Christa Randzio-Plath through investment especially in human resources for economic, social and industrial change. Social policies, aside from their redistributive functions, allow an efficient combination of flexibility and security in the workplace and in the labour market. Even social protection does not undermine competitiveness as has been demonstrated by the Nordic countries and the Netherlands holding top positions in the World Economic Forum's competitiveness ranking. The relaunch of the Lisbon Strategy and the mid-term review The evaluation of the Lisbon Strategy is disappointing: the glass is half empty not half full as foreseen by the mid-term review of the Lisbon Strategy. The Lisbon Strategy so far has not been a success. The lack of political leadership and ownership of the whole process is to be blamed. Hopefully the reforms following the mid-term review in 2005 will bring about better results because of the three-year planning, because of the watered-down objectives and instru­ments, because of the clearer cut orientation of the national reform programmes on the basis of the 24 guidelines, and the European policies for streamlining, concentration and financing. Success will not only depend on the ownership question but also on political leadership and economic governance. Success depends on how the structural reforms are accompanied by progressive macroeconomic policies and not just stability-oriented policy-making approaches. Despite the fact that Europe represents 20% of world trade, 30% of global GDP and 45% of foreign direct investment(FDI), it does not mobilise enough resources to create prosperity in Europe. An appropriate macroeconomic investment-led employment-creating policy mix is needed for Europe's recovery. Growth rates currently remain too low and do not correspond to the agreed annual GDP growth rate of 3%. Employment rates are stagnating and unemployment and poverty are still unacceptably high. The average quality of jobs has not been improved and social inequality in Europe has increased not only within the enlarged EU because of enlargement but also within the member states. Europe has undergone deep structural reforms and put its weight on a reduced definition of competitiveness instead of complementing structural reforms by coordinated macroeconomic policies bringing an added value. Growth, which is needed in order to foster employment and social inclusion, cannot be generated by exports to third countries or by reforms solely. Since the degree of exports to third countries is relatively low, especially in Europe's big economies like Germany, there is a need for a higher degree of internal demand 40