European Union (EU) leaders are concerned about the deteriorating global economic situation and the financial turmoil caused by the U.S. credit squeeze.
On the second day of their spring summit Friday, the leaders are expected to focus on their economic and financial woes.
"The global economic outlook has deteriorated recently as a result of a slowdown of economic activity in the United States, higher oil and commodity prices, and ongoing turbulence on the financial markets," said a draft conclusion of the summit.
The leaders warned against complacency and asked member states to continue reforms and coordinate economic and financial policies.
Official figures showed confidence of European businesses and consumers has dropped below the long-term average, raising alarm over the momentum of investment and private consumption, the two growth engines.
As a result of the global financial and economic woes, the European Commission last month revised down its economic forecast for the EU. The EU economy will grow by 2 percent this year, compared to 2.9 percent in 2007.
On Thursday, the EU leaders agreed on a plan to reform the economy.
"The council agreed that the Lisbon Strategy is functioning well. Because of the Lisbon Strategy, the EU has solid economic foundations," Slovenian Prime Minister Janez Jansa, whose country holds the EU presidency, told reporters after the first day's meeting.
The Lisbon Strategy is the EU's flagship reform strategy for economic growth and jobs. It was first agreed in 2000 by EU leaders in the Portuguese capital, initially aimed to make the EU "the most dynamic and competitive knowledge-based economy in the world" by 2010.
However, the bold strategy was later watered down and was relaunched in 2005, with clear focus placed on growth and jobs. It is based on a consensus among member states and organized around a three-year cycle, with the first starting in 2005.
The plan endorsed by EU leaders aims to bring about the implementation of the strategy in the next three years ending in 2010.
On Thursday, EU leaders also agreed to launch a Mediterranean Union, proposed by France, to strengthen ties with countries from Morocco to Turkey.
The establishment of a Mediterranean Union enjoyed support among EU leaders, Jansa said.
Source: Xinhua
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