Europe's big three nations have called for a concerted EU effort to slash red tape for businesses and free up markets.

The UK, Germany and France are also proposing a review of labour legislation to stamp out rising unemployment across the continent.

Reflecting mounting fears in the EU's three largest economies of a market slowdown and rising unemployment, premiers Blair, Schroeder and Chirac have for the first time presented a united front on the EU's drawn-out process of economic reform.

In a joint letter to their fellow EU leaders and the Brussels institutions, the three plead for their counterparts to "act on forthcoming...proposals for simplifying and reducing the burden on business without delay".

Liberalising energy markets and setting up a "single European airspace" are two more priorities for the leaders, who have drafted the letter in a bid to dictate the agenda for an EU economic reform summit in March.

And to find an EU-wide solution to unemployment, which until now has largely been seen as a national problem, the three also call for a "high-level review of labour markets in Europe", to report back to governments by the end of the year with practical proposals for action.

The summit - to be hosted by the Greek government - is to be held on March 20.

It will be the latest in an ongoing series of top level meetings on economic reform since the Lisbon summit in 2000 set the EU's sights on "the world's most competitive economy by 2010".