of the euro on 1 January 1999. It asks the Council to take the necessary measures to ensure the external representation of the euro Member States area in an effective manner.

6.The full benefits of EMU and the European single market for all Europe's citizens can be achieved only by a strategy to promote employment through increased competitiveness and economic and social cohesion within a framework of macro-economic stability.The progress made by all Member States towards a high degree of convergence and stability is contributing to sustainable economic growth and employment throughout the Union.The introduction of the euro will help to ensure stable macro-economic conditions.

The European Council welcomes the determination of Member States to ensure effective coordination of their economic policies.

III.ECONOMIC REFORM AND SOUND PUBLIC FINANCES: THE BASIS FOR GROWTH, PROSPERITY AND JOBS

7.Sustained fiscal consolidation and economic reform are essential if the Union is to face successfully the challenges of globalisation, competitiveness, and promoting employment and inclusion.The European Council welcomes the Declaration concerning budgetary discipline and structural reform adopted by the ECOFIN Council on 1 May 1998.It also reaffirms the importance it attaches to strict budgetary discipline at Community level.

8.The importance of the contribution of the social partners was underlined by their exchange of views on these issues with the Troika of Presidencies on 14 June.The European Council favours a strong and broad based social dialogue and welcomes the intention of the Austrian Presidency to organise in Vienna a seminar with the social partners, including representatives of SMEs, to explore ways further to improve the social dialogue.

DEVELOPING THE BROAD ECONOMIC GUIDELINES AS A TOOL FOR GROWTH

9.The European Council agrees with the Council's recommendations on the Broad Economic Guidelines in the Member States and in the Community and commends them to the Council for adoption.The European Council welcomes the progress made in all Member States towards stable prices, sound public finances, and economic reform which are the foundations for more growth, prosperity and jobs throughout Europe.It confirms its view that strong fundamentals and the sound policies set out in the Broad Economic Guidelines provide the conditions for a further strengthening of the recovery and its extension into a self-sustaining, non-inflationary economic growth process over the medium and longer term - a prerequisite for substantially and    <3>