It is with great pleasure that I invite you to an Informal meeting of Heads of State and Government at Hampton Court on 27 October.

The meeting will be an opportunity to consider together the strategic issues facing Europe in the years ahead. As I said in the European Parliament earlier this year, our task is to uphold the European ideals in which we believe, in the modern world. We have to demonstrate to our citizens that we are addressing the issues and challenges they really care about.

So I propose, as the theme of our discussion, the opportunities and challenges of globalisation. A central question here is: How do we meet the competitive challenge and maintain the security of our citizens in a world of unprecedented movement of goods, capital and people? We also need to consider how through our actions outside our borders, Europe can help to create a safer and better world.

I think it makes sense to have one broad strategic discussion. I hope we can have a genuinely open, informal debate, where all can contribute on the basis of their personal experiences in leadership. I see this as a real opportunity to step back from the usual pressures of European business and have a truly political and strategic discussion about how we can work together, at a European level, to take the opportunities and tackle the challenges facing us - in ways which make a positive difference for our citizens.

That is why I have broken with recent convention by deciding to host the meeting at Hampton Court Palace near London, rather than in the Council headquarters in Brussels. I hope the historic background will provide a convivial backdrop for our talks.

My biggest ambition for this meeting is for us to work together in a spirit of collective endeavour, and demonstrate that we can respond to the challenges of the day and that the European project continues to move forward. I hope that we can identify the common European ground that we all share.

We will start our discussions at 10.00 am, and after I have made a brief introduction, I shall ask José Manuel Barroso to set the scene for our discussions with a presentation on Europe in the globalised world, based on the Commission paper which issued today. I will then invite Javier Solana to speak about how Europe can contribute to making the world a safer place. And then I shall open the debate for all your contributions.

By way of focusing our discussions, you might want to address all or some of the following questions:

1. What are your reactions to the Commission's analysis of the scale of the challenge facing Europe?
2. How do you think we can best provide both jobs and growth, and social solidarity? What is the modern way to social justice?
3. How can the EU support the efforts of member states in this area? Should we be doing more together in areas such as research and development, and developing world-class universities, so that our citizens are able to take fuller advantage of the opportunities of globalisation? And how can we - politically - best explain to our electorates the need for modernisation?
4. What more should Europe do to increase the personal security of our citizens? Can we do more, for example, to address illegal migration and security issues when engaging with countries outside our borders?
5. Can we do more to make the world a safer and better place?

I hope the informal setting will mean that we can dispense with lengthy initial comments and avoid pre-written speeches, leaving more scope for genuine discussion.

We shall break at around 12.30 pm for the family photograph followed by a working lunch (for which we shall be joined by Prime Ministers Sanader and Erdogan). We then continue in the afternoon. Towards the end of the discussion, I shall try to pull together some informal oral conclusions which, with your agreement, can form the basis of what I say to the press after the meeting. There will be no formal written conclusions. I hope we can finish by about 6.00 pm. My officials will be circulating a more detailed programme.

I know that a number of colleagues are concerned to know how the Presidency plans to take forward the future financing negotiations. We have consulted widely, and I believe there is a collective will to reach agreement in December. President Barroso has issued some new ideas today on how to kick start the negotiations. I know the importance to all of you of achieving a budget deal. I would like to take this opportunity to make clear that I believe agreement can and should be reached at the December Council - and I will make every effort personally to achieve it by then, including through personal contact with each of you. I will update you further briefly at the meeting on how we are taking this forward through November. But I hope we can avoid getting into detailed discussions of the future financing issue at Hampton Court. There are real challenges on globalisation that we must address.

I look forward to seeing all of you soon.

With my best wishes.

Yours ever

Tony Blair