Earlier this month, the Competitiveness and Communi-cations Ministry and the Management Efficiency Unit began the important process of getting industry’s feedback from stakeholders to be integrated into our National Reform Programme. This is in accordance with the conclusions of the mid-term review of the Lisbon Agenda, which was originally launched by the EU in March 2000 with the aim of Europe becoming, by 2010: “the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment”.

It is clear that Europe is strongly reacting to the globalised world by attempting to position itself as the strongest economic bloc in the world. As part of the EU, Malta is no exception to this process, as we strive to improve our competitiveness in order to strengthen our position both within the Union as well as with the rest of the world.

The mid-term review carried out in 2004 showed that progress with regard to the Lisbon process and the achievement of the Lisbon targets has been slow and not sufficient to meet the ambitious targets by 2010. Thus it was proposed that the governance of the Lisbon strategy be improved and streamlined through various measures, mainly revolving around the simplification and better integration of processes.

To this end, in March 2005, the heads of state called for a re-launch of the Lisbon Strategy, based upon a series of elements centred on growth and employment. These elements fall into three strands

concerned with: enhancing knowledge and innovation, completing the internal market and encouraging growth and employment in the interests of social cohesion.

The new approach will be based on a three year cycle which will commence in 2005 and come up for renewal in 2008. Notwith-standing, the rationale, aims and targets of the original Lisbon Strategy remain intact but in addition the Strategy refocuses on the integration of growth and jobs.

Each country’s National Reform Programme (NRP), which in itself should be a blueprint for the country’s direction over the forthcoming three year period, will be based on the guidelines of the Revised Lisbon Strategy but each member state is expected to focus on those sectors that are most relevant in the national context. It was recognised that one of the flaws of the original Lisbon Agenda was that it was long on principles but short on implementation.

The Cabinet Committee on Competitiveness which is entrusted with the aim of promoting Malta’s economic development, and which I chair, has the responsibility of providing a focused and cohesive coordination of all processes leading to the Lisbon Strategy, including the drawing up of the NRP. To this effect, Government has entrusted the Management Efficiency Unit with coordinating the development of the National Reform Programme for Malta. This Unit has, to date, been coordinating all Government stakeholders with the aim of addressing Malta’s proposals to each of the guidelines that form the skeleton of the Lisbon Strategy.

The National Reform Programme is expected to be a forward-looking document setting out a comprehensive three-year strategy to implement the integrated guidelines to deliver growth and jobs. The European Commission has developed 24 integrated guidelines covering macro-economic, micro- economic and employment priorities, upon which each member state is to formulate its NRP. Starting in June/July 2005, the Commission will conduct a process of clarification and dialogue with member states through bilateral meetings. In fact, a delegation from the European Commission has recently paid a visit to Malta with the aim of establishing our progress and exchanging views on the development of our NRP.

It is our intention for the NRP to identify the key priorities for action that are in the national interest, providing a justification where and if no actions are proposed in relation to particular guidelines.

For each of the key priority areas, the document will provide a brief presentation of the situation and key challenges. An outline of the policy responses and concrete measures that are to be taken to address these key challenges will also be provided. These will include an indication of status, objectives, expected impact, timing, internal allocation of responsibility in particular public authorities and social partners at all levels, and budgetary resources pertinent to the specific measures.

Current work in progress includes carrying out analysis of EU guidelines and documentation, aligning Ministry strategic plans, analysing previous strategic studies and reports, reviewing social partner documentation and meeting all Ministries and providing EU Affairs and Policy Develop-ment Directors with a template for NRP challenges and concrete proposals.

Line Ministries are to forward to MEU their sectoral challenges and proposals related to the various guidelines.

This is indeed an arduous task and a challenge, not only to the Government but to all Maltese people who are affected by the strategies to be adopted.

The next step will be the finalising of the first draft of the National Reform Programme which will go for public consultation during the month of August. We are determined to complete this strategy by the target date of October 2005 after having proceeded with the widest consultation possible at all levels, starting with interested stakeholders, government entities and ending with Cabinet and Parliament.

As part of this process we want to ensure that all interested stakeholders are involved at every stage possible in the development of Malta’s NRP. No man is an island, and Government is no exception to this during this process. We therefore strongly value the input of various stakeholders towards putting forward concrete measures that can be implemented by Government in order to improve Malta’s performance.