BRIGHTON, England (AFX) - France and Germany, the euro zone's two largest economies, came under unexpected attack today from Prime Minister Tony Blair as he accused them of failing to embrace economic reform.
In his keynote address to the Labour Party faithful here, Blair made his most overt criticism of the two countries since the EU leaders summit in June descended into acrimony when the budget for the 25-nation bloc could not be agreed.
'This (the UK) is a country today that increasingly sets the standard,' said Blair, who is currently leading the UK's presidency of the EU and seeking to table a new budget at the December summit.
'Not for us the malaise of France or the angst of Germany,' he added.
The UK has been able to enjoy higher economic growth, and lower unemployment, over the last few years and combine that with sharp increases in spending on the public services. France and Germany have been burdened by mass unemployment as growth in the single currency zone has fallen short of expectations.
Blair and Chancellor of the Exchequer Gordon Brown have long called for widespread economic reforms across the continent, based on the British model, which relies heavily on flexible labour markets.
In Germany, that debate over economic reform divided the country in the recent federal elections, which has left the two largest parties, the Christian Democrats and the Social Democrats both vying for power nine days after the poll.
The French are expected to have a similar bout of soul-searching when the presidency is next contested in 2007.
No matter how strained the relationship with Germany and France has been over the last few years, not least over the war in Iraq, Blair insisted that the UK can isolate itself from developments on the continent.
'That is why at every point, no matter how difficult, we remain strong partners in Europe,' he said.
'By all means let us fight for reform in Europe; but to isolate ourselves from the world's largest commercial market in which over 50 pct of our trade is done, is just a crazy policy for Britain in the 21st century,' he added.
www.forbes.com . . .
In his keynote address to the Labour Party faithful here, Blair made his most overt criticism of the two countries since the EU leaders summit in June descended into acrimony when the budget for the 25-nation bloc could not be agreed.
'This (the UK) is a country today that increasingly sets the standard,' said Blair, who is currently leading the UK's presidency of the EU and seeking to table a new budget at the December summit.
'Not for us the malaise of France or the angst of Germany,' he added.
The UK has been able to enjoy higher economic growth, and lower unemployment, over the last few years and combine that with sharp increases in spending on the public services. France and Germany have been burdened by mass unemployment as growth in the single currency zone has fallen short of expectations.
Blair and Chancellor of the Exchequer Gordon Brown have long called for widespread economic reforms across the continent, based on the British model, which relies heavily on flexible labour markets.
In Germany, that debate over economic reform divided the country in the recent federal elections, which has left the two largest parties, the Christian Democrats and the Social Democrats both vying for power nine days after the poll.
The French are expected to have a similar bout of soul-searching when the presidency is next contested in 2007.
No matter how strained the relationship with Germany and France has been over the last few years, not least over the war in Iraq, Blair insisted that the UK can isolate itself from developments on the continent.
'That is why at every point, no matter how difficult, we remain strong partners in Europe,' he said.
'By all means let us fight for reform in Europe; but to isolate ourselves from the world's largest commercial market in which over 50 pct of our trade is done, is just a crazy policy for Britain in the 21st century,' he added.
www.forbes.com . . .