The Lisbon Process in the European Union: Lessons for Croatia THE LISBON PROCESS IN THE EUROPEAN UNION: LESSONS FOR CROATIA Marius-Jan Radlo Gdansk Institute for Market Economics Gdansk SUMMARY 1 The paper analyses the Lisbon Process taking into account both the challenges faced by the economies of the EU member states and the Lisbon Strategy that was expected to address these challenges. The starting point is the analysis of the GDP per capita gap between the EU15 and the US and the indicated sources of this gap. The Lisbon Strategy of 2000-2005 is analysed as well as the renewed Lisbon Strategy accepted in 2005. In this analysis both the weaknesses and strengths of the Lisbon Process are indicated as a tool fostering structural reforms in the member states. Finally conclusions are drawn from the Lisbon Process for EU acceding countries like Croatia. Recommendations for the candidates are that the Lisbon Process as a reform programme should be taken into account. There are good examples of some old and new EU member states that implemented deep reforms, often difficult at the beginning but fruitful in the long term. The Lisbon Process, while not ideal in its essence and method, can be used as a stimulus for such a policy, although the effectiveness of the Lisbon Strategy cannot be overestimated, because the most important economic reforms have to be accepted and implemented at the national level, not the EU one. 1. This article is partially based on my paper“Economic Reform in the European Union: Will the 'Lisbon' EU Catch Up with the US?”(published in: Bieńkowski W., Brada J., Radło M-J. eds (2006), Reaganomics Goes Global. What Can the EU, Russia and Transition Countries Learn from the USA?, Palgrave Macmillan, London) as well as on the report“National Reform Programs: Key to Successful Future of the European Project?”, which I co-authored and co­edited. 75