When Luxembourg takes over the presidency of the European Union at the beginning of 2005 it will face major challenges. Its period of leadership will coincide with decisions - on sustainable development and on the European Constitution, for example - that will shape the future direction and prosperity of the Union of 25.

One of these challenges will be to get the EU’s Lisbon Agenda back on course, as it reaches the halfway point of its 10-year life in 2005. The new task force set up to carry out a mid-term review of progress towards economic, social and environmental renewal will be reporting at the end of this year. Luxembourg will have the job of taking on board the group’s findings and guiding Member States in formulating their response at the spring 2005 European Council.

The ETUC has always supported the Lisbon Agenda, aimed at making Europe the most competitive and dynamic knowledge-based economy in the world by 2010, as the key to future development. But three years of low and disappointing growth have knocked the strategy off course. Unless European leaders adopt a bold approach to agreeing reforms that balance economic with social and environmental needs, the EU is in serious danger of failing to live up to its Lisbon goals. This is the task facing the Luxembourg presidency.

The ETUC has pledged to monitor the mid-term review process closely, and has called for regular meetings with the new task force, to allow for an exchange of views and for input from the European trade union movement.

Luxembourg will be responsible for organising the next Tripartite Social Summit with the European social partners in spring 2005, to take stock of progress. The ETUC has welcomed the current Irish EU Presidency’s proposal for a European Partnership for Change, explicitly recognising that the social partners have a critical role to play in reaching Europe’s economic and employment goals.

“Our central message is that social dialogue, collective bargaining, workers’ protection and participation are not a drag on competitiveness and economic efficiency,” declared ETUC General Secretary John Monks. “They make an essential contribution to innovation, productivity and sustainable growth.”

Another task for the Luxembourg presidency in 2005 will be making progress on the EU Constitution. The ETUC is calling now for rapid agreement on a Constitutional Treaty that reinforces the EU’s objectives of democracy, freedom, and social justice, as an important step towards integration. Next year is likely to see difficult and sensitive negotiations, as many Member States put the proposal to their citizens.

Luxembourg has already made its mark as the launch pad for the European Employment Strategy, agreed by EU leaders at the 1997 `jobs summit’. Yet EU unemployment is now rising, and measures to support and strengthen the recovery of the European economy along with higher investment in skills and training are desperately needed if Europe is to realise high sustainable growth.

With the enlarged Union just five days old, the comlng months will be a challenging time for the EU and its leaders, who face crucial decisions on the future of the European Social Model.

Information on the European Constitution