FROM THE LISBON STRATEGY TO EUROPE 2020 Publishing of the book has been supported by the Delegation of the European Union to the Republic of Croatia. The book is the result of long-term research activities carried out within the IMO project “The Lisbon Strategy – the Catalyst of Reforms in the EU and Croatia”, supported by the Ministry of Science, Education and Sports, Republic of Croatia. The catalogue record (CIP) for this book is available from the National and Univer- sity Library, Zagreb, number 749222. ISBN 978-953-6096-53-4 Sponsors: FROM THE LISBON STRATEGY TO EUROPE 2020 Edited by: Višnja Samardžija Hrvoje Butković Institute for International Relations - IMO Zagreb, 2010 Published by: Institute for International Relations – IMO, Zagreb and “EU i” in cooperation with the Delegation of the European Union to the Republic of Croatia Editors: Višnja Samardžija Hrvoje Butković Reviewers: Prof. Gojko Bežovan, University of Zagreb, Faculty of Law, Department of Social Work Zlatan Fröhlich, PhD, Economic Institute Zagreb Jasminka Pecotić Kaufman, PhD, University of Zagreb, Faculty of Economics & Business Prof. Marjan Svetličič, University of Ljubljana, Faculty of Social Sciences Prof. Milica Uvalić, University of Perugia, Faculty of Political Science Prof. Mladen Vedriš, University of Zagreb, Faculty of Law Technical assistant: Saša Čvrljak Language editors: Charlotte Huntly Mirjana Paić Jurinić Layout: Uniforma Studio Zagreb Print: Kolor Klinika d.o.o. Number of copies: 1000 For the publisher: Sanja Tišma CONTENTS Foreword H.E. Paul Vandoren, Head of the Delegation of the EU to Croatia (English and Croatian) IX Editorial Višnja Samardžija, Institute for International Relations, Zagreb (English and Croatian) XIII List of abbreviations XVII PART ONE - STRATEGIC PERSPECTIVES From THE LISBON Strategy to Europe 2020 – AN IntrodUCTION Hrvoje Butković and Višnja Samardžija Abstract 4 The Lisbon Strategy – an ambitious programme with mixed results 5 Anticipating the new strategy – how to continue where Lisbon landed? 8 Constructing Europe 2020 – new strength for an old agenda 10 Europe 2020 and the economic crisis – economic governance at a crossroads 15 Relevance of Lisbon and Europe 2020 goals for EU candidates 19 Conclusion 24 Croatian Summary 26 Literature 27 THE EUROPE 2020 STRATEGY – A NEW VISION FOR THE EU Attila Ágh Abstract 32 Introduction – the Lisbon jungle of theories and approaches 33 The current stage of the Lisbon Strategy and the Lisbon external action 35 The Europe 2020 strategy as a new vision for the next decade 49 Conclusion 57 Croatian Summary 58 Literature 59 THE POST-2010 LISBON-TYPE strategy – PERSPECTIVES ANd CHALLENGES Mojmir Mrak Abstract 66 Evolution of the Lisbon Strategy 67 Lisbon Strategy stocktaking and critical assessment of its achievement 68 VI Challenges for the future EU Lisbon-type structural reforms 72 In search of the post-2010 EU Strategy 74 Croatian Summary 78 Literature 80 PART TWO - THEMATIC ISSUES COMPETITIVENESS ANd Education WITHIN THE LISBON STRATEGY ANd EUROPE 2020 Krešimir Jurlin Abstract 86 The role of competitiveness for economic development 87 EU economic performance and the ongoing crisis 91 Competitiveness as the Lisbon Strategy and Europe 2020 goal 95 Regulative environment for competitiveness 97 Education and training for competitiveness 100 Concluding remarks 106 Croatian Summary 107 Literature 108 INVESTING IN R&d IN THE EU ANd Croatia – COMMON OBjECTIVES, INdIVIdual paths Giorgia Demarchi Abstract 112 Introduction 113 Theory and debates on the 3% target – some methodological observations 113 The EU Lisbon Agenda and R&D 115 R&D and innovation in Croatia 129 Conclusions and future perspectives 134 Croatian Summary 135 Literature 136 COMPETITION ASPECTS OF THE LISBON ANd EUROPE 2020 STRATEGIES Ivona Ondelj Abstract 140 Competition policy from Lisbon to Europe 2020 141 Towards continued reforms – Europe 2020 147 Impacts of reforms – Bulgarian and Romanian examples 148 VII Competition policy in Croatia – the challenge of Lisbon Strategy goals 151 Conclusion 155 Croatian Summary 156 Literature 158 SOCIAL Protection ANd SOCIAL INCLUSION from LISBON to Europe 2020 Paul Stubbs and Siniša Zrinščak Abstract 164 Whither social Europe? 165 EU enlargement and social Europe 170 The late Europeanization of Croatian social policy 174 Conclusions 179 Croatian Summary 180 Literature 181 ENHANCING THE ROLE OF SOCIAL ECONOMY IN ATTAINING THE LISBON AGENdA OBjECTIVES Hrvoje Butković and Igor Vidačak Abstract 186 Introduction 187 Beyond the logic of the free market 187 How EU institutions approach the social economy 189 The social economy and the EU Lisbon Strategy 192 The social economy in the EU member states 196 The social economy in Croatia 200 Conclusion 208 Croatian Summary 209 Literature 211 Energy FOR smart, sustainable ANd INCLUSIVE growth Ana-Maria Boromisa Abstract 218 Development of EU energy policy 219 Energy-related Lisbon goals and achievements 222 The experience of selected member states 230 EU level developments 234 The energy challenge in Croatia 235 Towards a Europe 2020 strategy 237 Conclusions 239 VIII Croatian Summary 242 Literature 245 ENVIRONMENTAL dIMENSION OF THE LISBON STRATEGY ANd EUROPE 2020 Sanja Tišma and Helena Čermak Abstract 250 Introduction 251 An overview of environmental policy development in the EU 252 EU enlargement and environmental policy 257 Challenges of environmental protection in Croatia 264 Conclusion 268 Croatian Summary 269 Literature 270 Bilinguall glossary-LISBON Strategy ANd Europe 2020 Hrvoje Butković and Antun Krševan Dujmović 275 ABOUT THE authors 307 Foreword “Panta Rei.” This famous quotation best describes the world we live in: a world IX where everything is in constant flux. The challenges posed to human beings and societies around the world are considerable. Citizens’ well-being depends on how well they themselves are prepared to adapt to change. It is the responsibility of governments and international organizations to accompany citizens on their journey of permanent change. In this regard, the European Union has always been ambitious. It has set for itself de- manding goals in order to ensure a peaceful, safe and prosperous life for its citizens. The strategies and policies deployed were perhaps not always fully successful, but they have certainly significantly improved the living conditions of people across the European continent and have served as a sound basis for the further development of EU policies. “Europe 2020: a strategy for smart, sustainable and inclusive growth” is the re- sponse of the European Union to a changing environment, an environment deeply affected not only by the global economic crisis, but also by global challenges such as climate change and energy security. As a successor to the Lisbon Strategy, this strategy is designed to respond to the need to reorient policies away from crisis management towards the introduction of medium- and long-term reforms, which should promote growth and employment, while ensuring the sustainability of public finances. The impact of the “Europe 2020” strategy on other EU policies is far-reaching. All common policies, including, for instance, the common agricultural policy and the cohesion policy, need to support this strategy. The trade policy, internal market policies, the re-designed industrial policy and the common energy policy will also have to contribute towards important targets, such as higher levels of employment (through the greater participation of young people, older workers and low-skilled workers), improved conditions for innovation, research and development, meeting a series of climate change and energy security objectives, improved education levels and the promotion of social inclusion, in particular by reducing poverty. To succeed and ensure a prosperous future for European citizens, this strategy needs to be fully endorsed and implemented at national level. The member states need to set their national targets, identify barriers to growth and indicate, in their National Reform Programmes, how they intend to remove them. It is therefore of paramount importance, not only for current member states, but also for future member states of the European Union, such as Croatia, to understand and be fully informed about this new strategy, while the experiences of the Lisbon Strategy can be very instructive. That is why the Delegation of the European Union to the Republic of Croatia has decided to support this initiative, which hopefully will reach many interested readers. I believe that, in order to fully benefit from future membership, citizens of candidate X countries should be well informed about the European Union and its policies. All layers of Croatian society should take up their responsibility and work together: in the first place, the government at central, regional and local level, but also academia, think-tanks, civil society organizations, businesses, trade unions and others. I therefore very much value an initiative like this one, because it offers the opportu- nity to review present policies and raise awareness about new policies by fostering academic research and launching a substantive debate among the citizens of Croa- tia. This is important for a prosperous future for present and future generations in Croatia. H.E. Paul Vandoren Head of the Delegation of the European Union to the Republic of Croatia Predgovor "Panta Rei." Taj poznati citat najbolje dočarava svijet u kojem živimo: svijet u kojem se sve neprestano mijenja. Veliki su izazovi koji stoje pred