1
The Lisbon Strategy and Policy
CoordinationPolicy learning and
experimentation in EU economic governance NEWGOV
Workshop, London, 30 March 2006

• Joe Grice
• HM Treasury and Chairman, EU Economic Policy
  Committee

2
Changing background to Lisbon

• 2000. Significantly, motivated by the economics
  of envy
• . Or at least of emulation.
• By 2004/2005 much more defensive. Motivation from
  the challenges of globalisation.

3
In 2000, not unambitious!

• The European Union to be the most competitive
  and dynamic knowledge based economy in the world
  by 2010

4
Results so far

• Policy settings
• In absolute terms, not insignificant OECD
  labour and product market indicators show
  differential improvements for EU countries but
  all positive.
• In relative terms, less clear.
• Performance
• Less reason for celebration. No major pick up in
  growth rate.
• But structural vs macroeconomic explanation?

5
Rationale for coordination of structural policies

• Spillovers? Generally only mildly convincing.
  Though some exceptions eg competition policies,
  energy interconnectivities.
• Political economy of reform? More convincing but
  tricksy. Eg debates over net advantage of naming
  and shaming, the Structural Indicators and
  benchmarking.

6
The problem of focus

• By 2005, 100 Lisbon commitments/targets many
  only tenuously related to a competitive dynamic
  knowledge based economy.
• Mid-Term Review consensus on need to streamline/
  focus on growth and jobs.
• Commission response 18 additional proposed
  targets.

7
The Commission as the driver of a focused reform
programme?

• The Commission, as a collective noun.
• The Christmas tree effect.
• Avoidance would require greater coordination
  within the Csion than currently seems likely.

8
The Council as the driver?

• Which Council formation? Another collective noun.
• Implications for which DG is in the lead.
• .. And who is in the lead nationally?
• Even within ECOFIN, for example, absence of full
  agreement on what is needed.

9
Conclusion

• Limited but not zero success for Lisbon so far.
• What is needed for picking up the pace?
• Construction of an unassailable case that
  structural reform indispensable ingredient.
• Establishment of governance arrangements that
  help for most or all countries with the political
  economy of reform.