Ireland should drive forward the Lisbon Strategy to increase EU competitiveness using itself as an example, according to one of Germany's leading businessmen.

Dr Jürgen F. Strube, supervisory board chairman of German chemicals giant BASF, says Ireland is the "living proof" of the competitiveness plan's possibilities, a plan that the EU needs to adopt quickly to future-proof itself against globalisation.

"When you look at Europe you see we are in the midst of change. People in the midst of change feel insecure. Ireland is in a unique position to inspire confidence," said Dr Strube who was in Dublin recently as president of the Union of Industrial and Employers' Confederations of Europe (UNICE).

He urged the Government to press ahead with the Lisbon Agenda despite the current row over voting weights and the constitutional treaty.

Along with Mr Maurice Pratt, president of IBEC, he presented the Taoiseach, Mr Ahern, with a document outlining what European business leaders expect from the Irish presidency.

The document makes clear that European employers see the Lisbon Strategy, initiated in the Portuguese capital in March 2000, as Europe's greatest chance to catch up with the US.

"Dynamism is really called for and Lisbon is the sound platform for growth and many of our problems could be solved through growth," said Dr Strube.

A month into Ireland's EU Presidency, however, there can be little doubt that the Lisbon Strategy has so far been put in the shade by the constitutional row.

Matters were not helped when European Commission President Mr Romano Prodi distanced himself recently from the Lisbon Strategy's ambitious aim to be the world's most competitive economy by 2010, suggesting instead that the EU could instead be "one of the most competitive" economies.

"Perhaps Mr Prodi has little time left in office was looking at the remaining period of time and felt it would be overambitious," remarked Dr Strube.

But probably the greatest impediment to realising the Lisbon Strategy is a simple lack of interest and awareness.

The strategy aims to foster an EU-wide acceleration of economic growth, competitiveness, job creation and structural reform.

These four areas, as well as environmentally sound economic growth, have been targeted by the Government as priorities during the Irish presidency.

The strategy has a central timetable and guidelines for reaching its goals, but leaves it up to member states to decide the best way of getting there.

UNICE's document presents its road map for achieving Lisbon's ambitious competitiveness goals.

The organisation says the economic benefits of the looming EU enlargement should be given a boost by placing a moratorium on all EU legislative measures not absolutely necessary for the internal market.

"Many businesses in the EU of today find it difficult to comply with all demands on them. New projects of legislation should take into consideration whether they really helping to implement to complete the common market and the Lisbon Agenda, or other goals not essential to either," said Dr Strube.

The UNICE paper also asks the Irish presidency to put Lisbon's competitiveness message at the heart of June's European elections.

But one of its most intriguing proposals is for the creation of a "Competitiveness Commissioner" to streamline the implementation of Lisbon Agenda horizontally, through all the directorates.

"The existing Commission is structured around vertical departments, many competitiveness issues - such as entrepreneurship, innovation or industrial policy - are horizontal in nature," says UNICE in its submission to the Irish Presidency.

This new Commissioner could play a crucial role in driving forward the work of the Competitiveness Council, a Council of Ministers body drawing together the ministers of trade, industry, enterprise and environment and others headed by the Tánaiste, Ms Harney, during the next months. She agrees in principle with UNICE's call for a "horizontal" development in the Commission.

UNICE's paper is part of a wider submission it will make to next month's EU Spring Summit which will review progress on the Lisbon competitiveness strategy.

Dr Strube is hopeful that under the Irish Presidency, the Lisbon Strategy will finally achieve a breakthrough as the only credible solution to the core problems facing the EU of 25, such as rising unemployment and the EU budget.

"The question is should we grow the budget cake to solve these problems or divide the existing cake.

"The Lisbon Strategy is about growing the cake," says Dr Strube.

"The best way to cope with unemployment is making sure that the larger EU uses all means available to invest in human capital, to foster research and development with better universities."

Dr Strube is hopeful that the Irish Presidency will bring Lisbon to bear on the Union's jobless rate, set set to rise after the accession of new member states with unemployment rates over double the EU average of 8 per cent.

He rejects any suggestion that the success of the Lisbon Strategy could be hobbled by contradictory aims, such as support for the interests of industry as well as the environment, or calls for a reduction in regulatory obstacles and greater employee "flexibility", while promising an "appropriate level" of security for workers.

"If flexibility gives extra people in Europe a chance to find a job that's not a contradiction it's helpful," says Dr Strube.

"Dynamism is what is really called for in Lisbon. It is the sound platform for growth and many of our problems could be solved through growth.

Only through growth and profits can we maintain environmental and social goals."