European business leaders told European Union leaders yesterday to stop just talking and to start taking action on economic reforms such as making labour markets more flexible.

The upcoming EU leaders' summit is devoted to tackling the 25-nation bloc's sluggish economic growth and putting some of its 18.5 million unemployed back to work.

Business leaders doubt that leaders can take all the tough decisions needed to make labour markets more open and flexible and help companies create jobs.

"In the United States it's all about doing things, and in Europe it's about thinking and debating," Gerard Kleisterlee, chief executive of Dutch electronics giant Philips, told a business conference.

"We have tonnes of good ideas, but the issue is: we should talk less and do more," he added at the European Business Summit, run by the Federation of Enterprises, yesterday in Belgium. "Labour flexibility is one of the biggest issues we have to deal with in Europe."

Labour, reforms have proved to be a sensitive issue in several EU countries, including France where students have been protesting against a government measure that allows employers to fire young workers within their first two years without giving a reason. This is designed to give employers flexibility and encourage them to hire more young people.

Globalisation of the economy was only just gearing up, and Europe must act quickly, Heinrich von Pierer, chairman of the supervisory board of German technology firm Siemens, said.

Von Pierer likened Europe to Sparta in ancient Greece where statesmen passed the time debating and failed to see the danger the Romans presented.

Looking ahead to the EU summit, European Commission President Jose Manuel Barroso said: "I expect courage, ambition and, above all, I expect action."