Saturday, 16 March, 2002, 15:44 GMT
EU summit agrees key reforms
European leaders have agreed a range of measures to strengthen their economies and improve competition in an attempt to catch up with the US. Ending their two-day summit in Barcelona, leaders agreed to boost competition in electricity and gas markets, to raise the retirement age and to increase job mobility
They also condemned last weekend's elections in Zimbabwe, called on Israel to withdraw its forces from all Palestinian areas, and hailed Serbia and Montenegro's decision to form a loose federation. The summit's conclusions were announced as thousands of riot police took up positions in the city ahead of a planned demonstration by anti-globalisation protesters on Saturday evening. Police said protests so far had been largely peaceful, though 27 arrests were made on Friday. The summit's key decision is to allow industries and businesses to shop around between different countries' electricity and gas suppliers from 2004 onwards.
But in a concession to France, where the issue is sensitive ahead of next month's presidential election, non-business users will not be included. Spain's Finance Minister, Rodrigo Rato, said this was a good result because one year ago it would not have seemed possible. "We are talking about the liberalisation of 60% of the energy market," he said. However, Italy's Prime Minister Silvio Berlusconi expressed some disappointment. "Naturally it would be better if we said 'yes' to a liberalisation of everything, even for households," he said. "But there are national interests one has to face up to.
" Sanctions threat
The leaders agreed that they were behind schedule with the changes planned at the Lisbon summit two years ago, to make the EU the world's most competitive knowledge-based economy by 2010.
Taking full part in the talks for the first time were the heads of government of 13 applicant states, up to 10 of which could be invited to join at the end of this year - a potential turning point in the EU's history. The leaders warned of the possibility of new sanctions against Zimbabwe, as they condemend last week's election as neither free nor fair.
Several demonstrators were arrested
On the Middle East, they called for urgent implementation of all UN resolutions, and for immediate and effective action by both sides to stop the bloodshed. They said the decision by Serbia and Montenegro not to split apart would promote stability in the Balkan region, adding that the new country was on its way to EU membership. They also said the EU wanted to take over Nato's 1,000-strong peacekeeping operation in Macedonia.