The Commission has presented its Annual Report on research and technological development activities of the European Union in 2005.
At the Spring European Council 2005, the heads of State and government reinforced the Lisbon Strategy with a new partnership for growth and employment, re-boosting the Barcelona objective of dedicating 3% of its Gross Domestic Product (GDP) to research in 2010 compared with 1.9% today. In its Communication 'Building the ERA of knowledge for growth' of 6 April 2005 which sets out the European Research policy objectives for 2007-2013, the Commission reiterated how crucial it is to provide new impetus to knowledge for sustainable growth to achieve the Lisbon goals. Major steps towards the Seventh Framework Programmes (FP7) were made in 2005 with the presentation by the Commission of its proposals for the entire legal framework.
Alongside the preparation of the future research funding framework, the Commission enhanced in 2005 major policy initiatives towards the European Research Area (ERA).
Implementation of sixth Framework Programme continues: in 2005, the budget was fully committed. Efforts were pursued for the FP6 to continue to attract the best research groups and the most innovative companies, organisations and institutions and significant scientific and technological progress was achieved in all thematic priorities. Furthermore, research is being carried out to support policies in areas such as agriculture, fishing, health and consumer protection, education, youth, employment and social policies, justice and home affairs, the environment, the single market, energy and transport. Concerning the regulatory and administrative environment, further improvement and progress continued where appropriate, notably concerning simplification.
Progress towards the 3% objective: the report confirms that all Member States have now set generally quite ambitious R&D expenditure targets either in the context of their NRP or soon after.
Assuming that all the R&D expenditure targets were met, R&D expenditure in the EU would increase significantly to around 2.6% of GDP in 2010. By comparing, both within each Member State and the EU-25 as a whole, the annual rate of growth of the R&D intensity required between 2004 and 2010 to meet the target with the rate of growth experienced over recent years (1997-2004), we can assess the level of the target. Countries such as Denmark, Finland, Sweden, Germany and Austria have experienced a rate of growth which, if they continue on the same trend, is sufficient to reach their target: while these countries have R&D intensities already higher than the EU average, in recent years they have managed to pull even further ahead. For countries such as Belgium, France or the UK and for the EU-25 as a whole, the target will be reached only if there is a substantial acceleration of the growth of R&D expenditure. For countries such as Poland, Slovakia, Malta, Latvia and Greece, the target is extremely ambitious.