||The current ten-year economic strategy of the European Union – the Europe 2020 Strategy – has defined five measurable headline targets to enhance economic growth and allowed the Member States to set their own national numerical values for these targets. This research project will in its first year look at whether the Member States and the European Union as a whole are on a path to fulfil the Europe 2020 Strategy targets and estimate the relationship between the level of ongoing progress and original starting position of the Member States at the beginning of the current decade, controlling for the relative reasonability of national targets. The main part of the project will then in the following two years search for reasons of great differences in relative reasonability of national targets among the Member States. Unreasonably too ambitious or too undemanding targets threaten future successful fulfilment of the strategy. To understand causes of such suboptimal target setting process and avoiding them in future, the project will test for three main possible sources of non-reasonability of targets: social and political aspects, peer effects and specific economic conditions.