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The article examines features of student work in Slovenia and

The European Union (EU) has been continuously rethinking its global position amidst emerging economic and geopolitical challenges and attempting to formulate strategies to increase its competitiveness. However, its long-standing policy implementation deficit is also recognized for its grand strategies, including the initially ambitious Lisbon Strategy. Is Europe 2020 set to fail as well? In this paper, we are arguing that strategic steering is essentially a discursive practice influenced by both semiotic and extra-semiotic factors. Hence, success or failure of a strategy essentially depends on ability to steer the discourse. Niklas Luhmann's social systems theory offers a theoretical framework against which limitations and potentials of strategic steering at the EU level can be analysed. While high levels of rationality and reflection capacities can improve strategic steering, it is limited by the increasing complexity. Recognizing limitations of direct and centralized interventions, we look for analytical and strategic solutions in sophisticated mechanisms of contextual steering: variation, selection and retention of strategic discourses. These mechanisms are integral to the "cultural political economy" approach. In the final part of the paper, we show how cultural political economy can explain the implementation shortcomings of the EU strategies.