EU (Hansard, 7 September 2004)

§ Keith Vaz
To ask the Chancellor of the Exchequer if he will make a statement on progress with the agenda for structural reform of the EU. [186624]

§ Ruth Kelly
The Treasury published its latest progress report on economic reform "Advancing Long-Term Prosperity: Economic Reform in an Enlarged Europe" in February. It reaffirms the Government's commitment to the Lisbon agenda on structural reform, assesses progress to date and concludes that, despite some recent actions, if the ambitious goals of the agenda are to be realised further efforts are needed.

§ Keith Vaz
To ask the Chancellor of the Exchequer whether the EU target of 70 per cent. employment in 2010 is expected to be met. [186653]

§ Ruth Kelly
Employment in the European Union has risen considerably in recent years. Since 1999, EU employment has risen from 154.9 million, or 62.5 per cent. of the working age population to 162 million and 64.3 per cent. in 2003. Though the UK's employment rate already exceeds the EU target (74.5 per cent.), it is clear that significant further reforms are necessary, particularly in the new Member States, to meet the target of 70 per cent. by 2010.

§ Keith Vaz
To ask the Chancellor of the Exchequer what strategy is in place to improve productivity levels in the EU. [186622]

§ Ruth Kelly
The Government's approach to economic reform in the EU is based around improving both productivity and employment. To this end the progress report on economic reform, published in February of this year, highlighted a number of priority areas. These includedimproving the regulatory framework, building on the four Presidency initiative on regulatory reform; strengthening the Single Market, with a more pro-active competition policy, further reform of the state aid rules, and by making the Single Market a reality for services as well as goods; promoting enterprise and innovation, including through new European Centres of Enterprise—local centres of excellence in enterprise policy; taking a leading role in world trade negotiations, by improving access-to all of Europe's markets and further reform of the Common Agricultural Policy; and strengthening the transatlantic economic relationship, by tackling the barriers to trade and investment between the ED and the US.

§ Keith Vaz
To ask the Chancellor of the Exchequer what the annual growth rate of the EU was(a) in 2002–03 and (b) in 2003–04. [186650]

§ Ruth Kelly
As defined by the UK financial year (i.e., from the second quarter in the preceding year to the first quarter in the following year), annual real GDP growth in the EU25 was 1.7 per cent. for the period 2003–04 and 1 per cent. for the period 2002–03. On the same basis, EU 15 real GDP grew by 1.6 per cent. in 2003–04 and by 0.9 per cent. in 2002–03.