An "Employment Pact", proposed by the German Presidency, and which incorporates a new institutionalised macroeconomic dialogue between member-states, the social partners and the European Central Bank, was backed by the leaders.
The pact builds on the EU Luxembourg summit's employment strategy and Cardiff's programme for reform of capital and services markets. But the somewhat familiar repackaging of old policies produced a brief row when the French unsuccessfully urged the leaders to accept quantified targets for economic growth.
The Spanish Prime Minister, Mr Jose-Maria Aznar, led the charge, insisting that such targets would be artificial and the emphasis should be on structural reform of markets instead.
The Taoiseach, Mr Ahern, welcomed the inclusion of the social partners in the dialogue but warned governments needed to be "flexible, innovative and to avoid unnecessary regulation".