Economic reform under Europe 2020

The article asks what is the state of and prospects for economic reform under the Europe 2020 strategy and the European semester, within the context of economic policy coordination in the European Union (EU) and in the Eurozone. After briefly setting out the framework for economic policy coordination established since Maastricht, it sheds light on the Lisbon strategy’s problem-laden legacy for the Europe 2020 strategy (2011- 2020): the issues of non-binding member state commitment to an EU-wide reform agenda, and of member state failure to create sufficient ownership of reform. The article then examines the workings of the Europe 2020 strategy – the EU’s economic and institutional modernisation strategy for the current decade – with regard to structural reform especially in the Eurozone. It addresses the question of the effectiveness of the European semester process in light of the sovereign debt crisis. The article concludes that the Europe 2020 strategy’s approach continues to be valid in the EU context, but that for the strategy to deliver member states must get their act together and create ownership of reform for national adjustment capacity