Member States need to embrace reform decisively

Progress was made in the last few years to complete the European Union’s single market and improve the conditions for business, but much more needs to be done to increase the bloc’s competitiveness through sounder public finances, more active labour policies, more productive investment – including in knowledge - and more integrated markets, in order to step up economic growth and job creation whilst protecting our environment. These conclusions were drawn in key reports looking at the implementation of multi-annual targets for the economy as a whole and the internal market, employment and environment in particular. The reports or "Implementation Package", will feed into the forthcoming mid-term review of the EU's Lisbon strategy and the Commission’s report to the Spring European Council in March. Today, the Commission also adopted a Joint Employment Report (JER) for 2004-2005 which shows that despite reforms in several Member States, overall EU employment rates have stagnated and productivity growth has fallen. With the employment rate stable at 63% in the period 2001-2003, the EU would need to create 22 million more jobs to reach the Lisbon target of 70% in 2010. Rates for women and older workers' employment have also stagnated at 55% and 40% respectively. Although past labour market reforms have strengthened the resilience of employment to the economic difficulties, the report confirms that there has been little progress towards the three objectives of the European employment strategy (EES): full employment, improving quality and productivity at work, and strengthening social cohesion and inclusion.