The Europe that I want to see requires the pursuit of progressive economic reforms and of winning support for supranational action that gives us greater control over issues too large for the nation state alone. The tough choices and determined political arguments needed will not necessarily make for an easy life. But the rewards of success are high for the people of Britain, Europe and the wider international community.

If Britain is going to have real influence implementing reform, we need to show we are serious by committing ourselves to join the single currency in a realistic timeframe. This is fundamental to maintaining Britain’s long-term political influence in Europe and our ability to shape those decisions that affect us directly, whether we are in the euro or not.

That is why I support the concrete and practical steps that the government laid down after its assessment of the five tests published on 9 June in order to achieve sustainable convergence and flexibility.

Tony Blair’s government has achieved record and sustained investment in health and education through its commitment to economic stability and sustained growth. By missing out on the employment, investment and economic growth gains from membership of the single currency, Britain and Labour would be less able to afford similar investments in future.

As a social democrat I want to see more jobs, greater prosperity and justice in Europe. We need the stimulus of more open product markets, a truly integrated capital market and a more flexible labour market. We need more enterprise, less stifling regulation and a better record in turning our science and research discoveries into commercial innovation.

There are logjams in the EU decision-making processes where the institutions and their working methods need reform. Britain needs to convince those with fears about change that the objectives of European economic reformers are not neoliberal, but rather a genuine project for the modernisation of continental social democracy that combines economic dynamism and social inclusion.

But to retain our social democratic values, we must also ensure that decent social, environmental and consumer standards are met across the Union. We should not be scared of legislation to establish minimum workplace standards as long as the laws are genuinely pro-employment, matching modern labour market requirements, and do not burden firms with over-regulation.

For a long time we have accepted the need to work internationally to address security issues that have eluded the reach of member states on their own. Terrorism, human trafficking and drug-related crime are by far the biggest menaces. Only by acting together in the first instance, then co-operating with America where necessary, has Europe some hope of acting as a bulwark against these threats.

However, some of the divisions that arose on how to tackle the threat posed by Saddam Hussein have shown that there is more work to do here. EU citizens have lived in relative peace since 1945 because we are protected, ultimately, by American power. The modern threats of global terrorism and weapons proliferation have re-written the rules of international engagement. Faced with a serious threat, either in Europe or beyond, we would not have the means of responding without American support.

In actual fact, the dividing line we need to put in place is not Europe versus America but the best versus the wrong relationship between Europe and America. The international alliance that progressives believe in – and one that the Americans actually need – is a less unequal partnership between an internationally engaged United States and a more united and cohesive – and better militarily equipped – European Union.

And fundamentally, despite the left’s present disagreements with President Bush’s conservative domestic policies, both the EU and the US share the same, wider international agenda. It is one of seeing freedom and democracy entrenched in every continent, of economic opportunity created in every corner of the globe and respect for human rights embedded in every society.

The EU matters because the opportunity to achieve goals based on our progressive, modern social democratic values can only be achieved within a European context. That is why progressive pro-Europeans need to make and win the convincing argument for Europe.