Britain and Spain have drafted joint proposals for reforming the labour market and creating jobs in the European Union.

According to a newspaper report in the Spanish daily "El Mundo" the Spanish Prime Minister, José Maria Aznar, and his British counterpart, Tony Blair, want to promote a flexible labour market similar to the one in the United States, but with a greater degree of job stability.

The proposals will be discussed at the EU summit in Vienna next month.

According to the newspaper this is the first time that Spain has endorsed a joint initiative of this magnitude with another EU member country.