Mr Brown wants a more dynamic European market

In a speech to business leaders, Mr Brown underlined the government's opposition to calls for a strict 48-hour working week.

He highlighted his pledges to reduce red tape for businesses.

And he said the UK needed to build a "truly national consensus" on European economic reform.

Export fears

Economic reform is a priority for the UK when it takes over the presidency of the European Union later this year.

Mr Brown told the Confederation of Business Industry slower growth in Europe had coincided with a doubling of oil prices and cost increases for other materials.

"As we look ahead to the rest of 2005, the latest risk is low economic growth in Europe - 1% below what was expected a year ago - particularly in Germany, our largest export market in the euro area," he said.

Mr Brown wants a cross-party committee of MPs to help build agreement nationwide about EU economic reform.

The government initially set up the committee, chaired by Labour MP Barry Sheerman, to advise on the preparations for adopting the euro.

Its remit is now being widened but it is thought likely that the Conservatives will stick by their refusal to join.

'Rogue trader focus'

Mr Brown outlined the UK's plans for the EU presidency.

He said: "We will push forward our proposals to liberalise the single market and make the European economy more dynamic.

"Our proposed agenda will be: labour market reform, so we will resist the opt out being removed to the 48 hour week; product and capital market liberalisation, so you have access to European markets.

"And it is around pro-economic reform, pro-global Europe policies that perhaps the first truly national consensus on Europe can develop."

The chancellor argued his plans, announced in the Budget, to cut by the number of regulatory inspections by one million were founded on focusing "on dealing not with every trader but dealing with the rogue trader".