The re-launched growth and jobs strategy is the flagship policy of the Barroso Commission – and it is working. The reform process is bearing fruit. The current economic upturn now provides a unique window of opportunity to quicken the pace of reform. It is an opportunity that must not be missed. Those are the main messages of the Commission’s key annual report on the progress of economic reform across Europe, published today. The report invites the Council to formally adopt country specific recommendations designed to guide the reform efforts of Member States.. It will be submitted to the Spring European Council in March 2007. The Commission’s Annual Progress Report is based on the Member States autumn 2006 Implementation Reports and on the Commission’s own review of progress with EU level reforms under the Community Lisbon Program. The Report paints a brighter picture than in recent years as reforms begin to deliver benefits. But it emphasizes that reforms are at an early stage and will need to be fully followed through to make a lasting economic impact. It also draws attention to the interdependence between EU economies and the fact that prosperity in one helps create prosperity in all the others, which means that those Member States who are moving forward more slowly with reform need to close the gap with those setting the pace, for the benefit of all. The Report also underlines that good performance in the future will depend on further reform now. It makes clear that especially in many new Member States, success will also depend on making the most of the forthcoming influx of EU Structural Funding.