
The establishment of sustainable development conditions for
the European Union countries is pursued in an international
environment of radical change and developments. Global economic
activity is changing, characterized by the intensification of
competition, the internationalisation and integration of markets
via trade and investment, and the emergence of technology as
a key to effectiveness and competitiveness. The model of market
globalisation, as an inseparable element of sustainable development,
creates opportunities to improve prosperity and quality of life
in Europe, but can, at the same time, can threaten the ability
of all to participate in the development process, the social
cohesion and the ecological balances.
The opening of markets, the improvement of information and the
diffusion of knowledge facilitate economic growth. However,
even though economic growth is considered a necessary condition
for the improvement of citizen welfare, it is not sufficient
for the participation of all in the development process (employment,
entrepreneurship) for the distribution of wealth (wages, salaries)
or for reaping the advantages ensuing from development (diffusion
of knowledge, social cohesion). In addition, the necessary choices
should be long lasting, to ensure the welfare of future generations
in an environment, which determines and places limits to development.
Sustainable development is a socio-economic process
during which the economic, social and environmental objectives
of society are seamlessly connected within a balanced framework.
At the same time, sustainable development implies special care
for the protection of the environment and quality of life as
well as of social cohesion.
Taking advantage of new, more environment-friendly, cost-effective
and productive technologies is considered a necessity. Therefore,
the European Union's development policy should be based on the
following triptych:
Economic Development
This objective comprises two facets.
The first facet is directly related to competitiveness. An economy
is competitive when it produces at minimum cost; in other words
with the minimum waste of resources - human, natural and economic.
Such an economical use of resources may lead to increase of
productivity and wealth. In addition, such an economical use
of resources is competitive when it it is achieved through the
integration of more knowledge into products, services and processes.
The second facet is related to the sustainability of economic
growth. Economic growth based on the economical use of resources
is sustainable because it is not affected by the depletion or
deterioration of the natural environment, by inequality in the
living standards of citizens, or by the by polarization in the
global distribution of wealth and the ensuing international
conflicts and crises.
These two facets can convert growth into real development -
not only growth but also strengthening of the social dimension
that ensures the well being of all citizens. Only when it strengthens
social cohesion and respects the environment can development
be called sustainable, since it cannot be halted by social conflicts
or by the depletion of environmental resources. This leads us
to the other two objectives of development.

Social Cohesion
A main prerequisite for a socially fair distribution
of wealth is the increase of employment, aiming at full employment.
In the international environment in which Europe competes, and
taking into account its living standards as well as the level
of its human resources, it is essential that the increase of
employment be based on a knowledge-based economy.
At the same time, however, Europe is not an island in the world.
Its own stability, prosperity and development are closely connected
with the global economy and global problems. It has a moral
obligation, as well as an interest, to help actively to the
extent of its powers in the reinforcement of the creative development
policies and programmes in several parts of the world, within
a framework of co-development and mutual progress. This is of
particular importance when it concerns Europe's neighbours,
such as the countries of Central and Eastern Europe, apart from
enlargement countries, the Balkans, the Black Sea and the Mediterranean.

Environment
The two main dimensions of this objective are, on
the one hand the economy of natural resources, where a successful
and consistent energy policy plays a predominant role, and on
the other hand, the transformation of economic activities that
are prejudicial to the environment into economic activities
that respect and protect it - such as, for example, renewable
energy sources and tourism.
Europe is committed to development along these lines. This commitment
was expressed by the Lisbon European Council, which set a new
strategic goal for the European Union, until 2010 'to become
the most competitive and dynamic knowledge-based economy in
the world, capable of sustainable development with more and
better jobs and greater social cohesion'.
This commitment was confirmed and broadened in the Barcelona
European Council with the adoption of an overall programme for
an economy that will be based on the individual and the individual's
creative abilities whose needs it will serve in the best possible
way. An economy, which will take advantage of natural resources
effectively, without jeopardizing ecological balance; an economy
that connects efficiency, productivity and knowledge with quality
of life, social cohesion and the European cultural model centred
on European humanism. The Greek Presidency is committed to pursue
further this policy, also pursued by the previous Presidencies,
setting the following political priorities:

Transition to a knowledge-based
economy
This policy has two dimensions. The first is innovation
- the introduction of new technologies into the processes that
improve productivity. The opening of markets at a global level
via the capabilities offered by the Internet is an opportunity
that Europe has not yet exploited in the best possible way.
The second dimension involves the creation of knowledge itself
through research. A long-term policy that aims at Europe's leadership
in the knowledge society has to also aspire to leading position
in the development of new technologies, without which Europe
would continue to lag behind even in their application.
This is why the integration of the European Research Area is
and will remain a clear priority. The Greek Presidency, however,
would like to see that this area increases its influence in
the field of innovation and particularly in those areas where
innovation may promote sustainable development and create employment.
Research, new applied knowledge and innovation are crucial for
European industry.
The Greek Presidency would like to see the European Research
Area evolve into an environment where Europe does not simply
follow the leading edge of technology but, instead, is itself
defining it. This entails brave and daring efforts regarding
leading edge research and its financing.

The role
of small and medium-sized enterprises
The Greek Presidency attributes special importance
to the role that small and medium-sized enterprises can and
should play for competitiveness, development and employment.
It therefore considers necessary the improvement of the regulatory
framework, which will not only encourage these small and newly
developed enterprises, especially in their ability to innovate,
but will also facilitate the creation of new dynamic enterprises,
which are, as a whole, important creators of new employment.
The strengthening of the framework that encourages new, small
and medium-sized enterprises contributes significantly to economic
growth, as well as to social cohesion, through the additional
employment they create.
To address the lack of entrepreneurship within the European
Union, and based on the Green Paper on entrepreneurship, the
Greek Presidency will promote public dialogue and the undertaking
of specific political initiatives and actions in the spring
European Council of 2003.
At the same time, following the 'think small first' approach,
it will work towards the acceleration of the implementation
of the European Charter for Small Enterprises and the drawing
up of conclusions deriving from best practice, as was requested
at the Barcelona European Council.

Further market liberalization
and the consumer
The further opening and strengthening of the internal
market, as well as the process of opening of all markets, are
a necessary condition for improving the competitiveness of the
European economy. In this direction, the Greek Presidency will
focus on the integration of the internal energy market.
However, the development of a sound and fair competition should
be accompanied by rules that will strengthen the internal market
by protecting the consumer and creating an environment of trust
for the citizen. Competitiveness cannot be achieved without
the citizen's trust in the quality of the productive procedures.
The citizen, as a consumer, should feel confident as to the
quality and safety of the products and services provided. At
the same time, however, the citizen demands that production
is governed by processes that ensure sustainable development
and do not contradict justice and moral principles. Under these
conditions, sound and free competition will significantly contribute
to sustainable development.

Tourism
Tourism activities contribute to a great extent
to employment and the development of the remotest and most disadvantageous
areas of Europe, as well as rural areas suffering the consequences
of adjustments in agricultural production in the world economy.
At the same time, tourism constitutes an alternative economic
activity, which may prove to the great advantage of the environment.
Tourism is influenced by a number of policies, such as transport,
the protection of the environment and the consumer, the development
of electronic enterprise and training. The decisions of the
institutions of the European Union stress the need for integrating
the aspects of tourism into the Community policies that influence
it. Tourism, however, also has a cultural dimension because
it facilitates the approach, mutual understanding and the promotion
of traditions of the peoples of Europe, thus contributing to
the forging of the European identity. The Greek Presidency will
work towards the promotion of a common approach for the future
of European Tourism and the measures adopted by the Council.

Cheap, sufficient and clean energy
The stable and sustainable development of European
economies presupposes the unhindered access to the necessary
energy quantities for the production of the respective products
and services.
This demands further liberalization of the energy market in
the EU Member States, aiming at the strengthening of competition,
the reduction and stability of energy prices, which influence
the prices of most goods. It also entails the interconnection
of European economies, through the construction of respective
transport networks, with the new and developing energy production
centres and, in particular, with those located on the periphery
of the European Union (Russia, the Caspian, the Mediterranean
and Middle East). In addition, it requires a more rational use
of energy by both companies and consumers. Finally, it compels
the increase of the proportion of renewable energy sources in
the total usage so as to ensure long-lasting sustainability
of development as well as protection of the environment.
In conclusion, sustainable development is achieved through the
strengthening of competitiveness in all fields of the economy,
through productivity, quality and confidence of the consumer,
as well as through social cohesion and employment. The Greek
Presidency with its Program will serve to the attainment of
these goals.
