Compared to this evening's discussion among EU leaders about war in Iraq, tomorrow's session on economic reform ought to be straightforward and harmonious. But there are signs that the economic agenda too could be overshadowed by disagreements over the consequences of war.
The German chancellor, Mr Gerhard Schröder, told the Bundestag yesterday that the EU should consider relaxing the Stability and Growth Pact if war adversely affects economic growth. "If a war in Iraq has serious consequences for the economy in Europe and the economies of the member-states, then we also must have a fair debate with the Commission to see what the alternative is," he said.
But in an interview with a German newspaper today, the Spanish prime minister, Mr Jose Maria Aznar, insisted that balanced budgets represented the most effective means of boosting growth.
EU leaders are expected to approve a Commission proposal to tweak the pact in such a way that countries with high public debt would be punished while those with low debt would be allowed a little more budgetary leeway.
Because of the crisis over Iraq, this week's summit has been curtailed and is likely to end by lunchtime tomorrow, about five hours earlier than planned. The main item for discussion tomorrow is the Lisbon Agenda, which aims to make the EU the most competitive economy in the world by 2010.
All member-states agree that progress has been slow but the leaders are expected to trumpet the achievements of recent months, such as the agreement to create a European patent and liberalisation of financial, energy and transport markets.
In a letter to EU leaders yesterday, the Commission President, Mr Romano Prodi, acknowledged that it would be difficult to focus their attention on economic issues. "But we must not give up on a process we have taken such pains to develop. The message must be clear: we must press ahead resolutely with the economic reform process set in motion at Lisbon," he said.
Much of the focus will be on the effort to boost employment in the EU and to encourage member-states to introduce labour market reform. Mr Peter Sutherland is expected to be named as the head of a European Employment Task Force, which will co-ordinate EU action on jobs.
