EU: Europe is struggling in the face of an economic slowdown, high unemployment and the huge financial burden of an ageing population, a European union official warned.
Mr John Monks, secretary general of the European Trade Union Confederation and former general secretary of the British TUC, described the situation as "a pretty depressing set of circumstances".
Mr Monks was addressing business leaders in Brussels as the European Commission unveiled revised forecasts for its goal of creating "the most dynamic, knowledge-based economy in the world" by 2010.
A new report acknowledges that the original timetable was too ambitious.
Buffeted by unexpected economic troubles and the impact of EU expansion to 25 countries, the Commission has produced a mid-term review of the so-called "Lisbon strategy" for boosting jobs and growth.
The review acknowledges that there has been slow progress - partly because of the failure of EU governments to act on the jobs and growth agenda with sufficient urgency.
The report says the ambition was right but the targets could be missed because Europe has lost ground to the American and Asian economies "and its societies are under strain".
The much-heralded expansion of the EU from 15 to 25 member-states earlier this year is also partly to blame - because the EU population has increased by 20 per cent while the EU's combined wealth has risen by only 5 per cent.