1 THE EUs NEW GROWTH & RESEARCH STRATEGIES: Implications for Welsh Academia of Europe 2020 and the Innovation Union. By Andy Klom European Commission Office in Wales 17 November 2010, Cardiff University

2 Who are we: EC Office in Wales Representation: Voice of Europe Representation: Voice of Europe Representation: Eyes & Ears of Europe Representation: Eyes & Ears of Europe The 5 Ps: Politics/Press & Media/Public Affairs/Public Diplomacy/General Public. The 5 Ps: Politics/Press & Media/Public Affairs/Public Diplomacy/General Public. Commissioner visits to Wales. Commissioner visits to Wales. No management of funding. No management of funding. Like a small embassy. Like a small embassy.

3 Who are we: Network within EU EC has 35 Representations within 27 EU members. EC has 35 Representations within 27 EU members. 27 national representations and 8 regional ones. 27 national representations and 8 regional ones. Regionals in Barcelona, Milano, Munich, Bonn, Marseille, Edinburgh, Belfast, Cardiff. Regionals in Barcelona, Milano, Munich, Bonn, Marseille, Edinburgh, Belfast, Cardiff. Coordinated through DG Communication, but working for the whole European Commission. Coordinated through DG Communication, but working for the whole European Commission. Coordinating with European Parliament Information Offices-where present, and with National and Devolved Governments-where possible. Coordinating with European Parliament Information Offices-where present, and with National and Devolved Governments-where possible.

4 Content 1) Europe ) Europe ) Innovation Union 2) Innovation Union 3) Consequences 3) Consequences

5 1. Europe 2020 New medium-term macro-economic strategy New medium-term macro-economic strategy Successor to the Lisbon Agenda Successor to the Lisbon Agenda Proposed March 2010 by the EC Proposed March 2010 by the EC Endorsed by Council and the EP June 2010 Endorsed by Council and the EP June 2010 Follow-up Members Autumn 2010 Follow-up Members Autumn 2010 Flagship initiatives by EC Autumn 2010 Flagship initiatives by EC Autumn 2010

6 Where Europe stands now ? The crisis has reversed much of the progress achieved since 2000 and exposed Europes structural weaknesses : Sluggish structural growth Sluggish structural growth Productivity gap Productivity gap High unemployment High unemployment Levels of debt and limited fiscal room Levels of debt and limited fiscal room The economic situation is gradually improving, but: Recovery is still fragile Recovery is still fragile Global challenges intensify: competition from developed and emerging economies, global finance, climate change and pressure on resources Global challenges intensify: competition from developed and emerging economies, global finance, climate change and pressure on resources 6

7 Why a European strategy? The crisis showed that our economies are closely inter-linked = If we want to counter the crisis and weigh globally, we must act in a more coordinated way In addition, the crisis in Greece has more than ever underlined the interdependences in the eurozone areaIn addition, the crisis in Greece has more than ever underlined the interdependences in the eurozone area Only the EU gives us the critical mass to have impact: - Activate all policy areas and levers in an integrated way - Exchange of best practices 7

8 8 Europe 2020: EU after the crisis Europe needs to be back on track : our short term priority is a successful exit from the crisis Europe needs to be back on track : our short term priority is a successful exit from the crisis Whilst taking a long-term vision: where Europe should be in 2020 – no time to waste to face challenges (climate change, demography, energy security, long-term economic outlook) Whilst taking a long-term vision: where Europe should be in 2020 – no time to waste to face challenges (climate change, demography, energy security, long-term economic outlook) Therefore, a new strategy Europe 2020 to return to growth, but a new type of growth Therefore, a new strategy Europe 2020 to return to growth, but a new type of growth - smart, sustainable and inclusive growth - translating into high employment and social & territorial cohesion

9 Europe 2020: a holistic approach Fiscal consolidation (Member States) Fiscal consolidation (Member States) Structural reforms: transformation of our economies to create new growth and jobs Structural reforms: transformation of our economies to create new growth and jobs Robust and safe financial sector (EU level) Robust and safe financial sector (EU level) We must do this simultaneously We must do this simultaneously

10 Europe 2020: delivering reforms 3 thematic priorities 3 thematic priorities 5 EU headline targets – translated into national ones 5 EU headline targets – translated into national ones 7 flagship initiatives – EU & national action 7 flagship initiatives – EU & national action Mobilising existing EU instruments: Mobilising existing EU instruments: Single market Single market External dimension (foreign trade) External dimension (foreign trade) Stability and Growth Pact (SGP) Stability and Growth Pact (SGP) EU and national Budgets & new financing instruments EU and national Budgets & new financing instruments 10

11 Europe 2020: 3 interlinked priorities 1.) Smart growth : developing an economy based on knowledge and innovation 2.) Sustainable growth : promoting a more efficient, greener and more competitive economy 3.) Inclusive growth : fostering a high- employment economy delivering social and territorial cohesion 11

12 Europe 2020: 5 EU headline targets ( to be translated into national targets) By 2020: 75 % employment rate (% of population aged years) 75 % employment rate (% of population aged years) 3% investment in R&D (% of EUs GDP) 3% investment in R&D (% of EUs GDP) 20/20/20 climate/energy targets met (incl. 30% emissions reduction if conditions are right) 20/20/20 climate/energy targets met (incl. 30% emissions reduction if conditions are right) Less than 10% school drop-out rates and at least 40% of the population aged having completed tertiary or equivalent education; Less than 10% school drop-out rates and at least 40% of the population aged having completed tertiary or equivalent education; Lifting at least 20 million people out of the risk of poverty or exclusion Lifting at least 20 million people out of the risk of poverty or exclusion 12

13 EU tools in support of Europe 2020 Single market relaunch Trade and external policies EU financial support EU levers for growth and jobs EU flagship initiatives EU monitoring and guidance Macro, thematic and fiscal surveillance Annual Growth Survey Annual policy guidance Innovation Union (Oct. 2010) New Skills and Jobs (Nov. 2010) Digital Agenda (May 2010) Youth on the Move (Sept. 2010) New Industrial Policy ( Oct. 2010) Platform against Poverty (Dec. 2010) Resource Efficiency (Early 2011)

14 Europe 2020: A stronger governance architecture The European Council at the center of the strategy The European Council at the center of the strategy A « European Semester » for economic policy coordination: simultanous submission by Member States of NRP/SCP A « European Semester » for economic policy coordination: simultanous submission by Member States of NRP/SCP A robust monitoring process by the Commission/Council: annual growth survey, country specific recommandations and policy warnings A robust monitoring process by the Commission/Council: annual growth survey, country specific recommandations and policy warnings

15 Annual policy cycle (as of 2011) Council of Ministers European Commission European Parliament European Council Annual economic & social summit JanuaryMarchApril February MayJuneJuly Adoption of National Reform Programmes (NRPs) & Stability and Convergence Programmes (SCPs) Autumn: Peer review at EU level Autumn: Decisions at national level Debate & orientations Endorsement of guidance Finalisation & adoption of guidance Member States Annual Growth Survey Policy guidance including possible recommendations Debate & orientations

16 Europe 2020: towards a successful implementation Member States to submit draft National Reform Programmes by 12 November and final NRP by April 2011 Member States to submit draft National Reform Programmes by 12 November and final NRP by April 2011 Commission to present the remaining flagship initiatives in the coming months. Commission to present the remaining flagship initiatives in the coming months. Commission to issue proposals on EU-level tools to improve framework conditions: deepening the Single Market, new trade strategy, budget review. Commission to issue proposals on EU-level tools to improve framework conditions: deepening the Single Market, new trade strategy, budget review.

17 2.Innovation Union Comprehensive innovation strategy Comprehensive innovation strategy One of the seven flagship initiatives (sole EU focus) One of the seven flagship initiatives (sole EU focus) Linking up with main EU growth focus: Smart/sustainable/inclusive Linking up with main EU growth focus: Smart/sustainable/inclusive Three main goals: Three main goals: 1) Europe as world-class science performer 1) Europe as world-class science performer 2) Innovation Partnerships (public/private) 2) Innovation Partnerships (public/private) 3) Remove bottlenecks (expensive patenting, market fragmentation, standards, skills shortages) 3) Remove bottlenecks (expensive patenting, market fragmentation, standards, skills shortages)

18 Innovation Union to dos Continue/step up investment in education, R&D, innovation and ICTs Continue/step up investment in education, R&D, innovation and ICTs Modernize education systems at all levels, more world-class universities Modernize education systems at all levels, more world-class universities European Research Area to be completed in 4 years- free movement of knowledge European Research Area to be completed in 4 years- free movement of knowledge Access to EU programmes to be simplified, linkage of funding (EIB, ERC, ERDF) Access to EU programmes to be simplified, linkage of funding (EIB, ERC, ERDF)

19 Innovation Union to dos Get more innovation out of research: cooperation science – business Get more innovation out of research: cooperation science – business Remove barriers for business- ideas to market Remove barriers for business- ideas to market Work better with international partners- opening access to R&D programmes Work better with international partners- opening access to R&D programmes Spend 3% of EU GDP on R&D by 2020= Spend 3% of EU GDP on R&D by 2020= Creates 3.7 M jobs, raises GDP by 800 B in 2025

20 3. Consequences EU specific focus EU specific focus FP-7, FP-8, all focussed on Europe 2020 targets FP-7, FP-8, all focussed on Europe 2020 targets Innovation Union to deliver on 2020 targets Innovation Union to deliver on 2020 targets Budget Review: change period from 7 to 10 yr (2024) Budget Review: change period from 7 to 10 yr (2024) Budget Review: change of categories/mix Budget Review: change of categories/mix Budget Review: change of resources/own resources Budget Review: change of resources/own resources Cohesion Policy linked to Europe 2020, linked to targets/criteria/NRP, conditionality Cohesion Policy linked to Europe 2020, linked to targets/criteria/NRP, conditionality

21 Consequences continued Future of FP-8 linked to Europe 2020 Future of FP-8 linked to Europe 2020 Future of Cohesion Funding linked to 2020 Future of Cohesion Funding linked to 2020 Budget review shaking up spending categories Budget review shaking up spending categories Strong conditionality requirements Strong conditionality requirements Opportunities for Welsh academia (focus) Opportunities for Welsh academia (focus) Need for preparation, orientation, awareness Need for preparation, orientation, awareness Need for partnerships, EU coverage Need for partnerships, EU coverage

22 Conclusions So get involved now (pre-2014) So get involved now (pre-2014) React to consultations (ongoing) React to consultations (ongoing) Get more awareness of EU priorities/focus Get more awareness of EU priorities/focus Get involved in networks/partners/lobbying Get involved in networks/partners/lobbying Prepare now, position yourself now Prepare now, position yourself now

23 Thank you/Diolch yn fawr For more information and documents: For more information and documents: soon to be replaced by: Or for more about the EC Office in Wales: Or for more about the EC Office in Wales: