All European countries are confronted with the new challenges arising out of globalization. Their responses must focus on improving economic efficiency and social cohesion. For the transition countries in Central and Eastern Europe the establishment of a social market economy and the development of greater macroeconomic stability, including the privatization of state assets, remain key priorities.

Most Central European countries are seeking to become members of the European Union, which emphasizes social justice and social progress in its enlargement process. An ILO priority is to bring national law and practice in conformity with ILO principles, and standards to conform with social policy requirements of members of the European Union and the Council of Europe, and to assist the accession countries in fulfilling their obligations.

In the countries of the former Soviet Union, the success achieved in strengthening their democracies will be crucial for the consolidation of political and social transition in the subregion. In Western Europe, the ILO places the emphasis onpromoting awareness and support for the Organisation's work, and maintaining policy dialogue and cooperation on labour issues in Europe.

Priorities for ILO activities in transition countries in Europe and Central Asia are:

• The reform of labour legislation on the basis of international labour standards
• The reform and development of social security systems
• The restructuring of local labour markets and the development of small enterprises
• The setting up and strengthening of labour administrations
• The development of tripartism
• The protection of workers' safety and health
• The promotion and strengthening of independent employers' and workers' organizations