MEPs want to tie funds to economic targets

Euro-parliamentarians want future EU funding to be linked to economic targets for each member state.

When adopting a resolution on the European Commission's so-called EU2020 strategy, meant to set out the economic goals for this decade, MEPs said the new economic blueprint should focus on cutting unemployment, coordinating better economic policies and introducing binding rules.

The strategy is expected to be discussed during an EU summit later this month in Brussels. But there is still no consensus among member states on whether the targets proposed by the EU Executive should be binding.

The Commission has set five main targets, which include higher employment rates, more investment in research and development, meeting agreed climate change targets, fewer people on the poverty line, fewer school dropouts and more graduates.

The 2020 strategy follows the Lisbon Strategy, which had set very ambitious targets for 2010 and on which the EU failed miserably.

If the blueprint is approved, Malta will have to draw up its individual national targets by the end of this year, which will then be monitored by the Commission.

With GDP four per cent down and unemployment at over 23 million within the EU, MEPs want concrete measures that will ensure the EU emerges strong out of the economic crisis.

In its resolution, the EP asked the Commission to propose new measures and, possibly, sanctions to deal with member states that do not implement the EU2020 strategy and grant incentives for those that do so.

The resolution also says that "EU funding to achieve the various EU2020 objectives should be conditional on results and compatibility with the objectives of the EU 2020 strategy".

The failure of the Lisbon Strategy, according to the resolution, stemmed from lack of incentives and binding instruments at EU level.

"For this reason, the EP urges the European Council to abandon the 'open coordination method' based on the exchange of best practices," MEPs insisted.

Only a handful of member states reached the Lisbon targets set in 2000.

The majority, including Malta, registered progress but remained way-off the agreed benchmarks.