BERLIN, Feb 18: The European Union's "Big Three", Germany, France and Britain, called on Wednesday for urgent EU economic reforms, but rejected charges they were seeking to dictate to other member states.

Chancellor Gerhard Schroeder, President Jacques Chirac and Prime Minister Tony Blair proposed a powerful new EU commissioner should spearhead the bloc's flagging drive to overtake the United States' economic performance.

But the trio were vague on measures to create more jobs, boost growth and increase competitiveness, and were forced to devote much of their energy to countering fears from other states that they were bent on dominating EU policy-making.

"We don't want to dominate anyone, and certainly not Europe," Schroeder told a news conference. "We are going to find, and should be finding, ways of making Europe work more effectively for our people," Blair said. "I don't think we need to be apologetic about it."

Their comments followed fierce criticism from Italian Prime Minister Silvio Berlusconi, who said on Tuesday there was no need for a Franco-German-British "directorate" and that any attempt to form one would plunge the bloc into a "big mess".

JOINT STATEMENT: In a joint statement, the leaders warned the EU was slipping behind in its quest to become the "most competitive and dynamic knowledge-based economy in the world" by 2010, overhauling the United States.

They said that on current performance the EU would not meet its goals set at a Lisbon summit in 2000 of having two-thirds of all potential workers in employment by 2005, rising to 70 percent by 2010.

"The stark reality today is that unless urgent action is taken by all member states to secure a significant improvement in the rate of employment growth, Europe will fail to meet the targets," the statement said.

European Commission estimates show Britain meets the target of having 70 percent of those aged 15 to 64 in work, but Germany and France trail with rates of 65.3 and 63.0 percent.

They stressed the need to increase research and development and to overhaul welfare systems to cater for ageing populations. "Only by changing them can we make them affordable," Schroeder said.

In a joint letter to the European Commission and their EU partners, the three called on the EU to provide funding for biotech, communication and other technologies and tailor its competition rules for the needs of innovative firms. -Reuters