it it 
it it 
it it COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 13.06.1995 
COM(95) 250 lliiiil 
95/0149 (CNS) 
COMMUNICATION FROM THE COMMISSION 
AND 
PROPOSAL FOR A COUNCIL DECISION 
on the Commission's activities of analysis, research, cooperation and action in the 
field of employment 
(ESSEN) 
(presented by the Commission) 

COMMUNICATION FROM THE COMMISSION 
on its activities of analysis, research, cooperation and action in the field of employment 
(ESSEN) 
A. REVIEW OF RECENT DEVELOPMENTS 
In its White Paper on Growth, Competitiveness and Employment, published in December 1993, 
the Commission proposed a new medium-term development strategy for creating more jobs and 
combatting unemployment more effectively. Based on the conviction that economic and social 
progress should go hand in hand, the medium-term approach set out in the White Paper no longer 
treats employment as just another factor in growth, but places it at the very heart of economic 
development. 
In adopting the development strategy indicated by the White Paper, the European Council - after 
reiterating its concerns regarding unemployment trends and affirming the need for the Union to 
resolve its structural problems - stated that economic recovery, even if it was likely to make the 
Member States' task easier, would nevertheless not be enough to resolve the employment 
problems, and it urged Member States to take initiatives on a par with what is at stake. 
During the Essen Summit in particular (held in December 1994), the European Council - taking 
account of the Commission's proposals1 and building on the decisions it had taken at its previous 
summits in Brussels and Corfu (December 1993 and June 1994) concerning an employment action 
plan - set out inter alia five key priority action fields: 
1. Improving employment opportunities for the labour force by promoting investment in 
vocational training. 
2. Improving the employment-intensiveness of growth, in particular by: 
more flexible organization of work in a way which fulfils both the wishes of 
employees and the requirements of competition; 
a wage policy which encourages job-creating investments; 
promotion of initiatives, particularly at regional and local level, that create jobs 
which take account of new requirements, e.g. in the environmental and social 
services spheres. 
3. Reducing non-wage labour costs to facilitate the taking-on of employees and in particular 
of unqualified employees. 
4. Improving the effectiveness of labour-market policy. 
5. Measures to help groups which are particularly hard hit by unemployment, in particular 
young people, the long-term unemployed, older employees and unemployed women. 
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Action to turn growth into jobs - Brussels action plan (Phase 2), 29/11/1994. 
The European Council also initiated a process lor implementing its employment action plan, 
urging Member States to transpose its recommendations into a multiannual employment 
programme having regard to the specific features of their employment system as well as their 
economic and social situation. It also requested the Social Affairs and Economic and Financial 
Affairs Councils and the Commission to keep close track of employment trends, monitor the 
relevant policies of (he Member Stales and report annually to the European Council on further 
progress on the employment market, starting in December 1995. 
These recent European Council decisions, justified by the persistently high level of unemployment 
in the Union, also constitute a significant development both in terms of the degree of priority 
accorded to job creation and the approach adopted, which is primarily based on the "employment 
system" concept deriving directly from the guidelines and suggestions set out in the White Paper 
on Growth, Competitiveness and Employment, which is now placed to the fore. 
This development strongly advocated by the Commission thus provides an opportunity - insofar 
as it points to several ways out of the employment crisis - and also a challenge requiring 
mobilization of effort and the upgrading and reorganization of action capacities both within the 
Member States (which remain responsible for the establishment and implementation of their 
employment policies) and at Union level. As specifically regards the Community level, this will 
entail, while fully respecting the principle of subsidiarity, carrying out a comparative analysis of 
the different national situations, promoting exchange of information and experience, and 
transferring best practice, all factors which correspond to a need generally expressed by the 
Member States. 
Given the results of the action taken in recent years, the Commission therefore deems it necessary 
to underpin the multilateral monitoring process - recently proposed to the Council2 in application 
of the Essen European Council decisions - revising and reinforcing its activities of analysis, 
research cooperation and action in the employment field. 
Among other instruments and Community actions, analysis, research, cooperation and action in 
the field of employment have been developed under the budget line B3-4010 - labour market and 
employment - since the early 1980's when a worsening unemployment situation made it necessary 
to develop new strategies for employment creation. Since then, several initatives have been 
developed in response either to Council resolutions or demands from Parliament. These initatives, 
that have - as the following chapter shows - clearly proven their usefulness, have nevertheless 
suffered from a certain fragmentation and did not allow, given their budgetary limitations (of 
about 10 Mecu/year) for all their results to be optimised, taking into account current needs. 
This change, which was announced in July 1994 in the Commission's White Paper on European 
Social Policy and was only recently reiterated with the adoption of the social action programme, 
aims to set up new guidelines to foster closer collaboration between the Commission and Member 
States on analysis, research, cooperation and action in the field of employment and labour market 
policy, providing the Commission with the necessary legal basis to pursue its activities in this 
field. Such a coordinated approach should render more effective the measures taken by the 
Member States and by the Union. 
Communication from the Commission to the Council - follow-up to the Essen European Council 
(COM(95)74 final of 8 March 1995). 
-3-
B. CAPITALIZING ON EXPERIENCE GAINED HITHERTO 
Commission observation, analysis and research activity and action in the employment field, along 
with dissemination of the results, have been growing since the early Eighties3,,They have often 
been implemented in conjunction with the Member States and some with other international 
organisations e.g. the OECD and the ILO. 
Thus on the observation and analysis side, the Commission has set up a European employment 
observatory the mainstays of which are the system for mutually exchanging information on 
employment policies, better known as MISEP, and the Community System of Documentation on 
Employment (SYSDEM). 
The information produced by the European employment observatory constitutes the source in 
particular for the drafting of the annual report on Employment in Europe and for providing 
insights leading to the submission of new policy proposals on employment/unemployment in the 
European Union. 
In the run-up to the Essen European Council, for instance, the information generated by the 
observatory enabled the Commission and the Member States together to present the synoptic 
comparative tables showing the main measures taken on employment in the Member States. 
The recognition by the Council in 1984 of how important the local level is in the fight against 
unemployment4 has also enabled the Commission to pursue a series of initiatives in a largely 
unfamiliar area. The first efforts were designed to explore and assess local job creation potential, 
whereas subsequently the focus was on identifying and exchanging experience; this, thanks to the 
development of appropriate intervention techniques, resulted in the transfer of best practice across 
the EU countries. The most significant endeavour pursued by the Commission in this context is 
the LEDA (Local Employment Development Action) programme which since 1986 has, through 
a series of specific tools (manual on employment, LEDA school, management training 
programme, international mini-networks) been devising solid know-how for local employment 
development and thus contributing to the emergence and consolidation of local patterns of growth 
not only in the 42 zones in which the programme is currently active but also elsewhere thanks 
to an active policy of dissemination of results. 
The Commission has also been active in the promotion of equal employment opportunities for 
men and women. Of the initiatives introduced, the most familiar is undoubtedly the LEI (local 
employment initiatives targeted at women) launched in 1987 to fight against female 
unemployment by encouraging and helping women to create lasting jobs by setting up in business 
or organising cooperatives or pursuing any other initiative capable of creating jobs. In addition 
to the 300 or so projects it produces every year which lead to the creation of jobs, the programme 
also publishes self-teaching/self-training packs and guides and conducts awareness-raising 
campaigns and exchanges of experience which can help to improve the situation of women on the 
employment market. 
As for action targeted at the most disadvantaged groups on the labour market, the Commission 
has, complementing the Social Fund activities in this field, focused its efforts in recent years on 
3 Council Resolution of 12 July 1982 on Community action to combat unemployment (OJ No CI86 
of 21.7.1982). 
4 Council resolution of 7 June 1984 on the contribution of local employment initiatives to combating 
unemployment (OJ No C161 of 21 June 1984). 
action-research in order to obtain a better understanding of the problems of reintegrating the long 
term unemployed. A transnational programme, ERGO, makes it possible to improve knowledge 
of the problems the latter come up against as they try to re enter the labour market, evaluates 
steps taken by the Member Slates and enables the transfer of best practice and sound approaches 
e.g. the idea of pathways to integration, throughout the European Union. 
Lastly, the Commission has for some years now been pursuing a strategy of communication based 
inter alia on the publication of documentation, the promotion of international conferences and 
seminars of experts, the organisation of events such as the Employment Week, or support for the 
work and expansion of transnational networks (TURN, EG LEI - European Group for Local 
Employment Initiatives)5 of operators examining new ways out of the employment crisis. 
Among other actions, these initiatives have over time contributed to the examination of how to 
develop the policies of the EU, the Member States and their local authorities, and helped the 
economic and social players in the fight against unemployment. 
At EU level, the development in the Structural Fund regulations and especially those of the ESF 
now enable the introduction of the lessons of this action-research, thus leaving in particular, scope 
for action to boost local employment development, innovatory approaches to integrate the long 
term unemployed into the labour market, the idea of pathways to integration, and action to 
promote equal opportunities. 
At Member State and local authority level, the EU initiatives, thanks to exchange of information 
and experience, provide a better knowledge of best practice in various parts of the Union while 
at the same time, in the context of the fight against unemployment, contribute in particular to 
the the promotion of local employment development. 
Lastly, as regards the economic and social players, it is essentially through their involvement in 
transnational exchange networks and the development of appropriate methods that their daily work 
has been enhanced by new expertise. 
Considering the inherent limitations of any action which gives priority to seeking out and testing 
new solutions to the employment crisis and the comparatively low level of resources earmarked 
(around 10 million ECUs/year), the initiatives pursued so far may be deemed to be insufficient 
but have nonetheless proved their worth in catering for certain specific requirements. However, 
their fragmentation and, at times, their multiplication, has not always made it possible to 
concentrate resources nor consequently to optimise their potential impact. 
An homogeneous approach is therefore needed in order to structure the different elements of 
Community action on employment policy so that they dovetail and in order to favour their 
interaction, while fostering partnership-based relations between the Commission and the Member 
States and thus make it possible to sustain and supplement the efforts made by the latter. 
5 The TURN (Trade Union Regional Network) is a transnational network of trade-unionists 
active in the area of job creation and vocational training for the unemployed. 
The EGLEI (European Group for Local Initiatives) network is an international association 
of local development agencies. 
Ç_. Renewed orientations for analysis, research, cooperation and action in the field of 
employment 
With the new development strategy advocated in the White Paper on Growth, Competitiveness 
and Employment and in the medium-term social action programme and considering the 
momentum generated by the conclusions of the Essen European Council, the problem of 
employment is now at the top of the EU's list of political priorities. 
This new approach stresses the need for a better understanding, in line with the employment 
system approach, of all the issues which can determine a more dynamic operation of the 
employment market, and to share the results of best practice, particularly through exchanges of 
information and experience. 
It is against this backdrop and making the best possible use of achievements to date in terms of 
knowledge and expertise that the new orientations will embrace within an homogeneous 
approach the complementary functions defined below. In view of the limited funding available, 
the actions to be promoted will be implemented with priority being given on the one hand to the 
principles of cost/effectiveness analysis and on the other by painstaking selection of activities so 
as to generate a major multiplier effect and substantial added value. These functions will be 
flanked by transversal support activities to the benefit of the Member States and the players 
involved that wish to draw on them, particularly for defining and implementing the multiannual 
employment programmes requested by the European Council. 
1 PROMOTING A BETTER KNOWLEDGE OF THE LABOUR MARKET AND OF EMPLOYMENT 
POLICIES 
Establishing the procedures for monitoring the employment policies to be implemented in 
application of the Essen European Council decisions calls for Community observation and analysis 
capacities to be strengthened. This analytical capacity will be underpinned through research into 
medium-term trends in the employment systems and through the study of new problems linked 
to the changes, already taking place, in European society and their impact on employment. 
1.1 Observation and monitoring 
Introducing an observation system consisting - at Community level - of a permanent database 
containing information on labour market trends, national employment systems and the policy 
measures promised by Member States, in particular those related to the multiannual employment 
programmes. 
This observation system will also collect all the relevant research work done in the employment 
field at both national and international level. 
The above-mentioned observation activity will be undertaken in cooperation with the Member 
States through reinforcing the tools developed so far under the Mutual Information System on 
Employment Policies (MISEP) and the Community System of Documentation on Employment 
(SYSDEM). 
1.2 Analysis 
The information collected and then enhanced through other sources, in particular through natit 
and Community statistics, will be analysed in order to evaluate and compare at Community k 
the action taken by Member States on employment policy, and in order to detect examples of 1 
practice in the Member States by boosting the capacity for qualitative analysis. As regards 
statistical side, it is difficult to reconcile the European Council's wish to monitor employir 
trends closely with facts and figures which are a year or more out of date. The Commm 
labour force sample survey should therefore be converted as soon as possible into an ongc 
survey generating quarterly figures which can be made available quickly. 
In order to be able to fulfil the reporting functions, in particular towards the European Count 
it will also be necessary to develop the conditions - in agreement with the Member State 
enabling a homogeneous analysis and comparability of results at Union level. 
This requires greater cooperation between the Commission and the authorities responsible 
employment policy, as well as promotion of Community-level cooperation between the natio 
authorities whose responsibilities involve implementation of policies having a bearing 
employment in various fields such as social protection, education, training, taxation and promot 
of equal opportunities for women and men. 
Finally, it is important to involve the social partners in the monitoring and analysis procedu 
in particular through the existing social dialogue arrangements at Community level. 
1.3 Research on new issues 
It is vital, in this field more than elsewhere, to improve our knowledge of the factors which h 
a bearing on employment and skills in the medium and long term, and of the forces at play to< 
which can influence the creation or the disappearance of jobs, particularly in the context 
industrial restructuring. It is therefore necessary to foster the study of topics able to shed light 
the conditions affecting the creation and disappearance of jobs in the future, all on the basit 
examining current trends. Such studies will take into particular account the need for more deta 
analysis of the factors which make for a more job-creative pattern of growth, and the poter 
impact on employment of globalization of the economy, including relations between the Ur 
and its main trading partners and the social consequences of achieving the single mar 
Attention will also be paid to the employment problems linked to relations with the countrie 
the European Economic Area; the countries of Central and Eastern Europe; Cyprus, Malta 
the Mediterranean partners of the Union; and with other non-member countries as well. 
The research topics will, by way of example, include relations between the tax and sc 
protection systems and job supply and demand; the relations between employment 
environmental protection policies, analysis of the information society's impact in terms of 
and social development, the real or potential risks of job derealization caused by globalize 
of the economy, and the contribution of the social economy to the creation of new jobs. 
The forward studies undertaken will be coordinated, in particular, with the targeted sc. 
economic research carried out under the fourth research and development framework progran 
particularly under the "education-training" section. 
-7 
2HELPING TO PINPOINT AND TRANSFER BEST PRACTICES 
The experience gathered so far shows the importance of developing Community actions 
contributing, at Union level, to pinpointing and transferring best practices in promoting 
employment. Analysis shows that some of the action priorities stipulated by the Essen European 
Council lend themselves particularly well to projects aimed at providing methodological and 
technical support in the quest to find new solutions to the employment crisis. 
The activities to be promoted in this context will be implemented in cooperation with the Member 
States, with the accent on partnership and through fostering consistency and complementarity with 
activities funded by other national or Community sources, notably the Structural Funds and the 
Leonardo programme. 
Among the priorities as laid down by the Essen European Council, the following will be the 
subject of initiatives forming part of the above-mentioned projects: 
2.1 Promoting local development and employment initiatives 
Encouragement, in particular at local and regional level, of initiatives that create jobs which take 
account of new requirements, e.g. in the environmental and social services spheres, is one of the 
key fields identified by the European Council. This aspect will be taken into consideration, taking 
account of the information presented in Essen by the President of the Commission on the local 
development and employment initiatives and on changes in the present model of economic growth 
and economic objectives in relation to the environment and time management. The initiatives to 
be taken in this field will be enhanced by drawing on the measures undertaken by the 
Commission in the past few years - particularly the LEDA programme which will come to an end 
in its present form - and by taking into account the experience of the Danish, Irish and Portuguese 
in developing a framework at regional level and structures and procedures at local level in order 
to support an integrated concept for development at local level, as presented at the same European 
Council. 
These activities will help to attain the objectives set out in the Communication which the 
Commission has just passed on to the Council concerning local development and employment 
initiatives. 
2.2 Implementing measures to help groups particularly hard hit by unemployment, 
particularly young people, long-term unemployed, older employees and unemployed women 
The initiatives in this sphere will be carried out in conjunction with certain specific actions 
promoted, in particular, by the Structural Funds, by the Leonardo programme or as part of the 
fourth framework programme on equal opportunities for women and men, in which the LEI 
programme is to be incorporated. The benefit of what has been learned through the ERGO 
programme - also due to come to an end in its present form -, and from the research undertaken 
in the field of integration/exclusion by the fourth framework programme, will also be applied in 
this context. 
2.3Encouraging action in connection with reorganization of working time, including 
adaptation of working hours, which fulfil both the wishes of employees and the 
requirements of competition and involve the social partners. 
Action in this area will initially attempt to identify and analyse, from the job creation point of 
view, the many examples of reorganisation of work and re-arranging of working time currently 
under way. At a later stage these will be networked in order to promote exchange of experience 
and the transfer of best practices in partnership with the Member States and the social partners. 
-8-
Due lo (heir transnational nature, and through establishing a Union level network interlinking 
players concerned, all these initiatives - which aim to establish interactive platforms for deviî 
and exchanging best practices in employment development - will also contribute a genuine ad 
value thereby raising the performance of the players involved, who are all too often isolate» 
their daily activities. 
3DEVEI*OPIN(; AN ACTIVE POLICY IN DISSEMINATING RESULTS 
Finally, active dissemination of all the information obtained will be promoted. This informal 
will be made available to all the public and private players concerned with employment proble 
Depending on the circumstances, dissemination will be via regular bulletins, the Report 
Employment in Europe, the Social Europe Review and through any communication chant 
deemed necessary to reach the target groups concerned or discussed at international seminars. 
promoting maximum transparency, the Community framework aims, in collaboration w 
Member States, to play a part in highlighting the advantages which membership of the UB. 
imparts, and thus to underpin citizens' acceptance of the Union, as recommended by the B& 
European Council. 
As far as the Union level in particular is concerned, the results obtained from this new appro 
to Commission activities of analysis, research, cooperation and action in the field of employai 
will be presented in a fmal report to be submitted to the Council, the Parliament, the Econoi 
and Social Committee and the Committee of the Regions by 31 December 2001 at the latest 
D. PROMOTING PARTNERSHIPS AT ALL LEVELS 
While employment policy is the responsibility of each Member State, it is neverthe 
acknowledged that, whatever the level of institutional power, there can be no active employm 
policy without the active cooperation of all the socio-economic players. 
This being so, the new approach will equally, in full respect of the principle of subsidiarity, s 
to involve all the Member States, and the directors-general for employment in particular, i 
partnership-based implementation of the action to be taken. Appropriate involvement of all 
players concerned, the social partners in particular, in the fight against unemployment will Ï 
be sought within this partnership which will at the same time stress the role of the Tcgional 
local authorities. 
In this context the Standing Committee on Employment will be one of the foremost forums 
discussing both initiatives put forward by the Commission and the results of action underta 
within the EU. 
The findings of all initiatives will provide the basis for the drafting of the report on employn 
in Europe and will also enhance the report to be submitted every year to the European Cou 
on developments m the employment situation m the European Union. 
9-
Article by article-guide to the proposal for decision 
Article 1: Decision to set up the new Community action "Essen" 
Article 2: Definition of the aims of the action: setting up a new approach for Commission 
activity of analysis, research, cooperation and action in the area of employment. 
Article 3: Content and type of action to be promoted. These actions are subdivided into three 
complementary functions: 
improving knowledge of the employment market and employment policies through 
observation, monitoring, analysis and research, also covering factors which can determine 
the creation or the disappearance of jobs; 
identification and transfer of best practice through projects which will serve as the 
methodological and technical platforms in the quest for new solutions to the employment 
crisis; 
development of an active policy to disseminate findings. 
Article 4: Consistency and synergy with all European Union policies. 
Article 5: Involvement in certain "Essen" actions of the EFTA countries, the countries of 
Central and Eastern Europe, Cyprus and Malta and to the MED countries in 
accordance with arrangements to be defined in the context of the relations with these 
countries. 
Article 6: Implementation and partnership approach. 
Article 7: Involvement of the social partners and the Standing Committee on Employment in 
the action taken. 
Article 8: Submission of a final report to the Council and to the European Parliament by 31 
December 2001 at the latest, giving the results of the action taken. 
Article 9: Standard text. 
- AO\W -
PROPOSAL FOR A COUNCIL DECISION ON 
COMMISSION ACTIVITIES OI< AN/WJKSIS, RESEARCH, C(K>PERATION AND ACTION tra TH 
vimm m EMPLOYMENT 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishiRjgsflie European Community, and in particular Jkrticle : î 
thereof, 
Having regard to the prc^msal from the Commission,1 
Having regard to the opinion of the JBuFopean Parliament,2 
Having regard to the op intern of the Economic and Social Committee,3 
Having regard to the opinion of the Committee of the Regions, 
Having regard to the previous Council resolutions on employment tpolicy and the labour smart l 
Having Eegard to the resolution which ihe European Parliament fœesented to the Scads of S : 
and Government at the European Council of Essen Ihdld on 9inul $© December J9M, 
1 ©JNoC... 
? QJNoC... 
3 QJNoC... 
4 Resolution of 12 July 1982 on Community action to combat unemployment, OJ No C 11 f 
21.7.1982,p. 1; 
Resolution of 7 June 1984 on the contribution of local employment initiatives to comb ; 
unemployment, OJ No C 161 of 21.6.1984, p. 1; 
Resolution of 19 December 1984 on action to combat long-term unemployment, OJ No C f 
04.1.1985, p.3; 
Resolution of 22 December 1986 on an action programme on employment growth, OJ No C 3 F 
31.12.1986, p. 2; 
Conclusions of 1 December 1987 on action to combat long-term unemployment, OJ No C 3 F 
15.12.1987, p. 1; 
Council Resolution of 30 November 1989 on setting up a European employment survey, OJ ' 
328 of 30.12.1989, p. 1; 
Council Resolution of 29 May 1990 on action to assist the long-term unemployed, OJ No C 1 f 
27.6.1990. 
- 12-
Whereas, in accordance with Article 118 of the Treaty, the Commission has the task of promoting 
close cooperation between Member States in the social field, particularly in matters relating to 
employment and vocational training ; 
Whereas, at the European Council of 10 and 11 December 1993, the Heads of State and 
Government approved the medium-term development strategy put forward in the Commission's 
White Paper on Growth, Competitiveness and Employment; 
Whereas the Commission, in its medium term social action programme, announced its intention 
to propose a new approach for its analysis, research, cooperation and action in order to foster 
closer and more effective collaboration between itself and the Member States in the area of policy 
on employment and the labour market and to promote the rationalisation of its research work and 
other activities in the area of employment policies; 
Whereas, in the conclusions of the European Council of Essen in December 1994, the Heads of 
State and Government confirmed that the fight against unemployment and to achieve equality of 
Opportunity for men and women are and will remain the paramount tasks of the European Union; 
Whereas, at the same meeting, the European Council identified five main areas for action to 
promote employment and called on the Member States to incorporate its recommendations into 
a multi-annual programme having regard to the specific features of their economic and social 
situation; 
Whereas the European Council also 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 on further progress on the 
employment market; 
Whereas the Commission, in its Communication of 8 March 1995s, put forward its proposals on 
the political follow-up to the Essen European Council; 
Whereas the Commission considers it necessary to complement the multilateral monitoring process 
recently proposed to the Council by the reorganisation and strengthening of all its activities 
concerned with the analysis of the labour market and of employment policies; 
Whereas, without prejudice to the responsibilities of the Member States for promoting 
employment, this new approach can produce Community added value by pinpointing and 
encouraging best practices and policies, promoting innovation and exchanging relevant experience; 
Whereas the promotion of employment is a priority task for the Union and the Member States, 
the achievement of which will involve all their policies and require all action undertaken to 
dovetail; 
Whereas it is important to cooperate with the social partners and to mobilise all the local, 
regional, national and Community players concerned; 
Whereas, in accordance with the interinstitutional agreement on budgetary dicipline, it is necessary 
for actions taken on the initiative of the Commission to have a legal basis. 
Whereas, for the measures concerned, the Treaty does not provide for any powers other than those 
referred to in Article 235, 
Com(95) 74 final 
- 13 
HAS DECIDED AS FOLLOWS: 
ARTICLE 1 
A Community action for analysis, research, cooperation and action in the field of employn 
(ESSEN) is hereby established for the period from 1 January 1996 to 31 December 2000. 
ARTICLE 2 
This action aims to establish a new approach for analysis, reserach, cooperation and action in 
field of employment, thereby creating a platform for the exchange of information and expernc 
relating to employment. This new approach will contribute to the development of measu 
taken in the Member States which are in keeping with the focus of the Commission's White Pa 
on Growth, Competitiveness and Employment and with the decisions taken at the Essen Eur op 
Council. 
It " is designed to promote the analysis of the labour market and of employment policie 
Community level, to help to identify and transfer best practices and to develop an active po 
for disseminating the results obtained. 
ARTICLE 3 
In order to achieve the objectives referred to in Article 2, the Commission may promott 
cooperation with the players concerned and/or provide financial support for the follow 
measures: 
a) the establishment of permanent systems for observing, monitoring and exchanf 
comparable information and carrying out studies on employment policies and systems as defi 
in the Commission's White Paper on Growth, Competitiveness and Employment, labour mai 
trends and the means whereby new jobs are created in the Member States and the Union; 
b) the provision of methodological and technical support for projects to identify and tran 
best practices in areas such as work organisation, regional and local measures for creating 
which meet new needs, and measures to assist certain groups of people particularly hard hi 
unemployment; 
c) the implementation of any initiatives likely to encourage the broad dissemination ol 
results obtained from the measures, including assistance in preparing regular report.' 
employment. 
ARTICLE 4 
The Commission shall guarantee the consistency of and synergy between the measures t 
under this Decision and those taken under all policies of the Union. The Commission ans 
Member States shall seek to ensure that their actions of analysis, research, cooperation and a 
in the field of employment " and those taken under the Structural Funds, the researcl 
development framework programme, the fourth framework programme on equal opportunitk 
women and men, and those taken in the field of vocational training, in particular under Leon, 
complement each other. 
14 
ARTICLE 5 
Certain activities shall be open to the participation of the countries of the European Economic 
Area, the countries of Central and Eastern Europe, Cyprus and Malta, and to the European 
Union's partner countries in the Mediterranean, in accordance with arrangements to be defined 
in the context of the relations of the Union with these countries. 
ARTICLE 6 
The Commission shall ensure implementation in accordance with this Decision. To this end, it 
shall, cooperate on a partnership basis with the Member States, and especially as part of the 
regular consultation of the senior civil servants responsible for employment. 
ARTICLE 7 
The social partners shall be associated with the action taken. The Standing Committee on 
Employment shall in this connection be the main forum for discussing its results 
ARTICLE 8 
The Commission shall submit a final report on the results of this action to the Council, the 
European Parliament, the Economic and Social Committee and the Committee of the Regions, by 
31 December 2001 at the latest. 
ARTICLE 9 
This Decision shall be published in the Official Journal of the European Communities. 
Done at Brussels, 
For the Council 
The President 
- 15 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
Labour market and employment - Commission activities of analysis, research, 
cooperation and action in the field of employment (ESSEN) 
2. BUDGET HEADINGS INVOLVED 
B3-4010 Labour market 
AO-1178 Technical assistance, consultants 
AO-2380 Administrative costs 
3. LEGAL BASIS 
Application of Article 235 of the Treaty. Council Decision expected at the end of 
1995. 
4. DESCRIPTION OF OPERATION 
4.1. Objectives 
Among other Community instruments and actions promoting employment, 
the aim is to develop a new approach for Commission activities of 
analysis, research, cooperation and action in the field of employment. 
Activities will be organised in cooperation with the Member States on the 
basis of the guidelines set out in the White Paper on Growth, 
Competitiveness and Employment. 
4.2. Period covered 
Period from 1 January 1996 to 31 December 2000. 
5. CLASSIFICATION OF EXPENDITURE 
5.1. Non-compulsory expenditure 
5.2. Differentiated appropriations 
5.3. Type of revenue involved: none 
6. TYPE OF EXPENDITURE 
6.1. 100% subsidy for contracts for studies and the provision of services, 
meetings of experts and the organisation of conferences and seminars, as 
well as for publication and dissemination expenditure agreed on the basis 
of an initiative from the Commission. 
- AGlAl- -
6.2. Subsidies generally below 75 % of total costs for operations jointly funded 
with public or private bodies at their request. 
6.3. Interest subsidy: none 
6.4. Other: none 
6.5. Reimbursement: a partial or total reimbursement may be requested if the 
activities for which funding was granted are not carried out or are carried 
out only in part. 
The proposed operation will not cause any change in the level of revenue. 
FINANCIAL IMPACT 
Estimates have been made on the basis of past experience. They take account of 
the needs stemming from the decisions on employment policy taken by the Essen 
European Council. The breakdown is given for guidance and covers only the 
measures to be attributed directly to budget heading B3-4010. The trend in budget 
line B3-4010, which is presented simply for guidance, is compatible with the 
ceiling laid down under heading 3 of the financial forecasts. 
Subject 
A. Analysis of the labour 
market and of employment 
policies 
A. 1 Observation and 
monitoring 
A.2 Analysis and evaluation 
A. 3 New problems 
B. Identifying and transferring 
best practices (projects) 
C. Active dissemination policy 
Total 1996 
1.0 
1.0 
1.0 
3.4 
1.6 
8.0 1997 
1.1 
1.1 
1.1 
5 
1.7 
10 1998 
1.3 
1.3 
1.3 
5.6 
2.0 
11.5 1999 
1.4 
1.4 
1.4 
6.5 
2.2 
13 2000 
1.6 
1.6 
1.6 
7.1 
2.6 
14.5 Total 
6.4 
6.4 
6.4 
27.6 
10.2 
57 
Indicative breakdown in MECU for line B3-4010: this indicative breakdown does 
not prejudge the amounts which may actually be allocated by the budgetary 
authority for each of the years in question. On the other hand, the breakdown for 
each area of action is given purely for guidance. The amounts indicated for the 
subsequent years of the programme shall be defined in the appropriate initial draft 
budgets. 
FRAUD PREVENTION MEASURES 
All the measures funded are subject to ex ante, in itinere and ex post analysis by 
the responsible departments as regards content quality and cost effectiveness. 
These measures are supplemented by the work, including monitoring in the field, 
carried out by the financial departments of the Commission and the Court of 
Auditors. The documents which contractually bind the Commission and the 
- 18 -
recipients of the payments provide for anti-fraud measures to ensure that the 
financial contributions of the Community are used correctly. 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
The elements below only relate to line B3-4010. It should be noted, however, that 
certain measures will be promoted in coordination with other budget lines, in 
particular B3-4012 - the fourth programme on equal opportunities for women and 
men, B2-605 - pilot projects for the benefit of the long-term unemployed, or in 
association with the work of the Structural Funds, especially the European Social 
Fund, and budget lines B3-1020 and 1021 concerning vocational training policy, 
as well as the activities carried out in the context of the socio-economic research 
module of the fourth framework programme. 
Given the limited financial resources, the actions to be promoted under these 
provisions will involve both the application of the principles of cost-effectiveness 
analysis, and the rigorous selection of activities in order to induce a significant 
multiplier effect and a strong value-added. 
9.1 Specific objectives 
A. To promote the analysis of the labour market and of employment policies 
The conclusions of the European Council of Essen call for the monitoring and 
assessment of employment policies to be stepped up. With regard to Commission 
activities of observation, monitoring and analysis of employment policies under 
the B3-4010 budget line, this necessitates a strengthening of the analytical capacity 
and a better understanding of labour markets. 
The overview of analyses will help the Commission to provide Member States and 
other interesed parties with the necessary technical assistance in defining and 
developing multiannual programmes for employment as indicated in the 
conclusions of the Essen European Council. 
A.l Observation and monitoring work 
This framework sets up a system of observation establishing at Community level 
a permanent database on labour market trends, national employment systems and 
the policy measures promoted by the Member States, in particular those 
concerning the establishment of multi-annual employment programmes. 
This observation system, based on a strengthening of the European Employment 
Observatory which consists of a mutual information system on employment 
policies (MISEP) and an European documentation system (SYSDEM), will also 
collect details of all relevant research work in the area of employment at national 
and international level. 
On the basis of MISEP and SYSDEM experience, a budget from between 1 
MECU in 1996 to 1,6 MECU in 2000 is deemed the necessary minimum. These 
amounts will in particular be used to gather information - through national 
correspondents - on the employment policies in the 15 Member States, to produce 
- 19 -
overviews and to present the results via comparative, synoptic tables at Union 
level. 
A.2 Analysis 
This analytical work is designed to evaluate and compare at Community level the 
measures of the Member States in the area of employment policy. The results of 
this work will be presented to the other Community Institutions, to the Member 
States and other players concerned by employment policy, notably by means of 
the annual Report on Employment in Europe. In line with the decision taken by 
the Essen European Council, an annual report on developments in employment is 
to be presented. The present analytical work will contribute significantly to the 
preparation of this document 
The observation and monitoring activities will be complemented with specific 
analyses enabling the Commission to evaluate the efficiency of actions promoted 
by Member States, in particular with reference to the development of multiannual 
programmes and the effectiveness of their results. 
A budget from between 1 MECU in 1996 to 1,6 MECU in 2000 is deemed the 
necessary minimum to meet these requirements. 
A.3 Research new issues 
In order to improve knowledge of the factors affecting employment in the medium 
and long term, the framework will support studies dealing in particular with the 
conditions affecting job creation. These studies will take account of the potential 
impact on employment of the globalisation of the economy, the social 
consequences of the completion of the single market, the employment problems 
linked to relations with non-member countries and the associated countries of 
Central and Eastern Europe, and to the new Euro-Mediterranean policy. The 
subjects to be covered by studies will include the links between taxation and social 
protection systems and between job supply and demand, the links between 
employment and environmental protection policies, and the analysis of the impact 
of the information society in terms of jobs and social development. 
A budget from between 1 MECU in 1996 to 1,6 MECU in 2000 is deemed the 
necessary minimum to meet this requirement. 
B. Helping to pinpoint and transfer best practices. 
Previous experience has shown how valuable it is to develop Community measures 
which help the Union to pinpoint and transfer best practices for promoting 
employment. Certain of the priorities fixed established by the Essen European 
2o -
Council are particularly suited to the establishment of projects designed to provide 
methodological and technical support in the quest to find new solutions to the 
employment crisis. By their transnational nature and the networking of all players, 
these projects also produce genuine added value of quality for the joint funding 
provided notably by the Structural Funds. 
The projects will be implemented in cooperation with the Member States, the 
accent being on partnership and efforts being made to ensure that the measures are 
consistent with and complement the activities funded by other Community sources, 
especially the Structural Funds, or by national sources. 
Among the priorities established by the Essen European Council, the following 
should be the subject of initiatives forming part of the above-mentioned projects: 
B. 1 The promotion, especially at regional and local level, of initiatives that create 
jobs which take account of new requirements, e.g. in the environmental and 
social services spheres; 
On the basis of the experience with the LEDA programme, a minimum 
budget from between 1,5 MECU in 1996 to 3 MECU in 2000 is required to 
promote identification and dissemination of best practices and their transfer 
to the level of all 15 Member States of the Union. 
B.2 The implementation of measures to help groups particularly hard hit by 
unemployment, particularly young people, long-term unemployed, older 
employees and unemployed women; 
On the basis of experience with previous programmes such as ERGO, a 
budget from between 1,2 MECU in 1996 to 2,1 MECU in 2000 is deemed 
necessary to obtain, on the level of the 15 Member States, the required 
minimum impact ( taking into consideration the relative heterogenity of the 
groups concerned : young people, long term unemployed, unemployed 
women and elderly workers) 
B.3 The encouragement of measures in connection with the reorganization of 
working time, including the adaptation of working hours, which fulfil both 
the wishes of employees and the requirements of competition. 
With regard to this new field of activity in which the Commission has little 
experience, it will first be necessary to collect information before developing 
research actions and their transfer. The minimum budgets deemed necessary 
are from between 0,7 MECU in 1996 to 2 MECU in 2000. 
C. Developing an active policy in disseminating results 
Lastly, the framework is designed to promote active dissemination of all the 
information obtained from the activities. This information will be made available 
to all public and private players concerned with employment problems. Depending 
on the circumstances, dissemination will be by regular bulletins, the Report on 
Employment in Europe, the Social Europe Review and through any 
- 21 -
communication channels deemed necessary to reach the target groups concerned, 
including international seminars. 
On the basis of past experience over the last few years in the field of production, 
editing (including translations) and distribution, these activities will be divided into 
producing written materials (annual Employment in Europe report, bulletins 
comparable to the present existing ones for MISEP and SYSDEM), producing 
informatics such as the development of databases on CDROM, the realisation of 
media events such as the "employment week",and the organisation of national and 
international seminars to exchange information and experience or to publicise 
evolutions in the field of employment. 
A budget from between 1,6 MECU in 1996 to 2,6 MECU in 2000 is deemed the 
necessary minimum to meet these requirements. 
9.2 Grounds for the operation 
In December 1994, the European Council confirmed that the fight against 
unemployment and to achieve equality of opportunity for men and women were 
priority tasks for the Union. It therefore urged the Member States to incorporate 
its recommendations on employment into relevant multiannual programmes. It also 
requested the Council and the Commission to keep close track of employment 
trends and to report to it annually. 
On the basis of the above , the Commission considers it necessary to contribute 
with this new approach, and apart from other initiatives, to the process of 
multilateral monitoring recently proposed to the Council. 
9.3 Monitoring and evaluation of the operation 
Given that this framework is designed to encourage new solutions to employment 
problems, the functions of monitoring and evaluation naturally form part of the 
activities implemented, in such a way as to derive maximum benefit from them. 
Two approaches will be used to evaluate the content of the measures: 
an efficiency analysis to compare the results obtained from each measure 
with the objectives established for it; 
an effectiveness analysis to determine the impact of the measures promoted 
on decision-taking. 
The evaluation of projects will seek to identify and organise the transfer of best 
practices. 
The Commission will present the Council with a final report on the 
implementation of the measure before 31 December 2001. 
- 22 -
10. Administrative expenditure (Part A of the budget) 
Administrative expenditure necessary for the implementation of "ESSEN" is provided 
for a fixed period of 5 years from 1996. They do not imply a supplementary budgetary 
allocation. 
10.1 Technical assistance - consultancy - budget heading 1178 
The measures will be managed, and their results applied, by the staff of the 
Employment Directorate of DG V, where necessary, in collaboration with other 
relevant services within the Commission. 
Specialised consultants will be used for the operational management of the 
measures relating to the European Employment Observatory (multilateral follow-up 
of the employment policies of the Member States, and analyses) and to the 
projects. 
The estimates of the expenditure to cover the fees of the consultants responsible 
for the operational management which are to be attributed to budget heading A-
1178 are as follows: 
A117X 
Observatory 
Projects 
Total 1995 1996 
630. (XX) 
870. (XX) 
1.500.000 1997 
660.(XX) 
900. (XX) 
1.560.000 1998 
690.000 
945.000 
1.635.000 1999 
725.(XX) 
990.000 
1.715.000 2(XX) 
760 (XX) 
1.040.(XX) 
1.800.000 
For 1996 + /-30 persons/year at an average cost of 50.000 ecus/year. 
10.2 Operating expenditure - AO-2380 
The operating expenditure resulting from the activities described in point 10.1 are 
estimated to be: 
A2380 
Observatory 
Projects 
Total 1995 1996 
900.000 
450.000 
1.350.000 1997 
950.000 
500.000 
1.450.000 1998 
1.000.000 
500.000 
1 .500.000 1999 
1.050.000 
600.000 
1 .650.000 2000 
1.100.000 
650.000 
1.750.000 
The granting of any supplementary resources must be seen in the context of the 
priorities decided by the Commission in fixing the limits for the future budgetary 
exercises and the allocation of resources. In any event, supplementary resources 
will not prejudge the decision to be taken in this case. 
- 23 -

ISSN 0254-1475 
COM(95) 250 final 
DOCUMENTS 
EN 05 
Catalogue number : CB-CO-95-305-EN-C 
ISBN 92-77-90650-2 
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