The Tánaiste, Ms Harney, has called on EU leaders to take a more prominent role in boosting economic competitiveness by removing remaining barriers to trade within the EU. Denis Staunton reports from Brussels.
She identified the Services Directive, which would remove obstacles to cross-border trade in services, as an important step towards making Europe as competitive as the United States.
"In 1992 there was a lot of hype about the single market in goods. Imperfect as it is, it's working extraordinarily well. Services account for at least 50 per cent of GDP, some say up to 70 per cent. It certainly is the future and there are enormous barriers," she said.
"I know it's a priority for Charlie McCreevy. I've spoken to him about it and I think he intends to get really stuck in. I think the heads of government are going to have to take a more hands-on approach," she said.
Ms Harney said that a growing number of European governments now agree that boosting economic growth is the best way to improve living standards.
"We have to make it easier for people to do business in Europe and we have to be less focused on more regulations and more impediments and we have to very much focus on creating economic growth.
" That's how you'll enhance the quality of life. Our GDP is 72 per cent of the US. We have a long way to go to catch up with living standards and quality of life. Never before in Europe, in my view, has economic growth and social inclusion been more intertwined. You just won't have one without the other."
