Download 1-European Values in a Globalised World

COMPETITIVENESS AND SUSTAINABILITY
By
Maria da Graça Carvalho
Bureau of European Policy Advisors
1-Europe in a Globalised World
The past 50 years have seen extraordinary progress for Europe. However challenges
of globalisation and the competitive challenge from the United States and from the
emerging economies such China and India has placed new threats to Europe. Five
years ago the European Union launched an ambitious agenda for reform leading
Europe to the most dynamic and competitive knowledge based economy in the world
capable of sustainable economic growth with more and better jobs and great social
cohesion, and respect the environment. Over the last year the Commission has been
reviewing the progress made in the Lisbon Process. There is a general consensus
that Europe is far from achieving the potential for change that the Lisbon strategy
offers. Europe’s performance has diverged from our competitors in other parts of the
world.
Europe must reform and modernise its policies to preserve its values. European
Union has almost 20 million unemployed people, an ageing population and youth
social exclusion. Europe’s performance has diverged from that of our competitors in
other parts of the world. Their productivity has grown faster and they have invested
more in research and development.
Global competition, particularly from Asia, has intensified with the fast economic
growth of China, the research investments in China and the strong rise of the number
of researchers in Science and Technologies in India and China.
The EU is not closing the gap with the United States. R&D expenditure in the EU
amounts only to 1.9% of GDP, compared to 2.7% in the US and 3.2% in Japan.
In Europe only 21% of the working-age population has achieved tertiary education,
significantly lower than in the US (38%), Canada (43%) or Japan (36%), as well as
South Korea (26%).
On higher education, EU countries spend on average just 1.1% of GDP, the same of
Japan but far below Canada (2.5%), the US (2.7%) and South Korea (2.7%). This is
almost entirely due to much lower investment levels from the private sector in
Europe.
Modernisation is essential to continue keep Europe’s historically high levels of
prosperity, social cohesion, environmental protection and quality of life. This is why
the Commission has proposed a new start for the Lisbon Strategy, focusing efforts in
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lasting growth and creating more and better jobs setting priorities which will help the
Union and the Member States to focus, such as: i) Making Europe a more attractive
place to invest and work, ii) Knowledge and Innovation for growth, iii) Creating more
and better jobs.
In order to face the challenges of Globalisation, actions are urgent both at EU and
Member States level such as:
– Complete the internal market, including for services, telecoms, energy, and
financial services.
– Deliver more open and fairer markets.
– Improve the regulatory environment at the EU level.
– Open third country markets for European producers.
– Agree the Financial Perspectives by the end of the year.
– Improve European economic governance and strengthen the co-ordination of
economic and social policies.
– Implement the agreed structural reforms and policies within the renewed Lisbon
Strategy for growth and jobs.
– Raise employment rates and reduce unemployment.
– Adapting pension, health and long-term care to meet changing needs.
– Develop a long-term and coherent energy policy.
– Direct more resources (both public and private) to education, training and skills.
– Increase the public investment in R&D and Innovation and create the appropriate
framework for the investment of the private sector in R&D and Innovation.
2-A Sustainable Road to Lisbon – the Environmental Policy
Environmental protection and sustainable development are at the heart of the
Commission's strategic programme. The renewed Lisbon Strategy aims to restore
dynamic growth and jobs while respecting the environment emphasising actions that
promote competitiveness, growth and jobs which mutually re-enforce the social
cohesion and a healthy environment. This is embodied in the concept of Sustainable
Development. The Commission’s Communication on the Lisbon Review confirms this
commitment to sustainable development. The importance of eco-innovations is given
particular attention, with recommendations for the promotion of clean technologies,
energy efficiency and new and renewable energy.
A strong environment policy contributes to EU competitiveness. Environment and
environmental technologies contributes for growth. The EU has tremendous potential
for clean technologies.
The Commission’s priorities on the Environment are expressed in the 6th
Environmental Action Programme which contains four priority areas: climate change,
biodiversity, environment and health, and resource use. Seven thematic strategies
on: sustainable resource use, waste pesticides, air quality, the marine environment,
soil and the urban environment are complete or near completion.
The thematic strategies represent a new integrated approach to environmental policy
making. The Strategies work with themes, rather than single pollutants or specific
economic activities with a 20-year perspective to ensure a predictable, stable
framework. They are based on the review of existing environment policy, research
and science, and stakeholder consultation. They simplify legislation and are a good
example of Better Regulation.
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The up-coming review of the Sustainable Development Strategy sets sustainable
development at the core of EU policies. The renewed Lisbon strategy and the
Sustainable Development Strategy integrate the economic, social and environmental
dimensions of the Union. Both Strategies contribute to the sustainable growth and
better living conditions of the present and future generations in Europe.
3-Climate Change
European Commission has launched the Second European Climate Change
Programme. The European Climate Change Programme-I was launched in 2000
and set out 42 measures to reduce greenhouse gas emissions. The result of these
actions is an estimated reduction in the EU’s emissions of greenhouse gases by at
least 350 million tonnes which corresponds to the EU-15's Kyoto reduction target of
minus 8%. With the Emissions Trading Scheme, the EU has created a new currency
based on tonnes of CO2 and a new market - in emission allowances. The first
experiences with emission trading are very successful and show the potential of
other market-based mechanisms.
The greenhouse gas emissions from the EU-25 are 5.5% below their level in 1990.
But between 2002 and 2003 emissions increased by 1.5% .With current measures,
the EU is estimated to achieve an overall reduction of 4.1% by 2008-2012, which is
not enough. More effort will be required by all.
The Second Programme will provide a new policy framework for EU climate change
policy, with a scope and perspective beyond 2012. One of the first goals of the
programme is to review the progress of the implementation of EU policies in the
Member States. The Transport sector will have a special attention in the Second
Programme. Transport emissions are 20% above their 1990 level. For example, the
Commission has proposed that aviation should be incorporated into the EU
Emissions Trading Scheme.
The role of EU and its commitment to Climate Change issues has been fundamental
to the world. Without the active commitment of Europe, the Kyoto Protocol would not
have entered into force. The on-going conference of the Parties to the UN
Convention on Climate Change in Montreal, bringing together 189 governments, will
be an important event for the sustainable future of our planet. The EU’s objective is
to achieve reductions to limit the global temperature increase to 2°C above the preindustrial level.
Climate change is intimately related with Energy. Following the Hampton-Court
meeting, the Commission is preparing a European Energy Policy. More energy
efficiency, diversifying the energy sources, increasing renewable energy, measures
to cut greenhouse gas emissions and reduce air pollution more investment on
research, development and demonstration of Clean Energy Technologies are
priorities for the Commission.
6-The Role of Research and Technology Development
Europe is leader in several Clean Technologies. In order to keep this position a
strong commitment to research and development is required both from the private
and public sectors. Without technological development, Europe will not be able to
fulfil the climate change and environmental targets.
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Europe has faced in the last years, under funding of the research and higher
education, outdated system of governance of the Universities and over bureaucratic
administration of the research and education. The combination of these facts has led
to the Brain drain phenomenon and the drain of research investments from Europe.
The Commission and the Member States should, urgently promote an environment
facilitating private investment in R&D, increase public investment in R&D, increase
qualified human resources in Sciences and Technology, promote scientific
employment and promote the reform of the Universities and the High Education
system.
Community funding to promote innovation and research activities represents only a
small fraction of the overall European public effort. To compensate the lack of critical
mass, national programmes need to increase their efficiency and complementarities,
contributing to a fully integrated European Research and Innovation Area and
consistently mobilising national funding in support of European research and
innovation activities. Member States should be encouraged to increase the national
investment in R&D and innovation.
At Community level, the Research Framework Programme-FP7 and Competitiveness
and Innovation Framework Programme-CIP are the main financial means and
instruments to address the R&D and inovation. Member States should be invited to
take full advantage of the Structural Funds and the European Agricultural Fund for
Rural Development to strengthen and build strong research and innovation systems.
Research, technological development, higher education, vocational training, and
measures to create the appropriate framework for the private sector to invest in new
and clean technologies have to be in the core of the public policies of the European
Commission and Member States. Only with appropriate public policies and adequate
investments in these areas, Europe will achieve growth and prosperity while ensuring
a sustainable future.
Maria da Graça Carvalho
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