European Commission
Europe 2020

EU targets for smart growth include:

1. 1. combined public and private investment levels to reach 3% of EU's GDP as well as better conditions for R&D and Innovation
2. 2. 75% employment rate for women and men aged 20-64 by 2020– achieved by getting more people into work, especially women, the young, older and low-skilled people and legal migrants
3. 3. better educational attainment – in particular:
   – reducing school drop-out rates below 10%
   – at least 40% of 30-34–year-olds with third level education (or equivalent)

> All EU-level targets

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How will the EU boost smart growth?

Through 3 flagship initiatives:

1. 1. Digital agenda for Europe
   
   Creating a single digital market based on fast/ultrafast internet and interoperable applications:
   • by 2013: broadband access for all
   • by 2020: access for all to much higher internet speeds (30 Mbps or above)
   • by 2020: 50% or more of European households with internet connections above 100 Mbps.
2. 2. Innovation Union
   • refocusing R&D and innovation policy on major challenges for our society like climate change, energy and resource efficiency, health and demographic change
   • strengthening every link in the innovation chain, from 'blue sky' research to commercialisation
3. 3. Youth on the move
   • helping students and trainees study abroad
   • equipping young people better for the job market
   • enhancing the performance/international attractiveness of Europe's universities
   • improving all levels of education and training (academic excellence, equal opportunities)

> All Europe 2020 flagship initiatives

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Why does Europe need smart growth?

Europe's lower growth than its main competitors is largely due to a productivity gap caused in part by:

• lower levels of investment in R&D and innovation
• insufficient use of information/communications technologies
• difficult access to innovation in some sections of society

For example:

• European firms currently account for just a quarter of the €2 trillion global market for information/communication technologies.
• Slow implementation of high-speed internet affects Europe's ability to innovate, spread knowledge and distribute goods and services, and leaves rural areas isolated.

Education/training

• Some 25% of European school children have poor reading skills
• Too many young people leave education/training without qualifications
• Numbers attaining medium-level qualifications are better, but the qualifications often fail to match labour market needs
• Under a third of Europeans aged 25-34 have a university degree (40% in the US, over 50% in Japan)
• European universities rank poorly in global terms – only 2 are in the world top 20 (see Shanghai index (ARWU))

Ageing populations

• As Europeans live longer and have fewer children, fewer people in work have to support higher numbers of pensioners, as well as fund the rest of the welfare system.
• The number of over-60s is now increasing twice as fast as it did before 2007 – by some 2 million a year instead of 1 million previously.
• A better knowledge economy with more opportunities will help people work longer and relieve the strain.

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