"Your voice on Europe 2020"

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1 CONSULTATION OF EUROPEAN REGIONS & CITIES "Your voice on Europe 2020" (Follow-up to the 2009 CoR Consultation of European Regions and Cities on a New Strategy for Sustainable Growth) On 3 March 2010 the European Commission has proposed Europe 2020 A strategy for smart, sustainable and inclusive growth as the successor of the Lisbon Strategy (see a description in Annex 2). The European Council is now requested to endorse the strategy's overall approach and the EU headline targets and to give its final approval to the strategy. However some important issues relevant to local and regional authorities still remain open in the strategy, concerning the need for differentiated targets at the territorial level, the need for indicators going beyond GDP, the actual role of the local and regional authorities in the design and implementation of the new strategy, the relationships between Europe 2020, cohesion policy and the EU budget and the need to communicate the new strategy to all EU citizens (see a background note in Annex 1). It is crucial that they are adequately addressed before final adoption of Europe 2020 by the June European Council. Address your opinion to the European and national leaders who will be meeting at the June European Council: your participation is important. All details can be found at: Contributions can be sent in any of the EU official languages and will be publicly posted on this webpage in their original language and in English (without your contact details). Please send your replies in Word format (doc), possibly using blank spaces in this same file, to consultation@cor.europa.eu by Monday 12 April 2010

2 - 2 - First name and surname name of sender 1 : Contact details (address, telephone, ) On behalf of the Institution: Country Bacău local development agency Unitatea Administrativ Teritorială Bacău Municipal Council Romania 1. EUROPE 2020 targets The Commission has translated the 3 priorities of the Europe 2020 strategy (smart, sustainable and inclusive growth) into 5 EU headline targets at European level: % of the population aged should be employed. 2. 3% of the EU's GDP should be invested in R&D. 3. The "20/20/20" climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right). 4. The share of early school leavers should be under 10% and at least 40% of the younger generation should have a tertiary degree million less people should be at risk of poverty. To ensure that each Member State tailors the Europe 2020 strategy, taking into account national circumstances and differing starting points, the Commission asks them to translate these targets into national targets before the June European Council. 1.1 Is the balance among the three dimensions of the strategy: economic, social and environmental, appropriate? If not, please explain. Yes 1.2 Is the number of targets appropriate and are they sufficiently focused? The five targets set out in the Europe 2020 strategy are clear-cut and cover Europe's development needs as regards the three strategic priorities. I would expand on and highlight the priorities of smart and sustainable growth by setting out the following objectives or sub-areas that will have to be achieved: A. productivity growth based on R,D&I and advanced technologies, using clean efficient renewable energies; 1 Privacy Disclaimer The follow-up to your contribution requires the processing of your personal data (name, contact details etc.) in a file. Should you require further information, or wish to exercise your rights under Regulation (EC) 45/2001 (e.g. access or rectify data), please contact the data controller (Head of the Networks and Subsidiarity Unit) at analysis@cor.europa.eu. If necessary, you can also contact the CoR Data Protection Officer (data.protection@cor.europa.eu). You have the right of recourse to the European Data Protection Supervisor at any time ( Note that your personal data will not be published online. EN

3 - 3 - B. developing the market for green, biodegradable products, produced using clean technologies, so that private, natural or legal persons, as well as public legal persons can purchase these products on a level playing field, in terms of both diversity and cost levels, compared to that of normal products, including support for awareness and information campaigns; C. developing the organic food market by increasing the volume of production and balancing market mechanisms increasing the opportunities for organic (traditional) foods to be purchased, in relation to food produced from intensive farming and industrial technology based more on quantity and less on quality and consumer health protection; D. increasing the percentage of selective collection of waste and recycling of waste metal, bottles, paper, plastic and PET, by implementing a rigorous phased programme at national level; E. rigorously implementing the national programme on revamping and expanding urban green areas and regenerating and expanding forests. 1.3 What other targets should be proposed by your country as national targets, in order to take into account regional circumstances and different starting points at local and regional level? Waste In line with the answer to question 1.2, there is also a need to assess progress in the creation of environmentally-friendly landfill sites and in the implementation of the integrated waste management projects, under the masterplans and regional and county waste management plans, with a view to proposing policies to follow on immediately after Legislative changes Furthermore, we believe that the national law on public procurement does not support and even hinders the purchase of green products. The national budget allocated to ministries and public institutions at local and national levels includes substantial sums for the acquisition of products required for current activities or investment which could be gradually substituted by or achieved using green products. Moreover, the private sector could be the area of the national economy that quickly assimilates the technology for producing green products and asserts itself as a loyal consumer of such products. However, currently, either the supply of such products on the market is not sufficient, or prices are not competitive as regards traditional products, or the legislation is too stringent Stimulating the green manufacturing industry We believe that the industry that produces these green products requires subsidies, advanced technologies and R,D&I results, so that the shift in mentality among both consumers and manufacturers alike can happen as quickly as possible Territorial cohesion policy at local and regional levels Not to be overlooked is the need to promote sustainable development via a spatial planning strategy and territorial cohesion policy. In fact, national development strategy papers, negotiated with the EU for the period (NDP, RDP, NSRF, etc.), should maintain the priorities initially established and also develop new ones, in line with the needs of Europe and the individual Member States, and in accordance with regional and local priorities.

4 - 4 - Interregional and intraregional development disparities need to be ironed out and each region and municipality should shape their development priorities for , in line with the Europe 2020 strategy and the economic recession. The North-East region continues to suffer in terms of road infrastructure and public utilities (water supply, developing the waste water transport network, waste water treatment plants, the electricity grid, particularly in rural areas, and as regards district heating, producing inexpensive heating using clean technologies) Environmental protection Using renewable energies It is also important to implement a coherent and cohesive strategy for quickly phasing out conventional energy sources and replacing them with clean renewable sources Protection of forests, nature reserves and Natura 2000 protected areas Drastic legislative measures are needed to protect existing green areas and forests, regardless of the form of ownership or classification under the above categories. Moreover, each Member State should implement rigorous afforestation and reafforestation programmes. Difficulties are likely to be encountered as regards title deeds and local community support for the national and regional forest protection programme. We would also propose the implementation of suitable legislation backed up by measures to ensure compliance in respect of the rules governing the exploitation of forests by economic operators and measures to restore exploited areas and regenerate forestry. 2. EUROPE 2020 indicators The Commission has stated that the outcome of the strategy will be annually monitored "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". Nevertheless, no indicators were specified in the proposal. The political guidelines of the economic strategies are made on the basis of measured performance. Currently, there is already a broad consensus on the need to combine GDP with indicators that better measure economic performance and people's living standards and quality of life. 2.1 What kind of indicators should be used to monitor progress towards the targets set at European level? We would propose the following sets of indicators, which do not claim to be exhaustive. We would also like to implement a set of indicators to assess the quality of life in the municipality and at regional and county levels, to form the basis for an action plan on raising the quality of life in cities, in line with EU standards. We would like to harness the experience and good practices derived from implementing the Building Healthy Communities (BHC) project funded by the URBACT II programme and comprising ten partner cities. Indeed, the HIA indicators to assess the quality of life in cities should be established by common accord, in line with similar experiences of other cities in

5 - 5 - this area. According to various studies, the following factors undermine people's health, wellbeing and quality of life and thus increase the chances of people falling ill: unemployment; low incomes; public sector renting; lack of educational qualifications; negative views on problems in the area; negative views on services in the area. Moreover, we would advocate a methodology for assessing the progress of each region and city, including the state of play in implementing EU policies in each country/region and with regard to all fields Local analysis to cover: regional/local indicators including on quality of life; calculation of the regional competitiveness index; regional and local policy options in the context of the regional strategy and the National Development Plan; assessment of previously implemented regional policies. The categories of indicators focused on by the Municipality of Bacău are: general economic context; employment/human resources; quality of life in the municipality; innovation and research; economic reform in the context of the economic crisis; social cohesion; environment and medium-long term protection measures; health; education and vocational training; crime and public order disturbances; workforce and economic activity; incomes; living environment. We must take account of the criteria underpinning the establishment of the urban development/growth poles, cities being the engine of regional development: potential for economic development (degree of functional specialisation); capacity for research-development-innovation (universities, research institutes, centres of excellence, scientific hubs with a critical mass of high-quality researchers with the capacity to keep pace with scientific and technological progress);

6 - 6 - suitable business infrastructure (industrial parks, incubators, science and technology parks that bring to market the results of research); entrepreneurial culture and environment based on the diversity of business relations and social connections; accessibility (road, rail, air, sea); public services available (health system, education system and cultural facilities); and cooperative capacity of administrations and development of administrative capacity. capacity for implementing environmental policies; level of integration in EU-level thematic networks and implementation of joint projects; capacity for developing urban regeneration programmes The sets of indicators selected in order to analyse local socio-economic development are given below: Economic indicators: GDP per capita (E1) and GDP growth rate (E2); labour productivity (E3); net exports (E4); gross fixed capital formation as a % of GDP (E5); net income per capita (E6). Social indicators: distribution of regional employment rates (S1); employment (S2); average life expectancy indices (S3). HIA indicators, on the impact of living conditions on individual health. Technological indicators: public spending on R&D and innovation (T1); internet access of households (T2); proportion of technical higher education graduates (T3). Local/regional policy options adopted by the local administration in order to apply the Strategy: Micro-policies: reallocation of human capital; reallocation of physical capital. Coordination policies: between/within jurisdictions. Macro-policies: regional discrimination in tax policies and expenditure (automatic stabilisers, roads) charges, etc. monetary policy availability of credit.

7 - 7 - Impact of projects financed by the Structural Instruments (SI) on the performance of the following economic indicators: added value to economic growth of the regions (wages + profits); creation of new jobs overall, including both indirect and negative effects; increase in productivity (added value per employee). The impact and results of projects financed by the SI should cover areas such as: growth in turnover and profits; effect of the survival rate of early stage businesses; results of training courses; construction of new buildings; occupation rate of newly constructed buildings; number of visitors to tourism projects Set of indicators Europe 2020 strategy We believe that progress in local development and in achieving the Europe 2020 strategy should also be judged on the basis of the following key indicators, which Bacău Municipal Council is taking into account in respect of its local analysis and its sustainable development strategy, alongside other structural indicators used by the national institute of statistics: 1. per capita GDP; 2. long-term unemployment, as a percentage of total unemployment; 3. high-tech services, as a percentage of total employment; 4. university education, proportion of the population that are university graduates; 5. people employed in the knowledge sector, as a percentage of the population with qualifications in science and technology and that work in the research sector; 6. public expenditure on R, D&I as a percentage of GDP; 7. population density; 8. added value of industry, share of the manufacturing industry in terms of total gross added value; 9. added value in services, share of services in terms of total gross added value; 10. government services, employment in public administration as a percentage of total employment; 11. high-tech manufacturing industry, employment in high- and medium- tech industry as a percentage of total employment; 12. Research, development and innovation (R, D & I) in business, spending on R, D & I in the private sector as a percentage of GDP; 13. employment in research, percentage of the population working in the research sector; 14. added value in agriculture, share of agricultural processing in terms of total gross added value; 15. lifelong learning, percentage of the adult population that have recently enrolled in qualification programmes;

8 young people, percentage of the population under 10 years old; 17. female employment, the percentage (of women in employment) across all age groups. 18. set of indicators for assessing quality of life and the impact of living and environmental conditions on health HIA indicators; 19. assessment of the administrative performance of the region's cities based on established, uniform criteria. Other relevant indicators: 20. index of industrial production (gross series); 21. industrial Production Index, which measures trends in industrial production on the basis of a selection of products, representative of activities in mining, manufacturing, electricity, heating, gas and water supply, corresponding to NACE codes: 10,11, 14, 15, 16-24, 26-29, 35-37, 40, 41 production trends by product based on physical unit statistics for a period of the year, as compared to the same period in the previous year; 22. total volume of investment carried out by economic operators and public authorities; 23. number of completed houses (including National Housing Agency) (comparisons between regions and between rural and urban areas), number of buildings constructed by public interest legal persons; 24. assessment of tourism industry: number of tourists accommodated, total number of overnight stays, average tourist stay (overnight stays per person), breakdown of tourist numbers (Romanians, foreigners, total) per annum, net accommodation use; 25. average number of pensioners, including gender breakdown and average pension per year and quarter; 26. total number in employment compared to previous years trends in employment from the end of the previous year, changes in the total employed relative to other years/period of time; 27. breakdown of employment per activity and municipality/county/region; 28. average gross and net earnings trends as regards previous years; 29. stable population per municipality, county, region, with gender, age group and rural/urban breakdown, education; 30. assessment of demographic trends as compared to previous years: birth rates, mortality, natural growth, number of marriages and marriage breakdowns (marriage rate, divorce rate), rate of stillbirths and infant mortality (rates per inhabitants); 31. international trade per period and per development region: exports in EUR m (FOB), municipality's share in respect of the county and region and region's share in respect of the country, imports in EUR m (CIF), municipality's share in respect of the county and region and region's share in respect of the country, imports in EUR m (FOB), balance of trade (EUR m, FOB-FOB), degree to which imports are offset by exports (FOB/FOB), volume of exports and imports per export or import base; 32. number of private companies registered with foreign capital participation and level of subscribed share capital over particular periods of time; 33. exchange rates; 34. average prices of the main agrifood products sold on rural markets;

9 agriculture: live products obtained, livestock, mortality, average livestock production, total livestock production; 36. indicators on consumer protection activities; 37. purchasing power; 38. consumer price indices over given periods, for food, non-food, services; 39. monthly trends in consumer prices consumer prices and earnings; 40. average monthly inflation rate; 41. average gross and net earnings per industry, growth indices on average gross and net earnings over certain periods, compared to the same period the previous year(s); 42. monthly rate of increase in consumer prices and earnings; 43. deviation in average monthly net earnings compared to the national average, monthly or other time period; 44. trends in average earnings (net and gross) per month and per sector in current lei; 45. unemployment: number of unemployed per month, broken down in terms of qualification level, age, gender and according to benefits received, professional integration aid and those not receiving benefits; 46. unemployment: average number of unemployed per month, average monthly unemployment rate, unemployed people at end of month as a proportion of the average per municipality, county, region; 47. summary indicators on the local and regional economy; 48. implementation of State and local budgets, of national social health insurance fund, state social insurance budget, and of unemployment insurance budget; 49. demographic gender disparities, including internal and external migration flows. 2.2 What kind of challenges do you foresee in the use of those indicators? Encouraging the participation of local communities and political authorities in decision-making is going to be a real challenge; to do this, we must initially raise awareness among communities of the historic opportunity to determine their own future and shape EU policy from the bottom up. Then, local community players will assess the socio-economic situation in those communities on the basis of the indicators and will be informed about the place in which the city is situated / area in which they live. They will also be able to participate directly in implementing the strategy and disseminating it to other stakeholders Supporting the policy-making process requires: identifying the advantages of working with politicians and policymakers throughout the process of implementing the indicators; identifying the disadvantages of working with politicians and policymakers throughout the process of implementing the indicators; what benefits can these advantages bring? how can we eliminate the disadvantages?

10 Monitoring and assessment process: Draw up a set of criteria (set of indicators) to assess each community at local level. Implementing the set of indicators in each local area requires a suitable legislative framework. The key elements should be identified in a local action plan in order to implement the indicators and the Strategy. Through the public policies that it intends to implement, the local administration is also pursuing several key strategic lines of action, based on the level of regional competitiveness (RNE) and the level reached by Bacău in the regional, national and European context. The local analysis takes account of the level of development of Bacău, with regard not only to the key indicators set out above, but also to other socio-economic analysis. But what is relevant here is the place of the city in the regional context from the point of view of regional typologies, in accordance with the following criteria: manufacturing industry platforms regional economies that depend predominately on the manufacturing industry; cohesion directed towards the tertiary sector activities directed primarily towards services, generally low levels of GDP per capita; science and services urban areas that serve as national centres for business services, government administration, public research institutes and universities; technology centres areas/cities characterised by a large concentration of high- and mediumtech manufacturing industries; high employment regions that can offer long-term large-scale employment, including for young people and women; experience and qualifications proportion of the population with a university education (risk of a reduced capacity to ensure a significant employment dynamic); accession in the light of local/regional analysis, the indicators are at a low, or at best, medium level. Long-term unemployment rate compared to other Romanian development regions or the rest of the EU; peripheral and rural areas private use of technology (is this at a low level?) and the degree of population density (is it low?); government services urban services and employment in local public administration; level of unemployment. Also, analysis of GDP per capita as against the EU average; high-tech zones existence of high-tech manufacturing industries in an area of high labour productivity. Employment prospects and GDP per capita; dynamic centres characteristic of large urban agglomerations with a very high population density, a high level of productivity or GDP per capita; level of research in business or the hightech manufacturing industry can be relatively low. Conclusions: the current economic context makes it possible to draw up regional/local policies with long-term effects on the regional economy;

11 investment in physical capital should influence export growth; ideal conditions for developing policies for increasing synergies between higher education bodies, local administration and economic players; national development is not possible without the involvement of the regions and cities; local initiatives do not necessarily lead to prosperity; a monitoring and good practice network is needed; a regional and local assessment table should be set up that would influence measures taken via public policies and medium-/long-term development strategies. 3. EUROPE 2020: the role of local and regional authorities The Commission suggests that "All national, regional and local authorities" should work in 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 their implementation". However, when coming to put this principle in practice - in particular, with respect to the seven "flagship initiatives" that should pursue the Europe 2020 ultimate goals (see the annexed info) - the Commission proposes the coordination of works and initiatives at the EU and the national level, while the role of regional and local level is not elaborated. 3.1 Is there in your country any institutional mechanisms that could help to effectively involving regions and cities in the elaboration of the strategy (defining national targets and reform programmes) as well as its implementation? How can regions and cities be sure that the strategy be more focused and adapted to local and regional differences? While there are no institutional mechanisms as such, certain structures could contribute to the dialogue on this matter and could request contributions to the overall effort, without any obligation. Romania's associations of municipalities and cities, OP management authorities and regional development authorities have a major role. The best way would be to incorporate the Europe 2020 strategy into the National Development Plan and the regional and local development strategy; above all, however, effective legislative implementation measures should be sought. Europe 2020 strategy measures will be incorporated into the sustainable development strategy, which is to be drawn up via a broad public, institutional (public and private) and sectoral consultation. 3.2 How do you perceive your role in the implementation of EUROPE 2020 (in general, and, in particular, in the design of flagship initiatives)? Our territorial administrative unit within Bacău Municipal Council should disseminate information, play a catalyst role in the community and organise public debates and focus groups; it should establish a local action plan to this end and draw up a local strategy. Pilot schemes, cases studies and other methods cannot be effective unless good practices and results are disseminated at regional, national and European levels. Carefully drafted national and EU legislation could be pivotal to success.

12 EUROPE 2020, EU Funding and Cohesion Policy The Committee of the Regions stresses that the objective of cohesion policy is that of "reducing disparities between the levels of development of the various regions" (Treaty on European Union, Art. 174). If the Europe 2020 "inclusion" priority has to provide the key link between growth and (economic, social and territorial) cohesion goals, it has therefore to be translated into credible objectives. The European Commission Europe 2020 proposal states that "( ) 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". It also adds that "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", acknowledging that "It is also essential that the benefits of economic growth spread to all parts of the Union, including its outermost regions, thus strengthening territorial cohesion". 4.1 How, and under which conditions, could cohesion policy deliver on its key Treaty objective of "reducing disparities" while contributing to the Europe 2020 priorities of smart, sustainable and inclusive growth? The success of cohesion policy hinges on the legislative framework, and priority measures should only be established once regions and localities have been evaluated on the basis of the same criteria and indicators. Then we can speak about drawing up and implementing the action plan with appropriate and easily-accessible EU funding, whereby the projects on which local authority (beneficiary) funding is based are not subject to competition and receive proper and fair approval by means of prior evaluation on the basis of EU criteria. 4.2 How should the EU funding contribute to territorial cohesion and to smart, sustainable and inclusive growth, in terms of both (A) its overall size and (B) its distribution between different funding instruments such as the structural funds, agricultural and rural development funds, the research framework programme, and the competitiveness and innovation framework programme (CIP)? Funding for regions should be allocated to each municipality by local authorities, following a real assessment at both local and regional levels and only to those sectors that need non-repayable financial aid. Furthermore, levels of funding for sectors/areas of public interest should be directly proportionate to local needs in terms of development and mitigating disparities. The rules for Structural instruments should apply to SME and NGO funding.

13 Communicating EUROPE 2020 In 2009, contributors to the CoR Consultation on the future of the Lisbon Strategy suggested that the Lisbon Strategy failed to be perceived as relevant to the life of ordinary citizens. The European Commission acknowledges an important role for the regions in explaining the need to commit to EUROPE 2020 and the contribution that Europe and its Member States expect from their "citizen, businesses and their representative organizations" to carry out the necessary reforms. To this effect, it will propose "a common communication tool box", taking into account "national circumstances and traditions". 5.1 Do you think that the Europe 2020 proposal can be better communicated to EU citizens than the Lisbon Strategy? In light of the experience of the Lisbon Strategy, what parts of the European society and territory should be the target of a special communication effort? Yes, communication needs to be improved; above all, the message needs to be conveyed that the Europe 2020 strategy and other such policies are mandatory and not optional and that therefore it makes more sense, and is fairer and more beneficial to participate in policy-making and think about your destiny, rather than leave this to others. While I think that the new Member States need to make an extra effort here, my own perception is that all EU Member States both new and old countries and regardless of level of development contain regions and areas where it is more difficult for the EU's message and policies to get through to the public and to local authorities. It can be a question of mentality; it can also be lack of information and distrust in the EU's power. Perhaps even governments may fail to give an affirmative response. I believe that the people should feel the power of the EU (in a positive sense) in their standard of living. Furthermore, rural areas are the most disadvantaged parts of many EU Member States. 5.2 What elements should be included in the tool box proposed by the Commission? And how should it take into account economic, social, territorial and cultural differentiations across EU countries and regions? Monitoring assessing forecasting and planning sectoral strategies via consultation focused funding. Exchange of experience, and good practices, assistance and advice from EU experts. * * *

14 Annex I Europe2020: Background Note by Europe 2020 Monitoring Platform of the Committee of the Regions team 1. The EC Europe2020 blueprint meets some key requests from EU cities and regions The proposal put forward in the European Commission's Communication "EUROPE A European Strategy for smart, green and inclusive growth" 2 meets to a large extent five key issues CoR has been requesting, giving a constructive answer to the Own Initiative Opinion the CoR adopted in its Plenary Session on 3-4 December , as well as to some of the "Questions on the future of the Lisbon Strategy" which emerged from the CoR Consultation of European Regions and Cities on a New Strategy for Sustainable Growth carried out earlier in After the 5 th Territorial Dialogue, held on 18 January 2010, these issues were summarized in a joint letter by the CoR President and the Spanish Council Presidency the European Council President Herman Van Rompuy. First and foremost, the EC proposal acknowledges that the EU local and regional authorities must be seen as permanent partners in the design and implementation of the strategy, which the CoR has been pleading for since Actually, the "Who does what?" section of the EC proposal (par. 5.2) states that (our underlines) "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 deliver the Europe2020 strategy". In addition, the proposal recognises also that "( )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". However, in spite of what the Commission affirms, these networks have been created by a variety of stakeholders, such as regions and cities or the CoR, more than by Member States themselves, Their role should be better recognised and a room in which they contribute should be better identified COM(2010)2020 ( ). The future of the Lisbon Strategy post 2010 (CdR 25/2009).

15 Second, as requested in CoR Opinion 5, EUROPE 2020 declares that the Committee of the Regions should be "more closely associated"; Third, it puts the social and environmental pillars on the same level as the economic one, thus remedying the overlooking of the social and environmental aspects that most EU cities and regions saw as a major weakness of the Lisbon Strategy. The Commission proposal also points out rightly that targets related to the Europe2020 smart, sustainability and inclusion priorities should be seen as "interrelated" and mutually reinforcing. It also meets the CoR's call to "develop Europe's competitiveness in the green economy" 6 ; Fourth, it acknowledges that the strategy should adapt to different starting points in a flexible manner. In fact, while adopting EU-level targets covering the three mentioned priorities, the Commission acknowledges that "Each Member State is different and the EU of 27 is more diverse than it was a decade ago", that "traditional sectors, rural areas" and "high skill, service economies" show different situations. Therefore, the EC proposes that each Member State translates the EU goals into "national targets and trajectories" so that "Investing in research and development as well as innovation, in education and in resource efficient technologies ( ) will reinforce economic, social and territorial cohesion"; Fifth, the EC proposal also acknowledges that Europe2020 must meet the need for solidarity between the richest and poorest areas of the Union and it considers that its outcomes will contribute to implementation of the Lisbon Treaty objective of territorial cohesion, stating that: "It is also essential that the benefits of economic growth spread to all parts of the Union, including its outermost regions, thus strengthening territorial cohesion". 2. However, other issues relevant to the EU local and regional authorities are not adequately addressed Other key issues raised by the CoR are not dealt adequately in the Europe 2020 blueprint, in particular: while acknowledging the need for stronger economic governance, the Europe2020 proposal does not answer the CoR request that EU Member States' national 5 6 The future of the Lisbon Strategy post 2010 (CdR 25/2009). Ibidem.

16 governments are provided with "stronger incentives to commit themselves to delivering the new strategy's objectives" 7. Instead, it relies on the effectiveness of the mechanisms based on the country-specific recommendations issued by the European Council and the subsequent policy warning that the Commission could issue if a Member State does not comply with the recommendations after two years; as for the role of the local and regional authorities, in contradiction to the positive acknowledgements mentioned above, the proposal does not stress the need to involve them in a permanent and structured manner in the design and implementation of the flagship initiatives; in spite of recognising that the CoR "should be more closely associated", the proposal does not elaborate on how to involve it in the design, implementation and monitoring of the new strategy; the proposal calls for a discussion "about how different instruments such as structural funds ( ) should be devised to achieve the Europe 2020 goals". The simple recognition that "cohesion policy and its structural funds" are "important in their own right" should be more elaborated. CoR has always stressed the danger of the currently increasing cross-regional economic disparities (when the disparities between countries are decreasing) and consequently inequalities in social conditions, which play against the European social model. Therefore, in the context of the debate about the size and the rationale of the EU budget, the link between cohesion policy and EUROPE 2020 should be more carefully reconsidered, taking into account the role played by cohesion policy for inclusiveness. the proposal is silent on the CoR call to go beyond the "use of GDP as the primary indicator to measure economic performance" 8 and the subsequent need to complement it with new indicators to better reflect the several phenomena influencing quality of life and (economic, social, environmental) sustainability issues. Indeed, there is a spread awareness and a large debate around the world on the need to combine the GDP with indicators that better measure the economic performances and quality and standards of living of citizens 9. In fact, the proposal announces that "The EC 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 Ibidem. Ibidem. A plethora of studies can be mentioned on this topic (e.g. "Measuring the progress of societies" initiative by OECD or the Stiglitz-Sen-Fitoussi Commission on the Measurement of Economic Performance and Social Progress) as well as the progressed work by the European Commission itself (Communication, "GDP and beyond", (COM(2009)433 final).

17 delivering high levels of employment, productivity and social cohesion", but does not disclose what these indicators will be; Europe 2020 states that the proposed EU-level targets "are representative, not exhaustive" and invites Member States to set their own additional indicators and targets, if they wish so. However, the Europe2020 proposal renounces to support the identification of additional indicators at the EU level, which is essential if they are to be used throughout the EU for governance purposes (comparison and benchmarking; monitoring and evaluation; management of territorial policies); as for the need for more effective communication to citizens and stakeholders, the Europe2020 proposal announces a "common communication toolbox", on which no details are provided though. It remains an essential element for the success of Europe 2020 on the ground. The CoR in its Opinion 10 called for "a more effective communication strategy ( ) to raise awareness and promote the key messages of the new Strategy" while contributors to the CoR Consultation 11 requested a strategy "more relevant to the lives of ordinary citizens". * * * The future of the Lisbon Strategy post 2010 (CdR 25/2009). CoR Consultation of European Regions and Cities on a New Strategy for Sustainable Growth,

18 Annex II Europe 2020: Commission proposes new economic strategy in Europe on Europe 2020 (Press Release IP/10/225, 3rd March 2010) The European Commission has launched today the Europe 2020 Strategy to go out of the crisis and prepare EU economy for the next decade. The Commission identifies three key drivers for growth, to be implemented through concrete actions at EU and national levels: 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 the fight against poverty). This battle for growth and jobs requires ownership at top political level and mobilisation from all actors across Europe. Five targets are set which define where the EU should be by 2020 and against which progress can be tracked. President Barroso said, "Europe 2020 is about what we need to do today and tomorrow to get the EU economy back on track. The crisis has exposed fundamental issues and unsustainable trends that we can not ignore any longer. Europe has a growth deficit which is putting our future at risk. We must decisively tackle our weaknesses and exploit our many strengths. We need to build a new economic model based on knowledge, lowcarbon economy and high employment levels. This battle requires mobilisation of all actors across Europe." First of all, Europe must learn the lessons from the global economic and financial crisis. Our economies are intrinsically linked. No Member State can address global challenges effectively by acting in isolation. We are stronger when we work together, and a successful exit therefore depends on close economic policy coordination. Failure to do so could result in a "lost decade" of relative decline, permanently damaged growth and structurally high levels of unemployment. The Europe 2020 Strategy therefore sets out a vision for Europe's social market economy over the next decade, and rests on three interlocking and mutually reinforcing priority areas: Smart growth, developing an economy based on knowledge and innovation; Sustainable growth, promoting a low-carbon, resource-efficient and competitive economy; and Inclusive growth, fostering a high-employment economy delivering social and territorial cohesion. Progress towards these objectives will be measured against five representative headline EU-level targets, which Member States will be asked to translate into national targets reflecting starting points: 75 % of the population aged should be employed. 3% of the EU's GDP should be invested in R&D. The "20/20/20" climate/energy targets should be met. 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 million less people should be at risk of poverty. In order to meet the targets, the Commission proposes a Europe 2020 agenda consisting of a series of flagship initiatives. Implementing these initiatives is a shared priority, and action will be required at all levels: EU-level organisations, Member States, local and regional authorities.

19 Innovation union - re-focussing R&D and innovation policy on major challenges, while closing the gap between science and market to turn inventions into products. As an example, the Community Patent could save companies 289 million each year. Youth on the move - 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 through out Europe and professional qualifications and experience properly recognised. A digital agenda for Europe - 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 Resource-efficient Europe - supporting the shift towards a resource efficient and low-carbon economy. Europe should stick to its 2020 targets in terms of energy production, efficiency and consumption. This would result in 60 billion less in oil and gas imports by An industrial policy for green growth helping the EU's industrial base to be competitive in the post-crisis world, promoting entrepreneurship and developing new skills. This would create millions of new jobs ; An agenda for new skills and jobs creating the conditions for modernising labour markets, with a view to raising employment levels and ensuring the sustainability of our social models, while baby-boomers retire ; and European platform against poverty - ensuring economic, social and territorial cohesion by helping the poor and socially excluded and enabling them to play an active part in society. The ambition of Europe 2020 means that leadership and accountability must be taken to a new level. The Commission invites Heads of State and Government to take ownership for this new Strategy and endorse it at the Spring European Council. The role of the European Parliament will also be enhanced. The governance methods will be reinforced to ensure that commitments are translated into effective action on the ground. The Commission will monitor progress. Reporting and evaluation under both Europe 2020 and the Stability and Growth Pact (SGP) will be carried out simultaneously (while remaining distinct instruments) to improve coherence. This will allow both strategies to pursue similar reform objectives while remaining as separate instruments For the full text of the Europe 2020 proposal and for further information, go to:

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