The Lisbon Strategy: a Framework for Social Reform Agenda in the EU Modern competitive conditions require a revision of the concept of flexibility. In a fast-moving global economy the most successful companies will be the most agile. To create a faster-moving European economy- and a new confidence among Europe's workforce that change is not a threat but an opportunity ­requires a modern work organisation and active labour market policies.“Flexi­curity”, the Nordic model is a good answer to the challenges. Flexicurity describes the particular Danish mix of flexibility and social security. The model of flexicurity gives the employer the right to hire and fire according to need so that dismissal protection is very low. On the other hand the dismissed employee gets 80% of their former salary as unemployment benefit and has the right and obligation to take part in training. With this model agreed by the government and the social partners the Danish unemployment rate dropped from 10.2%(1993) to 4% in 2002. This is a policy strategy attempting to enhance the flexibility of labour markets, work organisation and labour relations as well as security- employ­ment security and social security- notably for weaker groups in and outside the labour market. Europe is here at the start of a new departure, given the challen­ges of globalisation and market developments. The objective is to move from job security to employment security. The role of social protection will be crucial. That is why the 2006 Brussels European Council insisted rightly that a high level of social protection was central to the Lisbon Strategy and called for the reinforcement of policies to combat poverty and social exclusion. This link must be dealt with more in the National Reform Programmes of member states. A workforce for the knowledge economy needs to put education and training at the heart of the Lisbon Strategy. Public investment in the knowledge society remains insufficient. Options such as better use of EU structural funds and education and training funds should be examined. There is also a big gap in private funding compared to the private sector in the US which invests five times as much in human resources as in the EU. Education is an essential ingredient in sustainable growth. Raising average educational attainment by one year repre­sents a 5% increase in productivity and growth in the short term and a further 2.5% in the long term. Higher levels of education and training mean better life chances, social inclusion, a better job and active citizenship. A sound basic education must go hand-in-hand with lifelong learning, accessible to all. Surely a“Europe of excellence” is needed but a knowledge-based society must invest in education for all. 47