Mr President, the new European strategy which came out of Lisbon for a competitive, dynamic and knowledge-based Europe stood the test of time in the year 2000 and so, with the help of the synthesis report and the resolutions adopted at Stockholm, it must be further consolidated within the main thrusts of economic policy, which must be more binding this year than they have been in previous years. Unemployment has finally fallen, even though the still high level of unemployment is deplorable. Nevertheless, 2.6 million new jobs have been created and the positive economic trends have been confirmed by good economic data, even though the pace has slowed down. The strategic approach of giving equal status to the policy areas of economic reform, economic growth, full employment and social inclusion has proved its worth. But it must be consolidated and implemented. The US economic climate, however, is keeping Europe on tenterhooks. But a soft landing does seem possible. Nevertheless, Europe must be prepared for lower demand for its exports. For that reason, there is no alternative but to introduce structural reforms in the goods, services, capital and labour markets, which must lead to increased output potential and productivity. Mr Friedrich, extended codecision can even lead to higher motivation among the workforce and thus to increased productivity. (Applause) The European Union has made great strides in terms of structural reforms, which is underlined by the most recent progress report of the International Monetary Fund on the euro zone. This is also true for information and communications technologies and for the labour markets. At the same time a policy mix must be developed which will help compensate for the effects of a possibly negative impact on the EU internal market from reduced US demand, by increasing domestic demand. The Bullmann report and the synthesis report, with its ten correctly identified fields of action, rightly emphasise that the future of Europe lies in the ability of Member States to reform themselves, in the qualifications offensive aimed at increasing employment, in the modernisation of infrastructures, the expansion of the information society and in overcoming poverty and social exclusion. To this end, the instruments of privatisation and deregulation must be exploited to the full. But new instruments must only be used where restructuring and, hence, regulation are needed. Especially important is a clear regulatory framework in all areas, most notably for financial services, which have a high priority for increased investment activity, which is crucial in the EU. This is in the interest of the European model of a social market economy. It is also important that the open coordination process method is taken a step further. In this connection, a timetable, together with qualitative and quantitative objects, as well as intermediate goals, are needed. This proved to be crucial with the advent of the internal market and the introduction of economic and monetary union. In this case too, it must lead to the streamlining of the domestic market in the interest of the economy and employment. To this end, the European Parliament needs to play an enhanced role and be more involved in the process of coordinating economic policy. The Swedish Presidency has called for democracy and transparency in this area. I hope they are as good as their word.

Political group: PSE