British New Labour meets French Old Labour

Blair: "modernise or die"

Blair Warns European Left

Tony Blair is in Malmo, Sweden, for a meeting of socialist heads of government, a meeting which has been seen as a celebration of the Left's recent triumphs in Britain and France.

Socialist flags in Malmo

In his address, however, Mr Blair will repeat his warning that "navel-gazing" debates about EU institutions are not what real people want. He will warn his allies that trying to pursue the "European dream" at the expense of "the people's priorities" - jobs, crime, the environment and security - will lead to disaster.

Instead, the Prime Minister will advise his allies to copy New Labour and take the best policies of the Right, particularly the need for flexibility in the labour market. He will stress the importance of competitiveness, education, skills and enterprise, and warn that the "rigidity, unnecessary regulation and old style intervention" associated with the Left will damage job creation and hamper Europe's economies.

Blair: "modernise or die"

Mr Blair will say that there are "two types of conservative party. One is the reactionary party of the right. The other is the party of the left that refuses to change". Calling for support to help build a "people's Europe", Mr Blair will argue for a "third way" between the policies of the old left and those of the new right.