media, health, smart energy metering) shows huge potential, but 


Europe will only exploit this potential if it overcomes the fragmentation that currently blocks 
the flow of on-line content and access for consumers and companies. 

To gear the single market to serve the Europe 2020 goals requires well functioning and well-
connected markets where competition and consumer access stimulate growth and innovation. 
An open single market for services must be created on the basis of the Services Directive, 
whilst at the same time ensuring the quality of services provided to consumers. The full 
implementation of the Services Directive could increase trade in commercial services by 45% 
and Foreign Direct investment by 25%, bringing an increase of between 0.5% and 1.5% 
increase in GDP. 

Access for SMEs to the single market must be improved. Entrepreneurship must be developed 
by concrete policy initiatives, including a simplification of company law (bankruptcy 
procedures, private company statute, etc.), and initiatives allowing entrepreneurs to restart 
after failed businesses. Citizens must be empowered to play a full part in the single market. 
This requires strengthening their ability and confidence to buy goods and services cross-
border, in particular on-line. 

Through the implementation of competition policy the Commission will ensure that the single 
market remains an open market, preserving equal opportunities for firms and combating 
national protectionism. But competition policy will do more to contribute to achieving the 
Europe 2020 goals. Competition policy ensures that markets provide the right environment 
for innovation, for example through ensuring that patents and property rights are not abused. 
Preventing market abuse and anticompetitive agreements between firms provides a 
reassurance to incentivise innovation. State aid policy can also actively and positively 
contribute to the Europe 2020 objectives by prompting and supporting initiatives for more 
innovative, efficient and greener technologies, while facilitating access to public support for 
investment, risk capital and funding for research and development. 

The Commission will propose action to tackle bottlenecks in the single market by: 
 Reinforcing structures to implement single market measures on time and correctly, 
including network regulation, the Services Directive and the financial markets 
legislative and supervision package, enforce them effectively and when problems 
arise, resolve them speedily; 
 Pressing ahead with the Smart Regulation agenda, including considering the wider 
use of of regulations rather than directives, launching ex-post evaluation of existing 
legisation, pursuing market monitoring, reducing administrative burdens, removing 
tax obstacles, improving the business environment, particularly for SMEs, and 
supporting entrepreneurship; 
 Adapting EU and national legislation to the digital era so as to promote the 
circulation of content with high level of trust for consumers and companies. This 
requires updating rules on liability, warranties, delivery and dispute resolution; 
 Making it easier and less costly for businesses and consumers to conclude contracts 
with partners in other EU countries, notably by offering harmonised solutions for 
consumer contracts, EU model contract clauses and by making progress towards an 
optional European Contract Law; 


 Making it easier and less costly for businesses and consumers to enforce contracts 
and to recognise court judgments and documents in other EU countries. 


3.2. Investing in growth: cohesion policy, mobilising the EU budget and private 
finance 

Economic, social and territorial cohesion will remain at the heart of the Europe 2020 strategy 
to ensure that all energies and capacities are mobilised and focused on the pursuit of the 
strategy's priorities. Cohesion policy and its structural funds, while important in their own 
right, are key delivery mechanisms to achieve the priorities of smart, sustainable and inclusive 
growth in Member States and regions. 

The financial crisis has had a major impact on the capacity of European businesses and 
governments to finance investment and innovation projects. To accomplish its objectives for 
Europe 2020, a regulatory environment that renders financial markets both effective and 
secure is key. Europe must also do all it can to leverage its financial means, pursue new 
avenues in using a combination of private and public finance, and in creating innovative 
instruments to finance the needed investments, including public-private partnerships (PPPs). 
The European Investment Bank and the European Investment Fund can contribute to backing 
a "virtuous circle" where innovation and entrepreneurship can be funded profitably from early 
stage investments to listing on stock markets, in partnership with the many public initiatives 
and schemes already operating at national level. 

The EU multi-annual financial framework will also need to reflect the long-term growth 
priorities. The Commission intends to take the priorities, once agreed, up in its proposals for 
the next multi-annual financial framework, due for next year. The discussion should not only 
be about levels of funding, but also about how different funding instruments such as structural 
funds, agricultural and rural development funds, the research framework programme, and the 
competitiveness and innovation framework programme (CIP) need to be devised to achieve 
the Europe 2020 goals so as to maximise impact, ensure efficiency and EU value added. It 
will be important to find ways of increasing the impact of the EU budget  while small it can 
have an important catalytic effect when carefully targetted. 

The Commission will propose action to develop innovative financing solutions to support 
Europe 2020's objectives by: 
 Fully exploiting possibilities to improve the effectiveness and efficiency of the 
existing EU budget through stronger prioritisation and better alignment of EU 
expenditure with the goals of the Europe 2020 to address the present fragmentation 
of EU funding instruments (e.g. R&D and innovation, key infrastructure investments 
in cross-border energy and transport networks, and low-carbon technology). The 
opportunity of the review of the Financial Regulation should also be fully exploited 
to develop the potential of innovative financial instruments, whilst ensuring sound 
financial management; 
 Designing new financing instruments, in particular in cooperation with the EIB/EIF 
and the private sector, responding to hitherto unfulfilled needs by businesses. As part 
of the forthcoming research and innovation plan, the Commission will co-ordinate an 
initiative with the EIB/EIF to raise additional capital for funding innovative and 
growing businesses; 


 Making an efficient European venture capital market a reality, thereby greatly 
facilitating direct business access to capital markets and exploring incentives for 
private sector funds that make financing available for start-up companies, and for 
innovative SMEs. 


3.3. Deploying our external policy instruments 

Global growth will open up new opportunities for Europe's exporters and competitive access 
to vital imports. All instruments of external economic policy need to be deployed to foster 
European growth through our participation in open and fair markets world wide. This applies 
to the external aspects of our various internal policies (e.g. energy, transport, agriculture, 
R&D) but this holds in particular for trade and international macroeconomic policy 
coordination. An open Europe, operating within a rules-based international framework, is the 
best route to exploit the benefits of globalisation that will boost growth and employment. At 
the same time, the EU must assert itself more effectively on the world stage, playing a leading 
role in shaping the future global economic order through the G20, and pursuing the European 
interest through the active deployment of all the tools at our disposal. 

A part of the growth that Europe needs to generate over the next decade will need to come 
from the emerging economies as their middle classes develop and import goods and services 
in which the European Union has a comparative advantage. As the biggest trading bloc in the 
world, the EU prospers by being open to the world and paying close attention to what other 
developed or emerging economies are doing to anticipate or adapt to future trends. 

Acting within the WTO and bilaterally in order to secure better market access for EU 
business, including SMEs, and a level playing field vis-a-vis our external competitors should 
be a key goal. Moreover, we should focus and streamline our regulatory dialogues, 
particularly in new areas such as climate and green growth, where possible expanding our 
global reach by promoting equivalence, mutual recognition and convergence on key 
regulatory issues, as well as the adoption of our rules and standards. 

The Europe 2020 strategy is not only relevant inside the EU, it can also offer considerable 
potential to candidate countries and our neighbourhood and better help anchor their own 
reform efforts. Expanding the area where EU rules are applied, will create new opportunities 
for both the EU and its neighbours. 

In addition, one of the critical objectives in the next few years will be to build strategic 
relationships with emerging economies to discuss issues of common concern, promote 
regulatory and other co-operation and resolve bilateral issues. The structures underpinning 
these relationships will need to be flexible and be politically rather than technically driven. 


The Commission will draw up in 2010 a trade strategy for Europe 2020 which will include: 
 An emphasis on concluding on-going multilateral and bilateral trade negotiations, in 
particular those with the strongest economic potential, as well as on better 
enforcement of existing agreements, focussing on non-tariff barriers to trade; 
 Trade opening initiatives for sectors of the future, such as "green" products and 
technologies, high-tech products and services, and on international standardization in 
particular in growth areas; 
 Proposals for high-level strategic dialogues with key partners, to discuss strategic 
issues ranging from market access, regulatory framework, global imbalances , energy 
and climate change, access to raw materials, to global poverty, education and 
development. It will also work to reinforce the Transatlantic Economic Council with 
the US the High Level Economic Dialogue with China and deepen its relationship 
with Japan and Russia; 


 Starting in 2011 and then annually before the Spring European Council, a trade and 
investment barriers report identifying ways to improve market access and regulatory 
environment for EU companies. 

The EU is a global player and takes its international responsibilities seriously. It has been 
developing a real partnership with developing countries to eradicate poverty, to promote 
growth and to fulfil the Millenium Development Goals (MDGs). We have a particularly close 
relationship with Africa and will need to invest further in the future in developing that close 
partnership. This will take place in the broader ongoing efforts to increase development 
aid, improve the efficiency of our aid programmes notably through the efficient division of 
labour with Member States and by better reflecting development aims in other policies of the 
European Union. 

4. EXIT FROM THE CRISIS: FIRST STEPS TOWARDS 2020 

Policy instruments were decisively, and massively, used to counteract the crisis. Fiscal policy 
had, where possible, an expansionary and counter-cyclical role; interest rates were lowered to 
historical minima while liquidity was provided to the financial sector in an unprecedented 
way. Governments gave massive support to banks, either through guarantees, recapitalization 
or through "cleaning" of balance sheets from impaired assets; other sectors of the economy 
were supported under the temporary, and exceptional, framework for State aid. All these 
actions were, and still are, justified. But they cannot stay there permanently. High levels of 
public debt cannot be sustained indefinitely. The pursuit of the Europe 2020 objectives must 
be based on a credible exit strategy as regards budgetary and monetary policy on the one 
hand, and the direct support given by governments to economic sectors, in particular the 
financial sector, on the other. The sequencing of these several exits is important. A reinforced 
coordination of economic policies, in particular within the euro area should ensure a 
successful global exit. 

4.1. Defining a credible exit strategy 

Given remaining uncertainties about the economic outlook and fragilities in the financial 
sector, support measures should only be withdrawn once the economic recovery can be 



4 European Council conclusions of 10/11 December 2009. 

regarded as self-sustaining and once financial stability has been restored4. The withdrawal of 
temporary crisis-related measures should be coordinated and take account of possible negative 
spill-over effects both across Member States as well as of interactions between different 
policy instruments. State aid disciplines should be restored, starting with the ending of the 
temporary state aid framework. Such a coordinated approach would need to rely on the 
following principles: 
 The withdrawal of the fiscal stimulus should begin as soon as the recovery is on a 
firm footing. However, the timing may have to differ from country to country, hence 
the need for a high degree of coordination at European level; 
 Short-term unemployment support should only start to be phased out once a turning 
point in GDP growth can be regarded as firmly established and thus employment, 
with its usual lag, will have started to grow; 
 Sectoral support schemes should be phased out early as they carry a large budget 
costs, are considered to have by and large achieved their objectives, and due to their 
possible distorting effects on the single market; 
 Access-to-finance support should continue until there are clear signs that financing 
conditions for business have broadly returned to normal; 


 Withdrawal of support to the financial sector, starting with government guarantee 
schemes, will depend on the state of the economy overall and of the stability of the 
financial system in particular. 

4.2. The reform of the financial system 

A crucial priority in the short term will be to restore a solid, stable and healthy financial sector 
able to finance the real economy. It will require the full and timely implementation of the G20 
commitments. Five objectives will in particular have to be met: 
 Implementing the agreed reforms of the supervision of the financial sector; 
 Filling the regulatory gaps, promoting transparency, stability and accountability 
notably as regards derivatives and market infrastructure; 
 Completing the strengthening of our prudential, accounting and consumer protection 
rules in the form a single European rule-book covering all financial actors and 
markets in an appropriate way; 
 Strengthening the governance of financial institutions, in order to address the 
weaknesses identified during the financial crisis in the area of risk identification and 
management; 


 Setting in motion an ambitious policy that will allow us in the future to better prevent 
and if needed manage possible financial crises, and that  taking into account the 
specific responsibility of the financial sector in the current crisis  will look also into 
adequate contributions from the financial sector. 


4.3. Pursuing smart budgetary consolidation for long-term growth 

Sound public finances are critical for restoring the conditions for sustainable growth and jobs 
so we need a comprehensive exit strategy. This will involve the progressive withdrawal of 
short-term crisis support and the introduction of medium- to longer-term reforms that promote 
the sustainability of public finances and enhance potential growth. 

The Stability and Growth Pact provides the right framework to implement fiscal exit 
strategies and Member States are setting down such strategies in their stability and 
convergence programmes. For most countries, the onset of fiscal consolidation should 
normally occur in 2011. The process of bringing the deficits to below 3% of GDP should be 
completed, as a rule, by 2013. However, in a number of countries, the consolidation phase 
may have to begin earlier than 2011 implying that the withdrawal of temporary crisis support 
and fiscal consolidation may in these cases need to occur simultaneously. 

To support the EU's economic growth potential and the sustainability of our social models, 
the consolidation of public finances in the context of the Stability and Growth Pact involves 
setting priorities and making hard choices: coordination at EU can help Member States in this 
task and help address spill-over effects. In addition, the composition and quality of 
government expenditure matters: budgetary consolidation programmes should prioritise 
'growth-enhancing items' such as education and skills, R&D and innovation and investment in 
networks, e.g. high-speed internet, energy and transport interconnections  i.e. the key 
thematic areas of the Europe 2020 strategy. 

The revenue side of the budget also matters and particular attention should also be given to 
the quality of the revenue/tax system. Where taxes may have to rise, this should, where 
possible, be done in conjunction with making the tax systems more "growth-friendly". For 
example, raising taxes on labour, as has occurred in the past at great costs to jobs, should be 
avoided. Rather Member States should seek to shift the tax burden from labour to energy and 
environmental taxes as part of a greening of taxation systems. 

Fiscal consolidation and long-term financial sustainability will need to go hand in hand with 
important structural reforms, in particular of pension, health care, social protection and 
education systems. Public administration should use the situation as an opportunity to 
enhance efficiency and the quality of service. Public procurement policy must ensure the most 
efficient use of public funds and procurement markets must be kept open EU-wide. 

4.4. Coordination within the Economic and Monetary Union 

The common currency has acted as a valuable shield from exchange rate turbulences for those 
Member States whose currency is the euro. But the crisis has also revealed the extent of the 
interdependence between the economies within the euro area, namely in the financial domain, 
rendering spill-over effects more likely. Divergent growth patterns lead in some cases to the 
accumulation of unsustainable government debts which in turn puts strains on the single 
currency. The crisis has thus amplified some of the challenges faced by the euro area, e.g. the 
sustainability of public finances and potential growth, but also the destabilising role of 
imbalances and competitiveness divergences. 

Overcoming these challenges in the euro area is of paramount importance, and urgent, in 
order to secure stability and sustained and employment creating growth. Addressing these 
challenges requires strengthened and closer policy co-ordination including: 



 A framework for deeper and broader surveillance for euro area countries: in addition 
to strengthening fiscal discipline, macro-economic imbalances and competitiveness 
developments should be an integral part of economic surveillance, in particular with 
a view to facilitating a policy driven adjustment. 
 A framework for addressing imminent threats for the financial stability of the euro 
area as a whole. 


 Adequate external representation of the euro area in order to forcefully tackle global 
economic and financial challenges. 

The Commission will make proposals to take these ideas forward. 

5. DELIVERING RESULTS: STRONGER GOVERNANCE 

To achieve transformational change, the Europe 2020 strategy will need more focus, clear 
goals and transparent benchmarks for assessing progress. This will require a strong 
governance framework that harnesses the instruments at its disposal to ensure timely and 
effective implementation. 

5.1. Proposed architecture of Europe 2020 

The strategy should be organised around a thematic approach and a more focused country 
surveillance. This builds on the strength of already existing coordination instruments. More 
specifically: 
 A thematic approach would focus on the themes identified in Section 2, in 
particular the delivery of the 5 headline targets. The main instrument would be the 
Europe 2020 programme and its flagship initiatives, which require action at both EU 
and Member States level (see Section 2 and Annexes 1 and 2). The thematic 
approach reflects the EU dimension, shows clearly the interdependence of Member 
States economies, and allows greater selectivity on concrete initiatives which push 
the strategy forward and help achieve the EU and national headline targets. 


 Country reporting would contribute to the achievement of Europe 2020 goals by 
helping Member States define and implement exit strategies, to restore 
macroeconomic stability, identify national bottlenecks and return their economies to 
sustainable growth and public finances. It would not only encompass fiscal policy, 
but also core macroeconomic issues related to growth and competitiveness (i.e. 
macro-imbalances). It would have to ensure an integrated approach to policy design 
and implementation, which is crucial to support the choices Member States will have 
to make, given the constraints on their public finances. A specific focus will be 
placed on the functioning of the euro area, and the interdependence between Member 
States. 

To achieve this, the Europe 2020 and Stability and Growth Pact (SGP) reporting and 
evaluation will be done simultaneously to bring the means and the aims together, while 
keeping the instruments and procedures separate and maintaining the integrity of the SGP. 
This means proposing at the same time the annual stability or convergence programmes and 
streamlined reform programmes which each Member State will draw up to set out measures to 
report on progress towards their targets, as well as key structural reforms to address their 
bottlenecks to growth. Both these programmes, which should contain the necessary cross-
references, should be submitted to the Commission and other Member States during the last 


quarter of the year. The European Systemic Risk Board (ESRB) should report regularly on 
macro-financial risks: these reports will be an important contribution to the overall 
assessment. The Commission will assess these programmes and report on progress made with 
their implementation. Specific attention will be devoted to the challenges of the Economic 
and Monetary Union. 

This would give the European Council all the information necessary to take decisions. Indeed, 
it would have an analysis of the economic and job situations, the overall budgetary picture, 
macro-financial conditions and progress on the thematic agendas per Member State, and 
would in addition review the overall state of the EU economy. 

Integrated guidelines 

The Europe 2020 strategy will be established institutionally in a small set of integrated 
'Europe 2020' guidelines (integrating employment and broad economic policy guidelines), to 
replace the 24 existing guidelines. These new guidelines will reflect the decisions of the 
European Council and integrate agreed targets. Following the opinion of the European 
Parliament on the employment guidelines as foreseen by the Treaty, the guidelines should be 
politically endorsed by the June European Council before they are adopted by Council. Once 
adopted, they should remain largely stable until 2014 to ensure a focus on implementation. 

Policy Recommendations 

Policy recommendations will be addressed to Member States both in the context of the 
country reporting as well as under the thematic approach of Europe 2020. For country 
surveillance, they will take the form of Opinions on stability/convergence programmes under 
Council Regulation (EC) No 1466/97 accompanied by recommendations under the Broad 
Economic Policy Guidelines (BEPGs, Article 121.2). The thematic part would include 
Employment recommendations (Article 148) and country recommendations on other selected 
thematic issues (for instance on business environment, innovation, functioning of the single 
market, energy/climate change etc.), both of which could also be addressed to the extent that 
they have macroeconomic implications through the recommendations under the BEPGs as 
indicated above. This set-up for the recommendations would also help ensure coherence 
between the macro/fiscal framework and the thematic agendas. 

The recommendations under the country surveillance would address issues with significant 
macroeconomic and public finance implications, whereas the recommendations under the 
thematic approach would provide detailed advice on micro-economic and employment 
challenges. These recommendations would be sufficiently precise and normally provide a 
time-frame within which the Member State concerned is expected to act (e.g. two years). The 
Member State would then set out what action it would take to implement the 
recommendation. If a Member State, after the time-frame has expired, has not adequately 
responded to a policy recommendation of the Council or develops policies going against the 
advice, the Commission could issue a policy warning (Article 121.4). 

5.2. Who does what? 

Working together towards these objectives is essential. In our interconnected economies, 
growth and employment will only return if all Member States move in this direction, taking 
account of their specific circumstances. We need greater ownership. The European Council 
should provide overall guidance for the strategy, on the basis of Commission proposals built 
on one core principle: a clear EU value added. In this respect, the role of the European 
Parliament is particularly important. The contribution of stakeholders at national and regional 


level and of the social partners needs also to be enhanced. An overview of the Europe 2020 
policy cycle and timeline is included in Annex 3. 

Full ownership by the European Council 

Contrary to the present situation where the European Council is the last element in the 
decision-making process of the strategy, the European Council should steer the strategy as it 
is the body which ensures the integration of policies and manages the interdependence 
between Member States and the EU. 

Whilst keeping a horizontal watching brief on the implementation of the Europe 2020 
programme, the European Council could focus on specific themes (e.g. research and 
innovation, skills) at its future meetings, providing guidance and the necessary impulses. 

Council of Ministers 

The relevant council formations would work to implement the Europe 2020 programme and 
achieve the targets in the fields for which they are responsible. As part of the flagship 
initiatives, Member States will be invited to step up their exchange of policy information of 
good practices within the various Council formations. 

European Commission 

The European Commission will monitor annually the situation on the basis of a set of 
indicators showing overall progress towards the objective of smart, green and inclusive 
economy delivering high levels of employment, productivity and social cohesion. 

It will issue a yearly report on the delivery of the Europe 2020 strategy focusing on progress 
towards meeting the agreed headline targets, and assess country reports and stability and 
convergence programmes. As part of this process, the Commission will present policy 
recommendations or warnings, make policy proposals to attain the objectives of the strategy 
and will present a specific assessment of progress achieved within the euro-area. 

European Parliament 

The European Parliament should play an important role in the strategy, not only in its capacity 
as co-legislator, but also as a driving force for mobilising citizens and their national 
parliaments. Parliament could, for instance, use the next meeting with national parliaments to 
discuss its contribution to Europe 2020 and jointly communicate views to the Spring 
European Council. 

National, regional and local authorities 

All national, regional and local authorities should implement the partnership, closely 
associating parliaments, as well as social partners and representatives of civil society, 
contributing to the elaboration of national reform programmes as well as to its 
implementation. 

By establishing a permanent dialogue between various levels of government, the priorities of 
the Union are brought closer to citizens, strengthening the ownership needed to delivery the 
Europe 2020 strategy. 

 


Stakeholders and civil society 

Furthermore, the Economic and Social Committee as well as the Committee of Regions 
should also be more closely associated. Exchange of good practices, benchmarking and 
networking - as promoted by several Member States - has proven another useful tool to forge 
ownership and dynamism around the need for reform. 

The success of the new strategy will therefore depend critically on the European Unions 
institutions, Member States and regions explaining clearly why reforms are necessary - and 
inevitable to maintain our quality of life and secure our social models -, where Europe and its 
Member States want to be by 2020, and what contribution they are looking for from citizens, 
businesses and their representative organisations. Recognising the need to take account of 
national circumstances and traditions, the Commission will propose a common 
communication tool box to this effect. 

6. DECISIONS FOR THE EUROPEAN COUNCIL 

The Commission proposes that the European Council, at its meeting in Spring 2010: 
 agrees on the thematic priorities of the Europe 2020 strategy; 
 sets the five headline targets as proposed in section 2 of this paper: on R&D 
investments, education, energy/climate change, employment rate, and reducing 
poverty, defining where Europe should be by 2020; invites the Member States in a 
dialogue with the European Commission to translate these EU targets into national 
targets for decisions at the June European Council, taking into account national 
circumstances and differing starting points; 
 invites the Commission to come forward with proposals for the flagship initiatives, 
and requests the Council (and its formations) on this basis to take the necessary 
decisions to implement them; 
 agrees to strengthen economic policy co-ordination to promote positive spill-over 
effects and help address the Union's challenges more effectively; to this end, it 
approves the combination of thematic and country assessments as proposed in this 
communication whilst strictly maintaining the integrity of the Pact; it will also give 
special attention to strengthening EMU; 
 calls on all parties and stakeholders (e.g. national/regional parliaments, regional 
and/or local authorities, social partners and civil society, and last but not least the 
citizens of Europe) to help implement the strategy, working in partnership, by taking 
action in areas within their responsibility; 


 requests the Commission to monitor progress and report annually to the Spring 
European Council, providing an overview of progress towards the targets, including 
international benchmarking, and the state of implementation of the flagship 
initiatives. 


At its subsequent meetings: 
 endorses the proposed integrated guidelines which constitutes its institutional 
underpinning following the opinion of the European Parliament; 
 validates the national targets following a process of mutual verification to ensure 
consistency; 


 discusses specific themes assessing where Europe stands and how progress can be 
accelerated. A first discussion on research and innovation could take place at its 
October meeting on the basis of a Commission contribution. 




ANNEX 1 - EUROPE 2020: AN OVERVIEW 

HEADLINE TARGETS 

 Raise the employment rate of the population aged 20-64 from the current 69% to at least 75%. 
 Achieve the target of investing 3% of GDP in R&D in particular by improving the conditions for R&D investment by the private sector, and develop a 
new indicator to track innovation. 


 Reduce greenhouse gas emissions by at least 20% compared to 1990 levels or by 30% if the conditions are right, increase the share of renewable energy 
in our final energy consumption to 20%, and achieve a 20% increase in energy efficiency. 


 Reduce the number of Europeans living below national poverty lines by 25%, lifting 20 million people out of poverty. 

SMART GROWTH 

INCLUSIVE GROWTH 

INNOVATION 

EU flagship initiative "Innovation Union" to 
improve framework conditions and access to 
finance for research and innovation so as to 
strengthen the innovation chain and boost levels 
of investment throughout the Union. 

CLIMATE, ENERGY AND MOBILITY 

EU flagship initiative "Resource efficient 
Europe" to help decouple economic growth from 
the use of resources, by decarbonising our 
economy, increasing the use of renewable sources, 
modernising our transport sector and promoting 
energy efficiency. 

EU flagship initiative "An agenda for new skills 
and jobs" to modernise labour markets by 
facilitating labour mobility and the development 
of skills throughout the lifecycle with a view to 
increase labour participation and better match 
labour supply and demand. 

EDUCATION 

EU flagship initiative "Youth on the move" to 
enhance the performance of education systems 
and to reinforce the international attractiveness of 
Europe's higher education. 

COMPETITIVENESS 

FIGHTING POVERTY 

EU flagship initiative "European platform 
against poverty" to ensure social and territorial 
cohesion such that the benefits of growth and jobs 
are widely shared and people experiencing 
poverty and social exclusion are enabled to live in 
dignity and take an active part in society. 

DIGITAL SOCIETY 



 Reduce the share of early school leavers to 10% from the current 15% and increase the share of the population aged 30-34 having completed tertiary 
education from 31% to at least 40%. 


SUSTAINABLE GROWTH 

EMPLOYMENT AND SKILLS 

EU flagship initiative "An industrial policy for 
the globalisation era" to improve the business 
environment, especially for SMEs, and to support 
the development of a strong and sustainable 
industrial base able to compete globally. 

EU flagship initiative "A digital agenda for 
Europe" to speed up the roll-out of high-speed 
internet and reap the benefits of a digital single 
market for households and firms. 


ANNEX 2 - EUROPE 2020 ARCHITECTURE 


Overall institutional 
structure 

Integrated guidelines establishing scope of EU policy priorities, including headline targets 
for the EU to reach by 2020 and to be translated into national targets. 

 

Country reporting:

 

Thematic approach:

Aim: help Member States define and implement 
exit strategies to restore macroeconomic stability, 
identify national bottlenecks and return their 
economies to sustainable growth and public 
finances. 

Aim: deliver headline targets agreed at EU level 
combining concrete actions at EU and national levels. 

Approach: enhanced assessment of main macro-
economic challenges facing Member States taking 
account of spill-overs across Member States and 
policy areas. 

Approach: strategic role of the sectoral Council 
formations for monitoring and reviewing progress towards 
the agreed targets. 



Delivery 

Instruments: reporting by the Member State 
through their stability and convergence 
programmes, followed by separate but 
synchronised recommendations on fiscal policy in 
the Stability and Convergence Programme 
Opinions and on macro-economic imbalances and 
growth bottlenecks under the Broad Economic 
Policy Guidelines (art. 121.2). 

Instruments: reporting by the Member States through 
streamlined national reform programmes including 
information on growth bottlenecks and progress towards 
the targets, followed by policy advice at EU level to be 
issued in the form of recommendations under the Broad 
Economic Policy Guidelines (art. 121.2) and the 
Employment Guidelines (art. 148). 





ANNEX 3 - PROPOSED TIMELINE IN 2010 - 2012 


 

European Commission 

Proposals for Europe 2020 overall approach 

Spring European Council 

Agreement on overall approach and choice of EU headline targets 

European Commission 

Proposals for Europe 2020 integrated guidelines 

European Parliament 

Debate on strategy and opinion on integrated guidelines 

Council of Ministers 

Refine key parameters (EU/national targets, flagship initiatives and integrated guidelines) 

June European Council 

Approval of Europe 2020 strategy, validation of EU and national targets, and endorsement 
of the integrated guidelines 

European Commission 

Operational guidance for next steps in Europe 2020 

Autumn European Council 

In-depth discussion on a selected thematic issue (e.g. R&D and innovation) 

Member States 

 

European Commission 

Annual Report to the European Spring Summit, Opinions on Stability and Convergence 
programmes and proposals for Recommendations 

Council of Ministers 

Review of Commission's proposals for Recommendations, ECOFIN for SGP 

European Parliament 

Plenary debate and adoption of a resolution 

Spring European Council 

Assessment of progress and strategic orientations 

Member States, European Commission, Council 



2010 

 

Stability and Convergence Programmes and National Reform Programmes 

2011 

 

Follow-up on recommendations, implementation of reforms and reporting 

 

2012 

Same procedure with a specific focus on monitoring of progress 

 

 



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