Lisbon strategy study

Pages: 21 (5176 mots) Publié le: 12 mars 2011

Lisbon Strategy and European Competitiveness

Lecturer : Philippe Scheuer Academic Year : 2010 - 2011

Table Of Contents

1. Describe the Lisbon Strategy 4
a. Essential aspects of the Lisbon strategy 4
b. What is in particular the underlying concept of competitiveness? 4
c. What was the diagnose about European competitiveness in 2000? 4d. Where are we in 2010? 6
e. How does the EU Commission define competitiveness? 6
f. What is Europe 2020? How different is it from the Lisbon strategy? 6
2. Is the “obsession for competitiveness” described by Paul Krugman in his article applicable to the European Union politicians in the context of the EU Agenda? 7
a. Explain what Krugman means with the “obsession forcompetitiveness” 7
b. Is it relevant in the case of Europe? 7
3. Explain the relationships – and the possible contradictions-between innovation, competitiveness and sustainability in the context of the Lisbon Strategy 8
a. Definitions 8
b. Relationships and contradictions in the context of the Lisbon Strategy 9
4. Explain and criticise the following recommendation made by Michael Dauderstädtin Increasing Europe’s Prosperity : ”An attempt should still be made to manage Europe’s specialization in the world economy so that its exports go to markets with higher income- and lower price elasticity” 12
5. Choose one country of the EU, and provide a snapshot view of its competitiveness 14
6. Bibliography 17
1. Describe the Lisbon Strategy.

On a first part, the Lisbonstrategy was thought in 2000 by the European Union (EU). The goal was to improve the economic growth, competitiveness and to promote social inclusion. How did they apply it? Through various policies initiatives such as the creation of an information society or an European research and development, by establishing efficiency and integrated financial markets, by ensuring more and better jobs forEurope or by modernizing social protection and enhancing sustainable development. On a second part, the Lisbon summit in 2000 concluded that EU needs to change its model about how to compete in the global economy.

a. Essential aspects of the Lisbon strategy

The essential aspects are the investment in human resources, research and new technology. In other words, Europe should increaseexpenditure on education and research. These investments lead to the raising of the employment level, the reducing of economic deficit and the environment protection.

b. What is in particular the underlying concept of competitiveness?

Competitiveness is a relative concept leading to evaluate the competition of a nation, a sector or a firm. This competition is linked to theeconomic situation of a country and of the international market. To stay competitive means to follow a continuous process to survive against all the threats posed by the international economy.
This concept is also based on the idea of a nation’s prosperity. Indeed, this prosperity is measured by the productivity which is itself measured by the value of goods and services produced. Thus, thisproductivity permits nations to have high wages, a strong currency and a high standard of living.
More practically, [1]EU had, since 1970, a critical situation with its productivity and innovation. It was said to be the result of social and economic rigidities. After the World War II, this situation aggravated and didn’t allow EU to have market competition, a growing capital or even high levelsof social spending. To conclude, this underlying concept was measured in the time when the Lisbon strategy was elaborated, by the bad performances in the economy, the lasting unemployment and the vegetative state of the knowledge-intensive sectors.

c. What was the diagnose about European competitiveness in 2000?

The first statement we can see is that the part of the salary...
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