The Lisbon Strategy: a Framework for Social Reform Agenda in the EU Lisbon objective. In the“race to the bottom” model of competitiveness tax competition is good. But in the Lisbon model, which depends on excellence, on a highly educated and skilled workforce, on high quality public services, on world class universities- in this model, healthy public finances are an essential element, and the erosion of the tax base is a threat which must be tackled. That is one reason why the single market needs a coordinated approach to corporate taxation and a progressive coordination of corporate tax bases, leading eventu­ally to an approximation of European corporate tax rates- possibly following the model of VAT and excise duties' coordination, introducing minimum tax rates. Relating funds to the renewed Lisbon Strategy is necessary, but there has to be a balance between political objectives and structural funds spending. Fair taxation policies in the EU are also necessary to finance public goods and ser­vices and social security.“Beggar-thy-neighbour” policies in the field of tax­ation have no place in the single market. Social dialogue and modern decision-making Social dialogue is an essential element in the traditions of the member states and the European Union. Any successful reform of the social systems needs invol­vement of all stakeholders, in particular the social partners and civil society. The development of a greater role for the trilogue at European level is necessary. Those policies should be echoed by active EU policies concerning corporate governance. EUROPEAN ECONOMIC GOVERNANCE Europe has an economy and a social and environmental model which is among the best and stands comparison with any in the world. But Europe needs to do better. Europe still lags behind not only in economic growth, but also in employ­ment levels and some key indicators of economic dynamism, such as rates of innovation cohesion. The Economic and Monetary Union(EMU), completed in 1999, displays a novel and sui generis economic policy framework, but the proper functioning of EMU still requires a well-developed economic coordination framework in Europe. Since 1993, the Council has annually adopted Broad Economic Policy Guidelines(BEPGs), on the basis of a Commission recommendation. The BEPGs are at the heart of the economic coordination process. The BEPGs are politically but not legally binding; no sanction mechanisms are foreseen. 49