"The ambition of the Lisbon strategy is to make Europe the most competitive region in the world by 2010. Halfway into the ten-year strategy this ambition appeared to be unlikely to be achieved. In response, the Commission relaunched the strategy in 2005. The basic idea behind the relaunch is that EU competitiveness will be boosted by focusing on two policy instruments: flexibilization and modernization of the social policies of Member States. This paper offers a critical review of the strategy, arguing that the results of the revised strategy may turn out to be unsatisfactory, because of potential obstacles associated with these instruments. The conclusion is that a coherent flexicurity approach alone will not be sufficient, and that a more balanced approach to modernization should also be developed."

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