Prime Minister at Tripartite Social Summit in Brussels

Federal Chancellor Schüssel, Deputy Federal Chancellor Müntefering, President Barroso, Ministers, Ladies and Gentlemen

We met, last time, on the eve of the Hampton Court Summit. Since last October, the European Union has witnessed a number of positive steps forward

- at Hampton Court, the challenges of globalisation and ageing were discussed with an open and serious mind. The urgency of action has been recognised by all. As of the beginning of the next decade, working age population in Europe will start to decrease. Europe must ensure the stability of public finances, improve productivity and raise the employment rate.

- the December European Council reached an agreement on the financial perspective. Now the package is being finalised and resources targeted for the support of the Lisbon goals.

These steps strengthen the credibility of the Union. The momentum has to be maintained. We need to focus on growth and jobs to secure the basis of our social models. We need to make sure that our next steps will take us in the same direction:

In order to make full use of the benefits of economic integration, the internal market – also for the services - must be developed further. At the same time, the liberalisation of the world trade has to be continued.

The European economies need constant restructuring to keep up with the challenges. The 25 national reform programmes show that the Member States have chosen to act. Now, it is time to deliver results.

The social partners play a key role in taking the reform programmes forward. There are good reasons for people to worry about the changes that employers, employees and other stake holders will have to go through. We must not, however, allow these worries to hinder the necessary adjustments. The best, if not the only way to accomplish this is to involve social partners early on in the formulation of the reform measures and their subsequent implementation. The Finnish experience speaks strongly for this.

The European Council will tomorrow give strong messages on innovation, knowledge and employment. Here, I will name three of them:

Investments in R&D are crucial, but not enough. The investments need to be translated into goods and services that consumers and businesses can and want to use. We need a framework where innovations find finance, markets and demand.

Increased employment and better productivity can go hand in hand. Globalisation does not necessarily mean competing at the cost of the quality of working life. Improving the competences of the labour force contributes to both higher productivity and better employment prospects. Better working life can mean better labour productivity.

In many ways, gender equality can offer means to resolve many European challenges. We need women to participate in the working life, a working life and services that make this possible and – finally, equal treatment of women and men. This is why I, together with five other Heads of State, have made a proposal for a European Gender Equality Pact.

Ladies and Gentlemen,

Finland has decided to organise an extraordinary Social Summit during Finland’s EU Presidency this autumn. It will be my great pleasure to host, together with President Barroso, our next meeting and continue discussion on these important issues.