European Affairs

My hon. Friend is absolutely right and he makes his point very well, as ever. We are determined that the EU should meet the economic challenges we all face head-on and swiftly. Otherwise, parts of Europe could face a lost decade of low growth and high unemployment, providing a drag on economic prospects for us all. That is why the Prime Minister wrote to heads of member states in October setting out a new vision for economic co-operation in Europe. He pointed out that the start of a new Commission term gave European leaders the opportunity to establish a new set of explicit and urgent economic priorities, which he called a""European compact for jobs and growth"." We want next week's December European Council to agree to the need for such a compact—one where European countries co-ordinate their actions to tackle the key concerns of Europe's citizens, while at the same time taking steps to reform the effectiveness of our institutions. We believe such a compact must have six components. It should focus on creating jobs and equipping our work force with the skills they will need in the future. It needs to support those sectors of the economy that will deliver the growth of the future, particularly low-carbon, resource-efficient sectors. It should seek to remove the remaining barriers in the single market and provide companies with streamlined access to markets. It should strive for faster progress towards open global markets by pushing for the completion of the Doha round in 2010, while at the same time stepping up bilateral trade negotiations. A European compact for jobs and growth must also strengthen the banking system so that European financial markets and institutions can play a full role in supporting sustainable economic growth. The Government believe such a compact will give European countries a progressive and ambitious framework in which to generate the economic prosperity of tomorrow. It will be a framework that builds on the actions of the G20 and provides greater coherence to the EU's economic policy, both internally and in a global context.