Austrian Social Partners' Advisory Council for Economic and Social Affairs The Macroeconomic Policy and the Lisbon Strategy of the European Union The studics produeed by the Austrian Soeial Partners' Advisory Couneil for Eeonomie and Soeial Affairs (Beirat für Wirtsehafts- und Sozialfragen) contain opinions and recommendations for cconomie poliey which have been agreed upon by the four ma- jor Austrian social partners (Austrian Economie Chamber, Fed- eral Chamber of Labour, Austrian Federation of Tradc Unions, Standing Committee of the Prcsidents of the Austrian Chambers of Agrieulture). Thc following text consists of a translation of the summary and reeommendations from the Advisory Couneil's enclosed study "The Macroeconomie Poliey and thc Lisbon Strategy of thc Eu- ropean Union" (Die makroökonomisehe Politik und die Liss- abon-Strategie der EU). The translation was provided by Pedriek Moore. SUMMARY AND RECOMMENDATIONS With this study, it is the intention of the Advisory Couneil for Eeo- nomie and Soeial Affairs not to deliver a eomprehensive mid-term re- view of the Lisbon Strategy, but rather to fill a gap. Numerous eom- mentaries from various sourees assessing the disappointing dcve1op- ment so far have mostly ignored the role of the macroeconomie frame- work within whieh the strategy is to be implementcd. Aeeordingly, in this publieation, the Advisory Couneil aims to explain the signifieanee of the macroeconomie poliey mix and prescnt suggestions for improve- ments. The EU within the Global Context Aehieving dynamic compctitiveness means maintaining and inereas- ing high real incomes within the framework of advaneed soeial and en- vironmental standards over the long term. Thus, to eompete globally, Europc must eonstant upgradc itself - simply competing on cost and priee with less developcd regions is neither a promising nor a sensible option. The Lisbon European Couneil obscrvcd that Europe lags bchind the 7