Europe 2020: Scotland's National Reform Programme 2018

Chapter 1: The Europe 2020 Strategy And National Reform Programme

In March 2010, the European Commission published its Europe 2020 strategy aimed at helping the EU to recover from the economic crisis which began in 2008.

The overall aim of the strategy was to turn the EU into a smart, sustainable and inclusive economy which delivered high levels of employment, productivity and social cohesion. In order to achieve this, the strategy identified five headline targets which the EU should meet by the end of this decade. The Scottish Government strongly supports all of these targets. They relate to employment; research and development; climate change and energy; education; and poverty and social inclusion.

Europe 2020 targets

• 75% of the population aged 20-64 should be employed.
• 3% of the EU’s GDP should be invested in R&D.
• The “20/20/20” climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right).
• The share of early school leavers should be under 10% and at least 40% of the younger generation should have a tertiary degree.
• 20 million less people should be at risk of poverty

National Reform Programmes

EU Member States inform the European Commission of the progress they are making in delivering on the ambitions of the Europe 2020 strategy by publishing an annual report known as a National Reform Programme ( NRP). These reports provide context on the macroeconomic environment, outline how Member States intend to meet the targets set out in Europe 2020, and how they will overcome obstacles to economic growth. As part of this process, the Scottish Government has contributed to the development of the UK Government’s NRP for 2018, which was published in April.

However, in order to highlight the unique characteristics of Scotland, and the distinct approach to the Europe 2020 ambitions that we are taking forward, the Scottish Government produces an annual Scotland-specific NRP report.

This report is the eighth Scottish NRP report. It builds on the previous Scottish reports and outlines the actions being undertaken in Scotland in support of the delivery of the ambitions of the Europe 2020 Strategy. It also provides a valuable opportunity to share with our European neighbours the innovative and often world leading policies being pursued by the Scottish Government.

The European Semester

The European Commission has established an annual cycle of economic policy co-ordination known as the ‘European Semester’, which aims to focus the efforts of Member States on achieving the Europe 2020 targets. A summary of the European Semester is presented in Table 1.

Table 1: The European Semester

Country-Specific Recommendations For The Uk

In addition to the five headline targets outlined above the European Commission also addresses country-specific recommendations ( CSRs) to each member state. These recommendations are tailored specifically to each EU country and provide policy guidance on how to boost jobs and growth, whilst at the same time maintaining sound public finances. The European Commission provided the UK with an updated set of CSRs in July 2017. These recommendations were to:

1. Pursue its fiscal policy in line with the requirements of the preventive arm of the Stability and Growth Pact, which translates into a substantial fiscal effort for 2018. When taking policy action, consideration should be given to achieving a fiscal stance that contributes to both strengthening the ongoing recovery and ensuring the sustainability of United Kingdom’s public finances. This will be referenced in the report with the short hand CSR1: Fiscal Outlook

2. Take further steps to boost housing supply, including through reforms to planning rules and their implementation. This will be referenced in the report with the short hand CSR2: Housing

3. Address skills mismatches and provide for skills progression, including by continuing to strengthen the quality of apprenticeships and providing for other funded “Further Education” progression routes. This will be referenced in the document with the short hand CSR3: Skills