EU leaders to agree on economic targets

Prime Minister Lawrence Gonzi will be attending a two-day economic summit in Brussels that will discuss the European Union's economic targets for the next three years.

A few weeks ago, the European Commission gave its go ahead to Malta's national reform programme (NRP), which forms an integral part of the Lisbon Strategy. During the summit meeting starting today EU leaders are expected to discuss the details of all the 25 NRPs and try to agree on a common strategy.

Commission President José Manuel Barroso said yesterday he was supporting the ambitious economic goals being proposed by the Austrian presidency. These include specific targets for jobs and growth, investment in innovation or research as well as higher use of renewable energy sources.

It is being suggested that EU leaders should agree that overall the EU should create six million new jobs in the three-year period 2005-2007, helping to reduce unemployment from a peak of nine per cent at the end of 2004 to one per cent in 2007.

In order to achieve this target, the presidency is also suggesting that, by the end of 2007, every young person who has left school and is unemployed should be offered a job, an apprenticeship, additional training or some other employability measure within six months. By 2010 the time lap for offering such an opportunity should be cut to 100 days.

On investment in research and development, EU leaders are likely to agree on a target of three per cent of GDP by 2010. This investment should not come only from government sources. On the contrary, the EU wishes that most of such investment comes from the private sector. On this target Malta still has a very long way to go as according to the latest statistics its level of investment in research and development is the lowest in the EU.

By 2010, the EU is also proposing that member states should aim to reduce the amount of early school-leavers to just 10 per cent.

A new energy policy is also on the summit's agenda with the Commission proposing a set of new initiatives targeting a more integrated market.

Mr Barroso said that the services directive, voted at first reading last February by the European Parliament will form a crucial aspect of the EU plans for economic growth and is one of the key instruments aimed at boosting Europe's jobs.

Malta, together with the majority of member states is in favour of a more ambitious legislation than the version agreed by the European Parliament in February, however not all the member states are in favour of an over-ambitious text. The European Council is expected to invite the Commission to present the amended version of the directive without delay.

Mr Barroso said the Commission is planning to unveil its new proposals in the first week of April.