Europe 2020 Strategy and Structural Diversity Between Old and New Member States. Application of zero unitarization method for dynamic analysis in the years 2004-2013

Abstract

ABSTRACT. In the year 2015 the European Union has reached the halfway of implementation of 2020 strategy, which is aimed at forming the conditions for sustainable and inclusive economy delivering high levels of employment, productivity and social cohesion. In this context the aim of the paper is analyze the level of fulfillment its aims with special concentration on diversity between Member States that joined European Union in 2004 and 2007 (EU-10) and Old European Union Members (EU-15). The empirical part of the paper is based on the taxonomic research with application of zero-unitarization method. In order make the dynamic analysis for the years 2004-2013 the constant reference point for the whole period was used. The evaluation was based on the Eurostat 2020 indicators. The analysis showed significant diversity between and Old Member States. However, in the years 2004-2013 EU-10 had made an important progress in the implementation of 2020 strategy.Keywords: 2020 strategy, multivariate analysis, zero-unitarization method.JEL Classification : C00, E61, 052(ProQuest: ... denotes formulae omitted.)IntroductionIn the year 2015 the European Union has reached the halfway of implementation of 2020 strategy. The plan constitutes the second in this century ten-year strategy, which is aimed at building the conditions for sustainable and inclusive economy delivering high levels of employment, productivity and social cohesion. As the foundation for the 2020 strategy three mutually reinforcing priorities were formed: a) Smart growth: developing an economy based on knowledge and innovation; b) Sustainable growth: promoting a more resource efficient, greener and more competitive economy. c) inclusive growth: fostering a high-employment economy delivering social and territorial (European Commission 2010, p. 3).Europe 2020 document is a continuation of the Lisbon Strategy announced at the beginning of this century, which was aimed at improving conditions for sustainable economic development described with the formula to become the most competitive and dynamic economy in the world; based on knowledge, capable of sustainable economic growth with more and better jobs and greater social cohesion (see Royuela-Mora et al., 2005, pp. 54-58; Lenain, 2005, pp. 9-31). The Lisbon Strategy was adopted during the significant economic changes associated with development of the global knowledge-based economy, which was accompanied by very high rate of economic growth achieved by the United States (see Balcerzak, 2009, pp. 3-22). It was an ambition of political and economic elites of the European Union create the conditions, which would allow catch up of the United States in terms of the development of conditions for using the potential of knowledgebased economy. Unfortunately, already in the halfway of the Lisbon strategy, it was clear that the achievement of its objectives is impossible (Mogensen, 2005, pp. 46-49). In this time many representatives of European political elites were in favor of the view that the failure of Lisbon strategy implementation should be mainly treated as a consequence of European Union enlargement and the structural diversity between New and Old Europe (see Wanilin, 2006). In this context the main aim of the paper is analyze the fulfillment of the goals of 2020 strategy from the perspective of the years 2004-2013 with special consideration the progress obtained by ten countries that joined EU in the years 2004 and 2007. In the analysis a special attention was given the results of the Visegrad Group as the biggest economies of the EU-10 in relation the achievements of the most important Eurozone economies. The first year of the analysis is the year of the biggest European Union enlargement, which can be considered as the most significant institutional change in Central and Eastern Europe. …