The new Lisbon Strategy: an estimation of the economic impact of reaching five Lisbon Targets
Report prepared for DG ENTR by George M. M. Gelauff and Arjan M. Lejour (Industrial Policy and Economic Reforms Papers, 1) January 2006.
The Lisbon strategy could reinvigorate Europes economy and boost employment. In 2000 the European leaders agreed to stimulate economic growth and employment and make Europes economy the most competitive in the world. If Europe would really reach the goals they set, Europes Gross Domestic Product could increase by 12% to 23% and employment by about 11%.
This paper draws this conclusion after having analysed five of the most important Lisbon goals: the internal market for services, the reduction of administrative burdens, goals on improving human capital, the 3% target on research and development expenditures, and 70% target on the employment rate. Using CPBs general equilibrium model for the world economy we have simulated the consequences for Europe of reaching the Lisbon targets in these fields.