IDEAS home Printed from
   My bibliography  Save this article

Europe 2020 – A New Strategic Fantasy?


  • Jože Mencinger

    (University of Ljubljana)


Modern societies are preoccupied with efficiency and economic growth; the EU concentrated this preoccupation in Lisbon strategy of 2000. It should turn Europe into the most efficient knowledge based economy. Growth was to be achieved by increased competitiveness assisted by globalization. In 2005, the “old” strategy was replaced by a "renewed" one. The "scientific" pillar of both strategies was production function while their Achilles’ heel was total negligence of aggregate demand. In 2010, the two failed strategies were replaced by Europe 2020. According to it, the EU should become a smart, sustainable and inclusive economy. Europe 2020 is a slightly more realistic plan than the predecessors but nevertheless a kind of pre election program with a lot of promises, newly invented expressions, and empty slogans; the demand side is again ignored. Therefore, Europe 2020 will most likely soon turn to a worthless political document providing speech-making and jobs for the EU bureaucracy responsible for its "implementation". The negligence of the demand side is however much more fateful in actual economic policies which insist on the assumption that excessive public expenditures is to be blamed for the crisis and try to heel it by hysteric savings. In reality, the crisis was created by long lasting redistribution of GDP, hyper production, creation of demand by credits, and financial speculations. Public sector became "excessive" because governments had to prevent financial collapse created by private sector. Steadiness on current economic policies and savings hysterics therefore do not threaten only the Europe 2020, they threaten the sole existence of the EU. Euro, for many years the most prestigious element of European unification turned to its threat, as well.

Suggested Citation

  • Jože Mencinger, 2012. "Europe 2020 – A New Strategic Fantasy?," Serbian Association of Economists Journal, SAE - Serbian Association of Economists, issue 5-6, pages 217-228, August.
  • Handle: RePEc:srb:journl:y:2012:i:5-6:p:217-228

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Vanlommel, Emil & de Brabander, Bert & Liebaers, Dirk, 1977. "Industrial Concentration in Belgium: Empirical Comparison of Alternative Seller Concentration Measures," Journal of Industrial Economics, Wiley Blackwell, vol. 26(1), pages 1-20, September.
    Full references (including those not matched with items on IDEAS)

    More about this item


    economic growth; production function; technological change; globalization; EU; euro; monetary union; iscal union; aggregate demand;

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:srb:journl:y:2012:i:5-6:p:217-228. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Milos Stamatovic) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.