Mr President, in the report for the 2002 Spring Summit, the committees on Employment and Social Affairs and Economic and Monetary Affairs have attempted to point out innovative approaches, and, in many areas, they succeeded. Speaking on behalf of the Group of the , I congratulate Mr Udo Bullmann on the work he has done and also on his capacity for dialogue and compromise. What has to be on the agenda in Barcelona? Firstly, reform of the education systems. The PISA study provided something of a salutary shock in Germany. Training and education are at last being given political priority. In order to be moved forward, the pupils need greater demands to be made of them, with all-round education as early as possible, and specialisation as late as possible. It is only through comprehensive knowledge, including languages, that they will have unimpeded access to the labour markets of Europe, which will be open to them. Secondly, reform of the systems by which people are employed. The total of unemployed people in the EU stands at 13.6 million, and this is a development that is not going to be done away with by giving statistics on the labour market cosmetic treatment. The management of unemployment must give way to perceptibly increased employability through training schemes, market-driven continuing education and connection to the Internet. Simplistically concocted and standardised solutions, such as the reduction of working time across Europe, are of little weight. We need intelligent, discriminating solutions such as more flexible working times, tailored to different sectors and regions. Thirdly, reform of the social partnership. Social dialogue must prove its worth, all the more so when times are hard. The European social model has made a significant contribution to the peace of society and to increased productivity in Europe. As a model, it is flexible and far from rigid, and so it deserves to be extended. Fourthly, the way in which the social partnership is regulated. Workers have a vested interest in small businesses and trades, which are the backbone of all in the EU's national economies, securing 70% of all jobs and 75% of all apprenticeships. They should be helped to set up and to become innovative. They are in a permanent learning process, through which they achieve a considerable growth in experience. Qualities such as these must not, though, be undermined by the burden of taxes and levies and by the excessive regulation of SMEs. Fifthly, reform of the States' budgets. Our group insists that the obligations under the Stability and Growth Pact must be adhered to by all the countries in the eurozone without exception. Not even downturns in economic activity may be misused to soften it. It was only the threat of a warning letter that led at last to a consistent austerity policy being at least hinted at in Germany. That all expenditure by the State should be tested applies, though, not only in my own country, but is true of all subsidies. I have great confidence in the Spanish Presidency, which knows the value of our European social model, and how important sustainable economic growth is. Let us trust in its ability to motivate us at the Spring Summit in Barcelona!

Political group: PPE-DE