CROATIA AND LISABON STRATEGY CONVERGENCE TOWARDS GOALS

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Reforms in Lisbon Strategy Implementation
Economic and Social DimensionsZagreb, May 3rd,
2006
CROATIA AND LISABON STRATEGYCONVERGENCE TOWARDS
GOALS?
Vinja Samardija, PhD Institute for
International Relations Zagreb
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Content of presentation

• What is Croatia doing to achieve Lisbon strategy
  goals?
• Strategic documents
• Institutional aspects
• Implementing mechanisms
• Current stage of implementing Lisbon goals in
  some areas

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Revised Lisbon agenda

• EU
• Priority areas for action growth and employment
• Community Lisbon Programme directed to EU
  member states
• Impementation
• Partnership between Commission and MS
• New Integrated Guidelines for growth and
  Employment
• Structural indicators, benchmarks
• Annual Progress Report
• Regular Progress Reports
• Member states
• National Reform Programmes (measures, deadlines,
  indicators)
• Lisbon national coordinators
• Implementation!

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Lisbon strategy and Copenhagen criteria

• Lisbon and candidates (Barcelona Summit, 2002)
• Lisbon Strategy seen as an incentive for
  candidates to adopt implement objectives as a
  two-way learning process
• Lisbon and Western Balkans (2006)
• Lisbon objectives do not constitute additional
  criteria or economic objectives
• ...but the Lisbon objectives will be reflected in
  the EU policies towards the region, in the areas
  that can be considered priorities under
  European/Accession Partnerships
• Lisbon strategy priorities should be differently
  interpreted by each country, taking into account
  the level of development and the individual stage
  of rapprochement to the EU
• Implementation of Lisbon goals - complementary to
  fulfilment of Copenhagen criteria?

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Implementation of revised Lisbon strategy ... and
candidates
European Commission European
Council Eur. Parliament EESC Comm.of Regions Soc.
partners
REVISED LISBON STRATEGY
Member States (25)

But...EU policies towards candidates/WB region
reflect Lisbon activities that can be considered
as priorities under European/Accession
Partnerships
Lisbon objectives are not additional EU criteria!

Candidate countries ... WB countries
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Priorities in Croatias reforms converging
Lisbon goals

• Croatias economic policy objectives relevant for
  implementing Lisbon goals
• Maintaining stable macroeconomic environment
• Strengthening the overall economy and raising the
  level of competitiveness
• Accelerating growth and employment
• Social prosperity in a competitive market economy
  (growth, development, employment, social
  inclusiveness and justice)

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Current stage of implementing Lisbon

• A comprehensive programme to implement Lisbon
  objectives (Action Programme) has not been
  developed in Croatia
• Some aims and activities leading to its
  implementation introduced in different strategic
  documents
• Lisbon Coordinator appointed

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Strategic documents relevant for implementing
Lisbon objectives

• Croatia does not have a coherent Lisbon Action
  Plan
• Some aims and activities leading to its
  implementation introduced in strategic documents
• Strategic Framework for Development (2006-13), to
  be adopted
• National Programme for Integration into EU
  (annually)
• Pre-accession Economic Programme, PEP (annually)
• Economic Fiscal Policy Guidelines (2006-08)
• Stand-by Arrangement (IMF)
• 55 Recommendations for Raising Croatias
  Competitiveness
• E-Croatia Programme
• Programme of Incentives for SME (2004-08)
  Operative plan (2006)
• Croatian Programme for Innovative Technological
  Development
• National Strategy for Development of Intellectual
  Property (2005-10)
• ... other
• Existing documents cover only partly Lisbon
  agenda
• Operational action plan for implementing Lisbon
  goals is needed! (targets, instruments,
  deadlines, responsibilities)

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Developing/adopting implementation instruments

• Operational Action Plan - measures, deadlines,
  monitoring, reporting
• Administrative capacity for implementationimplemen
  ting bodies
• Adopting Lisbon instruments
• Open method of coordination
• Benchmarks
• Monitoring
• Social dialogue, partnership, commitment to
  reforms, communicating to public

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Open method of coordination (OMC)

• Soft approach - evaluation, monitoring, reporting
• Identification, implementation, spreading best
  practice of achieving convergence towards common
  EU goals
• Process of mutual learning aiming to develop
  coherent policies
• Qualitative and quantitative indicators,
  benchmarks
• Scoreboards (innovation, or enterprise policy
  scoreboard)
• Competitiveness reports, or composite indicators
  (on knowledge society in areas such as RD and
  human capital)
• Partnerships, consultations

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Open method of coordination (OMC)

• Croatia has so far not enough promoted mechanisms
  implemented through OMC
• Existing strategic documents and actions taken
  demonstrate orientation towards Lisbon and
  Barcelona goals, but neither timetable nor
  comprehensive benchmarking scheme has been
  developed yet

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Benchmarks

• Indicators some only partly registered by
  National Statistics Bureau
• Need to further develop system of collecting and
  monitoring qualitative and quantitative
  indicators
• Example
• Innovation benchmark - rather weak and
  underdeveloped area, lack of resources of CBS
  (financial support, man-power, premises)
• Croatia not included in EU innovation databases
  (CIS, EIS)
• Activities in progress preparations for
  participation in EU benchmark programmes and
  system of monitoring indicators (EU benchmark
  programmes for innovation)
• Supported from the PHARE programme

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Selected structural indicators (EU-25, Croatia
and candidates/acceding countries, 2004)
Data for 2003 Source Eurostat, 2006
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Integrated guidelines for growth and jobs
(2005-2008)

• Macroeconomic guidelines (6)
• Economic stability, economic sustainability,
  efficient allocation of resources, coherent
  macroeconomic and structural policies, wages,
  macroeconomic stability and growth, EMU
• Microeconomic guidelines (9)
• Internal market, competitiveness, business
  environment, entrepreneurial culture (SMEs),
  infrastructure, investment in RD, innovation,
  ICT, environmental protection, industrial base.
• Employment guidelines (8)
• Full employment, improved productivity, social
  and territorial cohesion, inclusive labour
  markets, flexibility and employment security,
  reduced labour market segmentation,
  employment-friendly wages, investment in human
  capital, education and training systems

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RD investing more in knowledge ...

• Need to increase the overall RD investment (EU
  goal raise the overall RD investment to 3 of
  GDP by 2010, of which 2/3 from private sector)
• Expenditure on RD
• low, 1,14 of GDP (EU average 2)
• targeted share public/private sector 12 (Croatia
  21)
• Need to prepare Action Plan for increasing RD
  expenditure (complementary to EU Action Plan 3)
• identify RD targeted level of expenditure for
  RD (e.g.. 2 in 2010, share 11)
• develop overall strategy to achieve targets,
  coordinated measures, concrete actions,
  mechanisms of monitoring implementation and
  results
• Need to participate in the OMC in favour of the
  3 objective

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... and innovation

• Need to increase the overall RD investment (EU
  goal raise the overall RD investment to 3 of
  GDP by 2010, of which 2/3 from private sector)
• Innovation
• positive (but limited) results achieved
• HITRA, Croatian Programme for Innovative
  Technological Development
• building-up efficient national innovative system,
  fostering science-industry cooperation,
  commercialization of research results
• should be coordinated with measures involving all
  the components of the National Innovation System
  (NIS)

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Unlocking business potential, especially SME -
achievements

• Introducing one-stop-shop concept
• HITRO.HR service
• shortening the duration procedure of establishing
  a company (six days)
• SME support schemes
• Land register
• Web page Business Navigator (June 2006)
• Competitiveness barometer (NCC, 2006)

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Key issues in approaching Lisbon goals

• Competition, market efficiency
• Investment in RD and innovation
• Better regulation
• Tax and fiscal incentives, state aid reform
• Education reform
• Labour market reform
• Pension, healthcare reform
• Infrastructure
• Judiciary reform
• Public administration reform
• Efficient and less costly state

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Lessons for Croatia

• Lisbon strategy is not obligatory for candidates
  - voluntary adoption of good practice
• Identification of own priorities - respecting
  national and regional differences, defining
  specific, individual goals
• Negotiations on EU membership
• prioritisation of the Lisbon strategy goals in
  different area
• participation in implementing mechanisms
• Adopting best practice of new MS (National Reform
  Programmes)
• Catching-up using EU Funds

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Conclusions

• Lisbon strategy goals remain the main EU reform
  framework, relevant for Croatia. Necessary steps
• Raising awareness and understanding on Lisbon
  agenda goals and implementation mechanisms during
  accession period
• Prioritisising and sequencing goals according
  individual situation and needs
• Speeding-up preparations to implement Lisbon
  goals (umbrella programme with specific action
  plans)
• Development of the system of collecting and
  monitoring qualitative and quantitative
  indicators necessary, corresponding to structural
  indicators (EUROSTAT)
• Although Lisbon Action Plan was not developed,
  broad mix of policies exist, leading to same
  direction. But, neither fully coherent nor
  coordinated...
• Some progress made but ... further, strengthened
  action needed

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Thank you for your attention!