European Economic Integration – – 2014 X Europe 2020 SMART, SUSTAINABLE + INCLUSIVE GROWTH Prof. Dr. Günter S. Heiduk Smart GrowthSustainable Growth Inclusive Growth Economic Governance Source all slides: 1

2 Global competitiveness, growth and jobs Lisbon Strategy (2000) simplified coordination procedure and a focus on the national action plans Lisbon Strategy 2005 Creation of a „new economy” Europe 2020 Background

3

Smart Growth Smart growth means improving the EU's performance in: education (encouraging people to learn, study and update their skills) research/innovation (creating new products/services that generate growth and jobs and help address social challenges) digital society (using information and communication technologies) Flagship initiatives: Digital Agenda for Europe Creating a single digital market based on fast/ultrafast internet and interoperable applications: by 2013: broadband access for all by 2020: access for all to much higher internet speeds (30 Mbps or above) by 2020: 50% or more of European households with internet connections above 100 Mbps. 2.Innovation Union refocusing R&D and innovation policy on major challenges for our society like climate change, energy and resource efficiency, health and demographic change strengthening every link in the innovation chain, from 'blue sky' research to commercialisation 3.Youth on the move helping students and trainees study abroad equipping young people better for the job market enhancing the performance/international attractiveness of Europe's universities improving all levels of education and training (academic excellence, equal opportunities) 4

Sustainable Growth Sustainable growth means:  building a more competitive low-carbon economy that makes efficient, sustainable use of resources  protecting the environment, reducing emissions and preventing biodiversity loss  capitalising on Europe's leadership in developing new green technologies and production methods  introducing efficient smart electricity grids  harnessing EU-scale networks to give our businesses (especially small manufacturing firms) an additional competitive advantage  improving the business environment, in particular for SMEs  helping consumers make well-informed choices. Flagship initiatives:  Resource-efficient Europe  Industrial policy for the globalisation era 5

Inclusive Growth Inclusive growth means:  raising Europe’s employment rate – more and better jobs, especially for women, young people and older workers  helping people of all ages anticipate and manage change through investment in skills & training  modernising labour markets and welfare systems  ensuring the benefits of growth reach all parts of the EU Flagship initiatives:  Agenda for new skills and jobs  European platform against poverty 6

Economic Governance The crisis exposed fundamental problems and unsustainable trends in many European countries. It also made clear just how interdependent the EU's economies are. Greater economic policy coordination across the EU will help us to address these problems and boost growth and job creation in future. The new EU economic governance is based on three main blocks:  A reinforced economic agenda with closer EU surveillance. This includes agreed policy priorities and targets as part of the Europe 2020 strategy; additional commitments taken by Member States participating in the Euro Plus Pact; tighter EU surveillance of economic and fiscal policies as part of the Stability and Growth Pact and through new tools to tackle macro-economic imbalances; and a new working method – the European semester – to discuss economic and budgetary priorities at the same time every year.  Action to safeguard the stability of the euro area. In 2010, the EU responded to the sovereign debt crisis by setting up temporary support mechanisms for its Member States, which will be replaced by the permanent European Stability Mechanism (ESM) in These support measures are conditional on rigorous fiscal consolidation and reform programmes, and are developed in close cooperation with the IMF.  Action to repair the financial sector. 7

 Five EU targets for 2020  Employment : at least 75% of year-olds employed  R&D/innovation : 3% of the EU’s GDP invested in R&D/innovation  Climate change/energy : greenhouse gas emissions 20% lower than in 1990 (or 30% if conditions are right); 20% of energy from renewable sources; 20% increase in energy efficiency  Education : reduce school drop-out rates to below 10%; at least 40% of year-olds completing third level education  Poverty/social exclusion : at least 20 million fewer people in or at risk of poverty and social exclusion Europe Targets 8

9

Target 1: Employment Rate (Age Group 20-64) by Countries 10

Target 2: R&D Expenditures (% GDP) by Countries 11

Target 3b: Share of Renewable Energy in Gross Final Energy Consumption by Countries 12

Target 4: Early Leavers from Education by Countries* * % of population aged with a most lower secondary education and not in further education and training 13

1 Digital agenda for Europe: creating sustainable economic and social benefits from a digital single market based on fast, secure internet and interoperable applications. 2 Innovation Union: turning ideas into jobs, green growth and social progress with action to support innovation and innovative businesses 3 Youth on the move: mobility programmes offering young Europeans the opportunity to study, train, work or start a business in another EU country 4 Resource efficient Europe: supporting the shift towards a resource-efficient, low-carbon economy that offers opportunities for sustainable growth 5 An industrial policy for the globalisation era: maintaining and supporting a strong, diversified and competitive industrial base in Europe, offering well-paid jobs in a less carbon intensive economy 6 An agenda for new skills and jobs: concrete actions to improve flexibility and security in the job market, ensure people have the right skills for today’s jobs, improve the quality of jobs and the conditions for job creation 7 European platform against poverty: coordinating national actions by identifying best practices and promoting learning, establishing EU-wide rules and making funding available Seven Flagship Initiatives to Boost a Smart, Sustainable and Inclusive Growth 14

Progress Source: Eurostat news release, STAT 12/139, 1 Oct  EU27 employment rate at 68.5% in 2012 (68.4% for EU28)  Share of GDP spent on R&D in the EU27 at 2.06% in 2012  Three headline indicators on climate change and energy Greenhouse gas emissions have decreased steadily since 1990, with a sharp drop in the period 2008 to 2010, a period corresponding to the economic crisis. The share of renewable energy use in gross final energy consumption has grown steadily from 8.1% in 2004 to 13% in The primary energy consumption fluctuated from mTOE in 1990 to mTOE in 2010 and mTOE in 2011  Proportion of early school leavers in the EU27 at 12.8% in 2012  The number of persons at risk of poverty or social exclusion in the EU27 at 24.8% in

16 Employment rate age group 20 to 64, EU-27, Source: Eurostat

17 Distance to Europe 2020 national targets, Gross domestic expenditure on R&D, 2013 Source: Eurostat

18 Gross domestic expenditure on R&D (R&D intensity), EU-27, Source: Eurostat

19 Distance to Europe 2020 national targets, employment rate, 2013 Source: Eurostat

20 Share of renewable energy in gross final energy consumption, Source: Eurostat online data

21 Gross electricity generation from renewable energy sources, EU-27, Source: Eurostat

22 Primary and final energy consumption, , EU27 (Mtoe) Source: Eurostat online data

23 Early leavers from education and training, EU-27, 2000–2012 Source: Eurostat

24 Early leavers from education and training, NUTS 1 regions, 2012 Source: Eurostat

25 Distance to Europe 2020 national targets, for the indicator- Early leavers from education Source: Eurostat

26 Sub-indicators of ‘People at risk of poverty or social exclusion’, EU-27, 2005–2011 Source: Eurostat