INNOVATION THE EIB AND THE LISBON STRATEGY.

The European Investment Bank's investments underpinning the EU's Lisbon strategy include financing the construction and upgrading of education facilities in the Spanish region of Valencia, lending 150 million for a student loan scheme in Hungary to encourage equal opportunity of access to education, and a 445 million loan for British Telecom's investment in the next generation of telecommunications services. The EIB's lending has also been in the fields of renewable energy, automotive and biotechnology projects.

These examples reflect the diversity of the investments involving the EIB in relation to the Lisbon strategy, which was established at the European Council in Lisbon in 2000 and renewed a few years later.

In March 2000, European leaders committed the EU to become 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".

A mid-term review revealed that the first few years of implementing the strategy had created unconvincing results and a lack of clarity and consistency. As a result, the Lisbon strategy was relaunched with a focus on growth and jobs. The process was streamlined and simplified and the main targets set were: total (public and private) investment of 3% of Europe's GDP in research and development by 2010; and an employment rate (the proportion of Europe's working age population in employment) of 70% by the same date.

Achieving these goals depends on the policies of both national governments and the European Union. The European Commission highlights how an efficient internal market, well-targeted European research programmes and the application of EU environmental policies are all crucial to implementing the Lisbon strategy successfully.

The European Trade Union Confederation, or ETUC, as the voice of European workers is better known, has supported the Lisbon Strategy from the very beginning, but says that it is disappointed with the progress made and the actual amounts of investment made in the future economy and society.

"The Lisbon strategy has been paid much lip service but not much extra money has actually gone into the Lisbon-related budgets or efforts," said Ronald Janssen, an economic advisor for the ETUC.

One of the few exceptions to this phenomenon of only paying lip service is the EIB, according to the confederation. "Here we have governments working together...