COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(95) 74 final 
Brussels, 08.03.1995 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
FOLLOW-UP TO THE ESSEN EUROPEAN COUNCIL 
ON EMPLOYMENT 
COMMUNICATION TO THE COUNCIL 
FOLLOW-UP TO THE ESSEN EUROPEAN COUNCIL 
ON EMPLOYMENT 
Introduction 
1. Fighting unemployment is a paramount task of the European Community and its 
Member States (arts. 2, 102a and 118 of the Treaty). In December 1993, the 
Commission's White Paper on Growth, Competitiveness and Employment 
proposed a series of policy actions designed to increase competitiveness, 
strengthen economic growth and turn that growth into more jobs through 
structural changes in Member States As the White Paper has underlined, it is 
possible to significantly reduce unemployment but continued efforts will be 
necessary for many years Progress in reducing unemployment levels is essential 
if the construction of Europe and the transition to Economic and Monetary Union 
are to continue to receive the support of European citizens. 
i 
2. The conclusions of the European Council (Dec. 93) endorsed this approach and 
identified key areas of action. The conclusions of the European Council at Corfu 
and then at Essen (Dec. 94) gave a further dynamic to the ideas set out in the 
White Paper and consolidated the Employment Action Plan by setting out 5 key 
areas of action. The Essen conclusions also broke new ground in the 
employment field, urging the Member States to "transpose these 
recommendations in their individual policies into a multi-annual programme 
having regard to the specific features of their economic and social situation". 
3. In order to pursue these objectives, the Essen European Council requested "the 
labour and Social Affairs and Economic and Financial Affairs Councils and the 
Commission to keep close track of employment trends, monitor the relevant 
policies of the Member States and report annually to the European Council on 
further progress on the employment market, starting in December 1995". 
4. These objectives and principles therefore now need to be translated into practice, 
in terms of both action by each Member State, and in terms of further developing 
co-operative policy-making. This communication proposes orientations regarding 
these different points with a view to progressively instituting a process of 
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surveillance of the functioning of the employment system as defined in the White 
Paper "Growth, Competitiveness, Employment". 
A coherent approach 
5. The Commission considers that the next phase of cooperation between the 
Member States and the Commission should involve a coherent approach by the 
Economic and Financial Affairs Council and the Social Affairs Council, 
culminating in the European Council, thus avoiding a 'two track' approach to 
policies and based on an interdependent set of macro-economic and structural 
policy initiatives. This approach is essential because most issues which affect 
employment are inter-related and concern different policy responsibilities e.g. non-
wage costs involve issues of competitiveness, public finance, as well as social 
protection, just as human resource development involves various policy and 
financial concerns. 
To achieve this goal, it would be useful to. 
* develop this coherent approach on employment in the context of Article 103 
of the Treaty. 
* identify the key characteristics of employment performance, with particular 
reference to the five action points of the Essen conclusions, that could be 
used by all concerned both in establishing the individual Member State multi-
annual programmes and in monitoring the progress of Member States and the 
Community as a whole. 
* identity with Member States the essential elements and factors for the 
adaptation of education and training systems and support actions for their 
development, including "good practices" in the area. 
* include in the medium-term programmes of Member States and/or in their 
convergence programmes, where this is not yet the case, sections dealing with 
employment trends and policies, including the 5 action points indicated in the 
European Council's conclusions at Essen. 
reinforce the co-operative machinery with the appropriate departments of the 
Member States and in the relevant committees in order to ensure the flow of 
information necessary for'monitoring and assessing Member States progress 
8-93-35 
with respect to these programmes. In particular more frequent and more up 
to date statistical data on employment and the exchange of information on 
experiences and "best practices" should be considered. 
• ensure the coherence between the Structural Funds and the individual 
Member State multi-annual programmes, paying particular attention to the 
implementation of the Community Support Frameworks and Community 
Initiatives. 
7.-'As-a first step the Commission will include a larger and more developed 
employment chapter in its recommendation for the "broad guidelines" for the 
economic policies of the Member States arid of the Community, starting in the 
spring of 1995. The Commission's annual Employment Report will be focused 
this year on the five key areas concerning employment and training systems 
identified in Essen and will be presented before the summer. 
8, The Commission will present, at the beginning of October of each year, an 
overview document on employment trends and on the development of 
employment systems as defined in the White Paper: The Community institutions, 
in particular the European Parliament, and the Social Partners would be invited to 
examine it and to give their opinions. 
This document would concentrate on progress in creating jobs, in reducing 
unemployment - especially among young people and the long term unemployed -
in increasing the employment content of growth and in improving the functioning 
of Member State employment systems In this context, particular attention will be 
paid to trends and developments in the education and training fields. The 
document will assess macro-economic and structural policies affecting the labour 
market as well as policies towards human resources, training, equal opportunities, 
local development, small and medium-sized enterprises and the labour market. 
The document which will be presented in October 1995 will contain an initial 
assessment of the five action points adopted at Essen and specific sections dealing 
With the two issues which the Essen European Council identified as requiring 
particular policy attention, the effects of tax and income support systems on the 
readiness both to create and to take up jobs, and the inter-relationship between 
economic growth and the environment. 
8-03-95 
9. The ConHHtsskm would then report in December to the European Council on the 
basis of farther examination of the above document, taking account of the 
opinions expressed and incorporating the latest information 
10. Taking into account the October document provided by the Commission, the 
Social AÉïàks and the Economic and Financial Affairs Councils may wish to 
transmit to the European Council a joint report on these questions. 
11. In order to contribute to the coherent approach outlined above, the Commission 
wishes to further encourage the Social Dialogue at Member State and Community 
levels and welcomes the initiative of the French Presidency to hold a high level 
conference in Paris in March 
The Commission wishes equally to see the role of the Standing Committee for 
Employment developed in the process and recalls that, as stated in its White Paper 
on Social Policy, it will be presenting proposals this year with a view to improving 
the role and functioning of the Standing Committee. 
Conclusion 
12. The Commission seeks the agreement of the Council to the approach set out in 
this Communication, so that all necessary steps can be taken to ensure a well-
coordinated process throughout the year which could be endorsed by the 
European Council in Cannes in June 
8-03-96 
Surveillance procedures in the 
first half of the year 
c The Commission adopts and publishes the Annual Economic Report 
Opinion of the 
European 
Parliament Opinion of the 
Committee 
of the Regions Opinion of the 
Economic and 
Social 
Committee Ôpinion(s) of 
the social 
partners 
V 
/ . A 
The Commission adopts its 
recommendation 
for the guidelines Other 
contributions 
The Monetary Committee 
prepares the Council 
discussion 
The EcoFin Council "formulates* 
the draft guidelines 
The European Council "discusses 
a conclusion on the guidelines" 
The EcoFin Council adopts the 
Broad Guidelines 
The Council informs the 
European Parliament 
«> 
4 
Surveillance procedures in the 
second half of the year 
c D The Commission adopts and publishes the Employment Report 
Opinion of the 
European 
Parliament The Commission adopts 
its "overview" report 
Opinion of the 
Committee of the 
Regions 
Opinion of the 
Economic and Social 
Committee 
Opinion(s) of the 
social partners 
Standing 
Employment 
Committee 
» 
The Commission reports to 
the European Council taking 
into account the opinions 
expressed 
^ The Social 
Affairs Council 
examines the 
overview 
report of the 
Commission The EcoFin 
Council 
examines the 
overview report 
of the 
Commission 
+ * i 
The European Council assesses progress 
in creating jobs and reducing unemployment 
G 
ISSN 0254-1475 
COM(95) 74 final 
DOCUMENTS 
EN 04 
Catalogue number : CB-CO-95-089-EN-C 
ISBN 92-77-86630-6 
OfBce for Official Publications of the European Communities 
L-2985 Luxembourg