http://news.bbc.co.uk/1/hi/business/4370602.stm
The European Union must carry out "radical surgery" on its policies in order to compete at a global level, according to the CBI.
The director general of the business body, Sir Digby Jones, made the appeal ahead of an EU summit this week.
He called on EU member states to give up their old ways.
"The ideologies of old Europe have condemned hundreds of millions of people to the economic slow track," Sir Digby warned.
In economic terms the US had accelerated into the distance, he said, while India and China were "coming up on the rails".
The European Trade Union Confederation (ETUC) accepted that change is needed, but said reforms should not take place at the expense of workers.
"The EU's got enough problems without being seen as some latter day Thatcherite institution," said John Monks, general secretary of the ETUC.
"The best performers in Europe are those who use their welfare states to help people adjust to change."
Reform agenda
Prime Minister Tony Blair will host the day-long informal EU summit at Hampton Court Palace, near London, on Thursday this week.
The subject will be social and economic reform and comes mid-way through the UK's six month presidency of the European Union.
Governments, business leaders and unions will attend.
'Under performance'
Sir Digby called for a more flexible jobs market in Europe in bid to get some of the 23 million unemployed people in Europe back to work.
And he called on Mr Blair to stand up to Eurocrats and push for "quality reform" rather than fudging a deal.
"The challenge for Tony Blair is to persuade his follow premiers of the virtues of fundamental change to end the under performance of the EU and transform it into a thriving economic power house," Sir Digby said.
"Brussels is marching valiantly towards 1970 and we have to have a modernised Europe," he told the BBC.
The European Union must carry out "radical surgery" on its policies in order to compete at a global level, according to the CBI.
The director general of the business body, Sir Digby Jones, made the appeal ahead of an EU summit this week.
He called on EU member states to give up their old ways.
"The ideologies of old Europe have condemned hundreds of millions of people to the economic slow track," Sir Digby warned.
In economic terms the US had accelerated into the distance, he said, while India and China were "coming up on the rails".
The European Trade Union Confederation (ETUC) accepted that change is needed, but said reforms should not take place at the expense of workers.
"The EU's got enough problems without being seen as some latter day Thatcherite institution," said John Monks, general secretary of the ETUC.
"The best performers in Europe are those who use their welfare states to help people adjust to change."
Reform agenda
Prime Minister Tony Blair will host the day-long informal EU summit at Hampton Court Palace, near London, on Thursday this week.
Brussels is marching valiantly towards 1970 and we have to have a modernised Europe
Sir Digby Jones, CBI
Sir Digby Jones, CBI
Governments, business leaders and unions will attend.
'Under performance'
Sir Digby called for a more flexible jobs market in Europe in bid to get some of the 23 million unemployed people in Europe back to work.
And he called on Mr Blair to stand up to Eurocrats and push for "quality reform" rather than fudging a deal.
"The challenge for Tony Blair is to persuade his follow premiers of the virtues of fundamental change to end the under performance of the EU and transform it into a thriving economic power house," Sir Digby said.
"Brussels is marching valiantly towards 1970 and we have to have a modernised Europe," he told the BBC.
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