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The Prime Minister added that current difficulties were not a crisis of political institutions, but a crisis of political leadership, and urged change. “The issue is not about the idea of the European Union. It is about modernisation. It is about policy. It is not a debate about how to abandon Europe but how to make it do what it was set up to do: improve the lives of people. And right now, they aren't convinced. Consider this” he said.
Mr Blair called for a different policy agenda for Europe that would include first of all the modernisation of Europe’s social model and is laid down in the Kok report in 2004. “Investment in knowledge, in skills, in active labour market policies, in science parks and innovation, in higher education, in urban regeneration, in help for small businesses. This is modern social policy, not regulation and job protection that may save some jobs for a time at the expense of many jobs in the future” he continued.
Secondly, he called for a modern Budget for Europe as discussed in the Sapir report, published by the Commission in 2003. “It is not one that 10 years from now is still spending 40 per cent of its money on the CAP” the Prime Minister said and also called for the implementation of the Lisbon Agenda and a macroeconomic framework for Europe that is disciplined but also flexible.
Concluding his speech the Prime Minister said: 'It is understanding the difference between the challenges that have to be managed and those that have to be confronted and overcome. This is such a moment of decision for Europe.' Luxembourg will hand over the EU Presidency to the UK on 1 July.
In a speech given by Gordon Brown in London on 22 June, the Chancellor of the Exchequer described the UK position as one of pro-European realism.
“Pro-European because we recognise the economic benefits of cooperation and a pooling of sovereignty to secure an enlarged single market of 450 million consumers.
“And pro European realism because we understand that it is by intergovernmental cooperation – recognising national values - that we build the long term political will and sense of purpose to implement these changes.
On 18 June Tony Blair spoke to journalists in Brussels after the meeting of the EU council ended without resolution and said that 'If we want to remove the British rebate, and we are happy to put it on the table, we have to remove the reasons for its existence'. 'This is a moment when Europe has to take measures of fundamental change and reform” he went on.
Adressing to UK MPs after attending the EU meeting in Brussels Mr Blair said that 'It is said that the failure to reach a deal has deepened Europe's crisis; that Europe's credibility demanded a deal. No. Europe's credibility demands the right deal.” He added the debate would continue when the UK took over the EU presidency next month.
Full speech
Speech Gordon Brown