But we can turn challenges into opportunities if we look outwards to the realities of the global economy and modernise our internal institutions in ways that will equip Europe to meet that challenge and create confidence amongst the public.
John Hutton
The Civil Service is a vital economic asset to the UK - firstly, in the way it creates a framework for excellence in service delivery and secondly, in how it helps organise the best way to deliver modern public services on which both businesses and individuals depend.
Our objective must therefore be to ensure EU better regulation contributes towards delivering a modern European Union which relentlessly focuses on building a dynamic and innovative economy equipped to meet the challenges of the 21st century.
For many Europeans the next decade looks to be filled with threats rather than opportunities.
Our aim, during our Presidency in the next six months will be to lead this challenge, to show that Europe can function in a mature and responsible way, to start delivering tangible results that show we are taking people's concerns seriously.
For too long nurses have been undervalued, restricted in what they could do, with too few career opportunities in clinical practice. For far too long, nurses have endured a pay system that has held them back - both professionally as well as financially.
Greater personal choice, individually tailored services, stronger local accountability, greater efficiency - these are all central to the new direction of travel we have set for our public services.
At the heart of these challenges lies the question of how the institutions of the European Union make laws, the types of laws they pass and the effectiveness with which those laws are implemented on civil society and the economy.
We must seek to persuade member states and institutions that better regulation in Europe does not mean cutting health and safety in the workplace, nor does it mean dismantling social standards.
Yet in order to make sure the European social model keeps up with the pace of economic change that is now necessary, the EU must embrace a new approach to lawmaking.
Western Europe GDP per capita - not taking into account the new accession counties - was lower in 2001 relative to that of the US than any time since the 1960's.
More than 50% of significant new regulations that impact on business in the UK now emanate from the EU.
And, in the past, it has been all too easy for legislators to load costs onto business in order to meet broader social goals. And costs for business means costs for consumers.
If we took Chaucer's writings at face value, we'd have to conclude he was a complete drip.
Some people argue that we should limit choice in favour of good local services. My response is simple: why should we assume those two concepts are mutually exclusive?
But let no one be under any doubt that the scale of the challenge that Europe faces in this emerging global economy is immense and the practical pace of our collective action to meet these challenge to date has just been too slow.
So that we focus not on competing visions for Europe but on what Europe can do to improve economic growth, to give us a cleaner environment, to create more jobs, to make us more secure.
It is also right that we continue to consult with front line workers and the public to ensure that targets are reasonable and achievable, that measurement regimes are proportionate and that the targets take full account of the other reforms that are under way.
But we need to show that the EU can modernise itself, can adapt to the needs of its citizens, can take their views into account. That will be our ambition for the UK Presidency.
But effective regulation at the European Union level can make a massive contribution to achieving our shared goals of improving competitiveness, jobs and growth.
Having decisions made not in midnight deals but in the light of objective evidence and after consulting those who will be affected should itself provide some reassurance that the EU is trying to reform itself.
Here in the UK the government has decided to accept the recommendations of the Better Regulation Task Force to measure and make targeted reductions in the administrative costs - the red tape costs - that regulations impose on business.
My view is that targets, properly constructed and applied across public services have been fundamental to past successes and will be an essential part of sustaining progress into the future.
Road testing the effects of regulation on European business must become second nature to the European Union.
As Tony Blair has made clear, our fundamental challenge is how to make Europe work better.
Advances in technology and in our understanding of illness and disease together with an expanded workforce and greater resources will allow us to provide more services to a higher quality.
The challenge to our national economies and the collective economy of Europe will become - with the growth of China and the continuing productivity growth of the US - even more intense in the decades to come.
Primary care must never be seen simply as a set of organisational structures.
This call for a new culture is not a new idea.
There is no such thing as free regulation.
From my time in Health I know that choice empowers people lives.
