1 THE EUs NEW GROWTH & RESEARCH STRATEGIES: Implications for Welsh Academia of Europe 2020 and the Innovation Union. By Andy Klom European Commission Office.

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THE EU’s NEW GROWTH & RESEARCH THE EU’s NEW GROWTH & RESEARCH STRATEGIES: STRATEGIES: Implications for Welsh Academia of Implications for Welsh Academia of Europe 2020 and the Innovation Union.Europe 2020 and the Innovation Union.

By Andy KlomBy Andy Klom

European Commission Office in WalesEuropean Commission Office in Wales

17 November 2010, Cardiff University17 November 2010, Cardiff University

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Who are we: EC Office in Who are we: EC Office in WalesWales

Representation: Voice of EuropeRepresentation: Voice of Europe Representation: Eyes & Ears of Europe Representation: Eyes & Ears of Europe The 5 P’s: Politics/Press & The 5 P’s: Politics/Press &

Media/Public Affairs/Public Media/Public Affairs/Public Diplomacy/General 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.

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Who are we: Network Who are we: Network within EUwithin EU

EC has 35 Representations within 27 EU EC has 35 Representations within 27 EU members.members.

27 national representations and 8 regional ones.27 national representations and 8 regional ones. Regionals in Barcelona, Milano, Munich, Bonn, Regionals in Barcelona, Milano, Munich, Bonn,

Marseille, Edinburgh, Belfast, Cardiff.Marseille, Edinburgh, Belfast, Cardiff. Coordinated through DG Communication, but Coordinated through DG Communication, but

working for the whole European Commission.working for the whole European Commission. Coordinating with European Parliament Coordinating with European Parliament

Information Offices-where present, and with Information Offices-where present, and with National and Devolved Governments-where National and Devolved Governments-where possible.possible.

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ContentContent

1) Europe 20201) Europe 20202) Innovation Union2) Innovation Union3) Consequences3) Consequences

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1. Europe 20201. Europe 2020

New medium-term macro-economic New medium-term macro-economic strategystrategy

Successor to the Lisbon Agenda 2000-Successor to the Lisbon Agenda 2000-20102010

Proposed March 2010 by the ECProposed March 2010 by the EC Endorsed by Council and the EP June Endorsed by Council and the EP June

20102010 Follow-up Members Autumn 2010Follow-up Members Autumn 2010 Flagship initiatives by EC Autumn 2010Flagship initiatives by EC Autumn 2010

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Where Europe stands nowWhere Europe stands now ? ?

The crisis has reversedThe crisis has reversed much of the progress achieved much of the progress achieved since 2000 and exposed Europe’s structural since 2000 and exposed Europe’s structural weaknesses : weaknesses :

Sluggish structural growthSluggish structural growth

Productivity gapProductivity gap

High unemploymentHigh unemployment

Levels of debt and limited fiscal roomLevels of debt and limited fiscal room

The economic situation is gradually improvingThe economic situation is gradually improving , but:, but:

Recovery is still fragile Recovery is still fragile

Global challenges intensify:Global challenges intensify: competition from developed competition from developed and emerging economies, global finance, climate change and and emerging economies, global finance, climate change and pressure on resourcespressure on resources

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Why a European strategy?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 In addition, the crisis in Greece has more than ever underlined underlined the interdependences in the eurozone the interdependences in the eurozone areaarea• 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

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Europe 2020: EU after the Europe 2020: EU after the crisiscrisis

Europe needs to be back on trackEurope needs to be back on track : our short : our short term priority is a successful exit from the crisisterm priority is a successful exit from the crisis

Whilst taking a long-term vision: Whilst taking a long-term vision: where Europe where Europe should be in 2020 – no time to waste to face should be in 2020 – no time to waste to face challenges (climate change, demography, energy challenges (climate change, demography, energy security, long-term economic outlook)security, long-term economic outlook)

Therefore, a new strategy “Europe 2020” to Therefore, a new strategy “Europe 2020” to return to growth, but a new type of growthreturn to growth, but a new type of growth

- smart, sustainable and inclusive growth- smart, sustainable and inclusive growth- translating into high employment and translating into high employment and

social & territorial cohesionsocial & territorial cohesion

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Europe 2020: a holistic Europe 2020: a holistic approachapproach

Fiscal consolidationFiscal consolidation (Member States) (Member States) Structural reformsStructural reforms: transformation of our : transformation of our

economies to create new growth and jobseconomies to create new growth and jobs Robust and safe financial sectorRobust and safe financial sector (EU (EU

level)level)

We must do this simultaneouslyWe must do this simultaneously

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Europe 2020: delivering Europe 2020: delivering reformsreforms

3 thematic 3 thematic prioritiespriorities 5 EU headline 5 EU headline targetstargets – translated into – translated into

national onesnational ones 7 7 flagshipflagship initiatives – EU & national initiatives – EU & national

actionaction Mobilising existing EU Mobilising existing EU instrumentsinstruments::

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 instrumentsEU and national Budgets & new financing instruments

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Europe 2020: 3 interlinked Europe 2020: 3 interlinked prioritiespriorities

1.) 1.) Smart growthSmart growth:: developing an developing an economy based on knowledge and economy based on knowledge and innovationinnovation

2.) 2.) Sustainable growthSustainable growth: : promoting a promoting a more efficient, greener and more more efficient, greener and more competitive economycompetitive economy

3.) 3.) Inclusive growthInclusive growth: : fostering a high-fostering a high-employment economy delivering social employment economy delivering social and territorial cohesionand territorial cohesion

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Europe 2020: 5 EU headline Europe 2020: 5 EU headline targets targets

( to be translated into national ( to be translated into national targets)targets)

By 2020:By 2020:

75 % 75 % employmentemployment rate (% of population aged 20-64 years) rate (% of population aged 20-64 years)

3% investment in 3% investment in R&DR&D (% of EU’s GDP) (% of EU’s GDP)

““20/20/20” 20/20/20” climate/energyclimate/energy targets met (incl. 30% emissions targets met (incl. 30% emissions reduction if conditions are right)reduction if conditions are right)

Less than 10% school drop-out ratesLess than 10% school drop-out rates and and at least 40% of at least 40% of the populationthe population aged 30-34 having aged 30-34 having completed tertiary or completed tertiary or equivalent educationequivalent education;;

Lifting at least Lifting at least 20 million people out of the risk of 20 million people out of the risk of poverty or exclusionpoverty or exclusion

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EU tools in support of Europe EU tools in support of Europe 20202020

Single market relaunch

Trade and external policies

EU financial support

EU levers for growth and jobs

EU flagship initiatives

EU monitoring and guidance

Macro, thematicand 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)

ResourceEfficiency

(Early 2011)

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Europe 2020: A stronger Europe 2020: A stronger governance architecturegovernance architecture

The The European CouncilEuropean Council at the center of at the center of the strategythe strategy

A « A « European SemesterEuropean Semester » for economic  » for economic policy coordination: simultanous policy coordination: simultanous submission by Member States of NRP/SCPsubmission by Member States of NRP/SCP

A A robust monitoring processrobust monitoring process by the by the Commission/Council: annual growth Commission/Council: annual growth survey, country specific recommandations survey, country specific recommandations and policy warningsand policy warnings

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Annual policy cycle (as of 2011)Annual policy cycle (as of 2011)

Council of Ministers

European Commission

European Parliament

European Council

Annual economic & social summit

January March AprilFebruary May June July

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

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Europe 2020: towards a Europe 2020: towards a successful implementationsuccessful implementation

Member States to submit Member States to submit draft National draft National Reform Programmes by 12 NovemberReform Programmes by 12 November and and final NRP by April 2011final NRP by April 2011

Commission to present the remaining Commission to present the remaining flagship initiatives in the coming monthsflagship initiatives in the coming months. .

Commission to issue proposals on Commission to issue proposals on EU-level EU-level tools to improve framework conditionstools to improve framework conditions: : deepening the Single Market , new trade deepening the Single Market , new trade strategy, budget review.strategy, budget review.

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2.2. Innovation UnionInnovation Union Comprehensive innovation strategyComprehensive innovation strategy One of the seven flagship initiatives (sole EU One of the seven flagship initiatives (sole EU

focus)focus) Linking up with main EU growth focus: Linking up with main EU growth focus:

Smart/sustainable/inclusive Smart/sustainable/inclusive Three main goals:Three main goals: 1) Europe as world-class science performer1) Europe as world-class science performer 2) Innovation Partnerships (public/private)2) Innovation Partnerships (public/private) 3) Remove bottlenecks (expensive patenting, 3) Remove bottlenecks (expensive patenting,

market fragmentation, standards, skills market fragmentation, standards, skills shortages)shortages)

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Innovation Union to do’sInnovation Union to do’s

Continue/step up investment in Continue/step up investment in education, R&D, innovation and ICTseducation, R&D, innovation and ICTs

Modernize education systems at all Modernize education systems at all levels, more world-class universitieslevels, more world-class universities

European Research Area to be completed European Research Area to be completed in 4 years- free movement of knowledgein 4 years- free movement of knowledge

Access to EU programmes to be Access to EU programmes to be simplified, linkage of funding (EIB, ERC, simplified, linkage of funding (EIB, ERC, ERDF)ERDF)

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Innovation Union to do’sInnovation Union to do’s

Get more innovation out of research: Get more innovation out of research: cooperation science – businesscooperation science – business

Remove barriers for business- ideas to Remove barriers for business- ideas to marketmarket

Work better with international partners- Work better with international partners- opening access to R&D programmesopening 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 Creates 3.7 M jobs, raises GDP by € 800 B in 2025B in 2025

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3. Consequences3. Consequences EU specific focus 2010-2014-2020EU specific focus 2010-2014-2020 FP-7, FP-8, all focussed on Europe 2020 targetsFP-7, FP-8, all focussed on Europe 2020 targets Innovation Union to deliver on 2020 targetsInnovation Union to deliver on 2020 targets Budget Review: change period from 7 to 10 yr Budget Review: change period from 7 to 10 yr

(2024)(2024) Budget Review: change of categories/mixBudget Review: change of categories/mix Budget Review: change of resources/own Budget Review: change of resources/own

resourcesresources Cohesion Policy linked to Europe 2020, linked Cohesion Policy linked to Europe 2020, linked

to targets/criteria/NRP, conditionalityto targets/criteria/NRP, conditionality

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Consequences continuedConsequences continued

Future of FP-8 linked to Europe 2020Future of FP-8 linked to Europe 2020 Future of Cohesion Funding linked to 2020Future of Cohesion Funding linked to 2020 Budget review shaking up spending Budget review shaking up spending

categoriescategories Strong conditionality requirementsStrong conditionality requirements Opportunities for Welsh academia (focus)Opportunities for Welsh academia (focus) Need for preparation, orientation, Need for preparation, orientation,

awarenessawareness Need for partnerships, EU coverageNeed for partnerships, EU coverage

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ConclusionsConclusions

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 Get more awareness of EU

priorities/focuspriorities/focus Get involved in Get involved in

networks/partners/lobbyingnetworks/partners/lobbying Prepare now, position yourself nowPrepare now, position yourself now

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Thank you/Diolch yn fawrThank you/Diolch yn fawr

For more information and For more information and documents:documents:

www.ec.europa.eu/eu2020www.ec.europa.eu/eu2020

soon to be replaced by:soon to be replaced by:

www.ec.europa.eu/europe2020www.ec.europa.eu/europe2020 Or for more about the EC Office in Or for more about the EC Office in

Wales:Wales:

www.ec.europa.eu/waleswww.ec.europa.eu/wales