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The original Lisbon Strategy was launched in 2000 as a response to the challenges of
globalisation and ageing. The European Council defined the objective of the strategy for the
EU "to become the most dynamic and competitive knowledge-based economy in the world by
2010 capable of sustainable economic growth with more and better jobs and greater social
cohesion and respect for the environment". Underlying this was the realisation that, in order to enhance its standard of living and sustain its unique social model, the EU needed to increase its productivity and competitiveness in the face of ever fiercer global competition,
technological change and an ageing population. It was recognised that the reform agenda
could not be pursued at EU level alone (as had for instance been the case with the 1992 single market programme), but that since many of the policy areas involved Member State
competences, close co-operation between the EU and Member States would be necessary to achieve results. It also reflected a first acknowledgement that Member States' economies are inherently linked, and that the action (or inaction) of one Member State could have significant consequences for the EU as a whole.