At the Informal European Council in Lisbon in October 2007, Heads of State and Government discussed the European response to globalisation. They confirmed the central place of the renewed Lisbon strategy and called for it to be deepened during the next cycle. They also emphasised that the EU should use the Strategy to help shape globalisation in line with its own values and interests. The Union’s model of development, combining competitiveness with solidarity and sustainability, and its long experience of economic integration, can be major assets in the age of globalisation. With the signature of the Lisbon Treaty, the EU will enter a new phase. Having resolved key institutional questions, the EU can now turn its attention to the issues that directly affect its citizens in their everyday lives.

The first part of this Communication to the 2008 Spring European Council sets out the Commission's proposals for taking the Strategy forward. While underlining the importance of macro-economic stability, it emphasises the need to implement outstanding reforms to reinforce the fundamentals to sustain solid economic growth in the future and help the EU withstand adverse developments in the global economy.

The second part consists of an assessment of progress made by each Member State (and the euro area) in the implementation of its National Reform Programme and of the country-specific recommendations, as adopted by Council. The third part is a companion document containing a detailed assessment of progress by policy area. The Lisbon package furthermore contains: (1) a proposal for a Council recommendation to update the country-specific recommendations and 'points to watch'; (2) a proposal for a Council recommendation to re-affirm the Integrated Guidelines for growth and jobs; (3) a new Community Lisbon Programme; and (4) an analysis of the reorientation of the structural funds in support of growth and jobs.