# EUR-Lex - 52015PC0098 - EN

*|*

# 52015PC0098

**Proposal for a COUNCIL DECISION on guidelines for the employment policies of the Member States /* COM/2015/098 final - 2015/0051 (NLE) */**

			*

			*

EXPLANATORY MEMORANDUM

The Treaty on the
Functioning of the European Union provides that Member States are to regard
their economic policies and promoting employment as a matter of common concern
and shall coordinate their action within the Council. In two distinct articles,
it provides that the Council is to adopt broad economic policy guidelines
(Article 121) and employment guidelines (Article 148), specifying that the
latter must be consistent with the former. Given this legal basis, the
guidelines for employment and economic policies are presented as two distinct –
but intrinsically interconnected – legal instruments:

· 
A Council Recommendation on broad guidelines for
the economic policies of the Member States and of the Union – Part I of the
Integrated Guidelines;

· 
A Council Decision on guidelines for the
employment policies of the Member States – Part II of the Integrated
Guidelines.

The guidelines were first
adopted together (‘integrated package’) in 2010, underpinning the Europe 2020
strategy. It was also decided in 2010 that the integrated guidelines should
remain largely stable until 2014. Whilst the broad economic policy guidelines
remain valid for any duration of time, the employment guidelines
need to be drawn up each year.

The guidelines, other than
framing the scope and direction for Member States’ policy coordination, also
provide the basis for country specific recommendations in the respective
domains.

The current set of
'integrated guidelines' are to underpin the Europe 2020 strategy within the
context of the new approach to economic policy making built on investment,
structural reform and fiscal responsibility as set out in the Commission's 2015
Annual Growth Survey. At the same time, the integrated guidelines are to
support the achievement of smart, sustainable and inclusive growth and the aims
of the European Semester of economic policy coordination.

The "Integrated Guidelines"
are the following:

Guideline 1:    Boosting investment

Guideline 2:    Enhancing growth by the
implementation of structural reforms

Guideline 3:    Removing key barriers to
growth and jobs at EU level

Guideline 4:    Improving the
sustainability and growth-friendliness of public finances

Guideline 5:    Boosting demand for labour

Guideline 6:    Enhancing labour supply and
skills

Guideline 7:    Enhancing the functioning
of labour markets

Guideline 8:    Ensuring fairness,
combatting poverty and promoting equal opportunities

2015/0051 (NLE)

Proposal for a

COUNCIL DECISION

on guidelines for the employment policies
of the Member States

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 148(2) thereof,

Having regard to the proposal from the
European Commission,

Having regard to the opinion of the
European Parliament[1],

Having regard to the opinion of the
European Economic and Social Committee[2],

Having regard to the opinion of the
Committee of the Regions[3],

Having regard to the opinion of the
Employment Committee,

Whereas:

(1)       Member States and the 
Union should work towards developing a coordinated strategy for employment and
particularly for promoting a skilled, trained and adaptable workforce and
labour markets responsive to economic change and with a view to achieving the
full employment and social progress objectives set out in Article 3 of the
Treaty on European Union. Member States, having regard to national practices
related to the responsibilities of management and labour, are to regard
promoting employment as a matter of common concern and coordinate their action
in this respect within the Council.

(2)       The Union must combat
social exclusion and discrimination, ensure equal access to fundamental rights,
and promote social justice and protection. In defining and implementing its
policies and activities, the Union should take into account requirements linked
to the guarantee of adequate social protection and the fight against social
exclusion and a high level of education and training.

(3)       The employment guidelines
are consistent with the broad guidelines for the economic policies

(4)       Member States should
regard their economic policies as a matter of common concern and coordinate
them within the Council. Employment guidelines and broad economic policy
guidelines should be adopted by the Council to guide Member States’ and Union
policies.

(5)       In accordance with the
Treaty provisions, the Union has developed and implemented policy coordination
instruments for fiscal policy and macro-structural policies. The European
Semester combines the different instruments in an overarching framework for
integrated multilateral economic and budgetary surveillance. The streamlining
and strengthening of the European Semester as set out in the Commission's 2015
Annual Growth Survey will further improve its functioning.

(6)       The financial and economic
crisis revealed and emphasised important weaknesses in the economy of the Union
and its Member States. It has also underscored the close interdependence of the
Member States' economies and labour markets. Moving the Union to a state of
strong, sustainable and inclusive growth and job creation is the key challenge
faced today. This requires coordinated and ambitious policy action both on
Union and national level, in line with the provisions of the Treaty and the
Union economic governance. Combining supply and demand side measures, these
actions should encompass a boost to investment, a renewed commitment to
structural reforms and exercising fiscal responsibility.

(7)       Member States and the
Union should also address the social impact of the crisis and aim at building a
cohesive society in which people are empowered to anticipate and manage change,
and can actively participate in society and the economy. Access and
opportunities for all should be ensured and poverty and social exclusion
reduced, in particular by ensuring an effective functioning of labour markets
and social welfare systems and removing barriers to labour market
participation. Member States should also make sure that the benefits of
economic growth reach all citizens and all regions.

(8)       Action in line with the
guidelines is an important contribution to reaching the goals of the Europe
2020 strategy. The guidelines constitute an integrated set of European and
national policies, which Member States and the Union should implement in order
to achieve the positive spill-over effects of coordinated structural reforms,
an appropriate overall economic policy mix and a more consistent contribution
from European policies to the Europe 2020 strategy’s objectives.

(9)       While these guidelines are
addressed to Member States and the Union, they should be implemented in
partnership with all national, regional and local authorities, closely
associating parliaments, as well as social partners and representatives of
civil society.

(10)     The broad guidelines for
economic policies give guidance to the Member States on implementing reforms,
reflecting interdependence. They are in line with the Stability and Growth
Pact. The guidelines should form the basis for country-specific recommendations
that the Council may address to the Member States.

HAS ADOPTED THIS DECISION:

Article 1

The guidelines for Member States’
employment policies, as set out in the Annex, are hereby adopted. These
guidelines shall form part of the ‘integrated guidelines’.

Article 2

The guidelines in the Annex shall be taken
into account in the employment policies and reform programmes of the Member
States, which should be reported in line with Article 148(3) of the Treaty.

This Decision is addressed to the Member
States.

Done at Brussels,

For
the Council

The
President

[1]               OJ C , , p.

[2]               OJ C , , p.

[3]               OJ C , , p.

ANNEX

Guidelines for the employment
policies of the Member States
Part II of the Integrated Guidelines

Guideline 5:  Boosting demand for
labour

Member States should facilitate job
creation, reduce barriers for business to hire people, promote entrepreneurship
and in particular support the creation and growth of small entreprises in order
to increase the employment rate of women and men. Member States should also
actively promote the social economy and foster social innovation.

The tax burden should be shifted away from
labour to other sources of taxation that are less detrimental to employment and
growth while protecting revenue for adequate social protection and growth
enhancing expenditures. Reductions in labour taxation should be aimed at the
relevant components of the tax burden and at removing barriers and
disincentives to labour market participation, in particular for those furthest
away from the labour market.

Member States should, together with the
social partners, encourage wage-setting mechanisms allowing for a
responsiveness of wages to productivity developments. In this respect, differences
in skills and local labour market conditions as well as divergences in economic
performance across regions, sectors and companies should be taken into account.
When setting minimum wages, Member
States and social partners should consider their impact on in-work poverty, job
creation and competitiveness.

Guideline 6: Enhancing labour supply
and skills

Member States should promote productivity
and employability through an appropriate supply of relevant knowledge and
skills. Member States should make the necessary investments in education and
vocational training systems while improving their effectiveness and efficiency
to raise the skill level of the workforce, allowing it to better anticipate and
meet the rapidly changing needs of dynamic labour markets in an increasingly
digital economy. Member States should step up efforts to improve access to
quality adult learning for all and implement active ageing strategies to enable
longer working lives.

High unemployment should be tackled and
long-term unemployment prevented. The number of long-term unemployed should be
significantly reduced by means of comprehensive and mutually reinforcing
strategies, including the provision of specific active support to long-term
unemployed to return to the labour market. The youth unemployment needs to be
comprehesively addressed, including by equipping the relevant institutions with
the necessary means to fully and consistently implement their national Youth
Guarantee Implementation Plans

Structural weaknesses in education and
training systems should be addressed to ensure quality learning outcomes and
prevent and tackle early school leaving. Member States should increase
educational attainment and consider dual learning systems and upgrading
professional training while at the same time increase opportunities for
recognising skills acquired outside the formal education system.

Barriers to labour market participation
should be reduced, especially for women, older workers, young people, the
disabled and legal migrants. Gender equality including equal pay must be
ensured in the labour market as well as access to affordable quality early
childhood education and care.

Member States should make a full use of
European Social Fund and other Union funds support in order to improve
employment, social inclusion, education and public administration.

Guideline 7: Enhancing the
functioning of labour markets

Member States should reduce labour market
segmentation. Employment protection rules and institutions should provide a
suitable environment for recruitment while offering adequate levels of
protection to those in employment and those seeking employment or employed on
temporary contracts or independent work contracts. Quality employment should be
ensured in terms of socio-economic security, education and training
opportunities, working conditions  (including health and safety) and work-life
balance.

Member States should closely involve
National Parliaments and social partners in the design and implementation of
relevant reforms and policies, in line with national practices, while
supporting the improvement of the functioning and effectiveness of social
dialogue at national level.

Member States should strengthen active
labour market policies by increasing their targeting, outreach, coverage and
interplay with passive measures. These policies should aim at improving labour
market matching and support sustainable transitions on the labour market, with
public employment services delivering individualised support and implementing
performance measurement systems. Member States should also ensure that their
social protection systems effectively activate and enable those who can
participate in the labour market, protect those (temporarily) excluded from the
labour markets and/or unable to participate in it, and prepare individuals for
potential risks, by investing in human capital Member States should promote
inclusive labour markets open to all andalso put in place effective
anti-discrimination measures.

Mobility of workers should be ensured with
an aim of exploiting the full potential of the European labour market,
including by enhancing the portability of pensions and the recognition of
qualifications. Member States should at the same time guard against abuses of
the existing rules.

Guideline 8: Ensuring fairness,
combatting poverty and promoting equal opportunities

Member States should modernise their social
protection systems to provide effective,  efficient,
and adequate protection throughout all stages of an individual’s life, ensuring
fairness and addressing inequalities. There is a need for simplified and better
targeted social policies complemented by affordable quality childcare and
education, training and job assistance, housing support and accessible health
care, access to basis services
such as bank account and Internet and for action to prevent early school
leaving and fight social exclusion.

For that puropose a variety of instruments
should be used in a complementary manner, including labour activation enabling
services and income suppoirt, targeted at individual needs. Social protection
systems should be designed in a way that facilitate take up of all persons
entitled, support investment in human capital, and help prevent, reduce and
protect against poverty.

The pension systems should be reformed in
order to secure their sustainability and adequacy for women and men in
a context of increasing longevity and demographic change, including by linking
statutory retirement ages to life expectancy, by increasing effective
retirement ages, and by developing complementary retirement savings.

Member States should improve the
accessibility, efficiency and effectiveness of healthcare and long term care
systems, while safeguarding fiscal sustainability.