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European Council: 23-24 March 2006

My Lords, I agree that protectionism is plainly self-defeating. It distorts and will destroy markets if it is allowed to take root. The Commission relaunch of the Lisbon strategy in 2005 started with a renewed focus on jobs and growth, as noble Lords will know. Member states were required to provide national reform programmes identifying key areas for reform at national level. Some have done so with some vigour and some have not. It is plain that if we are to improve labour market performance, to move more rapidly in research and development and in competition, including in services and energy, and to reduce the burden of EU regulation, the successful creation of national reform programmes is a vital building block. If I am asked whether I think that everyone will step up and do that as rapidly, vigorously or successfully as necessary, the answer is similar to the response that I gave to the first two interventions: some will do so more successfully than others. We should urge everyone to do so successfully, but we should make sure that we do so successfully. That is why those forms of liberalisation must remain absolutely at the centre of the policies for which we argue for the economy of the new Europe.