Blair: EU must tackle unemployment

Blair tells Malmo to aim for a "more humane society"

Blair Peps Up European Left

In a speech in Sweden, the Prime Minister gave a pep talk to his centre-left allies in Europe. The meeting of socialist heads of government in Malmo is seen as a celebration of the Left's recent triumphs in Britain and France.

Mr Blair said a European Union single currency, whether weak or strong, risked coming under great strain unless EU member states reformed their economies to tackle unemployment.

"EMU cannot work if it is set up on the basis of a fudge. Whether it looks like a weak currency or a strong one, if it masks unreformed economies, strains in the system risk being too great," he said.

"There is no comfort in size alone. A united, unreformed European economy will be no better than a disparate, unreformed European economy," he added.

The Prime Minister said the institutions of Europe were as out of touch, out of date and unresponsive to the needs of people as the Conservative Party became in Britain.

He admitted his government had enjoyed a honeymoon in its first five weeks but said these did not last forever.

"What matters is that the public remember what we said we would do, and we do it...I am determined that my government will not be a 100-day wonder, but a force for change which endures."

"Modern electorates are not patient or forgiving. If we fail to change, we will be thrown out, and rightly. We have no more of a divine right to govern than the parties we oppose."

Socialist flags in Malmo

"In the past the besetting sin of parties of the left and centre-left has been to come to power on a wave of enthusiasm and then to dash the high expectations and leave behind disillusion."

"This time round we must be different. We must set realistic goals. We must deliver results - above all on education, jobs, crime, health and the economy - the issues that matter to the people."

Mr Blair said Britain would use its presidency of the EU, which rotates between the member states on a six-monthly basis, next year to promote jobs and would do the same during its presidency of the G8 group of leading industrial nations.

Urging other socialist leaders to help change Europe, he warned: "Stay as we are and fail."

"Change, embrace the future and succeed. Don't let us be another type of Conservative Party, defending the status quo, standing out against the world, hoping it will go away. It won't."

"Hold our values dear, then revolutionise our method of implementing them. As I said to the British Labour party a few years ago, we modernise or die."