COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251 (2) of the EC Treaty concerning the common position of the Council on the adoption of a Decision of the European Parliament and of the Council on Community incentive measures in the field of employment

1. Background

The proposal COM(2000) 459 final was sent to the European Parliament and the Council on 20 July 2000. The European Parliament gave its opinion in a first reading on 14 February 2001. The Economic and Social Committee adopted its opinion at its plenary session on 31 January 2001 and the Committee of the Regions on 14 December 2000.

Following the opinion of the European Parliament and pursuant to Article 250 (2) TEC, the Commission adopted an amended proposal and sent it to the Council and the European Parliament on 27 February 2001 - COM(2001) 124 final.

The Council adopted its common position on 25.6.2001.

2. Aim of the proposal

This proposal gives effect to Article 129 of the Treaty. It accordingly provides the legal basis for expenditure which arises in implementing the provisions of that Article, and allows for the development and deepening of the European Employment Strategy in accordance with the conclusions of the Lisbon European Council. This strategy is focused on enabling the Union to establish the conditions for full employment and for more and better jobs. It includes guidelines defined at European level and National Action Plans implemented by the member States.

Within that broad context, this proposal for a Decision on Community incentive measures in the field of employment aims primarily at fostering co-operation between Member States in analysis, research and monitoring of labour market policies. Such co-operation will be informed by the growth of the knowledge-based economy , the need to identify best practices and to promote exchanges and transfers of information and experience, and to put in place an active information policy for these purposes.

3. Commission comments on the Common position

3.1 General comments

The Commission takes a generally positive view of the common position adopted by the Council. It recognises the efforts which have been made to take account of amendments proposed. It can agree to having a divided committee procedure, i.e. partly an advisory and partly a management committee, to implement the programme, as opposed to the advisory committee which it originally suggested. It cannot, however, agree to a diminution in the proposed budget of EUR55 million. That estimate was carefully calculated and there is confidence that expenditure of that order will be required over the period of implementation of the programme.

3.2 How the amendments of the European Parliament have been taken into account

The role of the European Employment Strategy in advancing both co-operation on employment policy and the exchange of experience between the Member States is now referenced. The development of that strategy in a way which assesses how to improve co-operation with the social partners and local and regional authorities, and how to implement an active and transparent information policy, is also emphasised. Community measures to be undertaken will assess the role played by all actors at the different levels with a contribution to make, the general impact of the European Employment Strategy to date and consistency between it and general economic policy, as well as other policy areas. In addition, in all the activities to be funded under this programme, efforts will be made to mainstream the principle of gender equality.

3.2.1 EP amendments taken into account fully, partly or in spirit in the Council's common position and in the Commission's amended proposal

References to recitals and articles refer to the numbering as used in the Council's common position.

-Recital (4) largely takes account of amendment 1 of the EP by referring to particular strengths of the European Employment Strategy in encouraging co-operation between Member States, while respecting individual autonomy in relation to decision making, and in facilitating experience exchanges, including the ways in which they involve the social partners and local and regional authorities.

-Article 3.1(f and g) reflect concerns of the EP as outlined in its amendment 3. It specifies that developing the approach and contents of the European Employment Strategy should encompass ways of co-operating with the social partners and relevant local and regional authorities as well as implementing an active and transparent information policy.

-Article 4.1(b) partly takes into account EP amendment 5. It now indicates that, in evaluating their National Action Plans, Member States will assess the ways in which the social partners and relevant regional and local authorities have been involved in their implementation.

-Article 4.1(c) partly takes account of EP amendment 6. This article specifies that one of the measures to be undertaken will be a quantitative and qualitative evaluation of the European Employment Strategy in general, and an analysis of the consistency between that Strategy and general economic policy, as well as other policy areas.

-Article 4.2 partly takes into account amendments 4,7,8 and 9 of the EP. The Council's common position underlines that, in relation to all activities to be undertaken, efforts will be made to mainstream the principle of gender equality, in particular with regard to equal opportunities for men and women in employment and labour markets, and to reconciling working life and family life.

3.2.2. EP amendments taken into account fully, partly or in spirit in the Commission's amended proposal but not in the Council's common position

References to recitals and Articles refer to the numbering as used in the amended proposal.

-Amendment 2 of the EP relating to recital 7 concerns the role it plays in employment policy and was accepted in spirit by the Commission. In the Council common position this recital has been deleted.

-Amendment 10 proposed by the EP envisaged the allocation of specific funding for particular activities on the one hand and, on the other, sets out the role to be played by local, regional and other interests in this context and with regard to employment analysis and implementing employment guidelines. The Commission accepted in part the idea of focusing analysis of the European Employment Strategy at the regional and local levels.

-EP amendment 11 is concerned with undertaking specific information measures to increase public awareness and the publication of reports on women in the labour market and the obstacles which they face in relation to access. The Commission accepted this in spirit.

-EP amendment 12 stresses the need to ensure that outputs of the programme are transparent to the general public and that they have ready access to relevant publications. This was accepted in spirit by the Commission.

-EP amendment 13 is focused on the need for consistency as between activities undertaken in this programme and other relevant programmes operated by the Commission, and the creation of necessary linkages to ensure this. The Commission accepted this amendment in spirit.

3.3 New provisions introduced by the Council and corresponding Commission positions

The change from a purely advisory committee to, partly, a mangement committee is acceptable to the Commission. The Council's common position reflects this change in the article dealing with 'Implementation'. Referring to Decision 1999/468/EC, it lists the measures which should be adopted in accordance with the management procedure and the ones for which the advisory procedure is required.

The reduction in the budget from the EUR55 million proposed is not acceptable to the Commission. It is convinced that this level of expenditure will be necessary over the duration of the programme.

3.4 Problems met when adopting the common position

After discussion the Council voted unanimously for a budget of EUR50 million. The Commission considers that this amount is inadequate and maintains that the budget which it has proposed, EUR55 million, is required for the proper discharge of the activities to be funded.

4. Conclusions

The Council's common position maintains the main policy features of the proposed Decision. Adaptations to the text, however, now emphasise the importance of inputs into the activities funded under this programme by the social partners and actors at regional and local levels. They also underline the objective of providing that gender considerations should appropriately inform the delivery of the programme, and that more intensive efforts be made to promote and publicise the European Employment Strategy which it supports.

In relation to the implementation of the programme, the Commission accepts that measures are taken partly according to the management procedure. In this regard the Commission is anxious to ensure that the Member States are actively involved in the programme, and that such active involvement reinforces co-operation and information exchanges between them.

The Commission regrets the decision of the Council to revise down-wards the budget proposed by it.

ANNEX

STATEMENT

FOR THE COUNCIL MINUTES

Commission statement

The Commission regrets that the Council has not accepted the budget of EUR55 million which it has proposed for this programme and that it has instead suggested a down-ward revision to EUR50 million. That budget has been carefully calculated, both by reference to the activities which are to be funded under the programme and experience of expenditure patterns under its predecessor - the 'Essen programme'. The Commission is convinced that the budget which it has proposed is required to effectively discharge this programme and is hopeful that it will be reinstated in future negotiations.