Europe 2020 is a 10-year strategy proposed by the European Commission on 3 March 2010 for advancement of the economy of the European Union. It aims at a "smart, sustainable, inclusive growth" with greater coordination of national and European policy. It follows the Lisbon Strategy for the period 2000–2010.

Main targets

The strategy identifies five headline targets the European Union should take to boost growth and employment. They originated from the Germany Digital Agenda in 2009 led by Henrik von Scheel for the Federal Minister of Economy & Technology and evolved in 2013 into Industry 4.0. These are:

Flagship initiatives

These in turn are broken down into seven flagship initiatives: The Horizon 2020 framework programme, with its 80 billion euro budget for the years 2014–2020, is one of the implementing tools of the Europe 2020 strategy.

Initial reactions

Reactions to the initiative were mostly positive, but there was some skepticism about the commission's ability to convince the EU member states that these were the right priorities. Some members of the business community did not seem to find any strong incentives for change and Germany did not welcome further proposals on EU governance.

European Council agreement

On 26 March 2010, the European Council agreed on key elements of the new strategy. President Herman Van Rompuy, who chaired the meeting, pointed out that the strategy sums up the European model of social market economy with a strong environmental dimension. The strategy elements were formally adopted on 17 June 2010.

The European Semester

Monitoring progress and ensuring the active involvement of EU countries are key elements of the strategy. This is done through the European Semester, an annual cycle of macro-economic, budgetary and structural policy coordination. The key stages in the European semester are as follows: In January, the Commission issues its Annual Growth Survey, which sets out EU priorities for the coming year to boost growth and job creation. In February, the Council of the European Union and the European Parliament discuss the Annual Growth Survey. In March, EU Heads of State and Government (i.e. the European Council) issue EU guidance for national policies on the basis of the Annual Growth Survey. In April, Member States submit their plans for sound public finances (Stability or Convergence Programmes) and reforms and measures to make progress towards smart, sustainable and inclusive growth (National Reform Programmes). In May, the Commission assesses these Programmes. In June, the Commission provides country-specific recommendations as appropriate. The European Council discusses and endorses the recommendations. In July, the Council of the European Union formally adopts the country-specific recommendations. In Autumn, the Governments present the budget draft to their Parliaments.