Nadine Butova

23.10.16
Europe 2020: comparing the performance of the Baltic countries
To combat the negative short- and long-term effects of globalisation, pressure on natural
resources and an ageing population, the European Union launched a ten-year jobs and growth
strategy, called Europe 2020. The strategy includes 5 headline targets to achieve by 2020, such as
employment; research and development; climate/energy; education; social inclusion and poverty
reduction. Later each EU member state translated these targets into national targets. This report
compares national targets of the Baltic States: Estonia, Latvia, and Lithuania, as well as their
progress towards their targets in areas of employment, research and development, and
climate/energy.
Employment
With the EU target of Employment rate of 75%, Estonia has set the highest national target of
76%, Latvia coming second with 73%, and Lithuania having the lowest target in the Baltics-
72.5%. However, as the current state of play data shows, Estonia is doing even better than it has
planned, with its current employment rate being 76.5%. Lithuania is also exceeding its initial
target, demonstrating 73.3% as employment rate in 2015. Latvia is the only Baltic country left
behind its national target; its current performance exceeds the average European index (70.5%),
however it is still 0.5% missing to reach its 2020 target.
Research and Development
Same as in the target of employment, Estonia has the highest national target amongst the Baltic
states. Its plan is to invest 3 % of GDP in R&D by 2020, the index which coincides with the EU
target. Lithuania has a less ambitious target, planning to spend 1.9% of its GDP on R&D. Latvia
is the most modest in the Baltics with its target being only 1.5%, making up half of Estonian
planned expenditure.
The same order can be seen in current performance, with Estonia showing the highest index in
the region(1.71%) by year 2013, Lithuania staying in the middle with 0.95%, and Latvia coming
last with 0.61%. However, as the numbers demonstrate, all three countries have a long way to go
to reach their national targets.
Climate/Energy
However, in the area of climate, the picture of the region is completely different from two
previous targets. Having set its national target of greenhouse emissions on -17% Latvia is in the
lead in the region and the closest to the EU target, followed by Lithuania with -15%, and Estonia
with -11%. Estonia is the biggest greenhouse gas emitter in the Baltics- 52.87(data from 2014,
base year 1990); Latvia demonstrates much lower number- 44.04, and Lithuania emitting only
40.51.
All three Baltic countries demonstrate steady growth in the use of renewable energy. All
countries national targets exceed the general EU target of 20% of total energy consumption from
renewable sources; Latvia set the most ambitious target of 40%, Estonia with less impressive
target of 25% comes second in the region; Lithuania plans to reach 23% share by 2020. The state
of play (2014) demonstrates no less positive data. Estonia and Lithuania are exceeding their
national targets, showing 26.5% and 23.9% respectively. Latvia is close to accomplishing the
2020 target with 38.7% share of energy coming from renewable resources.
Conclusions:
In general, the Baltic countries are doing well in the areas of employment, research &
development, and climate/energy. Estonia is in the lead in the first two areas, having higher
national targets and performing slightly better than its Baltic neighbours. In the area of climate
and energy, Latvia is the leader of the region with the highest national targets in reducing
greenhouse gas emissions and increasing the share of energy produced using renewable energy
sources.

Sources:
http://ec.europa.eu/europe2020/europe-2020-in-your-country/lietuva/progress-towards-
2020-targets/index_en.htm
http://ec.europa.eu/europe2020/europe-2020-in-your-country/eesti/progress-towards-2020-
targets/index_en.htm
http://ec.europa.eu/europe2020/europe-2020-in-your-country/latvija/progress-towards-
2020-targets/index_en.htm