The European Council reviewed the economic situation in the aftermath of the September 11 events. It noted that the economic slowdown has been accentuated by these events but expressed its confidence that the sound economic fundamentals of the Union and the fiscal consolidation already achieved will help to ensure that the impact will be limited and temporary. The Council confirmed its commitment to the Stability and Growth Pact and to accelerating the Lisbon process to raise Europe's long-term growth potential.

The Council took note of the Commission report evaluating the impact of the September 11 events and the analysis of the appropriate policy responses in the light of economic developments. It is important to stress that the outlook remains positive and that there will be no departure from the economic policy strategy of the EU. The Council noted that a further improvement in inflation prospects and the maintenance of wage restraint would provide room for manoeuvre for monetary policy.

Given that strong commitment, the European Council invites Member States to consider appropriate action and, in the light of the Commission's recommendations, to give particular importance:

to the positive effects of tax reforms, some of which have already been adopted, on the European economy;

to a strengthening of confidence and private investment and, where appropriate, public infrastructure investment, thereby sustaining the growth potential of the economy;

to allow automatic stabilisers to play their role in accordance with the Stability and Growth Pact;

to accelerate implementation of structural adjustment efforts in labour, product, services and financial markets. The Barcelona European Council will review the progress achieved in this respect and provide the necessary new impetus;

to work actively towards launching of the WTO negotiations. The current economic uncertainty means that trade liberalisation founded on a rules-based multilateral system and associated with a real development dimension is more important than ever, economically and politically.

The European Council restates the Union's commitment to the Lisbon strategy and requests the Council to accelerate the work on its implementation.

The European Council encourages the EIB in its intention to step up its contribution by providing lending, particularly to infrastructure projects, to support the knowledge-based economy and to help foster long-term investment.

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