WASHINGTON, Feb. 2 (UPI) -- After five years of "limited success" meeting economic goals aimed to revitalize the European Union's economy, European Union President Jose Manuel Barroso unveiled a new strategy Wednesday to strengthen the EU's pledge to be the world's most competitive, knowledge-based economy by 2010.
"Europe must do better. What we are proposing today is to release Europe's tremendous economic potential," Barroso said before the European Parliament, reiterating the commission's commitment to economic growth.
"Our ambition is undiminished. The overall Lisbon goals were right, but the implementation was poor. The lesson from the last five years is that we must re-focus this agenda to deliver results," he added.
Agreeing that progress on the Lisbon Strategy -- the EU's economic reform agenda created in 2000 -- had fallen short of its goals in increasing productivity and job growth, Barroso affirmed the European Commission's commitment to meeting its economic aims, while calling on member states to play a pivotal role in the economic revitalization process.
"The closer involvement of the member states should enhance their ownership of the reform process and thereby contribute to a better implementation of the renewed strategy," the commission said.
Although the European Union has successfully created a single market union and a single currency, a great deal of blame has rested on member states, which have demonstrated a slow growth and productivity rate due in part to their resistance to reform.
"Lisbon has been blown off course by a combination of economic conditions, international uncertainty, slow progress in the member states and a gradual loss of political focus," the commission said in a statement.
Thus, a vital part of the revised policy recommendations will be the creation of a new partnership between the EU and its members. Under the policy recommendations, members will have to appoint a "Mr. or Mrs. Lisbon," who will be in charge of implementing revisions and monitoring progress in order to meet the goal of "sustainable development."
"The new growth and job strategy is based on a clear division of responsibilities between the EU level and the member states. While the European Commission can act as a facilitator, the main responsibility for the economic reform process lies with (members)," the commission said.
The fear among many European heads of states is that without immediate reforms, the EU will continue to fall behind the United States in terms of economic growth and job creation. Additionally, an increasingly ageing population among Europeans and increasing competition from countries like China and India have caused even further concern.
"This time we have to get it right, join forces and deliver on what our citizens car most about: jobs," said EC Vice President Gunter Verheugen. "Today's message is: There are no miracle solutions. We have to get down to work in a spirit of partnership and set the political framework to boost growth and jobs. The Commission will do its part that business can get on with business."
Under the revised Lisbon Strategy, the commission's gross domestic product would increase by 3 percent a year and create more than 6 million jobs by the target date of 2010, something the EU desperately has been trying to achieve. In 2004, the average growth of the euro area was only 2.2 percent, lagging behind economies like the United States which grew by 4.3 percent, followed by Japan's economy which grew by 4.4 percent, India by 6.4 percent and China by 9 percent.
The commission fears that if trends do not improve, the EU's growth rate may drop to 1 percent.
The commission is also aiming to increase their research and development spending from 2 to 3 percent of GDP, which would help to boost the GDP level by 1.7 percent by 2010, in the hopes of catching up to the United States, which spends about $130 million (100 million euros) more on research and development than Europe.
An additional goal for Europeans will be to increase investment, which has been growing on average by only 1.7 percent, much lower than the United States which sees an average investment rate of 5.4 percent a year.
Other key commission plans are to ensure that there are open and competitive markets inside and outside Europe, improve labor market flexibility, complete an internal market and improve European infrastructure.
However, fierce debates have already commenced from MEPs, business groups and unions, who claim that Barroso placed very little emphasis on social and environmental changes.
"This is a disappointing start for the new Commission because it risks presenting Europe as an agent for lower social standards, worse welfare states and poorer environmental standards," said a spokesperson from the European Trade Union Confederation.
"The high road to growth -- Europe's only practical road -- should be rooted in combining economic progress with higher environmental and social standards," the ETUC said.
The commission rebutted the claim, saying that "The focus on growth and jobs clearly incorporates a social dimension."
