Proposal for a COUNCIL DECISION setting up a Social Protection Committee

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Introduction

The Commission's new initiative for enhanced co-operation on the European level

On the basis of two previous Communications ("The Future of Social Protection: a Framework for a European Debate" [1] of 1995 and "Modernising and Improving Social Protection in the EU" [2] of 1997) the Commission presented in July 1999 a number of suggestions how to enhance the co-operation in the field of social protection on the European level.

[1] Communication from the Commission: The Future of Social Protection: A Framework for a European Debate (COM(95) 466 final).

[2] Communication from the Commission: Modernising and Improving Social Protection in the European Union (COM(97) 102).

In this new Communication on "A Concerted Strategy for Modernising Social Protection" [3] the Commission proposed that the Council endorsed a framework for closer co-operation in the field of social protection, based on the exchange of experiences, mutual concertation and evaluation of ongoing policy developments with a view to identifying best practices.

[3] Communication from the Commission: A Concerted Strategy for Modernising Social Protection (COM(1999) 347 final).

The Commission identified three key elements to bring about this co-operation:

- a group of high-level officials: Member States were invited to designate high-level senior officials to act as focal points for the new co-operation.;

- systematic use of the "Social Protection in Europe-report": In order to assist Member States in this process of co-operation and to monitor policy developments, the Commission announced its intention to adapt its Social Protection in Europe report and to publish and submit it to the Council from now on annually (cf. point 2);

- involvement of all relevant actors: the Commission proposed to invite other Community institutions, in particular the European Parliament, the Economic and Social Committee and the Committee of the Regions to co-operate in this process and to invite also social partners, NGOs and social security institutions to contribute to this process.

The Council Conclusions

The Social Affairs Council in Luxembourg on the 22 October 1999 discussed the Communication's suggestions in detail, and, in the light of this discussion, the Social Affairs Council in Brussels agreed on the 29 November to endorse them [4].

[4] Council Conclusions on the Commission's Communication on a concerted strategy for modernising and improving social protection of 17 December 1999 (OJ 2000/C 8/7).

In its Conclusions, the Council

- underlined "the need for co-operation in modernising social protection, based on a structured and permanent dialogue, follow-up and exchange of information, experience and good practice between the Member States" [5];

[5] Point (3)of the Council Conclusions of 17 December 1999.

- acknowledged "the need to discuss the future of social protection at the European level" [6];

[6] Point (3)of the Council Conclusions of 17 December 1999.

- supported "the Commission's suggestion to establish a mechanism for enhanced co-operation brought about by the work of a group of high-level officials for the implementation of this action" [7]; and

[7] Point (11) of the Council Conclusions of 17 December 1999.

- underlined "the necessity to create this group as soon as possible" [8].

[8] Point (12) of the Council Conclusions of 17 December 1999.

The present proposal for a Council Decision follows up these Council Conclusions in order to set up, as soon as possible, this group of high-level officials.

It is suggested to name this group "European Social Protection Committee" (ESPC). This title is to stress the analogue character of this group's work to the co-operation sui generis between the Member States and the European Commission, which existed in the field of employment before the entering into force of the Amsterdam Treaty.

2. The ESPC and the preparation of the Annual Social Protection Report

Beside the creation of the ESPC, the other key instrument of the new mechanism for enhanced co-operation is the new "Annual Social Protection-report". The Council Conclusions establish a direct link between the report and the tasks of the European Social Protection Committee by conveying it the task to prepare a report to be submitted to the Council [9].

[9] Cf. point (11) of the Council Conclusions of 17 December 1999.

The new "Annual Social Protection-report" builds on the existing co-operation between the Commission and the Member States in the drafting of the "Social Protection in Europe-report", which was published in 1993, 1995 and 1997, and on the experiences gathered in this co-operation. This new report will be published on an annual basis (instead of every second year as it was the case with the "Social Protection in Europe-report") and will systematically take into account the four broad policy objectives outlined in the Commission's Communication and endorsed in the Council Conclusions [10].

[10] Cf. point (6) of the Council Conclusions of 17 December 1999.

Art. 1, point 2, third sub-section of the draft Council Decision setting up a Social Protection Committee reflects the new report's character as central instrument within the new mechanism for enhanced co-operation and the European Social Protection Committee's role in preparing the report.

In its Conclusions the Council requested that "work should begin immediately and a progress report should be prepared in the context of the European Council in June 2000" [11]. In order to meet this deadline, the Commission, for an interim period, works together with representatives designated by the Member States, as requested by the Council. The first two meetings of this ad interim group have taken place on 26 January and 23 February 2000.

[11] Point (12) of the Council Conclusions of 17 December 1999.

3. Working Arrangements with other Committees

The Council emphasised in point (4) of its Conclusions "that the new co-operation towards improving and modernising social protection should be a coherent action, parallel to and inter-active with the European Employment Strategy as well as to the macro-economic dialogue."

Therefore, Article 1, point 3 of the proposal for a Council Decision provides for the possibility to ensure this close co-operation, requested by the Council, with other relevant bodies and committees.

2000/0055 (CNS)

Proposal for a COUNCIL DECISION setting up a Social Protection Committee

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the proposal of the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Having regard to the opinion of the Committee of the Regions,

Whereas:

(1) The European Commission has made in its Communication "A Concerted Strategy for Modernising Social Protection" of 14 July 1999 (COM(1999) 347 final) suggestions for the enhancement of co-operation in the field of social protection by, among other things, setting up a group of high-level officials;

(2) The European Parliament has welcomed the Commission's Communication and the creation of such a group in its Resolution on the Communication from the Commission on a concerted strategy for modernising social protection (A5-0033/2000);

(3) The Council, in its Conclusions of 17 December 1999 on the strengthening of co-operation for modernising and improving social protection (OJ 2000/C 8/7), underlined the need for co-operation in modernising social protection, based on a structured and permanent dialogue, follow-up and exchange of information, experience and good practice between the Member States;

(4) The Council, in the same Conclusions,

- supported the Commission's suggestion to establish a mechanism for enhanced co-operation brought about by the work of a group of high-level officials for the implementation of this action;

- underlined that this kind of co-operation should cover all forms of social protection and should help the Member States, where necessary, to improve and strengthen their social protection systems, including their financing, in accordance with their national priorities;

- considered it particularly important that this new co-operation towards improving and modernising social protection should be a coherent action, parallel to and interactive with the European employment strategy as well as to the macro-economic dialogue; and

- underlined the role of the social partners in the modernisation of the social protection process;

HAS DECIDED AS FOLLOWS:

Article 1

1. An Advisory Social Protection Committee (hereinafter referred to as "the Committee") is hereby established to promote co-operation at Community level on social protection policies.

2. The tasks of the Committee shall be, inter alia,

- to monitor social protection policies in the Member States' and the Community;

- to facilitate exchanges of information, experience and good practice between Member States and with the Commission; and

- to prepare an annual report on Social protection to be submitted to the Council, reporting on policy developments in respect to the achievement of the objectives pointed out by the Council.

The Committee may, at the request of the Council or the Commission, prepare other reports or opinions or undertake other work in the area of its competence.

3. The Committee shall work as appropriate in co-operation with other relevant bodies and committees dealing with social and economic policy matters.

4. In fulfilling its mandate, the Committee shall establish appropriate contacts with the social partners.

Article 2

The Committee shall consist of two representatives appointed by each Member States and two representatives of the Commission. These representatives may be assisted by two alternates.

Article 3

1. The Committee shall elect its chairman from among the representatives of the Member States for a non-renewable term of two years.

2. The Secretariat of the Committee shall be provided by the Commission.

3. The Committee shall establish its own rules of procedure.

4. Meetings of the Committee shall be convened by the chairman, either on his own initiative or at the request of at least half of the members of the Committee.

Done at Brussels,

For the Council

The President

FINANCIAL STATEMENT

1. Title of operation

Creation of a Social Protection Committee.

2. Budget heading(s) involved

A 7031 Obligatory Committees.

A 7010 Mission expenses, travel expenses and incidental expenditure.

3. Legal basis

Title XI of the EC-Treaty. Council Decision expected during 2000.

4. Description of operation

4.1 General objective

In its Conclusions of 17 December 1999 (2000/C 8/7) on the strengthening of co-operation for modernising social protection, the Council supported the Commission's suggestion to establish a mechanism for enhanced co-operation brought about by the work of a group of high-level officials. This group has to examine the issues raised in the Commission Communication "A Concerted Strategy for Modernising Social Protection" (COM(1999) 347 final) and in the Council's Conclusions, and will in particular, prepare an Annual Social Protection Report to be submitted to the Council. The Council underlined also "the necessity to create this group as soon as possible."

4.2 Period covered and arrangements for renewal

Indefinite.

5. Classification of expenditure or revenue

5.1 Compulsory/Non-compulsory expenditure

Non-compulsory expenditure.

5.2 Differentiated/Non-differentiated appropriations

Non-differentiated appropriations.

5.3 Type of revenue involved

Type of revenue involved: none.

6. Type of expenditure or revenue

100% for the necessary personnel and costs of meetings.

7. Financial impact

No impact on operational expenditure; for administrative expenditure see point 10.

8. Fraud prevention measures

Expenditure will be carried out in accordance with the normal administrative rules governing the payment of expenses of experts invited to meetings.

9. Elements of cost-effectiveness analysis

9.1 Specific and quantified objectives; target population

To set up an Social Protection Committee to assist the Council in carrying out its responsibilities in the field of social protection, in full compliance with the Treaties and with due regard for the powers of the Community's institutions and organs.

The Committee shall, in particular, be responsible for:

- monitoring social protection policies in the Member States' and the Community;

- facilitating exchanges of information, experience and good practice between Member States and with the Commission; and

- preparing an annual report on Social protection to be submitted to the Council, reporting on policy developments in respect to the achievement of the objectives pointed out by the Council.

The Committee shall work as appropriate in co-operation with other relevant bodies and committees dealing with social and economic policy matters.

9.2 Grounds for the operation

In order to ensure the continued success of the co-operation in the field of social protection, in particular of the Convergence of social protection objectives and policies as agreed by the Council (92/442 EEC) and of the follow-up of the Commission's Communication "The Future of Social Protection: a Framework for a European Debate" (COM(95) 466 final), the Council supported the suggestion "to establish a mechanism for enhanced co-operation brought about by the work of a group of high-level officials for the implementation of this action" and underlined "the necessity to create this group as soon as possible (Council Conclusions of 17 December 1999 on strengthening of co-operation for modernising and improving social protection, (2000/C 8/7)).

9.3 Monitoring and evaluation of the operation

The Committee shall be responsible for preparing opinions and reports for the Social Affairs Council and the European Council.

9.4 Coherence with financial programming

The measures provided for are included in the financial programming of DG EMPL.

10. Administrative expenditure (Section III, Part A of the budget)

10.1 Effect on the number of posts

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Pace at which additional posts will have to be made available: once Council Decision has been adopted, probably during second half of 2000.

10.2 Overall financial impact of additional human resources

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The amounts given must express the total cost of additional posts for the entire duration of the operation, if this duration is predetermined, or for 12 months if it is indefinite.

10.3 Increase in other administrative expenditure as a result of the operation

Travel costs for Member State experts will be provided in accordance with the rules currently in force. Meetings of the Committee will be organised by the Commission in Commission meeting rooms. Interpretation will be provided by the Commission. It is estimated that the Committee will meet around 8 times per year.

It is estimated that these 8 meetings (30 participants) will cost around 180 000 EUR per year under budget heading A 7031.

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The amounts given must correspond to total expenditure arising from the operation if its duration is predetermined or expenditure for 12 months if it is indefinite.

All expenditure attributed to Title A7 will be covered from the annual allocation for administrative credits.