This study provides a background for the preparation of the Broad Economic Policy Guidelines (BEPG) 2003 and assists the EP in putting forward recommendations in supply-side issues covered in the BEPGs. The report looks at investment, progress in opening markets, integration of financial services, the labour market and taxation, as well as the macroeconomic policy mix. The conclusions are that the Member States should take more seriously the spirit of reform recommendations and the call for policy co-ordination. Social partners should have a stronger role in the various co-ordination processes. Some novel measures could also be introduced in the BEPGs.