Task force on South East Europe 2020 3 July 2012 José Angel Becerra Europe 2020 and National Competitiveness Policies Enterprise and Industry DG Smart.

Task force on South East Europe 2020 3 July 2012

José Angel Becerra Europe 2020 and National Competitiveness PoliciesEnterprise and Industry DG

Smart growth: from indicators to policy

Objectives, indicators, policy

• Objectives:• Indicators to describe the competitive performance of the

MS

• Policy recommendations to improve performance

• Two forums for policy messages:• Country-specific recommendations of the European

Semester (May)

• Report on Member States' competitiveness performance and policies (September)

Competitiveness and its indicators

• Report on MS competitiveness • Article 173 TFEU

• Published yearly as part of the industrial policy package

• Horizontal chapters focusing on policy areas

• 26 indicators per Member State divided in four areas

• Comparison to the EU average

• New in 2012: industrial performance scoreboard

Horizontal focus in 2012

• Industrial innovation• Sustainability of industries• Business environment

• Access to finance

• Regulatory burden

• Services

• Quality of public administration

Horizontal focus area:access to bank lending

Data source: ECB/European Commission, DG ENTR calculations.

Analysis process•Identify countries that have a serious problem – based on both indicators and other evidence•Explore the reasons for the underperformance•What policy actions could improve the situation?

Horizontal focus area: government effectiveness rank

0 10 20 30 40 50 60 70 80 90 100

FinlandDenmark

SwedenAustria

NetherlandsLuxembourg

BelgiumUnited Kingdom

GermanyCyprusFranceIrelandEstonia

MaltaPortugalSlovenia

Czech RepublicSpain

Slovak RepublicLithuania

PolandLatvia

HungaryCroatiaGreece

ItalyBulgaria

Romania

2010

2005

Data source: World Bank Governance Indicators 2011.

The WGI summarize information from 30 existing data sources on view and experiences of citizens, entrepreneurs, and experts in public, private and NGO sectors.

Horizontal focus area: efficiency of public administration

Data source: DG ENTR calculations

Country indicators - Slovenia

Modern and competitive industry

Sustainable industry

Business environment

Entrepreneurship and SMEs











Europe 2020: the EU’s growth strategy

Single Market Act Trade and

external policiesStructural Funds

and future EU budget

Modernised EU levers for growth and jobs

Flagships for smart, sustainable and inclusive growth

Strengthened EU economic governance

Macro-economic & fiscal

surveillance

Regulation of financial services

Targets and guidance for structural reforms

Innovation Union

New Skills and new Jobs

Digital Agenda

Youth on the Move

New Industrial Policy

Platform against Poverty

ResourceEfficiency

EU targets agreed for 2020

EMPLOYMENT 75% of the population aged 20-64 should be employed

INNOVATION 3% of the EU's GDP should be invested in R&D

CLIMATE / ENERGY A reduction of greenhouse gas emissions by 20%

A share of renewable energies up to 20%

An increase in energy efficiency by 20%

EDUCATION The share of early school leavers should be under 10%

At least 40% of the younger generation should have a degree or diploma

POVERTY Lifting at least 20 million people out of poverty

Council of Ministers

European Commission

European Parliament

European Council

Spring EU summit: overall guidance on EU priorities

January March AprilFebruary May June July

Adoption of National Reform Programmes (NRPs) & Stability and Convergence Programmes (SCPs)

Autumn:Implementation at

national level

Debate & orientations

Endorsement of country-specific recommendations

Discussion in Council formations

Member States

Annual Growth Survey and other reports

Proposals for country-specific recommendations

Debate & orientations

Autumn:Monitoring and

peer review at European level

The European Semester timeline

Five priorities Key areas for action

1. Pursuing differentiated growth-friendly fiscal consolidation

2. Restoring normal lending to the economy

3. Promoting growth and competitiveness

4. Tackling unemployment and the social consequences of the crisis

5. Modernising public administration

Pursue country-specific strategies to fit national fiscal and macro-financial situation

Adopt right mix of expenditure and tax shifts to maximise positive impact on growth

Strengthen capital positions of key banks Facilitate more direct access to financing

Tap into existing sources: digital single market, internal market for services, trade

Mobilise EU funds in support of growth Fast-track key EU initiatives (cf. AGS annex)

Pursue reforms for a growth-rich recovery Supporting employment, notably through

a Youth Opportunities Initiative Protecting the vulnerable

Improve business environment Facilitate absorption of EU funds

Annual Growth Survey 2012

Full text of recommendations at: http://ec.europa.eu/europe2020/index_en.htm

EU recommendations for national action in 2012/13

Soundpublic

finances

Pensionand

health systems

Fiscal framework

Taxation BankingHousing market

Access to finance

Network industries

Competition in service sector

Public services

and regulation

R&D and

innovation

Resource efficiency

Labourmarket

participation

Active labourmarketpolicy

Wagesetting

mechanisms

Labour market

flexicurityEducation

ATBEBGCYCZDEDKEEESFIFRHUITLTLULV 0MTNLPLSESISKUK

Public finances Growth enhancing structural reformsFinancial sector Labour market

Employment increase labour participation,

particularly of youth, elderly, disadvantaged groups

undeclared work life-long learning lower labour taxesemployment services

Competitivenesswage setting mechanismspublic sector wage developmentscompetition in serviceseducation, R&D and innovationbusiness environment

Sustainability of public financesalign pensions to demography incentives for older workersnational fiscal rule

Financial stabilitynational legislation for banking

resolution or other measures

Employment/labour marketactive labour market policy: public

employment servicessocial transfers and access to social

serviceseducation reform

Structural policies/competitivenesscompetition in electricity/gas markets public services: public procurement,

administrative capacity, independence of judicial system

energy efficiency/energy connections absorption of EU funds

Public financessound public financespension, education and health systemsstrengthen fiscal framework tax compliance and shadow economy

Financial Sectoraccess to finance start-ups and SMEs

European semesterrecommendations for 2012/2013

Employment: 76%

R&D: 1.5%

Tertiary education: 36%

Early school leaving: 11%

Greenhouse gas emissions: +20%

Renewable energy: 16%

Energy efficiency: 3.20 Mtoe

Reduction of people at risk of poverty or social exclusion: 260 000 (national definition)

BULGARIAEurope 2020 targets Euro Plus Pact

commitments

Source: European Commission. For more information, see: http://ec.europa.eu/europe2020/index_en.htm

Employment flexicurity increase labour participationundeclared work life-long learning

Competitivenesswage setting mechanisms public sector wage developmentseducation, R&D and innovationbusiness environment

Sustainability of public financesalign pensions to demography incentives for older workersnational fiscal rule

Financial stabilitynational legislation for banking


The only recommendation is to implement existing commitments under EU/IMF financial assistance programmes


Employment:70%

R&D: 2%

Tertiary education: 26.7%

Early school leaving:11.3%



Energy efficiency: 10.0 Mtoe

Reduction of people at risk of poverty or social exclusion: 580 000

ROMANIAEurope 2020 targets Euro Plus Pact

commitments


Employment flexicurity increase labour participation life-long learning

Competitiveness wage setting mechanismspublic sector wage developmentscompetition in serviceseducation, R&D and innovationbusiness environment

Sustainability of public financesnational fiscal rule

Financial stabilitynational legislation on banking


Employment/labour market labour market participation (older

workers)active labour market policies wage setting mechanisms flexicurityeducation, vocational education-

matching skills to labour market needs

Structural policies/competitiveness regulated professional services public services and regulation

Public financessound public financespension system fiscal framework

Financial sectormeasures in the banking sectoraccess to finance


Employment: 75%

R&D: 3%

Tertiary education: 40%

Early school leaving: 5%



Energy efficiency: no target

Reduction of people at risk of poverty or social exclusion: 40 000

SLOVENIAEurope 2020 targets Euro Plus Pact

commitments


Are we likely to meet our targets for 2020?

EMPLOYMENT 75% of the population aged 20-64 should be employed

INNOVATION 3% of the EU's GDP should be invested in R&D

CLIMATE / ENERGY A reduction of CO2 emissions by 20%

A share of renewable energies up

to 20%

An increase in energy efficiency

by 20%

EDUCATION The share of early school leavers should be under 10%

At least 40% of the younger generation should

have a degree or diploma

POVERTY 20 million fewer people should be at risk of poverty

The EU is lagging behind its R&D target

On the basis of current commitments, the Europe 2020 target will not be met.

EU target***

≈ 2.7%

≈ 2.2%

Business as usual*

•EU investment in R&D as a % of GDP in 2000, 2010 and 2020

If national targets are met**

* Scenario based on the continuation of on-going reforms and financial efforts. ** No targets set by CZ, EL and the UK: 2020 figures were estimated by Commission services.

*** The EU target includes R&D expenditure by intergovernmental research infrastructures which is not included in the R&D expenditure of the Member States.

%

Source: European Commission

Levels of ambitions for R&D vary a lot •R&D investments in the EU as a % of GDP

2020 national target**2010 performance*

%

* EL: 2007; AT, FI: 2010.**No targets set by CZ, EL and the UK. For CZ: a target (of 1%) is available only for the public sector.

For IE: the target is 2.5% of GNP which is estimated to be equivalent to 2.0% of GDP. For LU: the target is between 2.30% and 2.60% (2.45% was assumed).

EU target


22

PT

LT

DK

ATNLMT

SIHU

BG

CY

EE

RO

PL

FI

ES

IT

SK

IE

CZ

LU

DE

BE

EL

LV

UK

FR

SE

EA

EU

USJP

EU average

EU

avera

ge

Long-term performances vary across the EU

Productivity levels in 2011 and growth over 2000-2011

Ho

url

y p

rod

uct

ivit

y g

row

th (

in %

, an

nu

al a

vera

ge

2000

-201

1)

Hourly productivity level (2011)


Links

• Report on MS competitiveness• http://ec.europa.eu/enterprise/policies/industrial-competitiveness/monitoring-member-states/index_en.htm

• Monitoring Europe 2020 • http://ec.europa.eu/europe2020/reaching-the-goals/monitoring-progress/index_en.htm

Task force on South East Europe 2020 3 July 2012 José Angel Becerra Europe 2020 and National Competitiveness Policies Enterprise and Industry DG Smart.

Documents

policy slide

smes slide

poverty slide

indicators report

policy areas

policy objectives

policy messages

policy actions