By 2010, Europeans will live in the most competitive and dynamic knowledge-based economy in the world, with more and better jobs and greater social cohesion. This is the EU's strategic goal, agreed at Lisbon in March 2000. However, in 2001, almost 40 % of the population aged 25 to 64 in the E U - over 75 million people, more than the population ot France, Italy or the UK - did not have qualifications above compulsory schooling. Achieving the goal is a real possibility, but doing so requires giving greater urgency to the reforms ot education and training under way in Member States. This is the central message of this report, which looks at over 40 years of vocational education and training policy development, including the role ot the social dialogue and the progress of Member States in achieving the education and training benchmarks agreed at Lisbon.