EU must cut red tape, boost competition-UK's Brown

LONDON, Jan 30 (Reuters) British finance minister Gordon Brown will call for tougher European Union action to cut red tape and open up markets when he meets other European finance ministers later today.

Brown, widely expected to replace Tony Blair as prime minister later this year, will call on the EU to agree to a 25 percent target to reduce administrative burdens by 2012, according to UK Treasury officials.

''We must not allow the single market, one of the EU's greatest successes, to be overwhelmed by national champions or protectionism,'' he will say.

''In the globalised world of the 21st century the EU must work harder to open up markets and promote competition to ensure faster growth and jobs for all of the EU's citizens.'' Brown is unlikely to wade into a debate about foreign exchange rates, despite growing concern among European policymakers about the weakness of the yen, which recently hit a 14-year low against the British pound and a record low against the euro.

Britain has traditionally taken a ''hands-off'' approach to currency rates and Treasury officials said that policy was likely to continue.

Instead, Brown will argue the EU should do more to open up markets where there are still restrictions and ensure every country in the bloc has an independent competition authority.

He will warn that the pace of reform has slowed in recent years with prices across the bloc converging at only half the pace seen in the mid-1990s.

Reuters DH VP0625