Giedrė Lapinskienė


Taking into account the current financial crisis, the European Commission has launched the new strategy “Europe 2020,” released as the follow up to the Lisbon strategy. Both strategies encourage the European Union countries to be competitive and to maintain the sustainable development in order to prosper in the dynamic knowledge-based economy. However, a question arises, how these two concepts interrelate and help a nation to create harmonious and balanced development. This research is based on the assumption that competitiveness is a cornerstone of a country’s growth, leading to its sustainable development. The research has confirmed that the rank assigned to the competitiveness of the country’s economy is related to sustainability indicators. It should be noted that, for the developing countries, GDP growth should be maintained to improve the sustainability. However, GDP growth cannot be assured for the infinity, because when the country reaches a high level of welfare its growth rate usually decreases, though the same high level of competitiveness and sustainable development is maintained at a slower but constant rate. Various rankings do not necessarily give the full view of the economic situation. JEL classification:: O 01, O 02. Keywords: sustainable development, competitiveness, European countries, indicators, ranking.