The European Commission (EC) has published the Commission’s economic strategy, which begins by declaring that “Economic growth is not an end in itself. An economy must work for the people and the planet.” The Strategy emphasizes that the EU’s economic agenda must transform the EU into a sustainable economy and help the Union achieve the SDGs.

The ‘Annual Sustainable Growth Strategy 2020’ is the second deliverable of the new Commission’s European Green Deal, which prioritizes a Europe that “works for the people and a Europe fit for the digital age” with a sustainable, new growth model. The Strategy follows the publication of the European Green Deal road map, which aims to make the EU’s economy sustainable by “turning climate and environmental challenges into opportunities across all policy areas and making the transition just and inclusive for all.” 

The EU’s economic agenda must bring together 4 dimensions: environment, productivity, stability and fairness.

The Strategy recognizes the challenges posted by climate change, environmental degradation, demographic change and technological progress. It forms a response to the need for structural shifts and a new growth model that respects natural resource limitations, and ensures job creation and prosperity for the future. The Strategy emphasizes that the EU’s economic agenda must drive the twin climate and digital transition, and bring together four dimensions: environment, productivity, stability and fairness.

On environment, the Strategy emphasizes that the EU should focus on “leading the transition to a nature-friendly and climate neutral continent by 2050,” while ensuring that everyone can take advantages of the resulting opportunities. The Strategy recognizes that Europe must “act decisively on the circular economy, renewable energy, energy-efficient buildings, and low-emission transport.” The Strategy states that EU industry is one of the most energy-efficient industry sectors in the world, and recommends the EU capitalize on this position by providing additional incentives for investors and businesses to enable member States to deliver ambitious climate objectives.

On inequalities, the Strategy states that the new economic agenda must ensure a fair, inclusive transition that puts people first. It recommends paying particular attention to “regions, industries and workers who will have to make the largest transitions.” The Strategy proposes an industrial strategy that enables businesses to innovate and develop new technologies while increasing circularity and creating new markets to offer Europe’s younger generation a sustainable and prosperous future. The Strategy recommends closing women’s employment and wage gaps, promoting work-life balance policies and ensuring access to quality childcare.

On the SDGs, the new growth Strategy recognizes differences among EU member States in their starting points and challenges, but argues that closely coordinated policies are necessary to drive economic, social and fiscal policies towards SDG attainment. The EC will feature “reinforced analysis and monitoring on the SDGs,” beginning in its 2020 country reports, which will include a new section on environmental sustainability. In addition, each report will include an Annex on individual States’ SDG performance based on the EU SDG indicator set. The Strategy stresses that this new feature, to avoid adding administrative burden, will build on existing national monitoring tools such as Voluntary National Reviews (VNRs) to provide coordination and guidance at the EU level.

The Strategy further emphasizes the role of new technologies and sustainable solutions in placing Europe at the forefront of economic growth and a leader in a digitalized world. The Strategy identifies digital technologies as a key enabler of the European Green Deal. The Strategy also recommends strengthening the international role of the Euro, among other areas of focus. 

As part of the Green Deal, the Commission announced its intent to present the first ‘European Climate Law’ within the first 100 days, supporting its ambition to be the world’s first climate-neutral continent by 2050. Among other strategies and proposals related to the Green Deal, the Commission also will present a Sustainable Europe Investment plan in early 2020, with at least 25% of the EU’s long-term budget dedicated to climate action. The Commission also plans to launch a ‘Climate Pact’ in March 2020 to give citizens a voice and role in designing new actions. [Annual Sustainable Growth Strategy] [EU Green Deal] [EC Communication on the Green Deal]