EU leaders gave their backing yesterday to a detailed 10-year programme of economic reform that they insisted would prepare Europe for the Internet age and close the competitiveness gap with the US.

The Taoiseach, Mr Ahern, welcoming the consensus among fellow leaders on a wide ranging list of targets - from lifelong learning to the liberalisation of sectoral markets - last night paid particular tribute to the vision of the President of the European Commission, Mr Romano Prodi, in "seeing Europe as part of the global economy and challenging leaders to look outwards".

Speaking to journalists, he said Mr Prodi's paper for the summit critically highlighted "the European paradox - a world-class ability to create knowledge and a world-class inability to turn that into jobs".

Mr Ahern, who is understood to feel strongly that Mr Prodi has faced unfair media criticism over his ambitious statements, insisted on a key element of the strategy, the setting of detailed targets and benchmarking based on best practise, that put pressure on governments. "If you do not set targets, then you never do it," he said.

Asked what elements of the summit programme were particularly important to Ireland, the Taoiseach highlighted three: the suggestion by Ireland, in its submission to the summit, of a charter for small businesses to free them from bureaucracy and open up access to venture capital; enhanced programmes for life-long learning such as the Irish FIT programme which, he said, was successfully bringing those who had dropped out of education back into the labour market; and the development of a common European research area.

Mr Ahern also emphasised the need urgently to complete a legal framework for the development of e-commerce by the end of the year. He said Europe "must have a well-thought-out vision of the future if it is to work". With the US already recording Internet penetration of some 60 per cent, the EU had a long way to go, he said. "It is important that we seize the opportunity and do it in a credible way."

It was also important, the Taoiseach said, referring to the other theme of the summit, to take account of the social consequences of the changes ahead. Despite some reservations by the French about aspects of the liberalisation targets, the meeting reflected an astonishing consensus on the basics of economic policy among the 15 members.