Opinion of the Committee of the Regions on the 'Proposal for a Council Regulation on the European Social Fund` (1999/C 51/08)

THE COMMITTEE OF THE REGIONS,

having regard to the Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and Committee of the Regions on the Agenda 2000 legislative proposals: overall view;

having regard to the proposal for a Council Regulation (EC) on the European Social Fund [COM(98) 131 final - 98/0115(SYN)] ();

having regard to the Commission's decision of 18 March 1998 to consult it on this matter in accordance with Article 198c(1) of the Treaty establishing the European Community;

having regard to the decision taken by its Bureau on 13 May 1998 to allocate the preparation of the opinion to Commission 5 for Social Policy, Public Health, Consumer Protection, Research, Tourism;

having regard to the Opinion on the 'Proposal for a Council Regulation (EC) laying down general provisions on the Structural Funds` (CdR 167/98 fin) () adopted by the Committee of the Regions on 17 September 1998 (rapporteurs: Mr Behrendt and Mr Fraga Iribarne);

having regard to the working document (DI CdR 53/98) adopted by Commission 7 on 26 June 1998 (rapporteur: Lord Tope);

having regard to the Draft Opinion (CdR 155/98 rev. 2) adopted by Commission 5 on 29 September (rapporteurs: Mrs Matthews and Mr Correia),

adopted the following opinion at its 26th plenary session on 18 and 19 November 1998 (meeting of 19 November).

1. Introduction

1.1. The draft Regulation is one of a package of Regulations on the Structural Funds adopted along with other legislative proposals under Agenda 2000 on 18 March by the European Commission. The Regulation defines the general arrangements governing the ESF (Fund) as a whole and defines the nature of the activities, which the ESF may finance under Objectives 1, 2, 3, and the Community Initiative dealing with discrimination and inequalities in access to the labour market.

1.2. The Regulation redefines the scope of the Fund within the context of the restructuring and simplification of the Objectives and the implementation of the European Employment Strategy and National Employment Action Plans. As a consequence, the Commission has proposed to redefine the eligible actions of the Fund with the adoption of a common framework for the implementation of the Fund in all three objectives to ensure consistency and complementarity of actions across all objectives.

1.3. The Regulations also state that the Member States and the Commission should ensure that the labour market dimensions of the Information Society, equal opportunities between men and women and non-discrimination on the grounds of age, race, religion, disability and sexual orientation are issues that must be taken into account when programming and implementing actions are financed by the Fund.

1.4. The Fund can also provide assistance to SMEs which are affected by industrial change to meet the changing needs of workers, changing production systems and to predict possible future changes.

1.5. The Fund will continue to strengthen employment and job qualifications by continued support within the fields of anticipation, counselling, training and networking throughout the Union ensuring that activities will be geographically horizontal and cover the economy as a whole with no priority given to a particular sector.

2. The Regulation

2.1. Mission (Article 1)

2.1.1. The Fund should support human resource development measures to promote a high level of employment and social inclusion, gender equality and economic cohesion. In particular the Fund shall contribute to the actions outlined in the European Employment Strategy and the Annual Guidelines on Employment.

2.1.2. The COR supports the proposed mission, however believes that the proposal should include the following text 'and non discrimination on the grounds of age, race, ethnic-linguistic group, religion, disability and sexual orientation` after 'gender equality`.

2.1.3. The COR welcomes the integration of Objective 3 ESF with the European Employment Strategy.

2.1.4. However, the COR believes local and regional elected representatives should be fully involved in the development and implementation of Annual Guidelines on Employment. As these Guidelines will provide a framework for the use of ESF, and set priorities for ESF use, local and regional authorities, (as the main implementation bodies) must be consulted and fully involved in the priority setting. In the COR's view, the future Objective 3 must not be deployed solely to fund national government priorities; local and regional authority policies must also be reflected in the priorities to be established by each Member State.

2.1.5. In the COR's view, one important facet of future EU and national strategies should be the direct participation by both local and regional bodies and the social partners in framing a dynamic growth and employment policy. The Commission has stated that working in partnership enables all parties to be involved in the implementation of the Fund, thus adding to the credibility and efficiency of the Fund.

2.2. Scope of Intervention (Article 2)

The Fund shall support and complement the activities of the Member States in the following five policy fields:

1) development of active labour market policies to combat unemployment, to prevent men and women entering long term unemployment and to facilitate the re-integration of the long-term unemployed and the young unemployed;

2) promotion of social inclusion and equal opportunities for all to access the labour market;

3) development of education and training systems;

4) improvement of systems to promote a skilled, trained adaptable workforce, foster innovation and adaptability in work organizations;

5) improvement in the participation of women in the labour market.

2.2.1. The Fund will also contribute to promoting local development including local employment initiatives and territorial employment pacts and will take account of the social and labour market dimensions of the information society.

2.2.2. The COR welcomes these priority areas, and particularly notes the links made to the European Employment Strategy. The COR welcomes the broad definition of assistance options, since this enhances Member States' and regions logistical room for manoeuvre; at the same time, however, given the desire to use the Structural Fund resources more efficiently, the ESF should focus on its labour market and employment policy remits. In this context it should be left up to the Member States, regions and local authorities to select from the Objective 3 and ESF assistance options those core areas and measures which best take account of their specific requirements in human resource development. The COR endorses these priorities and has noted the links established with the European employment strategy. With particular reference to the prevention of long-term unemployment, the COR would draw attention to the role of local and regional authorities, which is often overlooked by the general public. A large number of projects in a wide variety of fields (social action, housing, health) focus on disadvantaged persons with a view to improving their conditions so as to facilitate their re-integration into the labour market. It is also necessary to specify the areas of education which are considered to be eligible for ESF funding.

2.3. Eligible Activities (Article 3)

Financial support shall be provided for the following activities:

2.3.1. Assistance to persons

a) education and vocational training, upgrading of skills and guidance and counselling;

b) employment aids and aids for self employment;

c) science and technology development, post graduate training and training for managers;

d) development of new sources of employment.

2.3.2. Assistance to structures and systems

a) development and improvement of the quality and content of training and qualification systems;

b) modernization and improved efficiency of employment services;

c) development of links between the world of work and education, training and research establishments;

d) development of systems for forward planning and anticipation of employment and industrial change.

2.3.3. Accompanying measures

a) assistance in the provision services to beneficiaries, including care services;

b) capacity building to facilitate a pathway approach to labour market integration;

c) awareness raising.

The COR welcomes the implicit recognition of the role played by SMEs (small and medium enterprises) in the creation of long-term, competitive jobs.

2.4. Concentration of Assistance (Article 4)

The ESF will contribute to all three objectives:

a) Objective 1 - promoting the development and structural adjustments for regions lagging behind;

b) Objective 2 - supporting economic and social conversion of areas facing structural difficulties;

c) Objective 3 - supporting the adaptation and modernization of policies and systems of education training and employment.

Objective 3 will operate outside of the Objective 1 and 2 areas and will also provide a frame of reference for all ESF measures to promote human resources in a national territory.

2.4.1. Before the ESF programmes are implemented the Member States must conduct an assessment of the need for the measures that ESF can support. This assessment must be done within the three Objectives to ensure the Fund is concentrated in the appropriate fields, giving particular emphasis to the creation of an adaptable workforce and improving the participation of women in the workforce.

2.4.2. Within these programmes at least 1 % of the Fund will be made available as small grants to local groups, with special arrangements to allow speedier access to the Fund.

2.4.3. The COR welcomes the concentration on the most needy areas and the opportunities created for small groups to participate in the Fund. Consequently the COR believes that there is no necessity for Objective 3 plans and programmes to be presented at a national level and stress that the Member States should continue to be able to put forward Objective 3 plans and programmes which have been framed and implemented at regional level. The national plan can encapsulate regional priorities and ensure consistency with the measure's overall priorities. The COR considers that the tasks assigned to Objective 3 require that programming, implementation and follow-up are carried out as close to grassroots level as possible.

2.4.4. Having regard for the Behrendt and Fraga Opinion on the general regulations which was adopted at the September plenary, the COR would welcome the proposed Objective 3 programme to remain horizontal therefore covering Objective 2 areas.

2.5. Community Initiative (Article 5)

2.5.1. The Fund shall provide assistance from the Community Initiative that aims to combat discrimination and inequalities in access to the labour market.

2.5.2. The Fund in the future could be used for activities under the Community Initiative that previously would only have been funded by the other Structural Funds.

2.5.3. The COR welcomes this flexibility, because it enables a simplified implementation of the Community Initiative.

2.6. Innovative Measures and Technical Assistance (Article 6)

2.6.1. The Commission may finance preparatory, appraisal, monitoring and evaluation of operations, which are necessary for the implementation of the programmes outlined in the Regulation.

These may include:

a) pilot and innovatory projects in the field of training, employment and labour markets;

b) studies and exchange of experience;

c) technical assistance for the monitoring and evaluation and appraisal of the Fund implementation;

d) publicity of the Fund.

2.6.2. Again the scope of the Fund may be extended to fund activities which may be funded by the other Structural Funds.

2.6.3. The COR notes that under Articles 21 and 22 of the framework regulation, a total of 1 % of Structural Fund resources are to be earmarked for innovative measures and technical assistance. It would ask the Commission to specify more precisely which types of measures are to qualify for funding under Article 6 of the ESF Regulation and which activities are to be excluded.

2.7. Application for Assistance (Article 7)

Application for Assistances from the Fund must be accompanied by a computerized form, which will be designed by the Member State and the Commission. The COR hopes that national arrangements for implementing Objective 3 will be sufficiently flexible and pragmatic to ensure that ESF intervention facilitates effective and visible action among the target groups concerned. The COR also urges the Member States not to introduce implementing procedures that could compromise the Commission's stated aim of simplification and flexibility.

2.8. Implementing Provision (Article 8)

In implementing this Regulation the Commission shall be assisted by five committees. The Commission shall send a report at three-yearly intervals on the progress in achieving economic and social cohesion, the role of the Fund and any proposals concerning Community measures and policies.

The committees are:

2.8.1. An Advisory Committee on the Development and Conversion of Regions will be constituted and chaired by the Commission. The Commission shall submit draft decisions for the Committee to deliver opinions within a specified time limit.

Committee under Article 124 of the Treaty will be constituted and deliver opinions on draft Commission decisions relating to single programming documents under Objective 3 and in the case of ESF, on the Community Support framework (CSF) and programming documents relating to Objective 1 and 2.

Management Committee on Agricultural Structures and Rural Development shall be constituted and shall draw up its own rules of procedure. The Committee shall give opinions on draft Commission decisions relating to the establishment of the list of areas eligible under Objective 2 and to the corresponding single programming documents.

Management Committee on Fisheries and Aquaculture. The Committee shall give opinions on draft Commission decisions relating to the establishment of the list of areas eligible under Objective 2 and to the corresponding single programming documents.

Management Committee for Community Initiatives. The Commission shall submit draft decisions for the Committee to deliver opinions within a specified time limit.

2.8.2. The COR welcomes the establishment of these committees, but strongly calls for local and regional elected representatives and NGOs to have seats on these bodies.

2.9. Transitional Provision (Article 9)

This article cross-refers to the General Regulation on the Structural Funds.

The Commission proposes that eligible expenditure will not be acceptable before the date the Commission receives the draft programme document.

The COR welcomes and accepts this proposal.

3. Conclusions

3.1. The COR supports the proposed mission, however believes that the proposal should include the following text 'and non-discrimination on the grounds of age, race, religion, disability and sexual orientation` after 'gender equality`, in the regulation.

3.2. The COR believes local and regional authorities should be fully consulted by their national Governments on the development and implementation of Annual Guidelines on Employment, as these Guidelines will provide a framework for the use of ESF, and set priorities for ESF use. (Article 1)

3.3. The COR welcomes the inclusion of the Information Society and social cohesion in the proposed Regulation. (Article 1)

3.4. The COR welcomes these priority areas, and particularly notes the links made to the European Employment Strategy (Article 2).

3.5. The COR welcomes the recognition given to the need to aid the SMEs. Under the new ESF Regulation, the creation of long-term, competitive jobs is promoted by aid to SMEs. Such efforts must in future receive the closest attention, as it is SMEs, which generate the largest number of jobs. (Article 2 and 3)

3.6. The COR welcomes the broad definition of assistance options, since this enhances Member States' and regions logistical room for manoeuvre; at the same time, however, given the desire to use the Structural Fund resources more efficiently, the ESF should focus on its labour market and employment policy emits. In this context it should be left up to the Member States, regions and local authorities to select from the Objective 3 and ESF assistance options those core areas and measures which best take account of their specific requirements in human resource development (Article 4).

3.7. The COR welcomes the flexibility applied to the scope of the ESF with regard to the Community Initiative as it enables a simplified implementation of the programme (Article 5).

3.8. The COR calls on the Commission to increase the appropriation earmarked for innovative measures from 1,5 % to 1,7 % in the view of need, within the sphere of the Social Fund, to try out new tactics and to stimulate innovative measures (Article 6).

3.9. The COR regrets that local and regional organizations have not been included as representatives of the Committees to be established for implementing the ESF provisions. Local and regional organizations are included on Member State Committees and therefore should have a voice at Community level (Article 8).

3.10. The COR recommends that eligible expenditure for programmes should be acceptable from 1 January 2000, notwithstanding when the application reaches the Commission (Article 9).

Brussels, 19 November 1998.

The President of the Committee of the Regions

Manfred DAMMEYER

() OJ C 373, 2.12.1998, p. 1.

() OJ C 176, 9.6.1998, p. 39.