Mr President, the next European Summit takes place in momentous times. The deepening financial crisis, rooted in cyclical and structured conditions, demands firm responses. Asia’s rise implies a new sort of competition amongst capitalisms, with the fallout in the activity of sovereign wealth funds and the rise in the price of basic commodities. One should also add the worrying effects of climate change, the need to secure energy security and a rise in overall uncertainty.

All these factors impact strongly on the implementation of the Lisbon Agenda, through complicated, unavoidable trade-offs. Let me stress several policy issues.

First, the quality of national policymaking is essential for improving industrial and economic performance.

Second, policymaking should be pragmatic, open-minded and avoid the confusion between free markets and totally deregulated markets.

Third, industrial policy, R&D in particular, has a major role to play, together with education. It is essential to increase the number of graduates in science and mathematics in Member States, and all Member States should work together to this end.

Fourth, energy policy needs more focus and the Nabucco Project is a step in the right direction.

Fifth, good quality land should be seen as a strategic asset in the reform of the common agricultural policy.

Last but not least, we have to reaffirm moral values and moral conduct