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Redefining the future of the EU

By 2010, Americans were supposed to fear the mighty EU economic juggernaut. The intention of the Lisbon Strategy was to increase economic growth, competitiveness and employment, while simultaneously boosting research and development. However, five years after its launch, EU authorities admit that the strategy is a failure and needs to be replaced. Not only has the growth and competitiveness gap between the US and EU economies increased, but the enlargement of the Union has raised some serious questions about the future of the Lisbon Agenda.

"[The strategy] is as advanced as when we started," said Jarosław Pietras, Minister of the Office of the Committee for European Integration. Pietras will present the government's "constructive criticism" at a two-day European Council meeting on March 22-23. Poland argues labor force potential within the enlarged EU is left unused, while 'old' members speak of easing work permit conditions for migrants to the EU.

"It seems there is too much concentration on fighting competition within the Union instead of competing with global rivals," Pietras told the 50-strong audience who attended last week's WBJ event at the Le Regina hotel.

He added that competitiveness is suffering after attempts to pass the 'services directive', which would introduce a free services market EU-wide, were successfully blocked by larger EU members.

The list of complaints is long and reveals, as Pietras says, "very different economic priorities in each country." His solution would be to allow each country as much flexibility as possible to shape its own economic environment. However, he stipulates that governments shouldn't be able to intervene in the market in order to protect their industries from foreign competition.

"We have other goals to achieve," agrees the president of the Polish Confederation of Private Employers Lewiatan, Dr Henryka Bochniarz. Due to their price advantage, Polish companies are demanding unconditional services market liberalization. On the other side, France and Germany will do anything to protect their markets.

Bochniarz sees the Lisbon Strategy as Poland's and other new members' opportunity to make a significant contribution to the economic growth of the Union, but emphasizes that it's essential to work out the National Development Program (NPR) before Poland will have the clout to speak out in Brussels.

President of the American Chamber of Commerce, Roman Rewald, touted American-style deregulation, and media house OMD president, Jakub Bierzyński argued: "The competitiveness of the European economy must be built on internal competition as well."

Vice president of the Polish Business Roundtable, Hubert Janiszewski, pointed out that accommodating everyone in Europe's 'Tower of Babel' could succeed only in an environment of stable economic growth.

The first test will come on March 7, when EU competition ministers meet to discuss the controversial and much delayed patent directive.

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