Convergence via two-tier reforms and growthless job creation in Europe
The Lisbon liberalization agenda has been a major failure. Broadly speaking, too many targets were set and too many messages were lost in the translation from Brussels to the EU capitals.
But failures of the Lisbon process were less evident in labour than in product markets. There were more reforms in labour markets, albeit less coherent than the few that occurred in product markets. And more progress was made in labour also in terms of outcomes, as the growth of employment rates in several countries exceeded the Lisbon employment targets.