Economic Development
Environment
The role of small and medium-sized enterprises
Tourism


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.

© 2003 MINISTRY OF DEVELOPMENT