Monday marked a reason to look back at the last half year. It has been six months now that Estonia and New Europe have been members of the European Union, and really, no massive changes to be noted. Estonians are becoming increasingly aware of how the bureaucratic machinations of the EU mean that any change takes a while to be suggested, discussed, rejected, legislated, implemented, changed, et cetera, ad nauseam.
One such agenda for renewal is the Lisbon strategy. The Lisbon Agenda is a commitment to bring about economic, social and environmental renewal in the EU. In March 2000, the European Council in Lisbon set out a ten-year strategy to make the EU the world's most dynamic and competitive economy. Under the strategy, a stronger economy would be created which in turn will drive job creation alongside social and environmental policies that ensure sustainable development and social inclusion.
But, it is merely a strategy. And, to date marked by a stunning lack of progress. When most Americans rightfully considered the economy to be the most important domestic issue in the November elections, many Old Europeans seem blissfully unaware of the snags Lisbon has encountered. In fact, since the launch of the grand strategy in the Portuguese capital the economic gap between Europe and the US has widened, not narrowed. Critics hoping for an economic revival of Europe are pointing at social issues as a root cause of economic stagnation.
One huge difference between Yankees and Europeans has been reflected in their attitude toward work. Americans are consumers, driven to work long and hard to gain the trappings of success, the visible benefits of overtime are not vacations, long rest but larger houses, bigger cars and more electronic gadgets. Europeans, on the other hand, are aware of the restorative benefits of time away from work. Long vacations and short working weeks are the result - however, someone has to pay for this. When there is no economic growth then all Europe suffers the consequences.
Former Dutch Prime Minister Wim Kok headed a group which has compiled a report on the Lisbon Agenda. Their assessments were released to the European Commission on Wednesday, and the findings are thought provoking.
Kok points out that one of the main reasons for the sputtering of Lisbon is that bugbear of the EU, unanimity. All for one and one for all is merely a Dumas catch phrase - without unanimous support the EU cannot proceed on economic projects. Language is another stumbling block, national tongue issues have hamstrung agreement on a European Patent Directive, so important in a competitive world, not only Europe.
The Kok report outlines nine important issues that need to be addressed in order to get the European economy back on track. Some of these issues are bound to receive intense, if not violent opposition. And tellingly for Estonians - as well as Canadians, who are also on the same parallel track with social issues - Kok sounds more American than European in his advice.
The aging society issue needs to be dealt with sooner rather than later. The move toward early retirement (in Canada as well) means that the economy has fewer active contributors in the work force. As outlined concisely and clearly in Canada by David Foote, it is the pig and the python, demographic reality means that someone has to pay for these benefits. And pay far more than those receiving boons originally contributed. Kok advises that the EU "requires a policy shift away from early retirement." A political hot potato, if ever there was one.
Beyond social issues there are governmental difficulties. Kok outlines how all of Europe's national governments must present viable action plans for economic growth by the spring of 2005. Legislation arising from the EU's Financial Services Action plan must become national law everywhere by the end of next year. Further, EU member states must remove existing obstacles to the free movement of services across the EU. A loggerhead is intellectual property. Kok's suggestion is to agree on a lingua franca; the obvious choice is English, the international language of commerce. Commerce creates red tape - just consider Canada's problems with the US and their projectionist tariffs seen in the softwood lumber and beef industries. A common European definition of red tape must be agreed upon as well as avoiding any new forms of bureaucratic obstacles. A bold proposal is that national governments should cut the costs associated with setting up new enterprises and businesses. Kok advises that the cheapest costs in the EU's three best countries - not named, but Estonia certainly seems to rank in the upper echelon - become the standard. Finally, a European research Council should be established to compete with Asia and the Americans. Though this might reinforce established U.S. corporate practice one needs only to look at Japan, which despite suffering through a recession dating back almost to the end of the Cold War maintains high standards of living.
It is a given that once high standards of living have been attained few wish to have their source challenged. Jeremy Slater, writing in Tech Central Station this Wednesday suggests, rather bravely, that unless Kok is heeded Europe will become a "comfortable museum where our wealthier cousins from the US, Europe and China" bring their tourist dollars, thus enjoying the fruits of their vibrant economies. Europeans, on the other hand, beset by a sluggish economy hampered by inane rules will be "cushioned by a social system that encourages only a small portion of the population to work." Slater goes further, by jabbing at the French. France's attempts at reforming the 35 hour workweek has been met by massive opposition form the trade unions, whose members come form the 40% (!) of the country's workforce employed by the state. If Lisbon does not see serious reform as suggested by Kok, then Europe will become what Slater terms "nothing better than cheese eating vacation monkeys".
Are Estonians, still far behind the entrenched trenchermen EU nations willing to accept such a fate? As Romano Prodi said this week, Lisbon reform requires cooperation - otherwise the Union cannot make progress economically. Serious thoughts requiring serious actions by not only the French but all the other comfortable societies lolling on the plump pillows of the old EU.
Leader: Rethinking Lisbon
Archived Articles | 05 Nov 2004 | EWR
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