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Lisbon Strategy: What ’ s in it for Crafts and SMEs ?

Lisbon Strategy: What ’ s in it for Crafts and SMEs ?. Gerhard Huemer UEAPME Director Economic and Fiscal Policy. 4 th SME Summit Portoro ž , April 23 , 200 5. S M E & L I S B O N. What i s the Lisbon Agenda ?.

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Lisbon Strategy: What ’ s in it for Crafts and SMEs ?

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  1. Lisbon Strategy:What’s in it for Crafts and SMEs ? Gerhard Huemer UEAPME Director Economic and Fiscal Policy 4th SME Summit Portorož, April23, 2005

  2. S M E & L I S B O N What is the Lisbon Agenda? • Spring Summit 2005 agreed on new priorities => economic growth and jobcreation • three pillars to support these priorities:=> more attractive for investment and work=> knowledge and innovation for growth=> create more and better jobs • less priority will be given to:=> the social agenda=> the sustainability / environment issues

  3. S M E & L I S B O N Main strategy behind Lisbon • higher welfare needs higher productivity • realisation of an internal market for goods and services • improve the quality of regulation • open and competitive markets • increase the capacity for innovation • well functioning labour markets • better education and skills • reform of the social welfare systems

  4. S M E & L I S B O N What doesLisbonmean for Crafts and SMEs in the EU? • increasing competitive environment, which provides new markets and new competitors=> within the enlarged EU=> outside the EU • constantly improving competitiveness=> higher productivity and added value=> more flexibility and quicker adaptations=> more innovation=> better qualified entrepreneurs and employees

  5. S M E & L I S B O N What doCrafts and SMEs need to cope with these challenges? • fair competition • better regulation and simplification • more flexible labour markets • better public services • more flexible competition and state aid rules • better business support services and measures=> access to finance=> access to know how=> SME-friendly training services

  6. S M E & L I S B O N Are these needs covered by the Lisbon Agenda? • The Lisbon Agenda covers most of the needs of Crafts and SMEs=> UEAPME supports the Lisbon Agenda • The main problem of the whole Lisbon Strategy is the deficit regarding implementation by national governments:=> increase the pressure for implementation=> create partnerships for reforms • Criticism mainly focuses on unfair competition

  7. S M E & L I S B O N Does Lisbon lead to unfair competition? • Criticism on unfair competition comes from different angles: • new vs old Member States • traditional Crafts versus new SMEs / self-employed • EU vs emerging markets (Asia) • shadow economy and undeclared work • differing cost of regulation in the same markets

  8. S M E & L I S B O N What’s behind these fears? • difficulties to cope with comparative advantages=> different wages=> social and environmental costs • differences regarding administrative burdens • difficulties to adapt quick enough to new competitive environments:=> access to finance and technologies=> qualification deficits

  9. S M E & L I S B O N Possible answers to be discussed • protective measures: • market barriers – country of destination principle • limitations to the freedom of establishment • limitations to the freedom of movement • transitional periods • European minimum standards • managed trade instate of free trade • supportive measures – the Lisbon Agenda: • better regulation • business support services

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