The advanced economies of the European Union are closer than generally realised to fulfilling their ambitious “Lisbon agenda” reform targets set in 2000, thanks largely to higher labour productivity, according to a study published on Tuesday.

Allianz, the German insurance group, and the Lisbon Council, a Brussels-based think-tank, said most of the 15 countries that comprised the EU before the bloc’s enlargements of May 2004 and January 2007 were performing well in job creation, sustainable public finances, future-oriented investment and productivity growth.