§ As I turn to look towards 1994, the prospects are encouraging, but two substantial risks remain. First, there is the continuing weakness of world economic activity, particularly in continental Europe. With Britain the only major country in the European Union likely to have grown at all in 1993, what manufacturing industry needs most is a pick-up of activity in the rest of Europe.
§ However, economic recovery on the continent will not be enough on its own. Europe's economic problems are not just cyclical. The continent as a whole faces a number of 923 deep-rooted and long-standing challenges, inflexible markets and declining competitiveness, which have combined to produce mounting structural unemployment.
§ There were more jobs created in Britain in the 1980s than anywhere else in Europe, and in the period ahead we must not only fight to export our goods and services, but also to win the battle of ideas in Europe. We must continue to work for more flexible and deregulated labour markets right across the continent, and we must continue to fight for free trade, not just within the European Union, but between the Union and the rest of the world. The first essential step is to secure a satisfactory conclusion to the GATT round.