COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 551 final 
Brussels, 17 November 1993 
GREEN PAPER 
EUROPEAN SOCIAL POLICY 
OPTIONS FOR THE UNION 
(presented by the Coaalsston) 
GREEN PAPER 
EUROPEAN SOCIAL POLICY 
OPTIONS FOR THE UNION 
INTRODUCTION - THE PURPOSE OF THE GREEN PAPER 6 
I. ACHIEVEMENTS OF THE COMMUNITY SOCIAL DIMENSION 9 
A LEGAL ATTAINMENTS OR "ACQUIS" 9 
B THE CHARTER OF FUNDAMENTAL SOCIAL RIGHTS 
FOR WORKERS AND THE ACTION PROGRAMME 10 
C FINANCIAL SUPPORT 11 
D COOPERATION, MOBILISATION, EXCHANGES 12 
E SOCIAL DIALOGUE: A CONSENSUS APPROACH 12 
F CONCLUSION 13 
II. THE SOCIAL CHALLENGES FOR EUROPE 14 
A EUROPE IN THE WORLD 14 
B WHAT SORT OF A SOCIETY DO EUROPEANS WANT? 15 
C IS THERE A ROUTE BACK TO FULL EMPLOYMENT? 18 
1. The Challenge of Technological and Structural Change 19 
2. The Employment Policy Tripod 20 
3. The Role of Work in Society 21 
D A NEW ROLE FOR THE WELFARE STATE? 21 
1. Social exclusion 22 
2. Social policies to integrate people into society 23 
3. A demographic transformation 24 
E ISSUES OF SOCIAL JUSTICE AND EQUALITY OF OPPORTUNITY 25 
1. Education cannot do it alone 25 
2. The workplace as the new frontier 26 
3. Inter-generational inequalities 26 
4. Citizenship and workers' rights 27 
F WOMEN'S RIGHTS AND OPPORTUNITIES 27 
G THE OPPORTUNITIES AND LIMITS OF INTERNATIONALISATION 
AND GLOBALISM 28 
1. The need for social ground rules 29 
2. The implications for Europe 30 
H THE CHANGING NATURE OF PRODUCTION 30 
1. Where Europe stands 31 
2. The new balance between macro-economic and structural policies 31 
3. The interdependence between physical and "intangible" capital 32 
4. The obsolescence of human capital 32 
5. Creativity within enterprises 32 
6. Job creation and entrepreneurship 32 
7. The role of services 33 
8. Quality of output, quality of work and quality of life 33 
9. The urban/rural balance 34 
I WHERE THE CHALLENGES LIE - A SUMMARY 35 
III. EUROPEAN UNION - POSSIBLE RESPONSES TO THE CHALLENGES 
A DEMOCRACY AND SOCIAL POLICY: A MEDIUM TERM STRATEGY 37 
B PRIORITY ISSUES COMMON TO THE MEMBER STATES: 
THE CONVERGENCE OF SOCIAL POLICIES 39 
1. IMPROVING THE EMPLOYMENT SITUATION 40 
2. ACCELERATING PROGRESS TOWARDS A QUALITY - BASED 
PRODUCTION SYSTEM 43 
(a) Human resource development 44 
(b) Labour standards and working conditions 45 
(c) Redefining labour market adaptability 46 
(d) Measures to accompany a quality-based production system 47 
3. STIMULATING SOLIDARITY AND INTEGRATION 48 
(a) Convergence of social policies 48 
(b) The fight against poverty and exclusion: prevention and rehabilitation 49 
(c) Youth opportunities and risks 51 
(d) The economic and social role of the elderly 52 
(e) Equal opportunities for immigrants 53 
(f) The integration of disabled people 54 
(g) The fight against racism and xenophobia 55 
(h) Social policies and rural development 55 
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MAIN POLICY OBJECTIVES AT EUROPEAN LEVEL 57 
1. THE SINGLE MARKET AND THE FREE MOVEMENT OF PEOPLE 59 
2. PROMOTING EQUAL OPPORTUNITIES FOR WOMEN AND MEN 
IN A CHANGING EUROPEAN SOCIETY 63 
3. THE SOCIAL TRANSITION TO ECONOMIC 
AND MONETARY UNION 66 
4. ISSUES OF SOCIAL STANDARDS 68 
(a) Common minimum standards relating to working 
conditions and labour law 68 
(b) Social standards within Europe 69 
(c) Adjustment assistance 70 
5. REINFORCING THE SOCIAL DIALOGUE 71 
(a) Strengthening the architecture and functioning of the Social Dialogue 72 
(b) The issue of European-wide collective bargaining 72 
(c) The changing industrial relations agenda 73 
6. HEALTH MATTERS 75 
(a) Health and safety at work 75 
(b) Public health 76 
7. ECONOMIC AND SOCIAL COHESION: THE ROLE OF 
THE EUROPEAN SOCIAL FUND 76 
(a) Tackling the diverse needs of the unemployed 
and those excluded from the labour market 77 
(b) Adapting the workforce to the new challenges 78 
(c) Strengthening initial training/RST systems 78 
(d) A partnership approach 79 
(e) Concentrating on the areas of greatest need 79 
8. INTERNATIONAL ASPECTS 81 
(a) Minimum international labour standards 81 
(b) The EFTA candidates 82 
(c) The Central and Eastern European countries 82 
9. DEMOCRATISING THE PROCESS OF SOCIAL CHANGE 
AND CONSTRUCTING A PEOPLE'S EUROPE 83 
IV. CONCLUSION 86 
V. LISTING OF QUESTIONS 87 
ANNEXES 
I SUMMARY OF EXTERNAL CONTRIBUTIONS TO THE GREEN PAPER 
II LIST OF LEGISLATION (NON EXHAUSTIVE) 
III IMPLEMENTATION OF THE SOCIAL CHARTER ACTION PROGRAMME 
IV EUROPEAN SOCIAL DIALOGUE 
V PROGRAMMES, NETWORKS AND OBSERVATORIES 
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INTRODUCTION - THE PURPOSE OF THE GREEN PAPER 
European social policy1 is entering into a critical phase. This is due to three main 
factors: 
the present Social Action Programme is reaching its natural end. The Commission 
has presented all of the 47 proposals involved and, while some of the most 
important proposals are still pending before the Council, the majority have been 
adopted; 
the entry into force of the Treaty on European Union has opened up new 
possibilities for Community action in the social field, particularly by giving a 
stronger role to the social partners; and 
the changing socio-economic situation, reflected notably in the serious levels of 
unemployment, is requiring a new look at the link between economic and social 
policies, both at national and Community level. 
The Commission considers that this situation requires the launching of a wide-ranging 
debate about the future direction of social policy, before it proceeds to put forward 
specific proposals in the form of a White Paper. 
To prepare this Green Paper, the Commission issued a public appeal for contributions 
and comments. 150 contributions have been received, including official responses from 
Member States and from a wide range of bodies and individuals. These are listed in 
Annex 1. The contributions have demonstrated a firm interest in clarifying various 
aspects of EC social policy in the next stage of development of the European 
Community. 
The intention is to stimulate a wide-ranging debate within all Member States about the 
future lines of social policy in the European Union. It is being issued to coincide with the 
ratification of the Maastricht Treaty, an opportune time to take stock and consider the 
different options for the future. 
The Green Paper is, therefore designed, to form the basis of such a debate, which, it is 
hoped, will take place not only at national level within each Member State but also 
between all interested parties, including, of course, the social partners, as well as 
specific interest groups. The Commission will follow these discussions carefully and seek 
to draw from them the major themes of the future White Paper. This Green Paper does 
not deal with the procedural implications of the new Maastricht provisions as these will 
be the subject of a separate Communication. 
Of course, this process will be taking place at a moment when the attention of the 
Community is focused on the whole issue of how to reconcile economic and social 
objectives in the face of rising unemployment and growing concern about Europe's 
ability to remain competitive into the 21st century. 
* The term "social policy" has many different meanings which also vary from Member State to Member State. For the purposes of this 
document it is taken to mean the full range of policies in the social sphere including labour market policies. 
There is much debate in all Member States about how to address the problem of 
unemployment, much of which is now recognised as being structural in character. The 
issues under discussion include the need for greater labour market adaptability, the 
suggestion that wage differentials should be widened and that wages should vary more in 
function of economic conditions, and questions about whether social benefits should be 
reduced or targeted so as to provide greater incentives to seek work. This is linked to the 
problems which all Member States are having in funding the growing demand on social 
protection systems and the search for greater efficiency in the operation of these systems 
as one means of making savings. 
At the same time, there exists a growing degree of public concern that, contrary to the 
objective of ensuring that economic and social progress should go hand in hand as clearly 
stated in both the Treaties of Rome and Maastricht, the net impact of the integration 
process could be a levelling down of social standards. This is reflected in the fear that 
the creation of a single market could open the way to a form of social dumping, that is 
the gaining of unfair competitive advantage within the Community through unacceptably 
low social standards. But there is also a concern that, somehow, the imperative of action 
at European level can become a pretext for changes in social standards at national level. 
In this context, this Green Paper, and the process of debate which it is designed to 
trigger, will be interactive with the discussions around the forthcoming White Paper on 
growth, competitiveness and employment, due to be presented to the European Council 
on 10 December. Since the Green Paper is designed ultimately to channel ideas into the 
development of the-next phase of social policy at European level, it is clear that analysis 
and proposals for action contained in the White Paper on growth will help also to shape 
the climate and the substance of the coming debate on how best to combine the objectives 
of economic success and social progress. 
The premise at the heart of this Green Paper is that the next phase in the development of 
European social policy cannot be based on the idea that social progress must go into 
retreat in order for economic competitiveness to recover. On the contrary, as has been 
stated on many occasions by the European Council, the Community is fully committed to 
ensuring that economic and social progress go hand in hand. Indeed, much of Europe's 
influence and power has come precisely from its capacity to combine wealth creation 
with enhanced benefits and freedoms for its people. 
In current conditions this will not be easy. But Europe's continuing contribution to the 
search for a model of sustainable development which combines economic dynamism with 
social progress can only be made if the issues are openly debated and a consensus arrived 
at. The rich diversity of the cultures and social systems within the European Union is a 
competitive advantage in a fast-changing world. All societies are in the same process of 
learning. But diversity may deteriorate into disorder if the common goals, which embody 
the distinctive values of European society and are set out in the Treaty on European 
Union, are not defended by the efforts of Member States and by people themselves. 
Part I sets out what the Community has already achieved in the social sphere. Part II 
looks at the social challenges now facing us all. It examines the risks of declining social 
cohesion in Europe and the threats to important common goals such as social protection, 
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solidarity and high levels of employment. A new medium-term strategy is needed which 
will draw together economic and social policies in partnership rather than in conflict with 
each other. Only in this way will sustainable growth, social solidarity and public 
confidence be restored. It is acknowledged that European production systems need to be 
based on the new technologies. There can be no social progress without wealth creation. 
But it should also be recognised that the consequent structural changes will have 
considerable impact on other important areas, such as employment intensity, working and 
living conditions, the quality of life and the development of industrial relations. Part III 
discusses the possible responses of the Union to these challenges, both in terms of what 
Member States want and of what the Community is trying to achieve. Part IV provides a 
brief conclusion. Part V brings together the questions raised in different parts of the 
Green Paper. These will be the focus of the debate to follow. 
Graphics in the Green Paper are drawn from the Employment in Europe report 1993, 
except Figure 19 which comes from the report on Social Protection 1993. 
Europe is at a turning point. Decisions taken in the coming period will set the direction 
of social policy for many years to come. Now is the time for all sections of opinion to 
make their views known. 
I. ACHIEVEMENTS OF THE COMMUNITY SOCIAL DIMENSION 
Community social policy has covered a wide range of areas. These include equality of 
opportunity, health and safety matters, employment and labour law matters, issues of social 
protection and social security, as well as action focused on specific points such as poverty 
and the role of the disabled. It has been developed both through the evolution of the 
Treaties and by social and economic change, and has drawn on a variety of instruments, 
depending on the objective concerned. It has, in this respect, fulfilled three major functions: 
to provide a legal framework in specific given areas of the Treaty designed to connect 
the dialogue between the social partners, thereby contributing to the definition at 
various levels of fundamental social rights for workers; 
to give substantial financial support in particular for training and employment 
measures, thereby contributing to the redistribution of financial resources; 
to stimulate and encourage cooperation between various actors of social policy, the 
setting-up of networks and partnerships, the exchange of information and experience 
and the promotion of innovation, good practice and policies. 
Legislation has therefore been only one of a number of tools at the disposal of Community 
social policy and is too often considered in isolation. Often it has complemented other 
instruments. Legislation itself can be used in various ways; only rarely has it been used to 
prescribe certain specific actions in the social policy sphere. 
A. LEGAL ATTAINMENTS OR "ACQUIS" 
Legal provisions have been put in place over a long period. They have furnished a sound 
basis for the guarantee of fundamental social rights for workers, rights which have been 
further consolidated in the case law of the European Court of Justice. The amount of 
legislation is relatively small in relation to other instruments. 
The first regulations adopted in the social field relate to free movement of workers, one of 
the four freedoms of the Treaty, and specifically concern coordination of social security 
systems for migrant workers. These regulations provide basic rights for the free movement 
of workers, which have been widely used by European citizens including through recourse 
to the European Court. 
Another area of Community legislation is equal treatment between men and women. It is 
worth noting how a Treaty provision (Article 119) based originally on a competition 
argument has been able to serve in practice as a basis for a comprehensive policy combining 
rights and the promotion of equal opportunities for women. It is an example of how on the 
basis of legal rights complemented by positive actions, the Community has been able to 
make an active contribution and to stimulate a response to a major issue of a progressive 
society. 
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A third area of more recent legal development concerns the protection of workers as 
regards health and safety at work. On the basis of a framework directive minimum 
requirements to encourage improvements in the health and safety of workers at work have 
been adopted at Community level and constitute a major set of rights covering all sectors of 
activity. 
Other legislation concerning the protection of workers and labour law has been significant 
in particular for preventing risks of social dumping, even if a number of major pieces of 
proposed legislation have yet to be finalised. They should, however, be seen as priority 
items for adoption by the Council. 
Details of the scope and content of Community legislation are to be found in Annex II. 
B. THE CHARTER OF FUNDAMENTAL SOCIAL RIGHTS FOR WORKERS AND 
THE ACTION PROGRAMME 
The instruments used by the Community either singly or in combination culminated in the 
Charter of Fundamental Social Rights for Workers adopted in 1989 and in the Commission's 
action programme. The Charter represents a framework of principles, covering many 
aspects of working and living conditions. The 1990/1991 action programme is aimed at 
giving a tangible expression to these principles. 
The Charter as such was a new point of departure for the Community - not only in 
operational terms but also as a political signal. It expressed the political will that the 
completion of the internal market should not be achieved without taking the "social 
dimension" into account. 
All of the 47 initiatives announced in the action programme have been presented by the 
Commission. Many of these measures did not require legislative action. 29 of the measures 
required Council approval and of these, 16 have been adopted. 
The action programme was based on four fundamental premises: 
subsidiarity, i.e. taking account of the specific nature of social policy and its objectives 
and ensuring that the type of action (harmonisation, coordination, convergence, 
cooperation etc) is matched to the subject matter; also that due consideration is given 
to known needs and to the potential added value of Community action; 
the diversity of national systems, cultures and practices, where this is a positive 
element in terms of the completion of the internal market; 
the preservation of the competitiveness of firms, taking into consideration economic 
and social issues; 
reducing disparities between Member States without interfering in the comparative 
advantage of the less developed regions. 
Details of the progress of individual initiatives are set out in Annex III. 
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In each initiative a balance was sought and achieved. This is the essential background to the 
Commission's action programme, which seeks to establish a sound base of minimum 
provisions, with regard given to the need to avoid any distortion of competition, to support 
moves to strengthen economic and social cohesion and to contribute to the creation of jobs, 
which is the prime aim of competition in the internal market. The dynamic thus created has 
had the beneficial effect of enabling many Member States to bring their national legislation 
up to date as part of the process of transferring Community law. 
The wide variety of tools used by the Commission in its action programme has led to the 
mobilisation of many actors: national authorities, employers, unions, regional and local 
authorities, non-governmental organisations, social workers, practitioners, experts involved 
in observatories and specialist groups. 
Although proposals for binding legislation have played a part, notably on free movement of 
workers, working conditions and health and safety issues, specific programmes (for 
example, Poverty III, HELIOS II, older people and solidarity between generations), 
convergence strategies for social protection and cooperation activities have enjoyed a 
somewhat higher profile in social policy development. In the case of certain areas, such as 
equal opportunities for women, the balance between legislative and programme-based 
activity has been much more even. 
C FINANCIAL SUPPORT 
The massive financial support of the European Social Fund (ESF) for training and 
employment measures has contributed greatly to the development of national measures, 
especially as far as young people and the long-term unemployed are concerned. The role 
of the ESF has been especially significant in developing training in the least favoured 
regions of the Community. 
During the period 1989-1993 the ESF devoted more than 21 billion Ecus to these 
activities, benefiting around 17 million people in the Community. 
The scope of the European Social Fund has been widened as a result of the recent 
revision of the ESF regulation. Its tasks now include broad human resources development 
and the improvement of the workings of the labour market. There is an explicit 
commitment that the principle of equal opportunities for women and men should be 
respected in the implementation of actions financed by the ESF. 
The revision of the ESF regulation has also equipped it with new tools to provide a more 
effective and flexible response to the changing labour market requirements and specific 
challenges facing Member States. A new Objective 4 has been created which aims to 
facilitate the adaptation of workers to industrial change and changes in production 
systems. This not only adds a preventive dimension to the fight against unemployment 
but contributes to competitiveness and growth. Moreover, in addition to continuing its 
focus on young people and the long-term unemployed, ESF support under Objective 3 
has been extended to cover those exposed to long-term unemployment and exclusion from 
u 
the labour market. Particular emphasis is also placed on strengthening employment 
services, broadening the scope of direct aids to employment, extending the range and 
quality of initial training and, in the least favoured regions, reinforcing education, 
training and research, science and technology systems. 
D. COOPERATION. MOBILISATION. EXCHANGES 
In response to social and economic change and to common challenges facing Member 
States, a number of programmes and exchanges have been developed. These have led to the 
creation of large and successful networks. In some cases, this has involved promotion of 
exchanges of information on national situations and/or policies (e.g. observatories/networks 
on employment, equal opportunities, family policies, ageing, exclusion). In addition, 
exchange programmes have tried to identify and evaluate innovative actions and to organize 
exchanges of experience for long-term unemployment, local development, integration of 
disabled persons etc. Other programmes have concentrated on research and awareness 
campaigns (in particular in the health area e.g. the cancer programme). 
On certain issues, more comprehensive programmes combine financial support and 
exchanges (PETRA, IRIS, LEI, poverty, older people and solidarity between generations) 
and/or support concrete actions and legislation. These are good examples of the combining 
of instruments in social policy. 
Whether the programmes concern categories of people (older people, disabled people) or 
issues (employment, health, equal opportunities for women and men, local development, 
training, poverty/exclusion), they are based on the same approach, one in which the 
Community added value is clearly identifiable. They encourage innovation, good practice 
and policies, the exchange of ideas and experience, the transfer of know-how and the 
development of exchange of practitioners. 
In this way, participants have been mobilized; partnerships at various levels have been 
established and developed; and the search for more coherent and comprehensive approaches 
on social issues has been stimulated. The setting up of durable and effective networks and 
the achieving of Community added value are significant benefits. 
E. SOCIAL DIALOGUE: A CONSENSUS APPROACH TO SOCIAL POLICY 
A key feature of the Commission's method of work in bringing forward proposals in the 
social field has been the practice of extensive consultation of the social partners at various 
stages in both the conception of initiatives and the detailed writing of texts. This has taken 
place principally via the network of tripartite consultative committees which exist in all the 
main areas of policy, such as health and safety and equality of opportunities. But it has also 
involved a more ad hoc process of seeking the views of a wide range of representative 
bodies, including those three organisations, UNICE, ETUC and CEEP, which make up the 
present social dialogue at European level. 
In parallel with legal provisions and complementary to them, the development of social 
dialogue between employers and unions is a major feature of the evolution of European 
social policy. This has already provided a number of joint opinions (see Annex IV) on 
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important issues concerning training and labour market policies, together with a framework 
agreement between three organisations: ETUC, CEEP and UNICE. Moreover, this 
consensus approach has been promoted through regular and separate consultation of the 
social partners for each relevant proposal. This clearly illustrates the method chosen: 
dialogue and a search for consensus. The Single European Act reinforced structures for 
social dialogue, which are now a component of the Social Agreement of the Treaty on 
European Union. The emphasis placed on this in the Agreement, following from a consensus 
between employers and unions, is an illustration of the ways and means by which the 
Community intends to promote the development of social policy: concertation, negotiation, 
consensus. 
F. CONCLUSION 
This brief and necessarily succinct overview of the achievements of the Community's social 
policy to date shows clearly its breadth and vitality. The search for agreement has not 
always been easy and has even, on occasions, been controversial. But the overall thrust 
remains clear: the social dimension has been an integral and significant element of the 
process of integration since the inception of the Community. 
This is the foundation upon which the next phase of action must be built. The nature and 
scale of the challenges which Europe must face in the coming years, as set out in Part II, 
show clearly that many changes will be necessary both at national and at Community level. 
But the fundamental objectives will remain constant; the advancement of economic and 
social progress as two sides of the same coin and the search to ensure that the process of 
integration is clearly identified in the minds of all the population as bringing in its wake an 
incremental improvement in social and living standards rather than the reverse. 
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IL THE SOCIAL CHALLENGES FOR EUROPE 
What follows is an attempt to identify, in a synthetic and concise way, the major trends 
and challenges for Europe. It is not intended to be exhaustive. Many of the issues, 
however, have been the subject of reports and other papers which offer more detailed 
analysis. Examples are the social protection report and this year's report on employment 
in Europe. Pressure is being felt in many areas; demography, family structure, new 
technology, relations in the workplace, tax and the distribution of income, etc. This 
pressure raises issues regarding the future direction of the welfare state, social justice, 
equality of opportunity and other matters. Pressure is experienced by all Member States, 
albeit in different ways. Consideration of these challenges forms the essential background 
to any discussion of the future development of social policy. The possible response to 
those challenges is examined in Part III. 
It is important to realise that the real debate is less about high or low standards but rather 
about issues of trade-off between measures universally recognised as desirable, such as 
high levels of social protection or adequate social security, and the impact of these 
measures on government budgets and the competitiveness of companies. Economic and 
social considerations are inextricably linked in this analysis. Social progress is possible 
only through economic success but equally high social standards are a vital part of 
building a competitive economy. Many but by no means of all the issues require public 
intervention but social policy depends in the last resort on the active commitment and 
participation of everyone concerned: public authorities, social partners, special interest 
groups and voluntary bodies and, of course, individuals. 
A. EUROPE IN THE WORLD 
As the European Community moves towards the European Union set out in the 
Maastricht Treaty, with a Treaty on a European Economic Area with the EFTA countries 
and enlargement to include the Nordic Countries and Austria and, perhaps, the countries 
of Central and Eastern Europe around the turn of the century, it is important to take 
stock of the global forces behind these developments. 
The Western socio-economic model was built on twin foundations in the post-World War 
II period: full employment and the welfare state. Coupled with political democracy and 
human rights these constituted the pulling power. With the disappearance of a two-block 
world strategic system, in which defence and the nuclear balance dominated, world 
strategic competition and cooperation will be increasingly based on success in socio­
economic development, involving different and to some extent competing forms of 
capitalism. 
On this chessboard of socio-economic competition and cooperation, European socio­
economic models have high prestige because of post-war successes. The Community is 
one of the most prosperous areas of the world. While it contains only 7% of the world's 
working age population, it produces some 30% of world GDP and 45% of world trade in 
manufactured goods. At the moment, however, despite the job-creating recovery of the 
1980's, which was linked to the mobilising goal of the Single Market, Europe begins to 
falter and there is a resurgence of Euro-pessimism. But even if the public debate on the 
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ratification of the Maastricht Treaty unleashed unforeseen difficulties, it should not be 
forgotten that the vigour of the debate testifies to the continuing power of the European 
idea. And even if the Social Chapter has proved to be a particular source of difficulty, 
there appears to be a popular wish for a Europe less dominated by economic and 
technocratic considerations, one closer to the living and working needs of the population. 
In this context social policy is bound to be of growing importance in its own right, as 
well as providing accompanying policy for other strategic objectives such as the Single 
Market and Economic and Monetary Union. 
Indeed, the Treaty of European Union (Article 2) clearly establishes that the tasks of the 
Union will include: 
a high level of employment and social protection, 
the raising of the standard of living and the quality of life; 
economic and social cohesion and solidarity between all its Member States. 
The Articles of the EEC Treaty specifically related to social policy spell out the 
objectives to include the working and living conditions of workers (117), health and 
safety at work (118A), equal treatment between women and men at work (119) and the 
development of the social dialogue between the social partners (employers and trade 
unions) at European level (118B) and the European Social Fund (Article 123).The Treaty 
of the European Union, in its Agreement on Social Policy, recalls and strengthens these 
objectives with a sharper accent on the dialogue between the social partners and its 
potential results. At the same time it broadens the scope of the objectives of social policy 
(human resources, employment, social protection and social exclusion), and defines the 
areas for decision by qualified-majority. 
Thus the main social objectives of the Union cover issues close to the daily lives of the 
citizens and workers. These objectives provide the thread running throughout this Green 
Paper. But since we are now in the phase of constructing a more democratic Europe, let 
us begin by asking, as a basis for discussion and debate, a fundamental question. 
B. WHAT SORT OF A SOCIETY DO EUROPEANS WANT? 
Europe's strength lies in its ethnic, linguistic and cultural diversity, not only because of 
the rich quality of life that this brings, but also because the complex social challenges 
ahead call for a variety of solutions through which all Member states can learn from one 
another. But for this strength to be preserved there needs to be a common sense of 
purpose, cooperation to seek out solutions, and common policies and Community 
instruments when these prove to be necessary, in accordance with the principle of 
subsidiarity. Indeed, throughout the history of the Community there have been European 
values which, though a source of controversy on occasion, nevertheless provide common 
ground in the long run. Democracy, individual rights and freedoms, equality of 
opportunities, diversity of culture, respect for human dignity, social security and the rule 
of law are not as such a matter of controversy. These are shared values which need to be 
translated into political action by the Member States and the Union together, and to 
involve the civic society. What is not at issue is that they are fundamental to the future 
development of European society. 
15 
There is no doubt that, in one form or another, all Europeans want a world in which 
economic and social progress go together - a society in which women and men can 
participate on an equal footing. But it has to be admitted that the recessions that were 
ushered in by the oil shocks of the 1970's have revealed the new challenges facing 
employment, the welfare state and equality of opportunity. Although there was a 
substantial European recovery in the 1980's, with over 9 million new jobs created, 
unemployment has continued to rise and the welfare state is confronted by new pressures. 
Poverty and social exclusion are to be seen on the streets. 
It is important to underline that high standards of social protection have been a major 
contributory factor in Europe's economic success in the past. Many would argue that 
high social standards should not be seen as an optional extra, or a luxury which can be 
done without once times get hard, but rather as an integral part of a competitive 
economic model. 
The debate between this view and those who argue that Europe's present level of social 
standards have become unaffordable goes to the heart of issue. 
So what is going wrong? With the great depression of the 1930's behind them, the 
founders of the modern European socio-economic system saw the world in terms of boom 
and depression. The "full employment" of economic resources could be maintained 
through government action on the level of economic demand; the welfare state would 
transfer income to those at risk of poverty through unemployment, ill-health or old age. 
The active population would thereby finance a guaranteed and/or minimum income for 
the non-active population. In this sense, social policy was largely based on the transfer of 
income to the needy through the tax system, and the development of social security 
systems based in certain countries on contributions by employers and workers so as to 
maintain incomes in times of need. 
There are a number of major reasons for looking afresh at this approach: 
First, the citizens of advanced, industrialised democracies such as those in the European 
Community have difficulty in forging a personal and social identity when they are part of 
the "non-active" population. As new jobs are created in Europe, new groups enter the 
labour market because there is a latent "social" demand for work, as well as the 
economic demand arising from the wish to maintain or expand family income. Many 
women, for example, seek work for reasons of emancipation, dignity, social identity and 
the ordering of their lives, as well as for income. Beyond paid work there is a demand 
for voluntary activity, as witnessed by the rapid and healthy growth of community 
organizations and associations, and by the active involvement of older people in them. 
People want to participate and need to have that activity recognised, whatever it is and 
whether it is carried out inside or outside the home. 
Second, we are in a world of continuing structural change rather than one dominated by 
boom, depression and world wars. It will soon be 50 years after the end of World War II 
and the record shows that somehow or other the economic policy makers have succeeded 
in evening out some of the worst parts at the top and the bottom (the boom and the 
recession periods) of the economic cycle. Despite the local and regional conflicts that 
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have followed the collapse of communism, it is probable that we are emerging into a 
world dominated by peaceful socio-economic competition based on self-generated 
change, rather than economic and social restructuring forced by boom, depression and 
war. But economic policy is still dominated by short-term cyclical policies and has not 
yet succeeded in wedding cyclical and structural policies. An additional factor is the 
effect of the "globalisation" process which implies ever greater ability on the part of 
economic actors to cope with permanent change and a need to adjust more rapidly. 
Third, demographic trends include several components which have a significant bearing 
on the future of social and economic policies: 
the ageing of the population and its effects on social protection, future employment 
trends, the shifting balance between active and non-active population, the 
integration and participation of older people in social and economic life; 
population movements, in particular new trends in immigration flows with their 
social and political consequences, as well as internal movement such as the rural-
urban balance and its consequences for rural development and urban policies; 
at the same time, family structures have been changing profoundly, seen in 
particular in the increasing incidence of family break-up, the changes in traditional 
family solidarity, the new and emerging relationship between older and younger 
people, the development of the respective roles of mothers and fathers and the 
results of these changes on children. 
Fourth, the development of new technology has deeply altered the organisation and even 
the concept of work. It has brought new forms of work, the adaptation of skills and new 
approaches to work. This has also affected relationships in the workplace; it has led to 
new forms of working time, pay and job specification and to new challenges for methods 
of negotiation and collective bargaining between firms and their partners. A further 
complication is the growing number of people excluded from the labour market and the 
increasing concern among the social partners regarding the external conditions affecting 
the development of firms. ' 
Fifth, we have to take into account the growth of the black economy in certain traditional 
sectors but also in new areas, together with its relationship with traditional and new 
forms of work (home working, local employment initiatives etc.). 
Sixth, the combination of these factors leads to a search for: 
new approaches to responsibility, both at individual level (such as in the active 
search for employment) as well as at collective level, public and private; 
new roles for various bodies (social partners, voluntary organisations, local 
authorities); 
new forms of solidarity leading to new partnerships between all the relevant actors 
in the field of social policy. 
-17-
One obvious outcome of these various pressures to which our societies are being 
subjected is the escalating costs of social security budgets particularly in the health field, 
leading to doubts about Europe's ability to continue to fund these systems into the future. 
There is a high risk that the continued pursuit of present policies will lead ultimately to a 
"dual" society in which wealth creation is primarily in the hands of a highly qualified 
labour force, while income is transferred to a growing number of non-active people as a 
basis for a reasonable level of social justice. Such a society would not only become 
increasingly less cohesive, it would also run counter to the need for the maximum 
mobilisation of Europe's human resource wealth in order to remain competitive. 
The alternative would be to seek to create an "active" society where there is a wider 
distribution of income, achieved by means other than simple social security transfers, 
and in which each individual feels able to contribution not only to production (as part of 
the search for full employment) but also via a more active participation in the 
development of society as a whole. An "active" society is also one which has the ability 
to provide an adequate supply of the "collective goods" - such as education, health and 
social protection systems - which are required to ensure its innovative capacities and its 
ability to adjust quickly. 
Which way Europe goes will not depend on a single choice, but on the answers given to 
three inter-related questions linked to the fundamental objectives of the Treaty of 
European Union and to the social foundations of the future Europe: 
Is there a route back to full employment? 
Should the welfare state be given a new role? 
What is the next stage in equality of opportunity, without which European 
democracy will falter? 
C. IS THERE A ROUTE BACK TO FULL EMPLOYMENT? 
Despite Europe's efforts over the last decade, full employment can no longer be taken for 
granted as the automatic outcome of growth-creating economic policies. All the evidence 
points to deep underlying structural problems in Europe which make a return to full 
employment unlikely in the foreseeable future unless significant changes of policy are 
introduced. Therefore, it is clear that there is no single road back to a high level of 
employment. Whilst higher levels of economic growth are indispensable if more jobs are 
to be created, the foreseeable rates of growth will not solve the problems. The harsh 
reality is that Europe has been creating fewer jobs than Japan and the United States: only 
60% of the working-age population is in work in the Community compared to over 70% 
or even 75% in comparable economies. This means it has a bigger latent demand for 
work which eats up the new jobs without bringing down unemployment, and probably 
more "mismatch" unemployment, that is to say people without the skills and 
qualifications to fill the available jobs. 
-18-
The reasons which lie behind this discrepancy in Europe's performance in job creation 
have already been the subject of previous Commission texts (see notably the Employment 
in Europe Report 1993) and will not be entered into detail here. 
The key point to note is that this relatively low employment rate means that it is 
necessary to create a large number of new jobs in order to have any real impact on 
unemployment levels. For example, during the period 1985-91, Europe created over 9 
million jobs but unemployment only dropped by 3 million. 
(See Figure 1) 
1. The Challenge of Technological and Structural Change 
The essential point that has to be grasped is that Europe, like all the major economic 
areas on the world stage such as North America, Asia, Russia and China is entering a 
new era of radical technological and structural change. Global international competition 
is pushing Europe to the frontier of new technologies, to a new balance between 
manufacturing, services and agriculture, to different combinations of physical and human 
capital, and to a society in which individuals have to change their skills and 
qualifications over the course of their lives. 
There is no going back on this radical process of change towards the post-industrial 
society. In such advanced, industrialised societies the job destruction/job creation process 
is very turbulent; around 10% of jobs are destroyed each year. The outcome in terms of 
unemployment will depend on how successfully the adaptation of the labour force is 
managed and the scale on which new jobs are created. That is why we need a dynamic 
approach by employers, trade unions and governments to new sources of job creation, 
new forms of employment, work organization and qualifications. Only in this way can 
we spread jobs and work income across the population. 
That a mix of macro-economic and structural policies is now needed is widely accepted. 
But the exploration of new structural policies has been largely limited to improving the 
functioning of markets, including labour markets, whereas a rather more radical 
approach aimed at moving towards active labour market and social policy is what is 
required. 
Such a fresh search would include the whole range of relevant policies. This would cover 
industrial, regional, technological, welfare, education and training policies. It would also 
include and go beyond macro-economic and active labour market policies, acting 
respectively on the demand and supply sides of labour, which have been the traditional 
basis for employment policy. 
-19 
FIGURE 1 
Employment rates In the Community and elsewhere, 1970-1992 
% population (15-64) 
75 r 
70 P 
65 
60 h 
55 T 75 
4 70 
65 
-\ 60 
55 
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 
The ability of the EC to provide jobs for all those people who 
might wish to work is far lower than in other comparable 
economies. This means that it is necessary to create a large 
number of new jobs in order to have any real impact on 
unemployment levels. 
-19A 
2. The Employment Policy Tripod 
Three policy approaches are necessary to attack the problem: 
a dynamic and stable macro-economic environment, 
fundamental structural changes, 
a dynamic but equitable process of social adjustment. 
The first, the creation of a stable, non inflationary macro-economic environment. For a 
long time, employment has not been an economic policy aim as such. This partly 
changed after the oil-shock recessions, when a stable, non inflationary macro-economic 
policy did become the framework for achieving growth, efficient allocation of resources 
and full employment. But employment has not always been seen as an objective per se of 
such policies, largely because the "full employment" of all factors of production, 
including labour, has been seen as a derivative of perfectly functioning markets, which 
supposes that prices adjust. This is the key issue: labour markets cannot operate with 
major upward and downward wage fluctuations, because of the human, political and 
social issues involved. The conflict between economic and social policies hinges around 
this issue. It is only recently that employment is becoming an explicit aim of economic 
policy, leading to a whole range of new medium-term structural policies, and to intense 
consideration of how short-term economic recovery programmes can lead to the fastest 
possible increase of employment. The fact is that until now, this approach has not 
resulted in the improvement aimed at. 
The second, structural policies related to employment, needs to be focused on the 
following central questions, viz. (1) the new sources of job creation, (2) the relationship 
between the investment process and job creation, (3) the impact of taxation and social 
security funding on the functioning of the labour markets, and (4) the balance between 
physical and human capital which is necessary to exploit new technological opportunities. 
The third, dynamic and equitable social adiustment. is dominated by the issue of whether 
labour markets should be left to function only through price adjustments, or whether and 
in what new forms adjustments can be foreseen and prepared. This will require in the 
first instance active labour market policies designed to increase employment. It will also 
require, however, active social protection policies targeted less at income maintenance 
than at helping to integrate vulnerable individuals into the economy and society. 
The answers will require new links between macro-economic, structural and social 
policies of a kind that have emerged from the debate on the environment. It is strange 
that whereas the depletion of natural resources has led to the widely accepted goal of 
sustainable growth, the depletion of human resources through unemployment and social 
exclusion is only now raising the political temperature to that point. Perhaps the concept 
of employment - intensive growth will serve that purpose? 
But it should be borne in mind that it is not only government policies that will change the 
situation. Decisions by industry, monetary policies, collective bargaining and the way 
people make decisions about consuming, saving and investing will determine the society 
of the future, and the role of work in it. 
20-
3. The Role of Work in Society 
To grapple with this contemporary issue, we need to understand the origins of the present 
role of paid work in society. The industrial revolution split the production and welfare 
functions in society, functions which in the agricultural community were combined in 
families, villages and small towns. Migration into growing cities and work in factories 
broke the rural networks and gradually led to welfare functions being focused first on 
charities, trusts, religious orders and trade unions, and then increasingly on the state. 
The industrial revolution and the technology of the production line not only separated the 
work and welfare functions but also rigidified the separation of work from other 
activities. Yet work has other functions in addition to providing income: purposeful 
activity and personal fulfilment, dignity, social contacts, recognition and a basis for 
organising daily or weekly time. The massive entry of women into the labour market is 
partly a reflection of this reality. Their role in the economy and in society will have a 
decisive influence in the future. Demographic trends, notably the ageing of the 
population, will soon reinforce the need to keep as many people as possible in an active 
role, and the new technologies may facilitate more dispersed economic activities and 
more flexible labour markets and working time. These changes could mean that the 
division between "working time" and "other time" will again fade, so that work is 
reintegrated into a wider pattern of activities. They present the challenge of realigning 
work and welfare in ways that help as many as possible to participate actively in their 
societies, while taking advantage of the greater flexibility that new modes of production 
allow. 
D. A NEW ROLE FOR THE WELFARE STATE? 
The analysis so far suggests that we are in the middle of a realignment of the functions of 
the State, the enterprise and the family, such as took place in the course of the industrial 
revolution. If so, this may imply that the role of the welfare state may have to be 
reassessed, not only because of the funding pressures but, more fundamentally, because 
of the need to move towards more active policies aimed at ensuring people's integration 
into work and society. 
Social welfare is a major achievement of modern societies. In this they are usually 
strongly supported by public opinion, as is shown recently in a Eurobarometer survey 
which highlighted the almost unanimous support for a high level of social protection. 
Social welfare is also a major component of social cohesion and solidarity. 
However, social welfare and social protection systems are faced with growing pressures 
owing to five main factors: 
the evolution of the labour market and in particular rising unemployment (see 
Figure 2); 
demographic trends and in particular the ageing of the population; 
changes in family structure; 
21 
FIGURE 2 
Unemployment rates in the Community and elsewhere, 1970-1992 
% labour force 
12 r 
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 
Since 1991, unemployment rates in the EC have been 
persistently higher than in other comparable economies. 
-21A 
the growing incidence of poverty and social exclusion resulting from these trends; 
a massive increase in demand for a whole range of social services including, in 
particular, health care. 
At the same time, lower rates of economic activity, budget deficits and competing claims 
on public expenditure have reduced the capacity to pay. Once policy makers realised that 
welfare spending could not go on indefinitely increasing its share of the cake, the 
emergence of a widespread political debate on the future of the welfare state became 
inevitable. 
Up to now the debate has focused on various issues: 
the importance of controlling the explosive growth in government social spending, 
in particular on health care; 
the establishing of incentives for people to work; 
a possible new mix of public and private schemes, with some attempts to focus 
public expenditure on those most in need (sometimes called "targeting"), giving the 
occupational and/or private sector an increased role in particular in pension and in 
health care; 
a more decentralised approach through, in some cases, the development of the role 
of local authorities and/or welfare organisations. 
It is important to recognise in this respect that in modern societies, where labour markets 
will be required to be more flexible, individuals need social protection. The debate has 
also revealed the public's wish to maintain high standards both in terms of the 
availability and the quality of social services. The so-called crises of social protection, 
health and education all have something in common: an explosive demand from 
individuals and families. At the same time, from the point of view of society, they are 
perceived as being linked to the public good, to national welfare, and to equality. In 
democracies, no-one can prevent individuals from spending on health, future pensions 
and the education of children. And yet a society in which the successful can "consume" 
these services in the market to the possible detriment of a public system available to all, 
does raise difficult questions regarding social equity. 
1. Social exclusion 
Poverty and marginalisation are nothing new and have for some time given rise not only 
to analysis of a scientific and political nature but also to numerous public and private 
initiatives. But public debate on these matters has greatly changed over the past 15 years. 
The emphasis is now on the structural nature of a process which excludes part of the 
population from economic and social opportunities. The problem is not only one of 
disparities between the top and bottom of the social scale, but also between those who 
have a place in society and those who are excluded. 
22 
Social exclusion does not only mean insufficient income. It even goes beyond 
participation in working life; it is manifest in fields such as housing, education, health 
and access to services. It affects not only individuals who have suffered serious set-backs 
but social groups, particularly in urban and rural areas, who are subject to 
discrimination, segregation or the weakening of the traditional forms of social relations. 
More generally, by highlighting the flaws in the social fabric, it suggests something more 
than social inequality and, concomitantly, carries with it the risk of a dual or fragmented 
society. Lone parenthood responsibilities and low income levels leave women in 
particular in situations of poverty with poor prospects of improving their position. 
The causes of exclusion are multiple: persistent unemployment and especially long-term 
unemployment; the impact of industrial change on poorly skilled workers; the evolution 
of family structures and the decline of traditional forms of solidarity; the growth of 
individualism and the décline of traditional representative institutions; and finally new 
forms of migration, particularly illegal immigration and movements of population. All 
these phenomena are sometimes coupled with traditional forms of poverty concentrated in 
declining urban areas or in rural areas lagging behind the general progress in society. 
Growing resentment at being excluded from sharing in wealth and opportunities 
heightens the risk of people being driven to desperation and disruptive behaviour such as 
violence or drugs. Insecurity generates fear of the future, often leading in turn to 
introversion or susceptibility to racist ideologies, xenophobic behaviour and political and 
social extremism. 
It is to be feared that the effects of all these factors will worsen in the next few years. 
The employment situation is unfavourable, public funds are severely limited, the 
geographical distribution of social exclusion is fragmented, and family structures provide 
less of a safety net than in the past. The consequence is clear: if the aim of social policy 
is to assist individuals to take care of themselves and, as far as possible, to perform a 
useful role in society, only new and innovative combinations of work and welfare are 
likely to achieve that goal for vulnerable people at risk. 
2. Social policies to integrate people into society 
The central implication of both the rising demand for social services in the market and of 
the need to combat the exclusion of weak groups is that income maintenance can no 
longer be the only objective of social policy. There is a consensus in Europe that all 
citizens should have a guarantee of resources but social policies now have to take on the 
more ambitious objective of helping people to find a place in society. The main route, 
but not the only one, is paid work - and that is why employment policies and social 
policies should be more closely linked. 
There are already many practical experiments in that direction but consideration could be 
given to more generalised mainstream policies aimed at integration and to their being 
spread throughout the Community by cooperation and mutual learning. Examples are: 
23 
the linking of minimum income schemes with services to promote economic and 
social re-insertion; 
better adaptation of social programmes to avoid poverty and unemployment traps; 
preventive labour market policies on the part of the employment services; 
unemployment compensation linked to training, job creation and incentives to 
work; 
equal opportunities' measures to take account of women's skills and needs in the 
labour market and in society; 
more flexible pension arrangements to enable variable retirement age and the 
combination of retirement and working income; 
preventive health programmes to encourage healthy life styles; 
measures to integrate disabled people into the mainstream of society; 
measures to integrate immigrants in social and economic life; 
more generally, combined strategies at various levels including education, training, 
employment, equal opportunities for women and men, social protection, social 
services, housing, health, etc. 
3. A demographic transformation 
The greatest challenge to the welfare state in the short run seems to be the serious financial 
difficulties it has to face as a result of the recession which is currently hitting most 
European economies. It can safely be assumed that under normal economic circumstances 
the financing of the European welfare states would not pose, at present, any major 
problems. However, it is well-known that over the coming decades there will be a 
considerable shift in the demographic structure of our populations and an increasing number 
of older people will have to rely on the support of a shrinking number of people in working 
age. 
By the year 2020, the ratio of people of age 65 or older to those in working age, i.e. 
between 15 and 64, may have increased by about 50%. This raises the issue of whether we 
can afford to redirect an additional 5% of GDP towards the financing of old age pensions 
and possibly another few percentage points towards higher health care costs. 
There will be no easy options in the face of this fundamental change: available resources 
will have to be shared between the active and the inactive, between the old and the young. 
Governments may be tempted to avoid being caught in this distributional conflict between 
the generations and may therefore wish to promote private social security provision. 
24-
However, private provision will only develop to the extent that public provision is reduced, 
which will, of course, be hugely unpopular. It would, furthermore, be necessary to create 
tax incentives for private provision at high costs to the exchequer in a situation where 
budgetary discipline is imperative. 
The most appropriate answer to this fundamental demographic change would be to extend 
the length of people's working lives. Over the last decades this has shortened because of 
longer education and early departure from the labour market. However, raising the 
retirement age will not be sufficient to increase the rate of employment of older workers. 
Unless more employment opportunities can be created for them, they will either remain 
unemployed for longer periods or have to accept reduced pensions. The success of our 
employment policies will therefore also be the key for the long-term future of the welfare 
state. 
E. ISSUES OF SOCIAL JUSTICE AND EQUALITY OF OPPORTUNITY 
The view that everybody should have a minimum level of resources is an agreed 
objective but European democracies should also have the ambition to make further 
progress in equality of opportunity, to some extent enshrined in rights, for all their 
citizens. Progress in that direction has faltered for profound economic and social reasons 
which need to be understood if equality of opportunity is to continue to advance as one 
of the central aims of European social policy. The need for considerations of social 
justice and equality of opportunity to be taken into account at all levels of social policy 
decision-making is,, if anything, even greater during the present period of major social 
change. In particular, these elements should play a larger role in discussions between the 
social partners. 
1. Education cannot do it alone 
Education has long been perceived as an essential vehicle of equality of opportunity, and 
the advent of secondary school for all children, with more democratic access to 
university, has changed the lives of many individuals as well as leading to a more open 
society in Europe. Certainly the struggle to make schools and universities the flagships of 
equality of opportunity should go on but we must recognise that they also serve a process 
of social selection by integrating people into the economy and society according to their 
level of educational achievement, the latter depending significantly on family and social 
class. 
"Second chance" opportunities have therefore appeared in concepts such as "permanent" 
or "continuing" education, and these are reinforced by the need of modern production 
systems for changing skills and qualifications. Increasingly modern business needs an 
education system which provides, in addition to specific vocational skills, basic 
knowledge, the capacity to change and innovate, and in consequence the basis for 
continuing learning. The young person leaving school is not a "product" to be inserted 
into a fixed occupational hierarchy, but rather a potential to be developed. Herein lies the 
possibility of a new partnership between industry and education going far beyond 
traditional concepts of education and training. 
25-
As socio-economic hierarchies change, equality of opportunity can only be achieved if 
the social mobility of individuals, young and adult, is viewed as part of a continuous 
process of personal development starting with school and continuing into work and 
further training, rather than being subject to a system which segregates opportunities 
between generations. That is why the broad framework of Life Long Learning is so 
important. 
2. The workplace as the new frontier 
For all these reasons the workplace, as well as the school, should contribute to equality 
of opportunity. Instead of initial qualifications being the only basis for careers, more 
flexible qualifications and structures are being developed, Enterprises are being 
compelled to make the best use of their staff through training and human resource 
development. This is a trend, which even if slowed down by the current recession, 
should have a positive effect on equality of opportunity in the long run. 
The changing nature of production and the impact of technology on employment 
relationships, notably through increased emphasis on team work, will also mean that the 
workplace could have an important role in altering stereotypes and in encouraging the 
integration of disadvantaged groups. 
3. Inter-generational inequalities 
These developments will to some extent redress the balance of opportunities between 
generations by giving a second, and even a third, chance to those who do not fully 
develop their talents in the basic education system. To some extent it will enable a 
catching-up process by adults who did not profit from the expansion of educational 
opportunities after World War II. It should also benefit women, who should have more 
equality in terms of opportunities, careers and decision-making in society commensurate 
with their achievements in the educational system. 
But there is a profound additional question of social justice towards the new cohorts of 
young people who did not benefit from the higher earnings and higher employment of 
post-war decades and who now have to cope with an insecure labour market and a social 
security system that demographic trends are turning to their disadvantage. Access of 
young people to the labour market, and youth opportunities more generally, are a major 
social policy issue. 
At the same time the ageing of the population requires new thinking on: 
the possible role of elderly people in social and economic life; 
the promotion of inter-generational solidarity in various areas, such as education, 
training, employment; 
26 
age discrimination at work; 
social protection. 
4. Citizenship and workers' rights 
The development of Europe as an area within which people can move to educate 
themselves, work and bring up families with acceptable standards of security and social 
protection will itself be an extension of individual rights and opportunities. 
Quite apart from developments in legal provision, there are practical ways in which 
individuals will be helped to exploit these opportunities by European cooperation: 
better information about education, working opportunities and social security 
arrangements; 
qualification systems which make it possible for education and working experience 
to be credited in another country; 
To the extent that such developments will enable individuals to seek their welfare across 
Europe, they will contribute to equality of opportunity and social justice. One only has to 
look at the personal destinies of many former European migrants and their children to see 
the truth of this. 
F. WOMEN'S RIGHTS AND OPPORTUNITIES 
The socio-economic data on women in the European Community reveals a very different 
picture of society from that which is commonly presented. 
Over a quarter of all women in the EC are heads of households - they live alone, or as single 
parents - and over half are in paid work, at least part-time. Women are having fewer 
children than even a decade ago (1.59 on average) and they are having them later (average 
age 26). 
There is now a broad consensus that, given the aspirations of women themselves, an ageing 
workforce and the expansion of the service sector, women will constitute an increasingly 
crucial component of the workforce at all levels. The question of their rights and 
opportunities is thus vital for the future of the economy (see Figure 3). 
Broadly speaking, women are now on an equal footing in schools and universities. There 
are, however, numerous barriers to women's participation on equal terms with men in both 
employment and society. Women continue to hold the largest proportion of low-qualified, 
low-paid and insecure jobs. Women's unemployment is higher than men's. They constitute 
the majority of the long term unemployed as well as of those living in poverty. In these 
circumstances, women today feel increasingly threatened. In addition to job insecurity 
resulting from structural changes in the labour market, society has failed to acknowledge, in 
practical terms, that it is primarily women who are faced with conflicting employment and 
family responsibilities. This can result in women failing to realise their full potential. 
-27-
FIGURE 3 
Activity rates of women aged 25-49 in Member States, 1983 and 1991 
100 
Activity rate of women in the prime age group has risen 
significantly in all Member States. The working careers of 
increasing numbers of women are coming to resemble those 
of men, with no interruption as before, to bring up children. 
-27A 
Social and labour market structures continue to operate on the assumption that women are 
primarily responsible for home and child care while men are responsible for the family's 
economic and financial well-being. This conflicts with the new reality. Dual income and lone 
parent families are increasingly common, while the number of sole breadwinner two-adult 
families has declined dramatically. 
The gender-based division of family and employment responsibilities not only constrains 
women's lives but also deprives men of the emotional rewards resulting from the care and 
development of children. 
There needs to be a combined labour market and social policy to develop the rights and 
opportunities of women, one which reflects their role in society and their needs throughout 
their lives. The strategic objective should be to go from equal rights to equal treatment in 
the labour market through equality of opportunity in society, thereby making better use of 
women's experience and skills for the benefit of society as a whole, including increased 
participation in the decision-making process. 
This broad objective is necessary because women represent a reserve of energy and talent 
which has not so far fully expressed itself because of past discrimination. New technologies 
and the accompanying changes in work and society are altering traditional roles and 
releasing new energies. It is not without significance, for example, that the majority of new 
small enterprises set up in the 1980's were initiated by women. The very nature of the 
structural changes now under way, implying a shift to "qualitative" growth reconciling 
economic performance and human needs, must ensure that full account is taken of women's 
concerns, requirements and skills. 
In view of their first-hand experience of the extent to which labour market structures have 
failed to keep pace with changing technological, economic, social and political realities, 
women have a vital interest in participating directly in the process of change. The 
importance of promoting such participation in all sectors of society, including key decision­
making processes, cannot be under-estimated. 
G. THE OPPORTUNITIES AND LIMITATIONS OF INTERNATIONALISATION 
AND GLOBALISM 
The new strategic balance, progressive disarmament, economic interdependence, 
improved world-wide communications and the decline of exclusive ideologies are all part 
of the slow emergence of peaceful socio-economic competition. Equally, the 
technological "frontier" and the outward (space) and inward (oceanic and inner-earth) 
expansion of world resources provide an opportunity to break out of a finite, zero-sum 
world game. The Club of Rome was right to point out in the 1970's that finite resources 
of energy, the environment and raw materials place a limit on growth at any given point. 
But the last 20 years of world history support the view that science and technology and 
economic creativity can push the frontier of resources back to a point where it now 
appears that the limit is human capability and political organisation rather than a finite 
planet. It is a fair challenge to any social system to seek its success within that 
framework. 
-28 
But under what conditions, and with what ground rules, can peaceful socio-economic 
competition and cooperation between nations and regions gather strength? And where 
does the future of Europe lie in that respect? 
Europe's weakness in the early 1980's was perceived to be its inability to adopt certain 
inherently cultural features of the North American model, such as flexibility and 
mobility. A decade later, however, the American model is being differently interpreted, 
with the accent being put on the need for major institutional changes in fields such as 
education and training, research and development, industrial policy and the improvement 
of infrastructures. The European recovery of the late 1980's exemplified the power of 
different national and regional cultures to promote economic dynamism. Japan, too, has 
based its economic success on a culture fundamentally different from Western Europe 
and North America. 
Market principles prevail in all these economies and are gaining ground throughout the 
world. But that does not mean that the Russia, China, Latin America and Asia - not to 
mention African and Arab countries - will develop according to a Western cultural model 
any more than Japan has done. How then can the ground rules in a one-world economic 
system cope with this diversity? 
1. The need for social ground rules 
The greatest threat to peaceful competition is likely to be wide discrepancies in the 
economic fortunes -of the different regions. It is in the enlightened (and even narrow) 
self-interest of the advanced, industrialised countries to encourage the growth of new 
markets in other regions. Thus, if a new balance of power has provided the opportunity 
for peaceful socio-economic competition, then a new balance of development is probably 
the condition of its survival. This notion of balance is, for example, central to the 
discussion about the role of Japan vis-à-vis Europe and the United States. 
Quite clearly, an open world economic system is the only framework within which 
peaceful competition can gain strength, but that does not mean that existing ground rules 
favour such a development. Probably the main weakness of the underlying concept of 
world economic cooperation is the static nature of comparative advantage. "Human 
capital", like the land, is seen as part of a fixed endowment of nations. In reality the real 
capital (human, financial, know-how) tends to seek economic opportunity wherever it 
arises. 
Is it not necessary to recognise that human and social structures can neither adjust nor 
flow across boundaries at the same rate as money, products and know-how? If regions 
with different labour costs are to compete, is not some convergence of economic and 
social standards both inevitable and desirable, otherwise migration or délocalisation of 
production is the only answer? 
-29-
2. The implications for Europe 
Trade has been the centre of Europe's economic success in the past and the maintenance 
of an open, multilateral trading system will be vital to her future prosperity. Trade is not 
a zero-sum game in which one country's gains necessarily imply the losses of another. 
The objective is to create an positive-sum game in which all benefit through ever 
expanding world markets. 
However, it is also clear that the rapid changes in international comparative advantage 
which are happening daily require a major and continuous process of adjustment within 
Europe so as to create new jobs to replace those destroyed or transferred elsewhere and 
to ensure that the competitive edge is constantly renewed. 
Popular concern about whether this process of adjustment is keeping pace with the shift 
in comparative advantage way from the industrialised world towards the low cost 
producers of the Pacific rim and Eastern Europe is reflected in fears about the largescale 
relocation of manufacturing industry from within the Community to other parts of the 
world and in allegations of unfair competition based on unacceptably low social 
standards, such as the use of child or forced labour. 
Europe's main response must be to restore its competitive edge but it will also be 
necessary to promote more balanced economic development within the Union itself. 
There may be a tendency for the new technologies to exacerbate regional disparities 
because skills, organisational capability and social attitudes conducive to radical change 
accumulate in existing dynamic regions. As against this, new information technologies 
favour the decentralisation of production because of lower information and 
communication costs, and because lower establishment costs and higher quality of life 
attract small, technologically-based companies outside the metropolitan areas. Since 
growing regional disparities will tend to reinforce pressure for protection, policies are 
needed to foster indigenous skills, entrepreneurship and development in the less 
developed regions of the Union. 
H. THE CHANGING NATURE OF PRODUCTION 
The extent to which Europe succeeds in making progress towards the common social 
goals of the Union will depend substantially on its capacity to generate the necessary 
wealth. Europe is therefore compelled to be at the forefront of economic and 
technological progress. 
That the industrial revolution is now being overtaken by changes in the nature of 
production is widely accepted. Theories of the "post-industrial society", the 
"information" or "knowledge" society, are all attempts to identify this new revolution 
based on the new information and communication technologies, and their impact on 
production and society. It seems clear that any new model of sustainable development 
has three main components: 
first, a new potential for growth and job creation which results from the new wave 
of generic technologies (like steam and electricity in the industrial revolution); 
30-
(2 
second, the changes in the production process and in skill needs, work 
organization, working conditions and industrial relations which are needed to 
explore this new potential; 
third, the results in terms of society and the quality of life. 
1. Where Europe stands 
Economic success since World War II has been based not only on macro-economic 
management but also on the success of companies in bringing new products and services 
into the market, based on new technologies and their diffusion. Essential to this bringing of 
new products was the commercial liberalisation permitted through the GATT. 
From this more structural point of view, the immediate post-war European development can 
be seen as a process of catching up, to some extent through the Marshall Plan, on the U.S. 
mass-production model. Europe caught up in many advanced industrial sectors such as 
computers, electronics and communications, and Japan came from behind with a competing 
model of capitalist production, of which the main parameters are now widely debated in 
Europe: "just in time" production, flexible robots, life-long employment and enterprise 
culture. European industry, less committed to the mass-production model than the 
Americans, appears to have responded more quickly to the Japanese challenge. Could 
Europe be poised to leap-frog the Japanese model because its greater diversity of culture 
potentially means a. more creative working population and more widespread capacity for 
entrepreneurship? Realising this potential is a complex matter beyond the scope of this 
Green Paper but the context needs to be stated so that the social dimension can be 
understood. 
2. The new balance between macro-economic and structural policies 
The economy is not only a continuing process of adjustment between demand and supply 
within the framework of the economic cycle but also one of deep movements (or waves) in 
the potential for growth resulting from technological change. At the moment, we appear to 
be in the middle of such a wave based on the all-pervasive information technologies, 
accompanied by more sector specific technologies such as new materials and bio­
technology. The opportunities they present can only be realised by raising the level of 
investment, not only in machines and equipment, but also in people, organization, research 
and development, and the infrastructures needed to modernise the economy. 
-31 
3. The interdependence of physical and "intangible" capital 
It has to be recognized that the expected productivity gains resulting from the investment in 
new technologies have been slow in materialising. This is the so-called "productivity 
paradox". The reason appears to be that reaping the rewards of technological progress 
depends not only on technological creativity based on research and development, but also 
on a widespread process of innovation and diffusion. The new technologies will not bring 
their benefits without the skills, organisation, infrastructures and social negotiations which 
either block or facilitate their diffusion. In that sense, technology is a social process. 
4. The obsolescence of human capital 
This social process is deeply affected by the historically new phenomenon of the so-
called "obsolescence" of human capital. It is unacceptable, even abhorrent, to use for 
workers the same concepts of "investment" and "depreciation of capital" that we use for 
machines. There is however, a radical counter argument: that human capabilities are 
creative and adaptable, and therefore constitute an invaluable resource which does not 
need to be "scrapped" like the outdated machine. In economic terms human capital is 
infinitely "malleable" and a bold attitude to investing in human resources is therefore 
justified. However, the harsh reality is that fierce competition, with rapidly changing 
technologies and production systems, does lead to situations in which to all appearances, 
at least for the individuals concerned, human capital is "scrapped". It cannot be doubted 
that it is this perception which is undermining the public image of the enterprise in the 
current round of lay-offs and social plans. 
5. Creativity within enterprises 
A more highly educated, more adaptable and more creative workforce is needed to 
sustain changes in production organisation. The shift to quality production means forms 
of organisation and management which will enhance the skills and autonomy of working 
people. The necessary adaptability of the production system to be more responsive to 
product changes, and to use fully expensive capital equipment, leads to new patterns of 
working time, pay and job specification. No doubt there will be new problems of job 
stress and safety, but on the whole the move away from the mass-production assembly 
line offers benefits to be obtained through negotiation and collective bargaining. 
6. Job creation and entrepreneurship 
Whereas the cyclical analysis of the labour market concentrates on employment, 
unemployment and labour force participation, the most important parameter in the 
structural approach is the outcome of the job destruction/job creation process. Whether 
or not this outcome is positive largely depends on the creation of new small firms and 
therefore on entrepreneurship. Post-industrial societies have a fundamental need to widen 
the concept of the enterprise, covering self-employment, cooperatives, non-profit 
32 
institutions etc.; foster the culture of entrepreneurship in wider segments of the 
population; and develop support structures which recognize that the traditional capitalist 
is not the typical founder of a modern small enterprise in today's world. 
(See Figure 4) 
The return to a new form of full employment is likely to be conditioned by such a 
cultural change towards more widespread capacities for economic initiative in the 
population. The "employee" culture which dominates education and training, for 
example, needs to undergo a transformation, as does the rigid sequence of education, 
work, leisure and retirement typical of the mass-production, manufacturing, male-
dominated model of society. 
7. The role of services 
The trend towards decreasing employment in traditional manufacturing raises the 
question of whether the real scope for employment creation might not lie more in the 
area of services. This is so partly because the service sector is relatively less exposed to 
the full rigour of international competition, partly because jobs in the service sector often 
do not require such specialised skill levels (and, therefore, could offer new job 
possibilities to the many long term unemployed who lack formal qualifications of any 
kind) and partly because this is an area where social and demographic trends combine to 
create new opportunities such as domestic work or the caring industry. 
(See Figures 5 and 6) 
8. Quality of output, quality of work and quality of life 
Another key question is whether these modern trends offer a new route to the quality of 
life. The market for high quality products and services is linked to more open forms of 
management and organisation, better working conditions and more democratic forms of 
participation, both in work and in capital. The technological wheel which led to mass 
production and the military-derived modes of management is turning. The quality of 
working life is improving and constitutes a key component in the quality of life as a 
whole. Its evolution is linked to the importance of time-use and skills in modern 
production systems, since efficient production is largely dependent on the creative use of 
both. Also, modern production systems permit more flexible 
work/family/leisure/education patterns. On the other hand, the greater flexibility 
required by enterprises is leading to more insecurity for those who, rather than being in 
the "core" workforce, are in the "contingent" labour force which is needed to adjust 
output when demand falls. Thus, both sides of the equation have to be looked at if we are 
to answer the question whether these more varied and flexible forms of working time and 
participation in work represent an opportunity to reconcile efficiency with both a higher 
quality of life and more widely spread working opportunities. 
33-
FIGURE 4 
The importance of self-employment in the Community and elsewhere, 
1980,1985 and 1990 
% total employed in sector 
EUR12 EFTA US Japan 
Agriculture EUR12 EFTA US 
Industry and services Japan 
A higher proportion of those in work in the Community are self-
employed than in other comparable countries. In part this is due to 
the greater importance of employment in agriculture in the Community. 
Nevertheless, self- employment is more important in industry and 
services in the Community than elsewhere, accounting for 13% of the 
numbers in work in 1990. 
33A-
FIGURE 5 
Employment by broad sector in the Community and elsewhere, 1980, 
1985 and 1991 
% total employment 
100 Agriculture H Industry 
1960 1985 1991 
EUR12 1980 1985 1991 
EFTA 1980 1985 1991 
US 100 
1980 1985 1991 
Japan 
One of the most marked features of economic development 
is the tendency for employment in services to increase as 
countries past through the various stages of industrialisation. 
In the Community the proportion of those in work employed 
in services increased from 53% in 1980 to 62% in 1991. This 
still leaves the Community at a level significantly lower than 
inthe U.S. (72%). 
-33B 
FIGURE 6 
Contribution of services to total employment In the Member States, 
1983 and 1991 
% total 
1983 • 1991 
E1987 & 1991, P1986 & 1991 
PORE DRLIE12FUKDKB LNL PORE ORLIE12FUKOKB L 
Numbers employed Volume of employment (total hours worked) 
The share of employment in services increased in all 
Member States during the 1980's. 
-33C 
9. The urban/rural balance 
Progress since the industrial revolution has been perceived as an urban phenomenon. The 
rationale of much of the above discussion is related to the evolution of urban populations 
in large concentrations, for whom the problems of the quality of life are posed by the 
urban environment, and for whom the rural environment is a leisure hinterland. All this 
is a consequence of the economies of scale resulting from manufacturing economies 
requiring local concentrations of production facilities, working populations and 
supporting services. If the right infrastructures are created, the new information 
technologies could change this spatial pattern of economic development, which has been 
responsible for some of the major environmental problems, notably urban overcrowding, 
inner-city problems of social exclusion and rural decline. 
This situation is further complicated by the crisis in agriculture, the risk of accelerating 
rural desertification and the weakening of the social structure of the rural communities. 
Certain development issues are emerging: 
the new scope for city development will depend on the solution to a wide range of 
problems, including inner-city transport, access to the rural hinterland, integrated 
socio economic city policies, and articulated prevention and integration policies; 
the future of the rural economy will depend on diversification of both production 
and service activity, this twin development being essential to the retention of rural 
populations; 
a new spatial- distribution of the population towards smaller urban centres may 
provide the base structure of a revived rural quality of life. 
Do all the developments described in this context constitute a possible contribution, if 
correctly understood, promoted and controlled through policy and negotiations between 
all partners concerned, including employers and trade unions, to a new European model 
of development? 
34-
I. WHERE THE CHALLENGES LIE - A SU1 
The object of Part II has been to identify, in non-exhaustive fashion, what challenges we 
face. A great deal of ground has been covered. More detailed analysis of the issues 
raised can be found in reports and other papers but there has been an attempt to identify 
the major trends. 
Part II began with à short description of the background to the emergence of the 
European socio-economic model and of the pressures - demographic, technological, 
industrial, fiscal, human - faced by Member States. Europe is now entering upon a 
period of development in which its capacity to build an active and open society and to 
combine economic dynamism and social progress will be more important than ever. This 
was followed by an examination of the sort of society wanted and needed by Europeans. 
Part II then discussed the critical areas of social policy where changes are most evident. 
The first was employment, where pressure from technological and structural change is 
changing patterns of employment and the role of work in society. There are pressures, 
too, on the welfare state, notably because of the growing numbers of people affected by 
social exclusion, the widening need for integration measures and the significant 
demographic changes taking place in Europe. These were looked at briefly. 
In a section on social justice and equality of opportunity, developments in the part played 
by education, changes in workplace relationships, inter-generational inequalities and 
workers' rights were highlighted. There was then a discussion of women's rights and 
opportunities, examining the labour market and social implications of the changes taking 
places as they affect women. 
The perspective widened to examine issues of socio-economic cooperation and 
competition on an international scale and what impact these might have for Europe. This 
was followed by consideration of how Europe is adapting to the changing nature of the 
production process, seen throughout the world. This included issues of where Europe 
stands in relation to the Japanese response to economic changes since World War II; the 
new balance between macro-economic and structural policies; the interdependence of 
physical and "intangible" capital; the apparent obsolescence of human capital; the role of 
job creation and entrepreneurship; changes in the role of the services; aspects of the 
quality of output, work and life; and the urban/rural balance. 
Success will go to economies which are competitive and integrated, where full advantage 
is taken of new technologies and modern methods of production and work organisation. 
There needs to be high levels of investment in infrastructures, research and development 
and, above all, people. People themselves need to feel involved in the process of 
continuing change which must be sustained over the medium-term; there needs to be a 
balance between physical and human capital. 
There are important issues in the challenges facing Europe. They include issues of 
equality of opportunity, rights and responsibilities at work and in society, employment 
itself, the need for education and training throughout life, social and economic 
integration A robust debate around these issues will enable the Commission to make 
proposals to provide a framework for the Union's social policy to the end of the century. 
-35 
At the same time this debate contributes to continuing discussions on the White Paper on 
Growth, Competitiveness and Employment requested by the Copenhagen Council. 
In Part III the possible responses to those challenges are discussed, both in terms of 
cooperation between Member States and at the level of the Union. 
-36 
III. EUROPEAN UNION - POSSIBLE RESPONSES TO THE 
CHALLENGES 
A. DEMOCRACY AND SOCIAL POLICY: A MEDIUM-TERM STRATEGY 
Jean Monnet saw the construction of Europe as a process of economic integration leading 
to political union. In that phase, the move towards a single European market was 
necessarily accompanied by the concept of a European social "dimension" dealing with 
fundamental problems such as employment, free movement, social solidarity, working 
conditions, social security and training. These areas of action by the Community were all 
propelled by the reality that an economic community cannot survive without some social 
ground rules. European social policy, based on both legislative and operational 
provisions or "acquis", is now evolving within precise political constraints. These reflect 
the fact that the social forces operating at the time, and expressed in the notion of a 
"European model of society", were governments, organised employers and trade unions 
acting in concert. The Social Dialogue, now reinforced by the Social Protocol of the 
Maastricht Treaty, has been the product of a slow process of cooperation and mutual 
adaptation between the Member States, the European legislator and the social partners. 
This is an achievement of great importance for the future because the turbulent, fast-
changing world we are moving into is one in which governments cannot take all the 
decisions. The political construction of Europe will have to be unique because it must 
build on the diversity of European cultures, the decentralization of power and the deeper 
involvement of civil society. 
Social policy will have to address the problems facing the general population, citizens 
and workers, in the countryside as well as in the towns, women and men, young and old. 
It will also need to reflect the reality that there have been profound changes in the 
structure of the working population, both in terms of occupation and sex; in demography 
and migration; in the balance between urban and rural population, in family structure, 
and in working/education/leisure patterns. 
The challenges set out in Part II are unlikely to be met by any single European State 
acting alone. There needs to be progress towards solving the problems of employment, 
living and working standards and quality of life. These are declared as common tasks in 
the Treaty. Without such progress, European economic integration, and now political 
cooperation, will be hindered. 
It should not be forgotten that European social standards have improved remarkably in 
the period since the adoption of the Treaty of Rome. However, Europe is now faced with 
unacceptable levels of unemployment, inequality between women and men, poverty and 
social exclusion. There is growing insecurity in the workplace. The scale of these 
problems calls for mobilisation and cooperation based on a medium-term strategy which 
brings in both structural and cyclical policies. 
The role of social policy will be particularly vital because, of all policies, it is concerned 
with the daily lives of people. It affects their jobs and their social protection. It is to 
social policy that they turn when poverty strikes. It affects their working conditions, 
their standard of living and their quality of life. Most fundamentally of all, it affects 
their dignity as workers and as citizens. 
37 
Whilst defending this human side of things, social policy has also to play its role in 
achieving the wider objectives of the Union which affect the welfare of all citizens. 
These include its competitive strength, its democratic functioning and its role as a partner 
in the world system. The balance between these two notions, social policy as the human 
face of the Union and social policy as a means to other strategic objectives of the Union, 
is not easy to achieve. Indeed it is sometimes a matter of fierce dispute, as in the current 
view in some circles that high social standards are undermining the Community's 
competitiveness in world markets. But the challenges set out in this Green Paper make it 
clear that social policy is always on the knife edge between the aspirations of individuals 
and what society can offer. It has to come to grips with both sides of that equation. This 
is true for Member States and for the Union. 
The Commission believes that certain major objectives could be the subject of consensus 
and could serve as guidelines for policies at various levels: 
1. Properly directed social instruments contribute to the stable growth of output and 
jobs and to social and political stability. This is so because unrestrained competition 
in the market cannot cover certain risks to individuals. Nor can it redistribute 
resources to deal with poverty or achieve the necessary investments in human 
resources. 
2. Social expenditure has to be pursued within the limits of public budgets and 
insurance funds but economy measures should respect programme effectiveness and 
social goals, including equity and solidarity. 
3. The welfare state now has to evolve towards an optimal balance between public, 
private-collective and individual provision, involving new partnerships in both the 
financing and delivery of services and recognizing the need for the state to regulate 
the overall system. 
4. Social protection and labour market policies should where possible be directed 
towards the positive goals of human resource development, individual self-
sufficiency and the integration of individuals into society whilst recognizing the 
over-riding need to provide a minimum, decent level of income to those in distress. 
These objectives and issues will have to be addressed in different ways. There are a 
number of common challenges faced by Member States where they and/or their regional 
or local authorities will remain primarily responsible for policies and measures. But these 
areas may call for (and often are already the subject of) cooperation and exchanges and 
possible convergence of policy objectives. In these cases, the Community added value 
consists mainly of the stimulation of innovation, good practice and policies through the 
promotion of exchanges, networks and the development of relevant partnerships. This is 
mostly true of the issues dealt with under section B below. Other issues, clearly indicated 
in the Treaty, call for action by the Union as such, being legal, financial or for the 
promotion of exchanges, these issues are dealt with in section C. The demarcation 
between these two sets of issues (action by Member States or by the Union) is not always 
totally clear. Certain areas will require consideration under both headings and the 
instruments which may be used may also be mixed. 
-38 
It is worth recalling the types of action available to the Union. These are: 
agreement to a convergence of policy in areas which remain a matter of exclusive 
Member State competence; 
programmatic cooperation through networking and exchanges of experience and 
good practice; 
financial support; 
use of social partners' agreement at European level; 
legislation. 
B. PRIORITY ISSUES COMMON TO THE MEMBER STATES: PROMOTING THE 
CONVERGENCE OF SOCIAL POLICIES 
The challenges set out in Part II are clearly interdependent and call for more synergy in 
government policies than in the past. This is not easy because different areas of 
government policy have their own rationale and logic, and only a clear and accepted 
definition of objectives will force the necessary medium-term developments. This is a 
matter for the Member States, but cooperation within the Union will certainly help. 
The overall objective of an active, open and just European society as the-essential aim of 
employment, social protection and equal opportunity policies is no doubt widely 
acceptable, but it is too loose to influence policy action. If the role of the Union in 
relation to these common policy goals is to mobilise the efforts of the Member States and 
civil society, then more precise objectives and quantified targets would provide a focal 
point for the necessary action. 
On a number of issues the discussion at Union level of common objectives and targets 
aims at promoting convergence of social policies and at serving as guidelines for the 
definition of policies at national level, Member States remaining responsible for fixing 
organisation, arrangements and priorities for the reaching of these objectives. An 
example of this approach is to be found in the area of social protection in the 1992 
Recommendation on the convergence of social protection policies and objectives. 
39-
What sort of objectives and targets would be acceptable to the Member 
States and the partners concerned? 
In the field of the labour market: 
- the provision of a job, activity, useful training for all those seeking 
work or work-sharing? 
- a new balance between expenditure on active measures and income 
maintenance? 
In the field of social protection and exclusion: 
- minimum income provision? 
- an integration plan for all the excluded? 
In the field of equal opportunity: 
- targets for specific groups (work-sharing, income-sharing, decision­
making) such as women? 
- measures which reconcile family responsibilities with employment? [ 
- for the young, a "guarantee" of a job, activity or useful training? 
- measures to encourage the horizontal and vertical de-segregation of 
the labour market? 
In the field~of training; 
- targets for the output of qualifications at different levels, so as to 
mobilise the different actors? 
1. IMPROVING THE EMPLOYMENT SITUATION 
There can be no doubt that the causes and consequences of high and rising unemployment 
in Europe represent the single most serious challenge facing Member States today. The 
growing perception that countries, both individually and in terms of their cooperation within 
the Union, are unable to make real progress in solving these problems has major 
implications for the future of the process of integration. 
Increased unemployment to a forecast Community average of around 12% in 1994, 
following on already high structural unemployment, has reached the point where it is 
socially dangerous as well as politically and economically unacceptable. The "ratcheting up" 
of unemployment with each recession has to be reversed because it now means that more 
than half the unemployed have been out of work for 12 months or more. Such a process 
partly explains escalating poverty and social exclusion (see Figure 7). 
These high levels of unemployment are both the result and the cause of the Community's 
declining international competitiveness. They are the result, because Europe's inability to 
create enough jobs stems - in part but by no means exclusively - from a lack of growth and 
inadequate wealth creation. They are the cause, because unemployment means wasting one 
40-
FIGURE 7 
Long-term unemployment (54 year) in the Member States, 1985 and 
1991 
% total unemployed 
70 r 
~~ 1985 • 1991 
UK L DK F P NL D EUR12 GR E IRL B I 
Long-term employment remains very high in the Community 
- about 45% of the total unemployed. 
40A 
of Europe's greatest assets - the skills and creativity of its people - and because the cost of 
unemployment to the public exchequer is putting an unprecedented strain on government 
spending. 
There is general agreement that the main solution to the problem will come from increased 
growth. In this regard, a number of measures are already in hand, including in particular, the 
Growth Initiative agreed at the Edinburgh European Council and reinforced at the 
Copenhagen Council. 
However, there is also a growing recognition that growth alone will not be enough. There 
appear to be structural barriers to job creation in Europe which, unless addressed in a 
radical and new way, will continue to impede the translation of growth into jobs. Thus, 
there will be a need for action on two levels: a series of measures to restore growth and a 
parallel action to address the structural barriers to job creation. 
It is clear that many of the policy levers which will have to be pulled are, and will continue 
to be, a matter of exclusive Member State competence. It is equally clear that Member 
States acting in isolation will have great difficulty in finding effective solutions. This is, 
therefore, an area where there is much to be gained from close cooperation, increased 
coordination and, where possible, common - as distinct from joint - action. The more 
Member States' policies are tending to go in the same direction the greater the chance of 
success, both individually and collectively. 
It was in this spirit that the Commission put forward in May of this year the Community-
Wide Framework for Employment, which was welcomed by the Social Affairs Council of 1 
June. 
The thrust of the Employment Framework is that the Community institutions and the 
Member States should commit themselves to a rolling process of common analysis and 
coordinated policy action. Suggested areas for analysis and action in the Framework 
include: 
improved adaptability at the workplace and the development of new types of 
employment based on innovative forms of work organisation; 
modifying the incidence of taxation, for example by reducing employers' social 
security contributions; 
encouraging new working time structures to share jobs; 
improving training systems to bring more people into work and better to anticipate 
structural change in industry; 
better exploitation of the employment growth potential of new areas of work, such as, 
for example, in the environmental industries, the arts and audio-visual business, the 
caring services and so on; 
creating employment through small businesses and self-employment and encouraging 
the promotion of the enterprise culture; 
41 
the development of local initiatives and strengthening the capacity of local areas to 
sustain and generate employment; 
This is not an exhaustive or exclusive list. The simple truth is that there will be no single 
solution. An improvement in the situation will come from the cumulative impact of a series 
of policy measures and the mix of measures needed will vary greatly from Member State to 
Member State, given the diversity of their situations. 
To take just one example, the issue of work sharing. 
Some people object to work sharing based on the idea of restricting labour supply or 
sharing a fixed volume of work. However, the concept can make considerable sense when 
linked to new patterns of working time, more flexible working hours, more alternation 
between work and training and more flexible retirement. Moreover, there is a well-
established secular trend towards reduced working hours as a natural outcome of 
productivity gains. Thus, particularly in the context of a shift towards quality production 
processes, more flexible and even reduced working time can be an integral part of the 
process of change. 
On the other hand, present policies tend to squeeze some groups out of the labour market 
altogether, leaving them totally dependent on income transfers from the social protection 
systems. 
This is only one example but it illustrates the kind of issues which will have to be addressed 
and the value of discussion of these issues at European level even if the precise policy 
measures adopted will remain a matter for the individual Member States. 
The need is for a common medium-term strategy around which the individual Member 
States can construct their specific national measures, in a way which means that the whole 
of the impact is greater than the simple addition of the national parts. 
The other element of the equation is the manner in which action at the level of the 
Community itself could help to underpin this process. This could take different forms. For 
example, it has been suggested that the adoption of a Community directive to facilitate the 
greater spread of part-time work could be a positive contribution to the discussions on this 
issue at national level, by providing a framework and certain guarantees (see Figure 8). 
Another example concerns the use of the Structural Funds and, in particular, the European 
Social Fund. The newly adopted regulations make this a more flexible instrument which 
could be used to encourage policy innovation and the translation of successful pilot projects 
into mainstream policies. 
42-
FIGURE 8 
Changes in full-time and part-time employment in the Member States, 
1983-1991 
Average annual change (%) 
5 r 
• FilMime M Part-time 
• DC O OH f F Ml I l NI r UK • OC 0 OH I F HI I I Ml P OC • OC 0 OH I F Ml I l NI F UC 
The Member States where the numbers employed have risen 
most, relative to the volume of work, tend to be those in 
which part-time working has increased the most. 
42A-
It is evident that in all of this the proposals which the Commission will bring forward in the 
Growth, Competitiveness and Employment White Paper will be central to the development 
of such a medium-term strategy, bringing together the macro-economic framework and the 
structural changes needed. The debate on this aspect of this Green Paper will, therefore be 
heavily influenced by the content of the Commission's proposals and the Council's reaction 
to them. 
In what wayscould the Community-Wide Framework for Employment be 
further developed as part of a medium-term strategy to combat 
unemployment and promote a more employment-intensive pattern of 
growth? 
What role could the social partners organised at European level play in 
such a process? 
What Could be the rôle of Community action as such as in helping to 
underpin the process, either in the form of legislation or financial 
support? 
2. ACCELERATING PROGRESS TOWARDS A QUALITY-BASED PRODUCTION 
SYSTEM 
The analysis of the challenges in Part II has pointed to the importance of the new 
production process .not only as a means of creating the wealth through which the social 
objectives of the Union can be achieved. However, its significance goes further: 
(i) because the productivity dividend from new technologies depends on social 
negotiations, and (ii) because the impact of the changes on living and working conditions 
and on the quality of life could be considerable. 
This is not only an issue for large companies and central governments but of small firms 
and local and regional communities. Many small European firms, deeply embedded in 
their local communities and cultures, are now active in the world market; many regions 
and localities in Europe are formulating the objectives for their future with a keen eye on 
Europe and the world beyond. Their opportunities depend on local energies, resources 
and capacity for partnership. In particular, this will require new approaches to worker 
participation and involvement, encouraging managers, workers and their representatives 
at enterprise level to confer in the early stages of introducing new technology. 
Social adaptation to the changing economic structures will be vital for competitive 
success, but, just as importantly, necessary in order to ensure that basic social values are 
preserved and protected in a period of transition. 
-43-
(a) Human resource development 
It would be wrong to reduce investment in people to a simple economic calculation. 
There are fundamental political and social values at issue here. However, the importance 
of the need for investment in human resources development as a key means of ensuring 
competitive success in the global market has still not been fully understood. 
Big shifts in occupations and skills, and in systems of qualifications, will require 
fundamental changes in education and training systems and in the relationship between 
training in enterprises and the formal education and training system. In general terms, 
more democratic and flexible forms of work organisation call for vigorous enterprise 
training policies interacting with flexible, effective and broadly based education systems. 
Both have to be related to life long learning in an overall system based on partnership 
between governments, the social partners and educational institutions, and geared 
towards clearly identified targets for the output of qualifications. 
Attention also needs to be paid to getting training schemes, particularly re-training 
programmes for the unemployed, into better line with the real needs of the marketplace. 
These schemes often offer little real chance for the unemployed to find new jobs and 
have become palliative rather than real instruments of labour market re-entry. Such 
developments in education and training would not succeed unless there was a parallel 
development of qualifications systems, involving the cumulation of modular courses, 
recognition of work experience and negotiation between the partners on the definition of 
qualifications1 and their relationship to pay. The development of European training and 
qualifications markets, assisted by the Union, would help to accelerate developments in 
the Member States. These issues are also addressed in section C.l. 
(See Figures 9 and 10) 
The Community is already playing a major role in these developments with its action 
programmes in the field of education and training (such as COMETT, FORCE and 
PETRA), through the Social Fund under EUROFORM and NOW, as well as in its 
mainstream programmes and through the Social Dialogue. Furthermore, the recent 
revision of the ESF provides even more scope for this kind of action. The Social 
Dialogue, perhaps through collective agreement in the area of education and training 
where there is a wide degree of common ground between trade unions and employers, 
will also play a key role in the future. 
44-
FIGURE 9 
Educational attainment of the labour force (254) in the Member 
States, 1991 
20 40 60 80 100 
20 40 60 80 100 
% la bo ir force 
The average level of educational attainment is in general 
much higher in the northern part of the Community than in 
the less developed and less prosperous, southern Member 
States. 
Owing to the lack of suitable comparable data, figures for 
France are not included. 
44A 
FIGURE 10 
Educational attainment of the employed and unemployed (254) in the 
Member States, 1991 
20 40 60 80 100 
20 40 University education (employed) 
University education (unemployed) 
60 80 
% total employed/unemployed 100 
There are perceptible differences in the levels of educational 
attainment between those in employment and those 
unemployed. In most Member States, a much higher 
proportion of those in employment had received post-
compulsory education or vocational training than those 
unable to find work. 
Owing to the lack of suitable comparable data, figures for 
France are not included. 
44B-
Critical questions that need to be addressed are: 
How can re-training schemes be better linked to real labour market 
needs? 
How can we best work towards establishing the right of each individual 
to training throughout life, particularly when skills and qualifications 
need constantly to be enhanced because of industrial change? 
How can we overcome the handicap whereby, in some Member States 
and in the Union itself, education and vocational training policies tend 
to be separately conceived and implemented? 
(b) Labour standards and working conditions 
These need to evolve to keep pace with rapid changes in technology and production 
organisation, so as to facilitate the new forms of flexibility that enterprises need, whilst 
at the same time giving necessary protection to workers. In this respect, the Commission 
emphasises the need for an early adoption of existing proposed directives, because they 
will help rather than hinder the support of the workforce for a fundamental process of 
change. 
The principal effects of the new production process, whilst varying according to 
industrial sector, constitute a general basis around which discussions and perhaps 
negotiations might take place: 
the shift towards more decentralised management structures and shorter and faster 
production cycles, involving more responsible roles for workers; 
big changes in occupations and skills, and therefore on-the-job training, upgrading 
of qualifications and broader job classifications; 
new patterns of working time, involving new work schedules corresponding to the 
aspirations of the workforce and intensive use of capital equipment; 
a changing pattern of trade union and business organisation. 
Whilst transnational enterprises could adopt a "cost-cutting" strategy and negotiate for 
lower social standards, they are more likely to opt for a "quality" strategy of high levels 
of pay, participation and security because of the need for fast product changes at the 
frontier of the market. Nevertheless, whilst such conditions would apply to their "core" 
labour force, their flexibility also depends on a "contingent" labour force which can take 
many forms, including seasonal part-time hiring, permanent part-time hiring, and use of 
contracted labour both at low and high levels of qualification and skill. But it is also vital 
for Europe that the SME's, who are the main contributors to output and employment, 
should prosper in the new economic environment. There are a number of reasons for 
thinking that their position in the European economy will be enhanced because of their 
adaptability, the growing "decentralisation" of production units and the growing space 
for small production units specialising in products of high quality and operating in 
international networks. The key point here is how to adapt labour law and practices in 
such a way as to constitute a positive incentive towards the adoption of new techniques 
-45-
and processes while seeking to preserve equally the fundamental objectives of protecting 
workers' rights and social progress. Consideration must also be given to the cost impact 
of any new measures. 
(See Figure 11) 
(c) Redefining labour market adaptability 
Mastering this process of continuing technological and structural change requires a new 
and socially acceptable concept of flexibility. It is doubtful that the limitation to wages 
and mobility would be acceptable to the social partners under the present circumstances. 
The essential points appear to be negotiations about rights to education and training 
opportunities for workers, their participation in the process of change and action to bring 
the new forms of labour market contract into the realm of acceptable standards of social 
security. This represents a considerable development of the collective bargaining agenda. 
For example, organisational structure and the organisation of work will have a major 
influence on the capacity to exploit the potential of the new information technologies. 
There are options in how the new technologies will be used and the various combinations 
of human and physical capital need to be clarified so that the right decisions are taken. 
Broadly speaking, it may be expected that management practice which does not take into 
account cooperative rather than hierarchical organisational structures, development of 
employee skills and initiative and the establishing of client-oriented marketing practice 
will be punished in the market place. 
Whilst a common labour market policy at the level of the Union is neither feasible nor 
desirable, it would be dangerous if, under the pressures to change, the conditions in 
national labour markets began to diverge excessively. A commitment to high social 
standards and to the promotion of social progress forms an integral part of the new 
Treaty. A "negative" competitiveness between Member States would lead to social 
dumping, to the undermining of the consensus-making process identified in the 
Maastricht Social Agreement, and to danger for the acceptability of the Union. This is 
why the attempt to reach agreement on certain common minimum labour standards 
should be pursued and why cooperation between the Member States on the following 
strategic issues could be strengthened: 
improving the quality of labour supply, through large-scale improvements in the 
education of young people, involving cooperation between policy-makers in the 
fields of education and training; 
striking a more efficient balance between external and internal labour markets, 
bearing in mind that job security may enhance cooperation by workers in the 
process of technological change and their commitment to continuing training; 
diminishing the disincentives and barriers which block job creation and reinforce 
the poverty and unemployment traps; 
removing or adapting barriers to mobility between occupations; 
46-
FIGURE 11 
Average hourly labour costs in manufacturing in the Member States, 
1981 and 1990 
ECUAworker (1990 values) 
25 r 
H Wage costs S Non-wage costs 
F. I. OR, L1990 MtfmaMd (tern 1988 data 
20 h 
15 
10 
P GR IRL E UK I L OK F NI B 0 
1981 
Labour costs consist not only of wages but also include in 
direct or non-wage costs which businesses have to pay for 
every person employed e.g. social security, pension, or 
health scheme contributions. From the figures above, it is 
clear that in some countries employers have to pay a 
substantial, and increasing, cost in addition to wages when 
taking on labour. 
-46A 
improving the operation of the employment services, including the possibility of 
changing their status, in order to ensure the best possible service to the unemployed 
and those threatened with lay-off; 
changing the balance between resources on "passive" measures and "active" (job 
creation and training) measures; 
removing the gender bias in educational systems to widen occupational choice for 
everyone and foster a more flexible workforce. 
The public sector could play an important catalytic role in pioneering these new 
developments. 
d) Measures to accompany a quality-based production system 
The preceding analysis emphasises the role of the quality of human resources, in terms of 
skills and qualifications, as a key factor to ensure the implementation of quality-based 
production systems. The reformed ESF, in particular the new Objective 4, is designed to 
respond to these challenges. The mission of Objective 4 is to facilitate the adaptation of 
workers, mainly through vocational training and retraining, to industrial change and changes 
in production systems. It aims to improve workers' qualifications and employment 
opportunities by implementing training measures related to technological changes and to the 
introduction and development of new production methods (of which the main characteristics 
have been outlined above). 
Objective 4 concerns in particular an anticipatory and preventive approach: anticipation of 
changes in markets, in employment and future skill needs; prevention, by appropriate 
measures, of the forecast (negative) effects on employment, without a priori reference to 
individual industries or specific sectors. 
Particular emphasis is placed on workers in employment threatened by unemployment: those 
affected by the mismatch between, on the one hand, existing levels of skills and 
qualifications, and on the other, the actual and future demands for skills and qualifications 
as a consequence of industrial change. 
An emphasis is placed on the needs of workers within SMEs, in the context of changes in 
subcontracting and new forms of cooperation with larger firms. Actions are designed to 
complement, and not substitute for, the efforts that firms must themselves undertake. 
47-
The following questions cover issues raised in points (b), (c) and (d). 
How can we develop a regulatory framework which will help European 
enterprises adapt to such changes? 
What labour market and social policies can accelerate the development 
of industries at the leading edge of technological development while 
providing appropriate guarantees for workers* rights? 
What is the scope for collective bargaining on these issues so as to 
reduce the anxieties and risks, and cotild framework agreements under 
the Social Dialogue assist the bargaining process? 
What can the Union do to accelerate progress towards quality-based 
production systems* such as supporting innovative experiments and 
sharing tne results? 
3. STIMULATING SOLIDARITY AND INTEGRATION 
The social integration of all citizens is of strategic importance, because it goes to the 
heart of the impact of existing welfare state policies and provides a powerful goal for the 
future development of Member State policy and action. Indeed, the idea that not only the 
active but also the non-active population needs the dignity of a social role, coupled with 
the return to full employment even if in a new shape (as discussed above), constitutes the 
backbone of an active social policy for the future. It should be noted that this partnership 
between economic, employment and social policy, at the service of an active and fair 
society of autonomous but protected individuals, was already present in the founding 
texts of European social security - social "insurance" being the expression of the 
principle of self-provision within the framework of a state guarantee. The neglect of the 
social integration objective was not apparent when high employment and the growth of 
national and personal incomes could mask the incipient dangers, but moderate growth 
combined with rapid structural changes in society have unhinged the original conception 
and demonstrated the inadequacy of the income maintenance objective without an 
accompanying objective of social integration. 
(a) Convergence of social policies 
Social and economic integration (getting people back into the system) and income 
maintenance are the principal objectives of Community social policy. They provide the 
basis for the evolution in more active European societies towards "trampoline" social 
protection systems which not only prevent people from falling but, rather, help them to 
bounce back up to an acceptable standard of living. The aim is not the harmonisation of 
national systems, but a framework for efforts to strengthen social protection systems and 
enable Community legislation on social policy to fit into a dynamic policy framework 
based on common objectives. Consistency between activity and legislation on minimum 
standards are essential principles of action by the Union in a field where national systems 
will converge but remain autonomous. 
48 
Could there be better operation of income maintenance policies in 
order to develop high levels of social protection, together with active 
labour market policies to achieve high levels of employment? 
Should we go further and define specific convergence objectives in 
some areas/in particular in relation to new developments such as 
insurance for care of the elderly and individualisation of rights? 
In the field of taxation and social security, how can we offer 
appropriate incentives for, the social and economic participation of 
women, again through the individualisation of rights or through the 
removal of the *two adult sole breadwinner* concept of family from 
taxation and social security policies? 
(b) The fight against poverty and exclusion: prevention and rehabilitation 
This challenge to the social cohesion of the Union calls for a mobilisation of efforts by 
Member States and all the actors concerned and for reinforcing the bulwark of social 
rights. It implies a deeper understanding of the causes of social exclusion in modern 
industrialised societies, fundamental changes in policy to tackle the problem at its roots; 
and bold social experimentation designed to explore new avenues for the future. The 
Commission will use all the tools at its disposal, both legislative and financial, to support 
this effort in partnership with the Member States and the institutional actors concerned. 
The Commission is proposing a new dimension to its fight against exclusion and poverty, 
based on a combination of commitments undertaken by various partners, including the 
Community, support of innovation and good practice, and support from the Structural 
Funds. On this basis a new programme on social exclusion has recently been approved by 
the Commission. 
What types of action should be taken to step up the fight against 
poverty and exclusion? 
Should a combination of commitments to fight against poverty and 
exclusion be more formalised (through appropriate legislation)? 
Vigorous remedial action to help those marginalised is, of course, now indispensable, but 
it should be accompanied by a long-term strategy to limit poverty and social exclusion 
and to promote social integration in the future. This means a general evolution of social 
policies, health policies, labour market policies and education and training policies 
-49 
towards the goal of the economic and social integration of all citizens. In this respect 
European society is faced with a particular and specific challenge since its values do not 
permit it to leave the individual without minimum decent standards of protection 
guaranteed by the state, nor unduly to devolve responsibilities to enterprises or local 
communities. Partnership between the various domains of civic responsibility, public and 
private, must be the abiding principle. 
The European Union Treaty, which brings education and public health into the 
competence of the Union and unambiguously confirms the central importance of 
employment, social protection and working and living standards, provides the 
opportunity for cooperation between the Member States, assisted and supplemented by 
the Union, to reconstruct their social policies to play a more positive role in social and 
economic development. At the same time, the presence of all the main sectors of social 
policy in the Union's mandate will assist the Member States to establish the necessary 
synergies between policies, and the Commission to ensure necessary coordination at its 
level. 
The Social Agreement will enable the social partners to play their role in this effort to 
combine a remedial and preventive approach to social and economic integration, and to 
further define and implement a bulwark of fundamental social rights. 
The specific options and priorities for discussion are: 
the improvement of the quality of working life (working conditions and health and 
safety) which-would improve labour productivity by reducing absenteeism, sickness 
absence, and occupational disability; 
the evolution of unemployment compensation systems so that they support re-entry 
into the labour market, job creation and self-employment, and thereby play a role 
in industrial adaptation; 
more flexible pension systems so as to allow more freedom of choice between early 
retirement for those who seek it, and part-time work or voluntary activity by those 
who wish to continue to be active, and more generally policies to support the social 
integration of the aged; 
"life long learning" education and training policies so as to support the renewal of 
skills and combat the obsolescence of human capital; 
minimum income provision so as to support social and economic integration; 
technical provision at the workplace to ensure opportunities for the social and 
economic integration of disabled persons; 
integrated provision for young people so as to enhance the prospects of a successful 
transition into the labour market and adult life, thereby avoiding the 
unemployment/exclusion trap. 
-50-
In addition to the above, the delivery and simplification of services for recipients need to 
be improved, the various levels involved need to be coordinated; and information for the 
public should be easy to understand. 
Should future action be developed in specific action programmes 
and/or more precise setting of selected objectives and targets at Union 
level? 
(c) Youth opportunities and risks 
The Community has done much to involve young people in European affairs, stimulate 
youth policies ("Youth for Europe"), tackle the problem of youth unemployment (the 
Social Fund), and promote vocational training opportunities for young people so as to 
strengthen the transition to work (PETRA). Other initiatives are planned under Articles 
126 and 127 on education and training. 
Resurgent youth unemployment suggests that a new attack on the problem is needed. 
There are several issues: 
the development of the European economies has seen the destruction of many youth 
"entry" jobs; 
the rapid expansion of educational opportunity combined with changes in skill 
levels and needs and the decline of the traditional apprenticeship system has made 
the traditional pathways from school to work less clear; 
the labour market appears to be functioning to the detriment of young people, 
partly because of labour costs, partly because they do not have power in the 
collective bargaining system and partly because young people are caught in a 
vicious circle where jobs depend on experience but experience can only be obtained 
through work. 
(See Figure 12) 
In a real sense, the problem of youth is becoming a problem of segregation because the 
traditional mechanisms of transition into adult society are breaking down. 
51 
FIGURE 12 
Yeuth unemployment rates, 1992 
a 
fry* 
With the sole exception of Germany, unemployment among young people aged under 
25 is higher throughout the Community than for older people. This is especially the 
case in the less developed parts of the Community. 
51A-
- How can a modern version of the "apprenticeship" system, in which 
today's problems of transition from school to work are addressed, 
be best developed? 
- How can we tackle the persistent problem of segregation in youth 
education, training and employment which restricts the vocational 
choices of young women? 
- Is there a need for a "youth guarantee* i.e. providing a job, an 
activity or useful training as a means of stimulating necessary 
action? 
- Can youth employment be &vm a stimulus by lower "entry wages" 
without distorting recruitment patterns or discriminating against 
older workers? 
(d) The economic and social role of the elderly 
Many older people are better off than in the past, both in terms of income, social 
services and health. But there are also significant numbers who, because of their careers 
and social security coverage, are not adequately protected in old age. Solidarity between 
the generations is still vital but the principal problem remains the social integration of the 
aged. This has been the focal point of the Community's work in this area and a key 
element of the 1993 European Year of Older People and Solidarity between Generations. 
It is clear, however, that the demographic changes foreseen imply a shift in the age-
structure of society and a different relationship between the generations. The prospect of 
a growing proportion of the population being "retired", sometimes with 20 years or more 
ahead of them, is fraught with human, social and economic difficulties. An important 
objective of a European active society should be to reorientate economic and social 
policy towards the reality that the older population will be big consumers, command 
major investments, exercise political influence and could play a major role in dealing 
with the problems of youth segregation and women's opportunities referred to earlier. 
(See Figure 13) 
These are questions of social innovation as well as social policy, where changes have to 
be promoted in civil society, through cooperation between trade unions, local authorities, 
enterprises and voluntary organisations. The partnership and networking approach which 
the Community has developed is well suited to tackling such problems. Article 7 of the 
Social Agreement of the Treaty on European Union provides for a regular report on 
demography. This could help to monitor trends and policies linked to demographic 
trends. 
-52 
FIGURE 13 
Population aged 75 years and over in the Member States, 1980 
and 1991 
% population 
Between 1980 and 1991, the number of people aged 75 and 
over went up significantly in all Member States in relation to 
total population. This was especially true for the southern 
countries of the Community, where in each case the 
proportion increased by around 30% or more. 
52A-
(4 
How can the present progress of the European Year of older people 
and solidarity between generations be built on? 
How could the report referred to in Article 7 be used as a basis for a 
strong debate on fofnograpftic trends;,and their consequences for, social 
secflrte employment» etc. and perhaps the development of a regular 
monitoring process? 
(e) Equal opportunities for third country immigrants 
Work has been going on since 1986 at intergovernmental level on immigration to Member 
State territories, to define a common management of flows, of which some are the 
consequence of international obligations entered into by Member States (family reunion and 
refugees); others may arise from potential imbalances in the supply and demand of labour. 
Title VI of the Treaty on European Union now allows for common action on immigration 
policy and policy regarding nationals of third countries. The deepening of the European 
integration process has recently served to focus attention both within the Community and 
outside, on how it receives and integrates non-Community citizens. But as early as 1976, 
the Council declared its intention to further equal treatment of third country nationals and 
the members of their families with nationals of the Member States, as regards living and 
working conditions, wages and economic rights. The Commission, in its 1991 
Communication to the Council and Parliament on immigration, highlighted the need to 
strengthen measures designed to promote the integration of third country nationals in the 
context of a comprehensive policy which would also address the need to to take action on 
migration pressure and to control migration flows. It is proposed to update that 
Communication, and the associated Communication on Asylum, to take account of 
developments since 1991 and the new possibilities offered by the Treaty on European Union 
by way of a new Communication to be addressed to Council and Parliament. 
The success of migration policy for Member State nationals - despite certain shortcomings -
is due mostly to the fact that the political will to enable people to migrate was enshrined in 
the Treaty of Rome. Thus, there was a solid base on which to develop the legal and 
practical arrangements to facilitate the movement of people. If the Community wishes to 
adopt a migration policy for third country nationals it must, for the policy to succeed, base 
itself on clear objectives related to the organisation of migration flows and their 
accompanying social measures, and provide itself with the necessary instruments to do so. 
An integration policy must include security of stay for those whose residence is stable and 
permanent, equal opportunities in employment, education, training and housing, simplified 
access to naturalization and the fostering of tolerance between the different communities 
living side by side. 
Consideration could be given to allowing access to employment in another Member State to 
third country nationals who have acquired a permanent right of residence in a Member 
State. That also raises the question of whether other rights which are a corollary to free 
movement in Community terms, should be extended to such third country nationals. In 
53 
particular, the question should be examined whether it is still justified to exclude third 
country nationals moving within the Community from the protection offered by the 
coordination of social security schemes, simply because of their nationality. 
Immigration calls for realistic, coherent and complex approaches based on fundamental 
principles: respect for laws, the rights of individuals and for external as well as internal 
action as far as integration is concerned. 
Surely the equality of rights and obligations is an essential condition for achieving solidarity 
between the various elements of a society. The main objective of the Community in this 
respect is to enhance the social integration of legally resident migrants through equal 
opportunities in employment, education, housing, social security and health care. 
How can we best stimulate policies and practices which promote a 
concerted integration policy which aims at the harmonious co-existence 
of peoples in the Union? 
Should the employment conditions of third country nationals be dealt 
with in the Social Dialogue with a view to adopting codes of good 
practice? 
Should a permanent residence entitlement be accorded to those who 
satisfy stability criteria, including personal rights for members of the 
family of .legally resident immigrants, in order to ensure successful 
integration? 
(f) The integration of disabled people 
The ultimate test of policies for disadvantaged groups will be how the effort socially to 
integrate people in difficulty applies to people suffering from a physical or mental 
disability. Social segregation, even with adequate income maintenance and special 
provision, is contrary to human dignity and corrosive of social solidarity and community 
morale. Special facilities, institutions and legal rights are obviously necessary, but they 
should not be an obstacle or an alternative to the principle of "mainstreaming" - that is to 
say acceptance of people as full members of society, with opportunities for integrated 
education, training and employment, and to lead their lives independently, particularly 
through the development of accessible buildings and transport. The HELIOS programme 
plays a central role in this respect. 
How can we best progress in the area of integration of disabled people? 
Should the Community develop specific legislative action in this area? 
What role would the social partners play in this respect? How can 
partnerships be strengthened between the various actors, NGO's, social 
partners, local authorities, etc.? 
54-
(g) The fight against racism and xenophobia 
Racial discrimination and xenophobia are not only directed at immigrants. They also affect 
citizens of the Member States. However, in a time of recession, where there is competition 
for jobs and housing, ethnic minorities can be a scape-goat for the fear and anger in society. 
Xenophobia and racist attitudes are fed by ignorance of other people and a lack of 
understanding of different cultures. Measures in the areas of information and education are 
therefore of prime importance. 
The fight against racism and xenophobia is echoed in the protection of fundamental rights, 
confirmed in the Single European Act. All the legal systems of the Member States include 
measures to sanction violations. However, sanctions alone cannot overcome all forms of 
racism and xenophobia. Comprehensive anti-discrimination legislation offers an integrated 
and coherent approach to combating racism, discrimination and xenophobia, whether 
founded on colour, race, ethnicity or national origin, religion, beliefs or culture. 
How can we improve and broaden the promotion of measures in the field 
of education, information and legislation as tools in counteracting racist 
attitudes • acts and discrimination? 
(h) Social policies and rural development 
The birth of modern social policy has its origin in the plight of the urban poor as a 
consequence of the industrial revolution. The social networks and family links of the 
countryside were broken by migration into urban manufacturing centres, leading to a 
redistribution of welfare functions between the family, the state and the enterprise. Now 
that the wheel is turning again with welfare functions being spread throughout society 
and less concentrated in the hands of the state, it is important that social policies should 
assist rural populations and underpin rural development. Steps should be taken so as to 
ensure that the treatment of the problems of rural populations is on a par with that in the 
cities. In this context, new approaches to solidarity in the rural world as well as the more 
recent development of new partnerships provide a number of useful examples. 
The Community is already contributing to the social policy effort against depopulation 
and marginalisation in the weakest rural areas, as well as to that against the social decline 
of the population concern. This contribution has consisted mainly in compensatory 
payment to farmers in mountainous and less-favoured areas; the development of 
agricultural resources and economic and social potential in rural areas under the 
Structural Funds (Objectives 1 and 5b), involving especially job creation, alternative 
employment and local employment initiatives; and measures designed to make surplus 
agricultural produce available to certain categories of consumer at low prices and 
accessible conditions. 
55 
As risks of exclusion and marginalisation in rural areas are increasing, 
what further actions other than what is undertaken at present would 
[prevent rural social decline? 
56 
C. MAIN POLICY OBJECTIVES AT EUROPEAN LEVEL 
In Section III.B, we have looked at those challenges which, although not strictly a matter 
for competence for the Union as such, are common to Member States and could be better 
met by increased cooperation and, where appropriate and possible, by some convergence 
of policy. 
In this section, we will explore the options for action by the Union itself. 
The entry into force of the Maastricht Treaty has created a new situation in relation to 
social policy at European level. In the first instance, there is the existence of the 
Agreement on Social Policy, adopted by eleven of the Member States and enshrined in 
the Protocol on Social Policy which is annexed to the Treaty. 
This Agreement seeks to clarify the kind of areas which the Union's social policy would 
cover and also establishes new procedures for decision-making. 
In terms of the substance, the Agreement sets out the following objectives: 
"the promotion of employment, improved living and working conditions, proper 
social protection, dialogue between management and labour, the development of 
human resources with a view to lasting high employment and the combating of 
exclusion...." 
It identifies two groups of areas of activity: 
one, to be decided on the basis of qualified majority voting, which covers: 
improvement in particular of the working environment to protect workers' 
health and safety; 
working conditions; 
the information and consultation of workers; 
equality between men and women with regard to labour market opportunities 
and treatment at work; 
the integration of persons excluded from the labour market, without prejudice 
to Article 127 of the Treaty establishing the European Community; 
another, to be decided by unanimity, which covers: 
social security and social protection of workers; 
protection of workers where their employment is terminated; 
representation and collective defence of the interest of workers and 
employers, including co-determination; 
conditions of employment for third country nationals legally residing in 
Community territory; 
financial contributions for promotion of employment and job creation, without 
prejudice to the provisions relating to the Social Fund. 
57-
Finally, it is worth noting that the following areas are explicitly excluded from action: 
pay, the right of association, the right to strike and the right to impose lock-outs. 
In terms of procedures, the major innovation of the Agreement is to formalise a process 
of two stage consultation with the Social Partners, which can lead to the negotiation of 
collective agreements at European level, possibly as a substitute for legislation. 
Of course, it needs to be recalled that the original idea was that this Agreement would 
replace the existing provisions of the Treaty of Rome. As this is not the case, social 
policy is now potentially governed by two separate legal frameworks - that of the Treaty 
of Rome which continues to apply and that of the Agreement on Social Policy which 
eleven Member States have agreed to operate between them. 
The procedural implications of all this are treated in a separate Commission 
communication. 
What is particularly important to recall for the purposes of this Green Paper is that any 
discussion on social policy at European level has to take into consideration that, 
henceforth, the range of instruments available is multiple: 
on the one hand, there are the traditional categories of action which may be summarised 
as follows: 
mobilisation of the actors in the Member States; 
cooperation between actors in the Member States, particularly through 
networking; 
legislation; 
financial support; 
on the other hand, there will be decisions to be made about the legal basis for the action 
and, in particular, about the possibility of collective agreements as an alternative to 
legislation. 
In the event that legislation is agreed to be the best option for addressing a given 
problem, the question of the nature of the legislation then arises. Past experience has 
shown a tendency towards much detail in Community social law. Often, as was 
classically the case with the directive on working time, this results not so much from the 
Commission's first draft text as from the process of negotiation in the Council and 
Parliament. Consideration needs to be given to whether lighter and more flexible laws 
might not be better adapted to the diversity of different Member States, provided that 
this can be reconciled with the substantive results sought. 
58-
Which areas of social policy are most likely to be amenable to being 
addressed by collective agreements? 
Which areas are most likely to need a legislative approach? 
Can framework laws provide the kind of results required such as, for 
example, in the areas of minimum standards or equality of 
opportunity? 
1. THE SINGLE MARKET AND THE FREE MOVEMENT OF PEOPLE 
Free movement of people is one of the four "freedoms" enshrined in the Treaty of Rome 
(Article 3(c)). Given that its origin lies in the establishment of the European Economic 
Community, it is economic activity which constitutes the key element of the provisions 
relating to free movement: activities as an employed person (Articles 48-51), establishment 
as a self-employed person (Articles 52-58) and the provision of services (Articles 59-66). 
Article 8A of the Treaty on European Union grants the right to move and reside freely 
within the Member States to every citizen of the Union. 
It is only in the context of the single market programme that the Council extended the right 
of stay to all nationals of the Member States, even if they do not pursue any economic 
activities but provided that they have health insurance and sufficient means by which to live. 
The Court of Justice has made a decisive contribution to ensuring that intra-Community 
movements take place under conditions of freedom and dignity. The nationals of the 
Member States have the right to pursue an economic activity in the territory of a Member 
State of which they are not a national without any discrimination, whether as an employed 
or self-employed person. The Member States may only reserve for their own nationals, 
employment in the public service (Article 48 (4) of the EEC Treaty), but the Court of 
Justice has reduced the scope of this exception to employment which involves participation 
in the exercise of public power and responsibility for safeguarding the general interests of 
the State. 
This right to exercise an economic activity without being discriminated against on grounds 
of nationality has become more palpable - particularly for self-employed people - with the 
adoption of Community legislation on the mutual recognition of diplomas and qualifications. 
After a period in which mutual recognition was pursued on the basis on individual directives 
for specific professions, the Community has now adopted two horizontal directives which 
extend recognition to all regulated professions. A much more complex but important issue 
for the future is how to ensure the equivalence of qualifications for non-regulated 
professions and skills. Equally, active consideration needs to be given as to how the 
Europe-wide recognition factor can be built in from the start to the very large number of 
new qualifications which are going to be needed in the future. 
The establishment of real and effective mutual recognition and equivalence of qualifications 
at all levels throughout the territory of the Union has to be an urgent political priority. This 
is for reasons related not only to the economic benefits which this would bring but also 
because of the contribution it would make to the notion of European citizenship. 
-59 
The concept of worker covers not only workers settling definitively in another Member 
State but also frontier workers, temporary workers and seasonal workers. Temporary 
activity by self-employed people is covered by the provisions on the free movement of 
services. (See Figures 14 and 15) 
The right of residence is regarded by Community Law as first of all a corollary of the right 
to pursue an occupation. The right of residence has thus been recognised for employed and 
self-employed people and it has been extended to members of their families (spouses, 
dependent relatives in the descending line or those under the age of 21, and dependent 
relatives in the ascending line). Moreover, Community law has granted the right to remain in 
the host country to employed and self-employed people after their activities end due to 
retirement or incapacity to work. These rights apply also to their families even after the 
employed person's death. 
All those enjoying the right of residence naturally also have a right of entry to the territory 
of another Member State. The Single European Act further adds "the removal of physical 
controls at the internal frontiers". This objective has yet to be fully realised but work 
continues on the basic measures considered necessary to achieve the removal of controls on 
all persons when crossing the internal frontiers. It should be noted in this connection that 
the Court of Justice has ruled that tourists may be regarded as "persons receiving services" 
and that they are covered by the provisions relating to the free movement of services, 
specifically with regard to entry and residence. 
The Court has also specified that the freedom of movement for workers also covers the 
right of a person seeking employment to reside in the territory of another Member State as 
long as he or she continues to look for work and has a genuine possibility of being 
employed. 
The basic principle is clear: within the scope of application of the Treaty (Article 6 EC), any 
discrimination on grounds of nationality is prohibited. 
This total equality with nationals in virtually all fields, however, is guaranteed solely for 
persons who have the status of migrant worker and for members of their families. In other 
words, people seeking employment and students (other than migrant workers' children) 
enjoy the protection of Community Law as regards the elements peculiar to the situation in 
which they find themselves, but they cannot claim total equality of treatment, for instance, 
in the domain of social assistance. 
Particular emphasis should be given to the importance of Community coordination of 
national social security schemes, which is indispensable for ensuring effective freedom of 
movement in Europe. 
The question is how can this fundamental freedom be fully exercised if there is a risk of 
being penalised in terms of social security? The Treaty of Rome, in particular Article 51, has 
from the outset facilitated the establishment of Community regulations to remove this risk 
for employed and self-employed people and their families moving within the Community. 
-60-
FIGURE 14 
Share of total population who are nationals of other Member States, 
1991 
% total population 
P - E OK NL EUR11 
I no date, GR IgurM dot* to are. L 29%, 30%, 13% UK RL 
The scale of cross-border migration in the Community over 
the past decade has been very small. This is reflected in the 
relatively small numbers of people (2%) living in one 
Member State who are nationals of another. 
60A-
FIGURE 15 
Population movements within the Community, 1987-1991 
-350 -250 -150 -50 50 150 250 350 450 550 
-350 -250 -150 
Emigrants (1000s) -50 50 150 250 grants (TCOOs) 
Over the five years 1987 to 1991, some 1.5 million people 
moved from one Member State to another, an average of 300 
thousand a year. Of the people moving, a relatively high 
proportion were aged between 14 and 54 and, therefore, 
potentially looking for work. 
60B 
These regulations are regularly brought up to date to take account of changes made to 
national law and of the Court's case law. The objective of the regulations is not to 
harmonise national systems but simply to protect the people concerned against the effects of 
national measures which do not take account of the particular situation of people moving 
from one Member State to another. 
Most categories of workers are covered by the Community regulations. However, the 
special schemes for civil servants and persons treated as such still remain to be included in 
the scope of coordination. The exclusion of these schemes is no longer justified since the 
Court of Justice, in its rulings concerning Article 48(4) of the Treaty, has largely granted 
access to employment in the public service to nationals of the Member States. In this new 
context the Commission has transmitted a proposal for a regulation which is currently under 
discussion in the Council. 
In light of the social dimension of the internal market, coordination of social security 
schemes should encompass all people insured in the Community. To this end the 
Commission has also proposed that the scope of the regulations be extended to categories 
still excluded today, namely students and non-active people. 
Furthermore, there is still the difficult matter of supplementary social security provision, 
particular occupation pensions and supplementary health insurance. Such provision is often 
made under the terms of collective agreements or at the initiative of the employer or 
individual concerned. As a result and in contrast to statutory social security provision, 
supplementary provision is excluded from the scope of Community coordination. The very 
complexity and diversity of this type of social security provision has so far ruled out 
coordination at Community level. However, the need for such coordination is likely to 
increase with the shift in the demographic balance , as workers may have to rely increasingly 
on supplementary social security. In addition, a greater cross-border mobility of highly 
qualified workers is expected. It would not be acceptable that workers who depend heavily 
on supplementary social security provision are prevented from exercising their right to free 
movement for fear of losing an adequate level of social security cover. 
Another important element of moving towards a genuine People's Europe is currently under 
consideration. The Commission is examining how the existing rules on access to the health 
services of another Member State can be made more flexible in the interests of patients. 
Consideration could also be given, to the possibility of extending the benefits of 
coordination of social security schemes to nationals of non-Member States in particular 
cases. 
Community coordination could be further improved and strengthened in the following key 
areas: 
unemployment benefits: Existing Community legislation offers only a very limited 
protection for unemployed persons looking for work in another Member State. Under 
strict conditions, for a maximum period of three months and only once between two 
periods of employment, the right to unemployment benefit can be retained. These 
provisions, adopted when the employment rate within the Community was high, are 
less encouraging to people who otherwise would be ready to take advantage of 
employment opportunities on a European scale. In times of high unemployment, the 
61-
existing Community legislation in this field therefore needs to be modernized and 
adapted to the new situation. Mobility would be increased by extending the right to 
retain unemployment benefit when searching for work in another Member State, but 
without creating new financial burdens or unbalanced situations between the Member 
States and whilst avoiding any incentive for abuse of the system. 
early retirement pensions: A number of gaps remain to be filled. These schemes are 
still excluded from the scope of existing regulations which also do not take into 
account the specific situation of people taking early retirement. This is especially true 
with regard to family benefits and health care. 
sickness benefits: The existing rules need to be made more flexible. For example, 
people who work in border regions may, under insurance rules, claim benefits-in-kind 
in either their country of residence or their country of employment. However, this 
possibility is not open to members of their families. 
Consideration should also be given to establishing the right of residence far less well off 
people (at present excluded from free movement). More generally, it is necessary to 
improve the service which Community coordination renders to the Community's citizens. 
Such improvement could in particular consist of the following: 
simplification of the rules of coordination. This would enable a more homogeneous 
implementation of coordination and make the rules more transparent and therefore 
easier to understand for European citizens. This task, while particularly difficult to 
achieve because of the technical nature of the rules in force, is nevertheless extremely 
important. 
modernization of the exchange of data between social security institutions. Better 
exploitation of modern technology could greatly improve the exchange of data, for 
example, the establishment of a telematic network or the possibility of developing a 
card for those with social security cover, which can be used in all the Member States. 
the widest possible dissemination of information to the public: Coordination is likely 
to have a direct impact on citizens, for example in every-day situations such as the 
provision of health services to persons moving within the Community. 
In its White Paper on achieving the Internal Market the Commission indicated that before 
1992 the remaining barriers to free movement of self-employed persons and workers needed 
to be lifted. The Commission also remarked that Community citizens should be able to 
exercise their professional activity throughout the Community, if they so wish, without any 
administrative procedures which in the end might discourage them from moving to another 
Member State. These considerations remain valid. Over the last three years the Council has 
discussed the Commission proposals to improve free movement of workers, without being 
able to reach an acceptable agreement. 
People who exercise the right to free movement are often confronted with cumbersome 
administrative procedures. Local administrations are not always aware of the rights enjoyed 
by Community-citizens; and, particularly in the case of less qualified workers, mobility is far 
from easy. 
-62-
The EURES network, formed by the national employment services and the Commission, is 
responsible for exchanging information on job offers and applications throughout the 
Community, with a view to developing freedom of movement for migrant workers within 
the single market. Furthermore, the network also aims to provide - through its Euro-
advisors - exchange of information on working and living conditions between the Member 
States, to enable workers and their families to make decisions in the full knowledge of what 
to expect. 
Community citizens will increasingly move within the Community as they have traditionally 
moved within their own country, with these movements being quite distinct from traditional 
migration patterns. 
What type of action should be taken at Community level to tackle the 
following issues? 
~ lifting of remaining legal barriers to free movement of workers (family 
reunion, equal treatment, residence rights, excluded people); 
- development of the EURES network in order to provide guidance and 
information on Community-wide job offers and living and working 
conditions; 
- equal treatment for all Community citizens resident in a Member State, 
in particular as regards social and tax advantages (students» 
pensioners, etc); 
- providing for a better protection of mobile workers, in particular by 
facilitating the acquisition, preservation and transfer of occupational 
pension rights; 
- extension of the coverage of social security coordination; 
simplification of rules; modernization of procedures; better 
information for the public; 
- providing better information for lawyers* magistrates and others 
dealing with the implementation of Community legislation. 
What concrete steps are required to ensure the elimination of all 
outstanding barriers to mobility based on problems of mutual recognition 
or equivalence of qualifications? 
2. PROMOTING EQUAL OPPORTUNITIES FOR WOMEN AND MEN IN A 
CHANGING EUROPEAN SOCIETY 
The European Community has a longstanding track record in promoting equal opportunities 
for women in the labour market. In particular, the Community has developed a wide-ranging 
legal framework to help promote the full participation of women in the labour market. In 
time of recession, action in this regard needs to be defended and strengthened because the 
key labour market indicators show that unemployment hits women harder than men in 
almost all Member States. 
(See Figure 16) 
63 
FIGURE 16 
Unemployment by sex and age in the Community, 1983 - May 1993 
% la bo ir force 
30 r 
Unemployment rates of women are systematically higher than 
those of men in the Community and have been so over the 
past decade. This disparity holds for all age groups. 
63A-
It is clear that the Community's legal framework alone is insufficient to eliminate the 
persistent inequality of opportunities for women. There remain numerous barriers to 
women's participation on equal terms with men in both employment and society. Women 
today feel increasingly vulnerable. There are many reasons for this, including lack of proper 
recognition of women's qualifications, their employment in insecure, low-paid jobs and the 
impact of structural changes in the labour market. 
Failure to address the specific problems concerning women's employment threatens 
economic and social cohesion, and jeopardises progress in other areas because it constrains 
women from making a full contribution to economic growth and social improvement. 
(See Figures 17 and 18) 
The problems which women encounter in the labour market cannot be tackled in isolation. 
Society should be encouraged to benefit more from the input of women's abilities and 
special skills while at the same time addressing the particular interests and needs of women. 
Demographic trends threaten to bring in their wake further tensions in the labour market 
and in society as a whole. An effective approach to the social transformation needed to 
achieve economic growth and social cohesion depends upon empowering women to play a 
greater role in shaping future developments. 
One issue which merits particular attention is the participation of women in the process of 
collective bargaining. Bargaining power is currently very unequally shared between women 
and men in social partners' organisations at national as well as European level. Recent 
research has shown.that in the twelve Member States, the existing systems and processes of 
collective bargaining have contributed to increasing the pay gap between women and men. 
The fundamental objective therefore should be to advance from equal rights to equal 
treatment in the labour market through equality of opportunity in society. This implies that 
the highest priority should be given to measures which will enable individuals, men and 
women, to achieve a better balance in their private and their working lives, through a 
change of attitudes and values. 
In order to obtain a more balanced type of society, three main issues must be addressed: 
(i) the reconciliation of employment and family responsibilities, 
(ii) the desegregation of the labour market - vertical and horizontal, 
(iii) the increase in women's participation in decision-making. 
The possibilities for action are numerous: 
encouraging more flexibility in careers and working hours; 
promoting innovative ways to combine household and working responsibilities; 
promoting the provision of childcare facilities; 
-64-
FIGURE 17 
Share of women in the labour force in the Community and elsewhere, 
1970,1980 and 1991 
% labour force 
EUR12 EFTA Japan 
Although the share of women in the labour force has 
increased in the Community it still remains below that of the 
EFTA countries and the U.S., although the gap narrowed in 
the 1980's. 
-64A 
(5 
FIGURE 18 
Women in the labour force in the Member States, 1983 and 1991 
% labour force 
IRL E L 
E& P. 1983 using OECO B EUR12 
The increasing participation of women in the labour force is 
the key element underline the growth of the active 
population in the Community. In 1991, on average four out 
of every ten members of the workforce were women. 
64B-
setting clear targets for women in vocational training opportunities (particularly with 
regard to ESF assistance) and employment within male-dominated occupations, 
combined with the need to develop adequate monitoring systems; 
creating more diversified training, job and career opportunities, both to widen scope 
for and improve prospects of women; 
eliminating direct and indirect discrimination in the labour market, including that 
concerning lay-offs and part-time work; 
reviewing the structure of decision-making procedures in economic, social and 
political areas; 
improving women's access to information about their rights generally and at European 
level; 
giving increased attention to women's labour market difficulties in the context of the 
Social Dialogue. 
One of the keys to achieving overall equality of opportunity is the practical 
acknowledgement of equality of work by means of equal pay. The principle of equal pay for 
men and women has been enshrined in Community law from its origins. Article 119 of the 
EEC Treaty requires Member States to "ensure and subsequently maintain the application of 
the principle that men and women should receive equal pay for equal work". This was 
amplified by Directive 75/117/EEC which introduced the concept of equal pay for work of 
equal value into the statute books of the Member States. However, despite the existence of 
these political and legal commitments, official statistics disclose that the pay gap between 
men and women remains wide. 
It is imperative that the fundamental right to equal pay is fully implemented at Community 
level. Towards this end, the Commission has recently published a Communication for the 
information of and consideration by all parties concerned with the equal pay issue. This 
paper includes a summary analysis of the jurisprudence of the European Court of Justice in 
the matter. It also suggests that in addition to the use of legal instruments and processes, 
any strategy for the promotion of equal pay for work of equal value must include 
improvement of baseline data on women and pay, improved dissemination of information 
and improved legal and practical training for people working in the field. Among the options 
which warrant attention is the possibility of adopting certain basic principles to serve as 
guidelines for joint negotiations on job classification and evaluation. These would be applied 
at various levels without prejudice to the autonomy and individual responsibilities of the 
social partners. These guidelines could be used as a basis for a code of practice on the 
implementation of equal pay for work of equal value. 
The new provisions in the Social Agreement to the Treaty on European Union relating to 
the potential role of the social partners in developing social policy at Community level offer 
new possibilities in the equal pay field. 
65-
What more should be done at Community level to promote equality of 
opportunity between women and men in fields such as education and 
piping.,,regearçh,.aad development and employment and labour market 
policies? 
Should specific goals and timetables - including quotas, targets and 
positive measures - be used to ensure a Mer participation of women m 
areas in which they are under-represented? 
What steps should be taken to reconcile family and work responsibilities? 
Should monitoring mechanisms be developed (and at what level) to 
assess the position of women in relation to the above as well as pay, 
benefits and family-friendly policies, notably the organisation of working 
time? 
Which specific obligations should be put on employers and unions to 
ensure a proper recognition of women's interests within the social 
dialogue and more balanced participation of women and men at decision­
making level within the representative organisations? 
What more needs to be done at Community level to ensure the practical 
implementation and monitoring of the principle of equal pay for work of 
equal value? 
+ 
What form should a Code of Practice to guide and ensure implementation 
of this principle take? 
3. THE SOCIAL TRANSITION TO ECONOMIC AND MONETARY UNION 
Having eliminated the internal frontiers in order to guarantee the free movement of 
goods, persons, services and capital, the next logical step in the process of economic 
integration will be the transition to a single currency. The goal of Economic and 
Monetary Union (EMU), the most ambitious project in the process of European 
integration, is provided for in the Treaty on European Union. Some consideration needs 
to be given to the implications for social policy of this transition. For example, to what 
extent will EMU also require a more active social policy. 
EMU is not an end in itself but has to serve the Community's overall objective of 
promoting economic and social progress, and in particular a high level of employment 
and social protection, as Article 2 of the Treaty on European Union makes clear. The 
EMU process is a major building block for achieving such progress, since respecting the 
established convergence criteria will enhance the efficiency of the European economy 
and strengthen its position in the world economy. In fact, social progress will be best 
served by further economic integration, not less. 
While an EMU underpinned by the necessary level of economic convergence will 
promote the goal of economic and social progress, it is equally clear that it sets a new 
66 
and different framework for social policy. In particular, by preventing monetary, fiscal 
and debt slippage, which generally results in significant social costs, it will eliminate the 
scope for some policy illusions. For instance, inflation and budget deficits often mask 
unresolved social conflicts. EMU therefore implies that all social groups and in 
particular the social partners are aware of what is feasible in terms of wage rises and 
other social improvements and act accordingly. More generally, one can say that EMU 
requires a better functioning of labour markets because the Member States will 
irrevocably lose their exchange rates and their monetary policies as instruments for 
macroeconomic adjustment. However, the transition to EMU will guarantee that no 
Member State will lose control of these policy instruments before it is clearly established 
that it can cope without them. 
The fact that transition to EMU will involve structural reforms and difficult but socially 
balanced consolidation of budgets for several Member States has to be seen in the context 
of the negative social consequences of further delaying inescapable adjustments. 
Budgetary consolidation is essential in any event to ensure that interest payments on the 
public debt do not continue to increase their share of the overall government 
expenditure, thereby leading both to sustainability worries and to reduced scope for 
social spending. From this perspective the binding character of the convergence process 
is not necessarily a burden but on the contrary, through the credibility given to the 
convergence commitment, a way to reduce the inevitable adjustment costs. Furthermore, 
the medium-term character of the convergence process and the provisions of the Treaty 
provide sufficient flexibility to modulate adjustments during recession and to exploit 
recovery to increase the pace of progress in reaching the declared targets. 
It might be of interest to identify the social challenges each Member State has to face in 
this transition and, to the extent possible to quantify important aspects, especially as far 
as social security spending commitments are concerned. Knowing the need for social 
policy adjustments, it should become easier to work out realistic and socially acceptable 
programmes of economic and social convergence. 
Such programmes might be discussed with governments (mainly the Ministries of finance 
and social affairs/employment) and with the social partners. After all, the latter have an 
important role both in achieving the convergence criteria and in financing, or bearing the 
cost of social policy. 
67 
Could the Union issue recommendations in this process of economic 
and social convergence, after due consultation with all the national 
authorities concerned and the social partners, with a view to making 
sure that the process of economic integration does indeed contribute to 
its most basic objectives as defined in Article 2 of the Maastricht 
Treaty? 
Should the Union promote convergence of social policies alongside 
convergence of economic policies through: 
- the definition of common objectives and monitoring (e.g* on the 
same basis as convergence of social protection policies and 
objectives); 
- possible recommendations on important economic issues e.g, in 
preventing social dumping; 
~ monitoring procedures for social policy in the transition towards 
EMU; 
- strong involvement of social partners in these procedures; 
;- joint discussions of national authorities responsible for economic 
affairs and for social policy? 
4. ISSUES OF SOCIAL STANDARDS 
Europe's social policy is influenced by the operation of free markets, especially free 
labour markets, and by the development of social ground rules. There are two important 
elements in this concept. On the one hand a defensive mechanism to ensure there is a 
minimum floor below which social standards should not fall in certain key areas and on 
the other hand a more pro-active concept aimed at ensuring convergence through social 
progress. These ideas are enshrined notably in Article 118A of the Treaty and are found 
in the Social Charter and the Agreement on social policy. 
Public debate on the Maastricht Treaty has demonstrated that significant parts of the 
public fear a Europe in which social rules and legislation, until now the subject of 
consensus, are put into question. 
(a) Common minimum standards relating to working conditions and labour law 
The achievement of the Single Market and of Economic and Monetary Union will be at 
risk if the general population, and notably the working population, does not take part in 
the venture. The issue of social dumping is often invoked in this context. Although it is a 
fact that in times of fierce competition enterprises need flexibility and that high 
68-
unemployment reduces the bargaining power of workers, competition within the 
Community on the basis of unacceptably low social standards, rather than the 
productivity of enterprises, will undermine the economic objectives of the Union. The 
common standards enshrined in existing Community legislation and those on the table in 
the action programme to implement the Social Charter, constitute a minimum floor and 
will do so even more when the applicant EFTA States join the Union. But they are also a 
demonstration of the common political will, both on the part of governments and the 
social partners, to grant workers fundamental social rights as an integral part of the 
unprecedented economic and social progress since World War II. 
Legislation at Union level is not the only way of establishing social rules. More weight 
should be given to agreements between the social partners. Not only standards and 
norms, not only collective agreement, not only defined rights and responsibilities, but 
also tacit and implicit behavioural rules are needed to reduce conflict and sustain a rapid 
pace of social change. Only well-functioning cooperation between the Member States, 
the Parliament, the social partners and other civil partners in the European endeavour 
can contribute to this. 
Nevertheless, legislation continues to have its proper place in achieving the objective 
shared by all Member States: i.e. that European workers should have minimum 
guarantees about health, safety and employment conditions. That objective should be 
pursued by completing the Social Action Programme, and by exploiting to the full the 
possibilities offered by the Social Agreement of the Maastricht Treaty. 
(b) Social standards within Europe 
High social standards, which are a complex mix of working and living conditions, are a 
clear objective of the European Community. European experience has shown that they 
are an integral part of a competitive model of economic development. They are 
determined by a variety of government policies and by collective bargaining for a given 
level of economic development, this complementary approach being considered as 
essential to a democratic community. It is therefore a matter of concern that global 
economic competition, and the resulting international trade in goods and services, should 
improve and not reduce social and working standards. In particular, it would be a 
dangerous trend if unfair competition through unacceptably low standards should become 
widespread. 
However, the welfare of the European Community is dependent on playing a full role in 
an open, world competitive system, based on free trade, even if this implies painful 
adjustments in certain sectors and regions of the Community. The fundamental principle 
of social and economic cohesion in the Community is an expression of the will to share 
the burden of such adjustment and to reduce existing disparities between groups and 
regions. The Structural Funds (including the Social Fund) have precisely that purpose. 
Taken together their provisions reflect the will towards an economically dynamic, 
balanced and socially just Community. 
69 
A key objective of European integration is that working and living standards in the 
Community should converge. Despite all the difficulties, the evidence is that standards 
are levelling up rather than down, as witnessed by the rising working and living 
standards in the less-developed parts of the Community. The question is not one of 
limiting the competition from countries and regions with lower labour costs, but of 
ensuring that their competitive power contributes to the raising standards for the workers 
who contribute to rising national income. This is the long-term trend, but it has to be 
recognized that, under the present conditions of high unemployment, the social ground 
rules may need to be strengthened. For example, with regard to the problem of the 
délocalisation of production units within the Union. The existing OECD guidelines for 
transnational companies only register these questions, but vigilance on the part of 
Member States and of the Union is needed to ensure effective compliance. 
A most important contribution is likely to come from the deep involvement of the social 
partners in the process of European construction. For example, agreements between them 
at European level could facilitate the setting of social standards within the framework of 
the Social Charter. Together, backed up by the convergence of public social policy 
objectives, they will assist the slow convergence of standards. 
(c) Adjustment assistance 
Since the place of the European Community in the world division of labour is bound to 
be towards high quality production with high social standards, resistance to industrial 
restructuring will be counter-productive in the long run. However, trade-induced changes 
in employment patterns may be more rapid than those resulting from technological 
change and productivity gains per se, and they are in any case less accessible to 
negotiation between the social partners. There is therefore a strong case for government 
action to provide assistance to those workers who are worst affected. The European 
Union, especially through the new provisions for Objective 4 of the Social Fund, can 
assist this process by stimulating action to anticipate major structural changes and by 
providing training and other measures to absorb the shocks. 
What are the social ground rules needed by a Union of Member States, 
whose future Ues at the leading edge of the market and whose history 
and success have been built on certain values which cement them 
together, in all their diversity, as a fraternity of nations? 
It is recognised that the Union needs to be a reliable partner in world 
trade. But to ensure progress in labour standards and fair competition, 
should the Union put a strong emphasis on the prevention of the risk of 
social dumping through: 
- adequate minimum provisions at Community level; 
- possible agreements between employers and unions if they so desire; 
- anticipation and monitoring processes through e.g, observatories or 
special boâfesï 
- adjustment assistance measures supported by the ESF? 
70 
5. REINFORCING THE SOCIAL DIALOGUE 
The unique political construction that is taking place in Europe is fundamentally linked to 
the diversity of its members, and the difficulty of forging its Union is certainly affected 
by the phenomenon of growing decentralisation present in all states, national, federal and 
confederal. All political and economic systems seem to be under pressure (the Soviet 
demise is a case in point) to devolve power and decentralise structures, leading to a 
diffusion of decision-making in a variety of institutions other than the state, including the 
market and civil society. 
This is why the role of the social partners in the process of European construction is 
vital, even if the process of social dialogue has been slow to mature. Insofar as the 
representative organisations of employers and trade unions speak for memberships spread 
throughout the Union, it is an important element of démocratisation, alongside the 
growing role of the European Parliament and the Regions. A major step forward -
perhaps a breakthrough - in the development of the European "social dimension" is now 
possible since the partners may proceed, if they so wish, from dialogue to collective 
agreement. Collective agreements are already foreseen in Article 118B of the Treaty, and 
the Agreement of the Eleven on social policy provides new means to implement an 
eventual agreement between the Social Partners (Article 4). This will require, in 
accordance with the principle of subsidiarity, clear determination of the relative roles of 
national legislation, Community norms and collective agreements at the various levels, as 
well as of procedures to ensure their mutual synergy. 
Negotiations may be engaged, respecting fully the autonomy of the Social Partners, 
either on a proposal of the Commission or spontaneously. In the latter case, negotiations 
may be between branches of industry, across sectors European-wide, between regions or 
through transnational groups. 
The key issue in this respect is whether collective agreements could help to overcome 
some of the weaknesses in the legislative process, notably the difficulty of reaching a 
consensus by consulting the social partners before submitting legislation. It may be more 
realistic and more acceptable for the Social Partners to proceed to agreement in some 
cases. In Member States, regulations on social policy are in any case the result of a 
division of labour between the legislator and the social partners, so the existence of an 
autonomous collective bargaining space at European level could have considerable 
potential for the future. 
Progress will depend on the political will of the social partners, on the capacity and 
functioning of the machinery of the social dialogue and on the real prospects for 
European-wide collective bargaining. 
71 
(a) Strengthening the architecture and functioning of the social dialogue 
The Commission is undertaking a study, in cooperation with the national administrations 
concerned, of the arrangements for recognizing social partners in the Member States. It 
is hoped that this study will provide useful information for strengthening the three 
functions of the social dialogue at European level: consultation, dialogue and negotiation. 
In particular, the Commission will put forward a review of the coherence and 
effectiveness of the existing consultation structures and procedures; at both inter­
professional and sectoral levels, so as to define a more comprehensive and coherent 
consultation system. 
The Commission will continue to facilitate and give technical assistance to the social 
partners so that they may proceed as quickly as possible, if they so wish, to negotiation 
and agreement. 
Furthermore, the Commission will cooperate with the social partners in examining the 
problems of implementing agreements reached between them, both in the case where 
implementation will be through their own procedures and practices or those of Member 
States, or in the case where the partners to the agreement would wish the Commission to 
propose a decision by the Council. 
The effectiveness of the Commission's efforts will of course depend on the success of the 
European representative bodies in involving their own structures at national level in the 
process of the social dialogue. 
(b) The issue of European-wide collective bargaining 
The different legal frameworks in Member States, the varied structures and traditions of 
collective bargaining, and limitations to real negotiating power at the European level 
mean that the road to collective agreements will be a difficult one. 
Patience and the slow accumulation of experience are the order of the day. However, the 
existing capital of the European social dialogue, accumulated over many years of 
persistent effort, should not be underestimated. The Agreement was a major step forward 
and reflects the will of the social partners to keep the social dialogue up and running. For 
progress to be made, a discussion and clarification of the several options under the Social 
Protocol for negotiation at the European level is necessary: 
the social partners could agree to make a joint recommendation to the Commission, 
thereby influencing the legislative process; 
they could reach agreement and proceed through national channels, thereby 
developing a sort of coordinated European national bargaining; 
they could convert the Joint Opinions into "framework" agreements, to be 
implemented by employers and trade unions at national level, thereby spreading the 
European social dialogue within the national systems; 
they could send their agreement to the Commission with the request that the 
Council convert it into a legal instrument; 
72-
they could open up negotiation, at the appropriate level, in the domains where they 
are competent; 
where there is no agreement between the social partners, the Commission will have 
to decide how best to proceed in order to achieve the objectives it has set. 
Thus, it is clear in the Commission's view that much progress can be made without 
waiting for a full-blown European collective bargaining system. The European Union 
Treaty institutionalises a space for collective agreement between the social partners. It is 
up to them to use it, with the Commission's help. 
(c) The changing industrial relations agenda 
Against a common background of structural change and cyclical crisis, employers and 
trade unions have been propelled towards new issues where the balance between 
cooperation and conflict has been changed. The drive of the employers towards 
flexibility and the decentralisation of industrial relations, combined with the weakening 
of statutory labour market regulation by some governments, has also had an impact on 
the industrial relations agenda. Continuing structural change cannot be accomplished 
without the cooperation of the organised work force, so that new trade union functions 
are growing alongside those of the past. The persistent joint interest by both trade unions 
and employers in the question of education and training, for example, seems to result 
from the shift towards quality production and a high quality workforce, leading to a new 
bargaining agenda, and new forms of industrial democracy. Yet at the same time, the 
quest for flexibility is leading to insecurity and poor conditions for some groups of 
workers. 
Over all this hangs the shadow of unemployment. This is leading both trade unions and 
employers, to some extent with common interests, to plead for bolder economic policies 
which will raise the level of productive investment and lead to a higher path of growth. 
Thus, the "economic" and the "social" agenda of industrial relations are intimately 
linked. 
73 
The Social Dialogue at Community level has already reflected these 
trends in industrial relations and has demonstrated its value as a 
platform for the next steps. Where will the priorities lie? This is a 
matter for the social partners themselves, but the Commission would 
like to advance some points for discussion, bearing in mind the 
different levels (inter-branch, sectoral, transnational enterprises) of the 
dialogue. 
Should higher priority be given to employment, education and training, 
in which the social partners have already had discussions and the 
Commission is taking new initiatives? The two issues are linked, 
because the use of training to cope with problems of industrial 
adaptation will reduce the strains on the external labour market and 
prevent further unemployment. 
What will the social partners' involvement be in the wide range of 
issues related to th^ completion of the Single Market and to free 
movement within it: mutual recognition of qualifications, portability of 
pensions, social security, transnational training? 
Should the social partners strengthen their involvement in the following 
issues: exclusion, equal opportunities, reconciliation between work and 
family, problems of older workers, integration of immigrant workers 
from third countries? 
Beyond this, there is a whole range of issues resulting from the internationalisation of 
economies, the introduction of new technologies and the intensification of international 
competition. Taken together, these changes require national bargaining strategies to give 
more weight to international repercussions than in the past. In each of their Joint 
Opinions, the social partners have arrived at a consensus based on a forward-looking, 
negotiated process of adaptation to structural change. This approach, supported by the 
resources of the Community, including the Social Fund, could be the basis for common 
responses to the major challenges outlined above and others. 
74 
How could the Social Dialogue be strengthened and broadened 
(assuming of course the willingness of the partners)? A number of 
issues might be considered: 
- new possibilities for European-wide collective bargaining; 
* broadening of the agenda on issues which will influence the future 
of industry: health and safety at the workplace, demographic trends 
including the role of older workers, social protection, equal 
opportunities, integration of migrant workers, preventing and 
combating exclusion^ measures to facilitate free movement of 
workers (mutual recognition of qualifications, transnational training, 
portability of occupational pensions etc); 
- possible partnership with other bodies on some issues (e.g, with 
NGO's on equal opportunities and integration of disabled persons in 
the labour market and with NGO's and local authorities on 
exclusion). 
6. HEALTH MATTERS 
Separate Commission Communications on both Health and Safety at Work and Public 
Health have been prepared and therefore these are not dealt with in detail in the Green 
Paper. 
(a) Health and safety at work 
Statistics available from Member States show that 8 000 people die each year in the 
European Community from the consequences of an accident at their place of work. Of 
the approximately 120 million workers in the Community, 10 million suffer an industrial 
accident or occupational disease every year. 
Quite apart from the human aspects, the economic consequences are considerable: 
benefits paid as a consequence of industrial accidents and occupational diseases 
throughout the EC are estimated at ECU 26 000 million, and this sum does not take into 
account the indirect costs arising from time lost, increased administrative costs, damage 
to equipment, etc., which probably amount to far more. 
There is a preconceived notion that the improvement of health and safety in the 
workplace automatically imposes added costs. This is not the case, especially as 
improved health and safety leads to a reduction in costs through less accidents and ill 
health. In addition increased well-being at work encourages efficiency, strengthens the 
personal commitment of the worker, and contributes to increased industrial harmony. 
75-
While it is true that Community directives adopted before and after the entry into force 
of the Single European Act, form a valuable basis for promoting equitable working 
conditions and attaining an even higher level of protection for workers, it is also true that 
their actual effectiveness depends and will continue to depend on their being rigorously 
applied in the Member States. Moreover, information, education and training in these 
fields also need to be improved. 
(b) Public health 
A striking example of cooperation between the Member States to achieve prevention 
rather than suffer the high human and financial costs of care is provided by the action 
programmes and activity of the Community over the last decade to mobilise efforts and 
promote cooperation to combat problems like cancer, AIDS, drugs and alcohol use, and 
to promote healthy life styles through health education. 
The competence of the Union in this field has now been formalised in the Treaty on 
European Union (Article 129), which sets out a framework for action and defines the 
respective roles of the Member States and the Community. Thus an important human 
dimension will be added to the Community's work. 
This will enable a more strategic and coherent approach to be adopted in the future, 
recognising that, the health status of the population is more affected by lifestyle and 
environmental conditions than by curative action through the health-care system. In the 
future, emphasis has to be placed on the promotion and maintenance of a high level of 
human health in the European population, as well as on the prevention of disease. 
(See Figure 19) 
The Member States have already agreed in principle on the framework to be used for 
future actions in public health, consistent with subsidiarity. Actions will include 
coordination between Member States, prevention of major threats, and cooperation with 
third countries and international organisations. 
7. ECONOMIC AND SOCIAL COHESION: THE ROLE OF THE EUROPEAN 
SOCIAL FUND 
No democratic state or union of states can function without efforts towards economic 
cohesion between poor and rich regions and solidarity between fortunate and 
disadvantaged social groups. The ESF, as a component of the Community's social policy 
(Article 3 (i) of the Treaty of Union) and as one of the four Structural Funds of the 
Community, contributes to both: it is a tangible demonstration of the Community's 
concern for the development of human resources and the improvement in the functioning 
of the labour market, both from a regional perspective and in relation to vulnerable 
groups. Bearing in mind not only subsidiarity but also added value, the ESF has to be 
seen as a complement to the efforts of the Member States in the same direction. 
76 
FIGURE19 
10 Total and public expenditure on health care in relation to national 
expenditure in the Community, 1970,1980 and 1991 
% national expenditure (GDP less exports plus imports) 10 
Total expenditure m Public expenditure 
2 ! 1 9 111 
GR P E L 
Public expenditure data GR, L, P1990 UK DK IRL NL 
All Member States have found it difficult to contain health 
costs - public and private expenditure on health accounts for 
a substantial proportion of GDP. During the 1970's and 
1980's, health expenditure increased significantly in relation 
to GDP, partly reflecting the slowdown in the rate of 
economic growth. In the latter part of the 1980's, the figures 
stabilised and even declined as growth picked up. However, 
cost containment remains a topic of major concern in the 
1990's, especially in the context of the present recession and 
the budget constraints on public expenditure growth. 
-76A-
As we have seen in the Challenges (Part III), Europe cannot solve its economic and 
social problems unless it succeeds in modernising its production system. Action is also 
called for to increase the employment intensity of growth, to sustain existing jobs, create 
new ones and to promote equal opportunities for men and women in the labour market. 
The recent revision of the ESF regulation has equipped it with the means to provide a 
more effective and flexible response to the changing labour market requirements and 
specific challenges facing Member States. This revision reflects one of the main thrusts 
of this paper: the need to move partly from cure to prevention in the labour market field 
and the need to move from income maintenance to integration into the labour market in 
the social protection field. Of course, ESF intervention though frequently substantial, is 
only an additional contribution to Member States' own efforts to address the full range of 
human resources' and labour market problems. 
a) Tackling the diverse needs of the unemployed and those excluded from the labour 
market 
In addition to its continuing focus on young people and the long-term unemployed, ESF 
activity under Objective 3 has been extended to provide support to those exposed to long-
term unemployment and exclusion from the labour market. 
A comprehensive and co-ordinated package of measures. A more effective, pro-active 
approach to the reinsertion of the unemployed and those excluded from the labour market 
depends on the provision of a comprehensive and co-ordinated package of measures 
tailored to local needs. As well as providing accompanying measures such as care for 
children, elderly or sick dependants, to ensure maximum access to 
training/education/employment services, a much wider range of actions is needed to 
supplement traditional vocational training and employment aids. For example, pre-
training, counselling, upgrading of basic skills, community employment or work 
experience, job search assistance, in-job support and aids to promote geographical and 
occupational mobility. 
Ensuring effective delivery of a broad range of actions will often require the 
strengthening of employment services and other relevant institutions and systems, for 
example through training of trainers and other staff, support for planning/programming 
and the transfer of know-how. 
To succeed, support must not only address the requirements of a large number of target 
groups but also be responsive to local needs and situations and be provided in as co­
ordinated a way as possible to enable progression from one measure to another. 
Flexibility in delivery, harnessing potential at local level and the active involvement of 
all relevant actors, including the unemployed/excluded themselves, will be vital in this 
respect. 
In addition, the ESF, through appropriate employment aids, will also support efforts to 
introduce flexible and innovative methods of work organisation and distribution with a 
view to promoting employment intensive growth. 
77-
b) Adapting the workforce to the new challenges 
A new Objective 4 has been specifically created so that the ESF, throughout the 
Community, can facilitate the adaptation of workers to industrial change and to changes 
in production systems. 
Experience to date has shown that, especially in Objective 1 regions, there is a lack of 
organised structures for in-company training, little training takes place and the training 
that is undertaken tends to be haphazard and lacking in focus. Such a fragmented 
approach to continuing training for employees acts as a block to development. 
A systematic approach to continuing training. To maximise the potential of human 
capital, in the first place, ways must be found to assist the establishment of effective 
training systems within firms. These include the development of appropriate in-company 
training structures, the drawing up of training plans, management development and 
mechanisms to anticipate labour market trends. The particular difficulties faced by 
SME's in addressing their training needs in-house must also be taken into account. 
Distance training techniques and technologies in particular, open up cost-efficient and 
flexible training possibilities for employees of SME's. 
Secondly, ways to improve the quality and relevance of training supply must be 
developed. Consideration needs to be given to the setting up of decentralised networks of 
accredited training centres to provide continuing training for employees. In this regard, 
attention could be given to the development of centres of "self-learning" which would 
provide access to electronic information and telematic learning opportunities. 
Mechanisms to monitor and supervise actions and to certify the qualifications of both 
trainers and trainees would be especially important as would the full involvement of all 
the social and economic partners, the public and private sector and any relevant 
education/training institutes/guilds. 
c) Strengthening initial training/education and research science and technology (RST) 
systems 
Emphasis on initial training and education is essential because of the significant 
preventive function they can provide and their medium to long-term importance in 
determining a meaningful continuing education and training system. Ways need to be 
found to widen access to initial training and education, to minimize the numbers of 
unqualified school leaders, school failure and school drop-outs, to improve the quality of 
initial training and education, including higher education and to promote greater mobility 
in the European context. 
Access to quality. Consideration will be given to the need for ESF support for 
strengthening planning/programming systems (for example, through improving the 
quality and content of curricula, training of teachers and other staff) and for bringing 
-78 
schools/training centres and higher education establishments closer to economic activity 
(for example, through the development of networks, the introduction of more language 
and technological modules into secondary education, the promotion of new technology, 
greater emphasis on multi-dimensionality, promoting certification and recognition of 
qualifications at European level and efforts to raise the status of technical and vocational 
education/training). 
Boosting human potential in research, science and technology has a key role to play. The 
ESF will contribute in terms of support for post-graduate training, training of managers, 
technicians and other staff of public and private research establishments, and, where 
necessary, appropriate employment aids. 
Whereas ESF support for initial training is envisaged throughout the Community, 
financing for research, science and technology and education will be concentrated on the 
least favoured regions. In these regions strengthening education/training/RST systems 
will require adequate infrastructure and equipment including libraries, databases and 
documentation centres for which Structural Fund support can be provided. 
d) A partnership approach 
To gain maximum benefit from the increased scope and flexibility of the revised Social 
Fund in responding to the challenges faced by Member States requires not only strong 
partnership between the Commission and the Member States and regions, but wider 
partnership within Member States. This is especially true of the new themes of the Social 
Fund: exclusion from the labour market and adapting to industrial change, where much 
expertise and experience lies outside the public domain and where a bottom-up approach 
is particularly appropriate. The full participation of NGO's, community bodies, local 
authorities, the social and economic partners and the private as well as the public sector 
will be a key determining factor in the success of action in these new ESF aspects. 
e) Concentrating on the areas of greatest need 
Both the Commission and the Member States are required to ensure, within the 
partnership at the planning and programming stage that Community assistance, whether 
through mainstream funding or through Community Initiatives, is concentrated on the 
most important needs and the most effective operations. The bulk of financing will 
inevitably go towards the least favoured regions of the Community where it can address a 
wide range of priorities. Outside of Objective 1 regions, where Community financing is 
more limited in comparison with national financing, relatively greater emphasis needs to 
be given to the development of appropriate training and employment structures and 
services, to measures designed to bridge existing gaps in training/employment services 
provision, to the exchange of know-how and best practice, to innovative approaches and 
to ensuring synergy between the various Community programmes and actions undertaken 
at national level. 
-79 
The ESF administers between 80% to 90% of the social budget of the Union and could 
therefore play a significant role in helping the Union to respond to the difficult challenges 
set out in this paper. However, achieving a real impact will require: 
the strengthening of partnership between the Fund and national and regional 
administrations, the economic and social partners and other competent bodies; 
more flexibility in scope, eligibility conditions and administration; 
more concentration of effort on priority objectives and on the most innovative and 
effective structures. 
For its part, the Commission introduced such improvements to the revised Structural Fund 
regulations approved by Council in July, enabling the ESF to widen its tasks to include 
broad human resources development and the improvement of the functioning of the labour 
market. The idea of a Community Initiative on employment and the development of human 
resources, has also been put forward, in the recent Green Paper on the future of the 
Community initiatives under the structural Funds, to address the Community dimension of 
adaptation to industrial change, employment-intensive growth, exclusion from the labour 
market and equal opportunities. For the new approach to work it is imperative that the 
policy choices made by the Member States take full advantage of the broader scope and 
new flexibility of the ESF whilst taking account of the need for concentration. 
-80 
smm^^mm^ 
Specific questions for consideration include: 
What mechanisms, at national and Community level, are required to 
ensure that the outcomes of Community support for innovative 
programmes get translated into the mainstream of Member State human 
resource policies? 
How can the^ESF contribute to the removal of institutional and systemic 
disincentives to the take-up of training and employment possibilities, 
including those which affect equal opportunities for men and women and 
the awareness of problems faced by those excluded from the labour 
market? 
What mechanisms are most appropriate to ensure that, at ground level, 
action to develop human resources is properly taken into account when 
investment decisions on infrastructure and productive environment are 
made? 
What kind of measures must be implemented,in order to improve the 
anticipation of industrial changes and related skill needs? 
What mechanisms are required to ensure that, in addition to the national 
authorities and the Commission, all the necessary partners (including 
local and regional administrative bodies, the economic and social 
partners, $f<K)*s and education institutes etc.) play a full part in 
programming and taking operational decisions to achieve successful 
implementation o£ action? 
Should more ESF support go towards funding a system of trainee choice, 
thus encouraging competitiveness between training providers and putting 
a premium on quality? 
8. INTERNATIONAL ASPECTS 
The emergence of a period of peaceful socio-economic cooperation and competition (see 
"Challenges" Part II) in which the European social model will on the one hand be a 
major asset in terms of the Union's diplomacy but on the other will be under threat, will 
compel closer consideration of the external relations aspects of social policy. 
(a) Minimum international standards 
The issue of minimum international labour standards is complex and difficult. 
On the one hand, competition on the basis of natural comparative advantage, which can 
often legitimately be based on lower labour costs and, indeed, on a willingness to work 
longer, harder or under more difficult conditions, is the best way for developing countries 
to improve their position. On the other, it is not in the interests of international economic 
cooperation that the exploitation of workers should become an instrument of competition. 
-81 
As the controversial and difficult debate on the issue of social clauses in trade agreements 
shows, the distinction between the two situations is not always easy to draw. Whereas there 
is widespread agreement that the exploitation of children or the use of forced labour are 
practices which the international community must condemn, situations involving relative 
views about health and safety or working hours give rise to a different debate. Concern 
about the plight of workers in less developed countries, while often genuinely motivated, 
can disguise a self-interested tendency towards protectionism. 
The promotion of basic workers' rights through agreed international labour standards is 
actively pursued through existing international institutions such as the International Labour 
Organisation and the Community will continue to play a constructive role in this process. 
As the globalisation of economic production gains momentum, these difficult issues will 
continue to be debated in the search for a fair and equitable balance between safeguards 
against unfair competition based on exploitative labour conditions and legitimate 
comparative advantage. 
(b) The EFTA candidates 
The possible accession of some EFTA countries will, because of their relatively high 
social and labour standards as well as their important achievements in the field of equal 
opportunities for women and men put pressure on the development of a strong social 
policy by the Union. If these countries become members of the Union, they are likely to 
lend their support both to the construction of a forward - looking social policy and to the 
democratic process of establishing it. 
(c) Central and Eastern European Countries 
Communism in these countries generated a passive culture which collapsed from within, 
even if the appeal of the political democracy and the market economy of the West played 
a significant role. The broad consequence has been that the transition to a Western type 
of society and economy has been slower than expected, as the institutional framework 
and the ground rules have to be re-constructed more or less from scratch and are a 
condition of a return to a competitive economy. The concept of the "rush to the market" 
certainly under-estimated these realities, and the rapid emergence of high unemployment, 
poverty and social exclusion place political limits on the speed with which that process 
can go forward. 
(See Figure 20) 
In these circumstances, it is vital that the CEEC countries be helped to establish effective 
social policies in an open way which recognizes that the European social model is 
changing. There is much to be learned on both sides. CEEC countries cannot overnight 
set up social policies which took decades to develop in the West, even with the high 
-82-
FIGURE 20 
Unemployment rates in Central and Eastern Europe, 1991 and 1992 
% labour force 
20 
16 r 
12 
Bulgaria Czechoslovakia Hungary Poland Romania 
Since the process of political and economic reform began, the 
countries in Central and Eastern Europe have been in the 
grip of deep recession. Unemployment continues to rise 
steeply throughout the region. 
-82A-
economic growth of the post-war period. It is likely that, in that process, both the Union 
and the CEEC countries will move to a next generation of social policies, which may be 
different from those prevailing in the socio-economic models in other parts of the world 
and even in Europe. 
Such an approach will be the best way of relieving inevitable problems. The main 
competitive advantage of the CEEC countries lies in low labour costs combined with the 
relatively high level of education which prevailed under the communist system. 
However, it should also be remembered that, under communism, the enterprise was the 
main instrument of social protection, whereas in the West many of the costs of social 
policy have been borne by the State. 
Cooperation between the Union and the CEEC countries on the social dimension of 
transition is essential to reduce the risk of the population rejecting democracy and the 
market economy because the social and human costs are too high. 
More generally, for the reasons mentioned in Part III on the Challenges, the Union 
should cooperate in the social policy work of other international institutions. Cooperation 
and exchange of information with North America and Japan is necessary, but the rich 
experience of the Member States on the social dimension of economic development will 
also be a positive element in the Union's relations with the developing world. 
What should be the principal social policy priorities for the external 
relations of the Union? 
How best can the Union pursue the agreement of international labour 
standards (e,g^ via the ÏLO or social clauses in trade agreements)? 
9. DEMOCRATISING THE PROCESS OF SOCIAL CHANGE AND 
CONSTRUCTING A PEOPLE'S EUROPE 
The remarks on Challenges (Part II) emphasised that the move towards globalism is 
parallelled by a movement in the Member States towards regionalism and localism. This 
development is partly due to the fact that in fast-changing societies, in which social 
innovation becomes a key requirement, decision-making becomes more decentralised 
because of the need for flexibility and responsiveness. In the next stage of European 
construction it will therefore be necessary to involve the "grass roots" more, both for 
reasons of democratic functioning and for effectiveness. 
Within the Member States, there has been over the past decade a strong movement 
towards local and regional initiatives, in which diverse social groups have taken part and 
where enterprises and trade unions have exercised their social responsibility. The 
relationship between this micro-level action and government policy has not yet been 
clearly worked out but it is certain that in many fields (economic development, social 
protection, urban and rural development, youth integration and involvement of older 
-83 
people) there are lessons to be learned. In this regard, cooperative societies, insurance 
companies and other associations which make up the fabric of the social economy, will 
have an important role to play. 
As far as the Community is concerned, these same realities have compelled networking 
and partnership between different groups, as opposed to the legislative route. Legislation 
at Community level can be the correct approach but mobilisation of the diverse actors 
into a concerted effort is often the only way of moving forward. This is true, for 
example, in the case of poverty and exclusion, education and training and many of the 
social problems facing the Union, such as drugs, delinquency and even crime. But it is 
also true of job creation and economic development. The Community's Framework 
Programmes for Research and Development have analysed these developments as an 
"Archipelago of Europe", i.e. the fabric of local, diversified capacities for action that 
are now a key instrument for building Europe. 
The transition to the European Union, involving for the first time the concept of 
European citizenship, is a vital stage in the construction of a democratic Europe. The 
social objectives of the Treaty (employment, equal opportunities for women and men, 
social protection, working and living conditions and the quality of life) are at the heart of 
the daily lives of the people, as workers and as citizens. Community legislation, as 
interpreted by the Court of Justice, has built up a body of rights which need fully to be 
understood by citizens. This is far from the case at present. Thus, notwithstanding 
further legislation, the existing rights in all the relevant fields of social policy should be 
clarified and made known to the citizen. 
Since many Member States are reinforcing citizens' rights, either through legislation or 
through administrative action and public awareness (such as Citizens' Charters), the 
exchange of information on such matters could be facilitated by the Union. 
-84 
How could the many networks cooperating with the Member States and 
the Commission contribute to identifying and solving the problems of 
society now facing the Union? 
Would there be an advantage in envisaging an appropriate forum for 
discussion in which the strategic problems of European society could 
be debated in an open and democratic way? 
How can we stimulate a kind of consolidated statement of citizens' 
rights within the Union, which would make explicit existing rights and 
seek to shift the existing "labour market orientation* to a more general 
people-oriented approach on the basis of values common to Member 
States? 
What sort of information actions would best contribute to promoting 
wide awareness and understanding of social benefits amongst all 
citizens of the Union? 
Should such a text be combined with a wide awareness campaign 
mobilising all those involved in social policy at the various levels? 
How can we ensure that women are fully involved in the building of a 
better and more pèople»oriented Europe? 
85-
IV. CONCLUSION 
This Green Paper is being put forward with a view to raising a wide number of issues 
linked to the future of social policy in the European Union. 
The Union is now entering a period of development in which its strength on the world 
scene will depend on its capacity to build an active, open and fair society which 
mobilises the energies and talents of its people and improves their quality of life, both as 
workers and citizens. 
Success is impossible without a competitive and integrated European economy, taking 
full advantage of new technologies and modern methods of production and organisation. 
This means increasing investment in infrastructures, research as the active involvement 
of citizens in the process of change. 
Many of the questions which have emerged in the discussion imply that stark choices will 
have to be made if Europe is to cope with the fundamental structural changes taking 
place today. 
All interested parties are welcome to contribute to this debate and consider the different 
options for the future. The reactions to the Green Paper will be taken into account by the 
Commission for the preparation of a White Paper in early 1994. The questions raised in 
the document are listed in Part V. 
The formal deadline for submission of ideas and suggestions is 
' r"> ^ ' 31 Matcht9K/' 
86-
V. LISTING OF QUESTIONS 
PRIORITY ISSUES COMMON TO THE MEMBER STATES 
(Part III.B) 
1. What sort of objectives and targets would be acceptable to the Member States and 
the partners concerned? 
In the field of the labour market: 
- the provision of a job, activity or useful training for all those seeking work? 
- a new balance between expenditure on active measures and income maintenance? 
In the field of social protection and exclusion: 
- minimum income provision? 
- an integration plan for all the excluded? 
In the field of equal opportunity: 
- targets (work-sharing, income-sharing, decision-making) for specific groups 
such as women? 
- measures which reconcile family responsibilities with employment? 
- for the young, a "guarantee" of a job, activity or useful training? 
- measures to encourage the vertical and horizontal de-segregation of the labour 
market? 
In the field of training: 
- targets for the output of qualifications at different levels, so as to mobilise the 
different actors? 
IMPROVING THE EMPLOYMENT SITUATION 
(PartIII.C.1) 
2. In what ways could the Community-Wide Framework for Employment be further 
developed as part of a medium-term strategy to combat unemployment and promote 
a more employment-intensive pattern of growth? 
3. What role could the social partners organised at European level play in such a 
process? 
4. What could be the role of Community action as such as in helping to underpin the 
process, either in the form of legislation or financial support? 
-87-
ACCELERATING PROGRESS TOWARDS A QUALITY-BASED PRODUCTION 
SYSTEM 
(Part III.C.2) 
HUMAN RESOURCE DEVELOPMENT (Part III.b.2.(a)) 
5. How can re-training schemes be better linked to real labour market needs? 
6. How can we best work towards establishing the right of each individual to training 
throughout life, particularly when skills and qualifications need constantly to be 
enhanced because of industrial change? 
7. How can we overcome the handicap whereby, in some Member States and in the 
Union itself, education and vocational training policies tend to be separately 
conceived and implemented? 
MEASURES TO ACCOMPANY A QUALITY-BASED PRODUCTION SYSTEM 
(Part III.B.2.(b), (c) and (d)) 
8. How can we develop a regulatory framework which will help European enterprises 
adapt to such changes? 
9. What labour market and social policies can accelerate the development of industries 
at the leading edge of technological development while providing appropriate 
guarantees for workers' rights? 
10. What is the scope for collective bargaining on these issues so as to reduce the 
anxieties and risks, and could framework agreements under the Social Dialogue 
assist the bargaining process? 
11. What can the Union do to accelerate progress towards quality-based production 
systems, such as supporting innovative experiments and sharing the results? 
88 
STIMULATING SOLIDARITY AND INTEGRATION 
CONVERGENCE OF SOCIAL POLICIES (Part III.B.3.(a)) 
12. Could there be better operation of income maintenance policies in order to develop 
high levels of social protection, together with active labour market policies to 
achieve high levels of employment? 
13. Should we go further here and define specific convergence objectives in some 
areas, in particular in relation to new developments such as insurance for care of 
the elderly and individualisation of rights? 
14. In the field of taxation and social security, how can we offer appropriate incentives 
for the social and economic participation of women, again through the 
individualisation of rights or through the removal of the "two adult sole 
breadwinner" concept of family from taxation and social security policies? 
THE FIGHT AGAINST POVERTY AND EXCLUSION: 
PREVENTION AND REHABILITATION (Part III.B.3.(b)) 
16. What types of action should be taken to step up the fight agains poverty and 
exclusion? 
17. Should a combination of commitments to fight agains poverty and exclusion be 
more formalised (through appropriate legislation)? 
18. Should future action be developed in specific action programmes and/or more 
precise setting of selected objectives and targets at Union level? 
YOUTH OPPORTUNITIES AND RISKS (Part III.B.3.(c)) 
19. How can a modern version of the apprenticeship system, in which problems of 
transition from school to work are addressed, best be developed? 
20. How can we tackle the persistent problem of segregation in youth education, 
training and employment which restricts the vocational choices of young women? 
21. Is there a need for a "youth guarantee" i.e. providing a job, an activity or useful 
training as a means of stimulating necessary action? 
22. Can youth employment be given a stimulus by lower "entry wages" without 
distorting recruitment patterns or discriminating against older workers? 
-89 
THE ECONOMIC AND SOCIAL ROLE OF THE ELDERLY (Part III.B.3.(d)) 
23. How can the present progress of the European Year of older people and solidarity 
between generations be built on? 
24. How could the report referred to in Article 7 be used as a basis for a strong debate 
on demographic trends and their consequences for social security, employment, etc. 
and perhaps the development of a regular monitoring process? 
EQUAL OPPORTUNITIES FOR IMMIGRANTS (Part III.B.3.(e)) 
25. How can we best stimulate policies and practices which promote a concerted 
integration policy which aims at the harmonious co-existence of peoples in the 
Union? 
26. Should the employment conditions of third country nationals be dealt with in the 
Social Dialogue with a view to adopting codes of good practice? 
27. Should a permanent residence entitlement be accorded to those who satisfy stability 
criteria, including personal rights for members of the family of legally resident 
immigrants, in order to ensure successful integration? 
THE "MAINSTREAMING" OF PARTICULAR DISADVANTAGED GROUPS 
(PartIII.B.3.(f)) 
28. How can we best progress in the area of integration of disabled people? 
29. Should the Community develop specific legislative action in this area? What role 
would the social partners play in this respect? How to strengthen partnerships 
between the various actors, NGO's, social partners, local authorities, etc.? 
THE FIGHT AGAINST RACISM AND XENOPHOBIA (Part III.B.3.(g)) 
30. How can we improve and broaden the promotion of measures in the field of 
education, information and legislation as tools in counteracting racist attitudes, acts 
and discrimination? 
SOCIAL POLICIES AND RURAL DEVELOPMENT (Part III.B.3.(h)) 
31. As risks of exclusion and marginalisation in rural areas are increasing, what further 
actions other than what is undertaken at present would prevent rural social decline? 
-90 
MAIN POLICY OBJECTIVES AT EUROPEAN LEVEL 
(Introduction to Part III.C) 
32. Which areas of social policy are most likely to be amenable to being addressed by 
collective agreements? 
33. Which areas are most likely to need a legislative approach? 
34. Can framework laws provide the kind of results required such as, for example, in 
the areas of minimum standards or equality of opportunity? 
THE SINGLE MARKET AND THE FREE MOVEMENT OF PEOPLE 
(Part III.C. 1) 
35. What type of action should l^tàkéii at Community level to tackle the following 
issues? 
- lifting of remaining legal barriers to free movement of workers (family reunion, 
equal treatment, residence rights, excluded people); 
- development of the EURES network in order to provide guidance and 
information on Community-wide job offers and living and working conditions; 
- equal treatment for all Community citizens resident in a Member State, in 
particular as regards social and tax advantages (students, pensioners, etc.); 
- providing for a better social protection of mobile workers, in particular by 
facilitating the acquisition, preservation and transfer of occupational pension 
rights; 
- extension of the coverage of social security coordination; simplification of rules; 
modernization of procedures; better information for the public; 
- providing better information for lawyers, magistrates and others dealing with the 
implementation of Community legislation. 
36. What concrete steps are required to ensure the elimination of all outstanding 
barriers to mobility based on problems of mutual recognition or equivalence of 
qualifications? 
91-
PROMOTING EQUAL OPPORTUNITIES FOR WOMEN AND MEN IN A 
CHANGING EUROPEAN SOCIETY (Part HI.C.2) 
37. What more should be done at Community level to promote equality of opportunity 
between women and men in fields such as education and training, research and 
development and employment and labour market policies? 
38. Should specific goals and timetables - including quotas, targets and positive 
measures - be used to ensure a fuller participation of women in areas in which they 
are under-represented? 
39. What steps should be taken to reconcile family and work responsibilities? 
40. Should monitoring mechanisms be developed (and at what level) to assess the 
position of women in relation to the above as well as pay, benefits and family-
friendly policies, notably the organisation of working time? 
41. Which specific obligations should be put on employers and unions to ensure a 
proper recognition of women's interest within the social dialogue and more 
balanced participation of women and men at decision-making level within the 
representative organisations? 
42. What more needs to be done at Community level to ensure the practical 
implementation and monitoring of the principle of equal pay for work of equal 
value? 
43. What form should a Code of Practice to guide and ensure implementation of this 
principle take? 
THE SOCIAL TRANSITION TO ECONOMIC AND MONETARY UNION 
((Part m.C.3) 
44. Could the Union issue recommendations in this process of economic and social 
convergence, after due consultation with all the national authorities concerned and 
the social partners, with a view to making sure that the process of economic 
integration does indeed contribute to its most basic objectives as defined in Article 
2 of the Maastricht Treaty? 
45. Should the Union promote convergence of social policies alongside convergence of 
economic policies through: 
- the definition of common objectives and monitoring (e.g. on the same basis as 
convergence of social protection policies and objectives); 
- possible recommendations on important economic issues e.g. in preventing social 
dumping; 
- monitoring procedures for social policy in the transition towards EMU; 
92 
- strong involvement of social partners in these procedures; 
- joint discussions of national authorities responsible for economic affairs and for 
social policy? 
ISSUES OF SOCIAL STANDARDS (Part III.C.4) 
46. What are the social ground rules needed by a Union of Member States, whose 
future lies at the leading end of the market and whose history and success have 
been built on certain values which cement them together, in all their diversity, as a 
fraternity of nations? 
47. It is recognised that the Union needs to be a reliable partner in world trade. But to 
ensure progress in labour standards and fair competition, should the Union put a 
strong emphasis on the prevention of the risk of social dumping through: 
- adequate minimum provisions at Community level; 
- possible agreements between employers and unions if they so desire; 
- anticipation and monitoring processes through e.g. observatories or special 
bodies; 
- adjustment assistance measures supported by the ESF? 
REINFORCING THE SOCIAL DIALOGUE (Part III.C.5) 
48. The Social Dialogue at Community level has already demonstrated its value as a 
platform for the next steps in social policy. Where will the priorities lie? 
49. Should higher priority be given to employment, education and training, in which 
the social partners have already had discussions? The Commission is taking new 
initiatives here. The two issues are linked because the use of training to cope with 
problems of industrial change will reduce the strains on the external labour market 
and prevent further unemployment. 
50. What will the social partners involvement be in the wide range of issues related to 
the completion of the single market and to free movement within it: mutual 
recognition of qualifications, portability of pensions, social security, transnational 
training? 
51. Should the social partners strengthen their involvement in the following issues: 
exclusion, equal opportunities, reconciliation between work and family, problems 
of older workers, integration of immigrant workers from third countries? 
93 
52. How could the Social Dialogue be strengthened and broadened (assuming, of 
course, the willingness of the partners)? A number of issues might be considered: 
- new possibilities for European-wide collective bargaining; 
- broadening of the agenda on issues which will influence the future of industry: 
health and safety at the workplace, demographic trends including the role of 
older workers, social protection, equal opportunities, 
- integration of migrant workers, preventing and combating exclusion, measures to 
facilitate free movement of workers (mutual recognition of qualifications, 
transnational training, portability of occupational pensions etc.); 
- possible partnership with other bodies on some issues (e.g. with NGO's on equal 
opportunities and integration of disabled people in the labour market and with 
NGO's and local authorities on exclusion). 
ECONOMIC AND SOCIAL COHESION: THE ROLE OF THE EUROPEAN 
SOCIAL FUND (Part III.C.7) 
53. What mechanisms, at national and Community level, are required to ensure that the 
outcomes of Community support for innovative programmes get translated into the 
mainstream of Member State human resource policies? 
54. How can the ESF contribute to the removal of institutional and systemic 
disincentives to the take-up of training and employment possibilities, including 
those which affect equal opportunities for men and women and the awareness of 
problems faced by those excluded from the labour market? 
55. What mechanisms are most appropriate to ensure that, at ground level, action to 
develop human resources is properly taken into account when investment decisions 
on infrastructure and productive environment are made? 
56. What kind of measures must be implemented in order to improve the anticipation of 
industrial changes and related skill needs? 
57. What mechanisms are required to ensure that, in addition to the national authorities 
and the Commission, all the necessary partners (including local and regional 
administrative bodies, the economic and social partners, NGO's and education 
institutes etc.) play a full part in programming and making operational decisions to 
achieve successful implementation of action? 
58. Should more ESF support go towards funding a system of trainee choice, thus 
encouraging competitiveness between training providers and putting a premium on 
quality? 
94 
INTERNATIONAL ASPECTS (PART III.C.8) 
59. What should be the principal social policy priorities for the external relations of the 
Union? 
60. How best can the Union pursue the agreement of international labour standards 
(e.g. via the ILO or social clauses in trade agreements)? 
DEMOCRATISING THE PROCESS OF SOCIAL CHANGE AND 
CONSTRUCTING A PEOPLE'S EUROPE (Part III.C.9) 
61. How could the many networks cooperating with the Member States and the 
Commission contribute to identifying and solving the fundamental problems of 
society now facing the Union? 
62. Would there be an advantage in envisaging an appropriate forum for discussion in 
which the strategic problems of European society could be debated in an open and 
democratic way? 
63. How can we stimulate a kind of consolidated statement of citizens' rights within the 
Union, which would make explicit existing rights and seek to shift the existing 
"labour market orientation" to a more general people-oriented approach on the 
basis of values common to Member States? 
64. What sort of information actions would best contribute to promoting wide 
awareness and understanding of social policy benefits amongst citizens of the 
Union? 
65. Should such a text be combined with a wide awareness campaign mobilising all 
those involved in social policy at the various levels? 
66. How can we ensure that women are fully involved in the building of a better and 
more people-oriented Europe? 
95 
ANNEXES 
ANNEX I 
SUMMARY ANALYSIS OF EXTERNAL CONTRIBUTIONS TO THE GREEN PAPER 
ON THE FUTURE OF EUROPEAN SOCIAL POLICY 
The Commission has so far received over 140 contributions to the Green Paper on the Future of 
European Social Policy in response to the announcement which was published in the Official 
Journal on 28 April and to letters which were sent out by Commissioner Flynn to National 
Governments, the Social Partners and the European Parliament. 
The contributions come from a wide range of organisations, Government Departments and 
individuals. What follows is a brief overview of the points which were most frequently made. 
Where appropriate, points of view are attributed to one or more named contributors. 
Abbreviations for named contributors: 
AG Austrian Government 
BMP Belgian Ministry of Pensions. 
CBI Confederation of British Industry 
CCRE Conseil des Communes et Regions d'Europe. 
CO COFACE (Confederation of Family Organisations in the European Community) 
CPAG Child Poverty Action Group 
CREW Centre for Research on European Women 
DML Danish Ministry of Labour 
DMS Danish Minister of Social Affairs 
DPI Disabled Peoples International 
EAPN European Anti- Poverty Network 
ETUC European Trade Union Confederation 
EPSO European Platform of Seniors' Organizations 
EWL European Women's Lobby 
FE FEANTSA, European Federation of National Organisations Working With The 
Homeless. 
FME French Minister of Labour, Employment and Vocational Training. 
FSA French Minister for Social Affairs 
GHM German Health Ministry 
GLM German Labour Ministry 
GMFE German Ministry for the Family and the Elderly. 
GML Greek Ministry of Labour 
GMW Greek Mimstry for Health, Social Welfare and Social Security. 
ICM Italian Council of Ministers. 
IMI Italian Ministry of the Interior. 
IML Irish Minister for Labour Affairs 
LSS Ministry of Social Security Luxembourg 
NGO Association of Non-governmental organisations. 
NMS Netherlands Minister for Social Affairs. 
NMW Netherlands Minister for Welfare, Health and Culture. 
PM Portuguese Minister for Employment and Social Affairs 
PW Portuguese Ministry of Employment and Social Security Committee for Equality and the 
Rights of Women. 
RC Red Cross - EC Liaison Bureau 
SM Swedish Ministry of Health and Social Affairs and Ministry of Labour. 
UKG United Kingdom Government 
UNICE Union of Industrial and Employers' Confederations of Europe. 
USB U.S. Business E.C. Employment Project Working Group 
A GREEN PAPER 
In general, contributors welcomed the idea of a Green Paper and were grateful for having been 
given the opportunity to make their views known. The ETUC, however, is concerned that the 
Green Paper is a way of delaying action and would like to see a Green/White paper which presents 
concrete policy proposals. 
UNEMPLOYMENT AND EMPLOYMENT 
Not surprisingly, there is widespread recognition that low rates of employment and high rates of 
unemployment are the major problems facing our societies with costs for individuals, society and 
the economy. 
Many felt that policies for tackling unemployment and stimulating economic recovery should 
constitute the core of the Green Paper (GLM, DML, IML, NMS, SM). How can we combine a 
higher rate of growth with a high rate of labour force participation, low unemployment and low 
inflation in a society in which economic and social welfare are mutually reinforcing? (SM, NMS, 
SM) 
There is felt to be a role for the Community in improvng the way in which labour markets 
work and reducing the imbalances on the labour market which often cannot be done at national 
level (NMS). Ways must be found of improving access to the labour market, especially for young 
people, the long term unemployed and other disadvantaged groups. (SM). One suggestion was that 
the Commission should set up a Taskforce to examine the Community's role in helping to improve 
the way its labour market works (CBI). 
Some stressed the possible negative consequences of EMU. The ETUC states that we should be 
aware that economic and monetary union could aggravate the employment situation, especially rigid 
adherence to the convergence criteria. The Austrian Government suggests that we should control 
and monitor the negative effects of the implementation of the convergence criteria. The CPAG 
suggested that the goal of reducing unemployment should be integrated into the convergence 
criteria. Nevertheless, others, such as the Dutch Minister for Social Affairs, stress the importance 
of meeting the convergence criteria. 
There is awareness that, in the past, there has been a certain degree of separation between economic 
and social policies. The need for closer coordination between economic and social policies is 
now recognised (NMS, GML). Both contribute to economic growth. Social policy is not just a way 
of providing compensatory payments, but has a positive role in promoting economic development 
and competitiveness (PM). In particular, an active labour market policy facilitates structural change 
by improving inter-firm and occupational mobility (SM) and consequently makes an important 
contribution to economic growth. 
The contribution from the Swedish government sums up the need for coordination of several 
different sorts of policies: " In Sweden a strong policy tradition exists of combining economic and 
labour market policies in order to make them mutually reinforcing. However, the complexities of 
our societies necessitate the co-ordination of several policy areas. Economic policy has to set the 
general framework for job and enterprise creation and expansion; regional policy and policy for 
equal treatment for a fair distribution of employment between regions and between women and 
men; and labour market policy for a flexible labour market. Social security has to provide the 
necessary and at the same time efficient safety nets and educational policy the long-term 
competence basis (sic) for the economy." 
SOCIAL EXCLUSION 
In addition to tackling the unemployment problem , we need to look at the wider problem of 
poverty and social exclusion (IML, GMW, ICM). Now, more than ever, the Community needs to 
develop a social policy to maintain and reinforce social cohesion. (FSA) We need to improve 
awareness of the problems (DMS) and produce strong action at Community level to combat social 
exclusion.(FSA, ETUC, NGO, CPAG) Measures should include: a guaranteed minimum income; 
rights to health care and education; Community competence in the area of homelessness and 
housing (FE); more actions to improve reinsertion onto the labour market; and exchange of 
experiences , especially on training and education (ETUC, CO, ICM, RC). IMI suggests that there 
should be a Community Action Programme in favour of disadvantaged people. 
The EAPN suggested that there should be a recognition of poverty and social exclusion in all 
Community policies through a set of internal Commission rules (cf. the rules to take account of 
the environmental dimension in Community policies). We also need a fundamental re-examination 
of the way in which Europe develops so that nobody is left by the wayside. In particular, the 
Community should develop common goals for the full integration of disabled people and their 
families into European society (DMS, DPI, AG,CO). In general, we should encourage the re­
creation of social solidarity with all actors in the social field working together for a better society. 
The involvement of non-governmental voluntary organisations, in particular, should be developed 
and volunteers in local communities trained. (RC) 
NMW, however, thinks that the fight against social exclusion is a national responsibility and that 
the Community's role should be limited to one of exchange of information. 
In regional terms, there is still a wide divergence in standards of living across the Community and 
a way must be found at Community level to ensure convergence as laid down in the Treaty on 
European Union. (PM, AG) 
EUROPEAN SOCIAL FUND 
The activities of the European Social Fund are broadly welcomed although there is some feeling 
that, although it has had an impact at national level, it has had limited impact in promulgating a 
European wide policy. (ETUC) 
At the other end of the spectrum, the CCRE says local and regional administrations should be more 
involved in ESF programmes and the Community should take more account of local strategies. 
COMPETITION, SOCIAL PROTECTION AND SOCIAL DUMPING 
There is a growing realisation that the European Community has been becoming less and less 
competitive with a consequent loss of jobs. There are new sources of competition linked to the 
growing importance of high technology and globilisation of markets. 
There is concern on the part of some that this will lead to growing pressure for the erosion of 
acquired social rights and competition on the basis of reduced social costs and deregulation. There 
are strong feelings (ETUC, NMS) that social policy should not be used as an element of 
competition which should be based, instead, on the quality of goods and services. The need to 
develop social policy hand in hand with economic policy was reiterated in this context. 
Many contributors believe that the Community needs to avoid erosion of social standards (DMS, 
FME) and should agree minimum standards to prevent social dumping (NMS). Some wish to see a 
positive programme for raising social standards (ETUC, AG). 
The EAPN suggested that the Commission should make recommendations in this area to prevent 
Member States from reducing social protection as a result of restrictive budgetary policies and CO 
recommended introducing a clause of "non-regression" into Community instruments, aimed at 
Member States with higher than average norms of social protection. 
ETUC and EAPN would like a constitutional document or a reform of the treaties which says that 
European Union will guarantee the fundamental rights of European citizens and European 
residents from the point of view of income, work, housing etc. 
Progress on implementation of the Social Charter has been too slow. Nevertheless, in developing 
European Social policy, we should not throw the baby out with the bathwater. The Social Charter 
should be fully implemented and form the basis for further policy. Agreement should be reached 
on outstanding proposals on, for example, atypical workers, worker participation, young workers, 
and dismissals (AG, ETUC) 
Several contributors (e.g. ETUC, NGO, EAPN) would like a social clause inserted in 
international trade agreements and the ETUC believes that all twelve member states should ratify 
ILO conventions on freedom of association, the prevention of forced labour and the fight against 
child labour. 
Others ask whether Europe can maintain traditions of social protection in the face of increasing 
competition. European models of social policy can only survive if they make European companies 
more competitive rather than reducing competitiveness. This is one of the major challenges. We 
should avoid subsidising non-profitable industries (NMS) and must remember that the strengthening 
of the competitiveness of Community industry is essential to the long term success of European 
Social Policy (UNICE). We need to look carefully at those costs which threaten jobs. 
According to the UKG, this does not mean that Community action should focus on a reduction of 
existing standards but that further obligations or restrictions need to be carefully considered for their 
effects on competitiveness and existing measures reviewed to see whether their objectives are 
appropriate and, if so, whether the same result could not be achieved in a less onerous way. 
Others were more forthright in their assertion that high labour costs, due to such things as 
expensive amounts of statutory and personal holidays and sick leave, are barriers to a company's 
competitiveness and to investment and reinvestment, and should be reviewed (USB). 
There was widespread agreement that in the face of increased competition, we need to emphasise 
research and development and high value added industries and allocate more resources to education 
and training (PM) and "workforce development" (USB). We should also try and ensure that 
training is correctly focused for the needs of the future (CBI). A comprehensive approach to human 
resource development with improved and expanded education and training opportunities, including 
training in enterprises is needed (SM). Europe has a role to play here in looking at the wide range 
of experiences across Member States and drawing out useful lessons for future policy. 
In addition to the costs of social protection which have to be borne by companies and their effects 
on competitiveness, there are concerns about the cost of social security regimes to governments. 
Systems are under strain because of demographic pressures and need restructuring (UNICE, CO) so 
that they are financially sound, cost effective and flexible (UBS). Revised social security systems 
could encourage movement from unemployment compensation to employment by incorporating 
training and "workfare" elements (UBS). 
There is little enthusiasm from governments for full harmonisation of social security schemes 
across the Community, the subsidiarity principle being deemed to apply. Nevertheless, the EC has a 
role to play in developing the coordination of social security schemes so as to achieve the highest 
possible level of cross frontier protection (GML, NMS) and convergence of their objectives. 
The LSS thinks the Green paper should consider whether there should be coordination in other areas 
and whether a commitment to an effective social security system should be incorporated in the 
Social Charter. 
EUROPE IN A WORLD CONTEXT 
Many contributions stressed that future social policy must be developed bearing in mind Europe's 
relationship with the rest of the world. In addition to considering our competitive position vis a vis 
Japan, the U.S. and other emerging competitors, we should consider the effects of enlargement 
and the changes which are occurring in Eastern Europe (PM). Western Europe needs strong 
economies in order to help the countries of Eastern Europe (UNICE). There is fear of competition 
from the Eastern Bloc countries but it should be remembered that, at the moment, imports from 
Eastern europe account for only 3% of Community imports, whereas 50% of these countries 
imports come from the EC. Barriers to trade are coming down but the countries of the East need 
help to develop their economies in order to pay off their debt and develop their export capacity. 
The Commission's Phare programme is helping to modernise or restructure employment and social 
policies in these countries and cooperation with Eastern Europe must be intensified (NMS). Since 
the aim is to forge ever closer ties with eventual EC membership of these countries, we should 
ensure that social policy develops in line with EC practices. It is also vital that the social dimension 
is given due consideration so that reform is not rejected by the people on the grounds that the social 
costs are too high. 
SUBSIDIARITY and DIVERSITY 
There is a widespread feeling that the Community should respect the principle of subsidiarity. EC 
action should be taken only where there is a clear Community dimension to a problem.(NMS) 
European Social Policy should be geared to providing solutions to concrete social/political problems 
but must refrain from trying to codify a coherent system.(GML) It should also limit itself to 
defining the results to be achieved rather than the precise methods for implementation.(UNICE) 
The Community has a role to play in promoting free movement of workers and to prevent 
unacceptable forms of competition in the internal market. It should act to define minimum 
requirements e.g. health and safety, promotion of equal opportunities for men and women, 
treatment of minors, protection of pregnancy and maternity, non-discrimination on the grounds of 
sex, race, age, religion or nationality and employment of disabled people (UNICE). 
However, the Community should NOT act on collective labour laws, industrial relations systems 
and procedures, worker consultation and participation, job content, employment contracts, pay, and 
working time (UNICE). 
The UKG is concerned that the Community has sometimes over stepped the mark. It accepts that 
the Community has a role to play in the areas of free movement of workers, minimum standards of 
health and safety at work and the attainment of a high level of health protection. However, it 
believes there are many other areas where the Treaty does not provide a basis for Community 
measures and the responsibility for action lies with the Member States. 
A social policy at the level of the Community should take into account the economic, social, 
cultural and geographical diversity which exists across the Community (GML), and should 
recognise that Member States look in different ways to central legislation, to collective bargaining 
or to voluntarty mechanisms as the main engine of social policy (UKG). 
The CCRE feels that local and regional communities and administrations have a vital role to play 
in the development and implementation of Community social policy. They should be involved in the 
social dialogue at Community level in the same way as other social partners. 
The Commission does have a role as a catalyst for new ideas (NMS) and it is important to analyse 
and share experiences over the coming years. (UKG, DML.) 
The statistical bases for action need to be unproved. In particular, we need accurate statistics and 
information on the family dimension in different areas of social protection (GMFE,CO) and also 
improved statistics on the elderly (GMFE) and on public social expenditure (EAPN). 
LEGISLATION 
There is a feeling that legislation is not always the most appropriate way of dealing with social 
policy at European level (DML, UKG, IML, PM). 
The UKG argues that there is a need to evaluate legislation adopted in the past, especially with a 
view to its effects on competitiveness, and use such evaluations to inform new policy decisions. 
Where legislation is appropriate, it should be flexible and not too detailed (GLM) and should set out 
a framework of aims to be achieved rather than detailed means or standards to be observed. 
Others, however, stress that community wide legislation is important and that we should take 
advantage of the new legislative framework to create a "Social Europe" where rights are protected 
by law and social dumping avoided.(FME, ETUC, ICM, DPI, Women's organisations). 
NMS and GLM suggest that legislative proposals should take account of the different economic 
strengths of Member States, by for example basing the legislation on minimum standards. Where 
large differences exist, recommendations are preferable to binding regulations. 
There is concern among employers organisations about the multiplicity of pending Commission 
initiatives concerning employee participation, information and consultation. These proposals 
include, inter alia, the European Works Council Directive, the Fifth Company Law Directive, and 
the European Company Statute. The USB states that the added requirements, coupled with other EC 
directives and/or national laws and practices, would create ah "overlapping, conflicting, costly, 
time consuming maze of organisations and systems within which companies would operate". The 
CBI even goes so far as to propose a moratorium on almost all new regulatory instruments. 
The Netherlands Minister for Social Affairs also stresses that attention must be paid to the internal 
consistency of EC legislation to avoid double regulation, with particular attention being paid to 
legislation passed on the basis of Article 118A and Article 100A. 
The German Labour Ministry believes that the aim should not be harmonisation of labour law, 
but general convergence. Minimum standards should be set for workers' rights but these should 
not be too detailed. They should include: equality of treatment for part-time and temporary 
workers; equality between men and women; protection in the event of dismissal; the right of 
complaint etc. 
THE MAASTRICHT TREATY 
Very few of the contributions referred directly to the Treaty on European Union, but the two main 
representatives of the social partners, UNICE and ETUC were concerned about the relationship 
between the Treaty of Rome and the the Treaty of Maastricht. 
FREE MOVEMENT OF WORKERS 
There is general agreement that the Community has a vital role to play in encouraging the free 
movement of workers. It should make greater efforts to promote mobility (DMS, IML, NGO) 
and integration (AG) and should consider equal social security provision and access to health care 
for immigrants from third countries. (ETUC, LSS) 
OLDER PEOPLE 
Several organisations representing older people made contributions. In a society which is ageing, 
we should ensure that the talents of older people are used to the full and that we prepare people 
better for later life, for example by introducing more flexible retirement schemes. We should also 
ensure that older people have adequate social protection and are fully integrated into European 
society (BMP, AG, EPSO, GMW). 
An ageing population has implications not only for the cost of pensions but of providing care. 
With increased mobility and increased labour market participation of both men and women, there is 
a potential increased burden on the State. If the State tries to avoid this responsibility, studies have 
shown that this constitutes a threat to equality, since it is usually women who are forced to care for 
elderly relatives. It will be very difficult to formulate binding legislation in this field. Nevertheless, 
the Community has a role to play in inspiring Member States to develop their policies and 
encourage convergence (SM). 
SOCIAL PARTNERS AND SOCIAL DIALOGUE 
UNICE and ETUC obviously welcomed the new role of the Social Partners in the formulation of 
European Social Policy. The ETUC feels that the Social Dialogue to date has been a sort of 
apprenticeship and now needs to be developed and strengthened in the light of the Maastricht 
Treaty. 
Governments,too, recognise the importance of using the possibility, given in the Social 
Protocol, of involving the Social Partners. At a national level, the Social Partners should have 
more influence on the implementation of Community instruments (DML, AG, SM, GLM, FME). 
WOMEN 
A tenth of the contributions came from groups representing women. There have been significant 
changes in the role of women over the last twenty years, with more women working, many having 
fewer children, a growing number of single parents and single person households. However, many 
women are still concentrated in low wage jobs with poor working conditions. 
Equal opportunities is not just an issue for women but also for men and the wider social 
organisation. There is a need to look at the organisation of work and education and training. The 
Community should: increase public awareness of the issues; improve access to work and 
10 
possibilities for re-entry on to the labour market; improve research and statistics; and improve 
childcare facilities (EWL, CREW, IML). There is a need for better representation of women at 
decision making level. At the moment it is largely men who make the decisions regarding women 
"who, after all, represent half of humanity, half of our human resources" (PW). 
We need policies for both men and women which facilitate the combination of gainful 
employment and parenthood. We should aim for a common standard for policies on childcare and 
parental leave to avoid this being an impediment to the free movement of workers (SM). 
The NMS proposes that equal treatment aspects should be integrated into all Community proposals 
for legislation. 
FAMILY POLICY 
The competence of Member States in the field of Family policy should be recognised and the role 
of the Commission in the exchange of information and the promotion of coooperation 
highlighted (GMFE, GMW). Family policy concerns all families and not just those in difficulties. 
A balance must be found between families with specific needs and all families. Family policy is 
currently not mentioned in the treaties and should be included in the 1996 Reform of the Treaty. 
Representatives of family organisations should be consulted in the same way that the social partners 
are consulted (CO). 
The NMW, however, does not believe that there should be a family policy either at national or 
European level, preferring to focus on the individual. 
WORKING TIME and ORGANISATION OF WORK 
Many contributors feel that the Commission needs to look carefully at trends in working time and 
develop new ideas about working time arrangements. Individualisation of lifestyles and behaviour 
mean changes in organisation of work (UNICE). We need to create more flexible working time 
arrangements not just to help employers and, perhaps, help create jobs, but to achieve a balance 
between family life and professional life (SM, AG, DMS, CO). 
HEALTH 
This is felt to be largely a matter for Member States (GHM, CO) but the Community has an 
important role to play in providing information and creating networks, especially in the area of 
prevention (CO). 
The Swedish Government feels that the Commission, in collaboration with Member States, should 
develop its work on health and safety. The traditional view of health and safety should be 
broadened to look at the impact of the working environment as a whole on both people and 
productivity. 
11 
ANNEX n 
LIST OF LEGISLATION (NON EXHAUSTIVE) 
FREE MOVEMENT 
L Movement of workers 
DIRECTIVES 
Council Directive 68/360/EEC of 15 October 1968 on the abolition of restrictions on 
movement and residence within the Community for workers of Member States and their families. 
OJN°L257ofl9.10.1968 
Council Directive 64/221/EEC of 25 February 1964 on the coordination of special measures 
concerning the movement and residence of foreign nationals which are justified on grounds of 
public policy, public security or public health. OJ N° 56 of 04.04.1964 
Council Directive 72/194/EEC of 18 May 1972 extending to workers exercising the right to 
remain in the territory of a Member State after having been employed in that State the scope of 
the Directive of 25 February 1964 on coordination of special measures concerning the movement 
and residence of foreign nationals which are justified on grounds of public policy, public security 
or public health. OJN° L 121 of 26.05.1972 
Directive of 25 March 1962 on freedom to take skilled employment in the field of nuclear 
energy. OJN° 57 of 09.07.1962 
REGULATIONS 
Council Regulation 1612/68/EEC of 15 October 1968 on freedom of movement for workers 
within the Community. OJ N° L 257 of 19.10.1968 
Council Regulation 312/76/EEC of 9 February 1976 amending the provisions relating to the 
trade union rights of workers contained in Regulation 1612/68/EEC on freedom of movement 
for workers within the Community. OJ N° L 39 of 14.02.1976 
Council Regulation 2434/92/EEC of 27 July 1992 amending Part II of Regulation (EEC) 
1612/68 on freedom of movement of workers within the Community. OJ N° L 245 of 
26.08.1992 
Commission Regulation 1251/70/EEC of 29 June 1970 on the right of workers to remain in 
the territory of a Member State after having been employed in that State. OJ N° L 142 of 
30.06.1970 
12 
Council Regulation 311/76/EEC of 9 February 1976 on the compilation of statistics on foreign 
workers (Ch. 16.40. Statistics. 376R03in OJ N° L 39 of 14.02.1976 
RECOMMENDATIONS 
Commission Recommendation to the Member States on the activities of the Social Services in 
respect of workers moving within the Community. OJ Nq 75 of 16.08.1962 
Commission Recommendation 65/379 of 2 July 1965 to the Member States on the housing of 
workers and their families moving within the Community. OJ N° 137 of 27.07.1965 
OTHER ACTS 
Council Resolution of 9.2.1976 on an action programme for migrant workers and members of their 
families. OJN° C 034 of 14.02.1976 
Declaration against racism and xenophobia. OJN° C 158 of 25.06.86 
Resolution of the Council and the representatives of the governments of the Member States, meeting 
within the Council of 29 May 1990 on the fight against racism and xenophobia. 
Declaration of 25 March 1964 of the Representatives of the Governments of the Member States of the 
EEC meeting with the Council on refugees. OJN° 78 of 22.05.1964 
Commission Decision 88/384/EEC of 8 June 1988 setting up a prior communication and consultation 
procedure on migration policies in relation to non-member countries. OJN° L 183 of 14.07.1988 
Council Resolution of 16 July 1985 on guidelines for a Community policy on migration. OJ N° C 186 
of 26.07.1985 
H. Social security for migrant workers 
REGULATIONS 
Council Regulation 1408/71/EEC of 14 June 1971 as amended and updated by Council 
Regulation 2001/83/EEC of 2 June 1983 (OJ No L 230, 22.8.1983, p.6) and subsequently 
amended between 1985 and 1992 by 11 Council Regulations. 
Council Regulation 574/72/EEC of 21 March 1972 as amended and updated by Council 
Regulation 2001/83/EEC of 2 June 1983 (OJ No L 230, 22.8.1983, p.6) and subsequently 
amended between 1985 and 1992 by 11 Council Regulations. 
13 
EQUALITY OF TREATMENT FOR WOMEN AND MEN 
DIRECTIVES 
Directive 75/117/EEC of 10 February 1975 on the approximation of the laws of the Member 
States relating to the application of the principle of equal pay for men and women. OJ N° L 045 
of 19.02.75 
Directive 76/207/EEC of 9 February 1976 on the implementation of the principle of equal 
treatment for men and women as regards access to employment, vocational training and 
promotion, and working conditions. OJN° L 039 of 14.02.76 
Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of 
equal treatment for men and women in matters of social security. OJ N° L 006 of 10.01.79 
Directive 86/378/EEC of 24 July 1986 on the implementation of the principle of equal treatment 
for men and women in occupational social security schemes. OJ N° L 225 of 12.08.86 
Directive 86/613/EEC of 11 December 1986 on the application of the principle of equal 
treatment between men and women engaged in an activity, including agriculture in a self-
employed capacity, and on the protection of self-employed women during pregnancy and 
motherhood. OJ N° L 359/56 of 19.12.86 
Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage 
improvements in the safety and health at work of pregnant workers and workers who have 
recently given birth or are breastfeeding (tenth individual Directive within the meaning of Article 
16 (1) ofDirective 89/391/EEC). OJN°L 348/1 of 28.11.1992. 
RESOLUTIONS 
Council Resolution of 12 July 1982 on the promotion of equal opportunities for women. OJ N° 
C 186 of 21.07.82 
Council Resolution of 7 June 1984 on action to combat unemployment amongst women. OJ N° 
C 161 of 21.06.84 
Council Resolution of 3 June 1985 containing an action programme on equal opportunities for 
girls and boys in education. OJN° C 166 of 05.07.85 
Council Resolution of 24 July 1986 on the promotion of equal opportunities for women. OJ N° 
C 203 of 12.08.86 
Council Resolution of 16 December 1988 on the reintegration and late integration of women in 
working life. OJN° C 333 of 28.12.88 
Council Resolution of 29 May 1990 on the protection of the dignity of women and men at 
work. OJN° C 157 of 27.06.90 
14 
Council Resolution of 21 May 1991 on the third medium term Community action programme 
on equal opportunities for women and men. OJ N° C 142 of 31.05.91 
RECOMMENDATIONS 
Commission Recommendation 87/567/EEC of 24 November 1987 on vocational training for 
women. OJN° L 342 of 04.12.87 
Commission Recommendation 92/131/EEC of 27 November 1991 on the protection of the 
dignity of women and men at work. OJ N° L 49 of 24.02.92 
Council Recommendation 84/635/EEC of 13 December 1984 on the promotion of positive 
action for women. OJ N° L 331 of 19.12.84 
Council Recommendation 92/241/EEC of 31 March 1992 on child care. OJ N° L 123 of 
08.05.92 
WORKING CONDITIONS 
L Labour law and working conditions 
DIRECTIVES 
Council Directive 75/129/EEC of 17 February 1975 on the approximation of the laws of the 
Member States relating to collective redundancies. 
O.J. N°L 48, 22/2/75 p. 29. 
Council Directive 92/56/EEC of 24 June 1992 amending Directive 75/129/EEC on the 
approximation of the laws of the Member States relating to collective redundancies. 
O.J. N°L 245, 26/8/92 p.3. 
Council Directive 77/187/EEC of 14 February 1977 on the approximation of the laws of the 
Member States relating to the safeguarding of employees' rights in the event of transfers of 
undertakings, businesses or parts of businesses. 
O.J.N°L61, 5/3/77 p. 26. 
Council Directive 80/987/EEC of 20 October 1980 on the approximation of the laws of the 
Member States relating to the protection of employees in the event of the insolvency of their 
employer. 
O.J. N° L 283, 20/10/80 p.23. 
15 
Council Directive 91/533/EEC of 14 October 1992 on an employer's obligation to inform 
employees of the conditions applicable to the contract or employment relationship. 
O.J.N°L288, 18/10/91 p. 32. 
RECOMMENDATIONS 
Council Recommendation 75/457/EEC of 22 July 1975 on the principle of the 40-hour week 
and the principle of four weeks' annual paid holiday. 
O.J. N°L 199, 30/7/75 p. 32 
Council Recommendation 82/857/EEC of 10 December 1982 on the principles of a 
Community policy with regard to retirement age. 
O.J.N°L357, 18/12/82 p. 27. 
Council Recommendation 92/443/EEC of 27 July 1992 concerning the promotion of 
participation by employed persons in profits and enterprise results (including equity 
participation). 
O.J.N°L 245, 26/8/92 p. 53. 
Commission Recommendation 67/125/EEC of 31 January 1967 to the Member States on the 
protection of young workers. 
O.J. N° 25, 13/2/67 p.405 
RESOLUTION 
Council Resolution of 18 December 1979 on the adaptation of working time. 
OJ.N°C2,4/l/80p.l. 
IL Health and safety at work 
DIRECTIVES 
Council Directive 78/610/EEC of 29 June 1978 on the approximation of the laws, regulations 
and administrative provisions of the Member States on the protection of the health of workers 
exposed to vinyl chloride monomer. OJN° L 197 of 22.07.78 p. 12. 
Council Directive 80/1107/EEC of 27 November 1980 on the protection of workers from the 
risks related to exposure to chemical, physical and biological agents at work. 
OJN° L 327 of 03.12.80 p. 8. (subsequently amended or modified between 1982 and 1991 by 
six directives) 
16 
Commission Directive 91/322/EEC of 29 May 1991 on establishing indicative limit values by 
implementing Council Directive 80/1107/EEC on the protection of workers from the risks 
related to exposure to chemical, physical and biological agents at work. OJ N° L 177 of 05.07.91 
p. 22. 
Council Directive 82/130/EEC of 15 February 1982 on the approximation of the laws of the 
Member States concerning electrical équipement for use in potentially explosive atmospheres in 
mines susceptible to firedamp. OJ N° L 059 of 02.03.82 p. 10. (subsequently amended) 
Council Directive 86/188/EEC of 12 May 1986 on the protection of workers from the risks 
related to exposure to noise at work. OJN° L 137 of 24.05.86 p. 28. 
Commission 88/383/EEC Decision of 24 February 1988 providing for the improvement of 
information on safety, hygiene and health at work. OJN° L 183 of 14.07.88 p. 34. 
Council Directive 88/364/EEC of 9 June 1988 on the protection of workers by the banning of 
certain specified agents and/or certain work activities (Fourth individual Directive within the 
meaning of Article 8 of Directive 80/1107/EEC) OJN° L 179 of 09.07.88 p. 44. 
Council Directive 89/391/EEC of 12 June 1989 on the introduction of measures to encourage 
improvements in the safety and health of workers at work. OJ N° L 183 of 29.06.89 p. 1. 
Council Directive 89/654/EEC of 30 November 1989 concerning the minimum safety and 
health requirements for the workplace (first individual directive within the meaning of Article 16 
(1) of Directive 89/391/EEC) OJN° L 393 of 30.12.89 p. 1. 
Council Directive 89/655/EEC of 30 November 1989 concerning the minimum safety and 
health requirements for the use of work equipment by workers at work (second individual 
Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) OJ N° L 393 of 
30.12.89 p. 13. 
Council Directive 89/656/EEC of 30 November 1989 on the minimum health and safety 
requirements for the use by workers of personal protective equipment at the workplace (third 
individual directive within the meaning of Article 16 (1) of Directive 89/391/EEC) OJ N° L 393 
of 30.12.89 p. 18. 
Council Directive 90/269/EEC of 29 May 1990 on the minimum health and safety requirements 
for the manual handling of loads where there is a risk' particularly of back injury to workers 
(fourth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC) OJ 
N°L 156 of 21.06.90 p. 9. 
Council Directive 90/270/EEC of 29 May 1990 on the minimum safety and health requirements 
for work with display screen equipment (fifth individual Directive within the meaning of Article 
16 (1) of Directive 89/391/EEC) OJN° L 156 of 21.06.90 p. 14. 
Council Directive 907394/EEC of 28 June 1990 on the protection of workers from the risks 
related to exposure to carcinogens at work (Sixth individual Directive within the meaning of 
Article 16 (1) of Directive 89/391/EEC) OJN° L 196 of 26.07.90 p. 1. 
17 
Council Directive 90/679/EEC of 26 November 1990 on the protection of workers from risks 
related to exposure to biological agents at work (seventh individual Directive within the meaning 
of Article 16 (1) of Directive 89/391/EEC) OJN° L 374 of 31.12.90 p. 1. 
Council Directive 92/57/EEC of 24 June 1992 on the implementation of minimum safety and 
health requirements at temporary or mobile construction sites (eighth individual Directive within 
the meaning of Article 16 (1) of Directive 89/391/EEC) OJN° L 245 of 26.08.92 p. 6. 
Council Directive 92/58/EEC of 24 June 1992 on the minimum requirements for the provision 
of safety and/or health signs at work (ninth individual Directive within the meaning of Article 16 
(1) of Directive 89/391/EEC) OJN° L 245 of 26.08.92 p. 23. 
Council Directive 92/91/EEC of 3 November 1992 concerning the minimum requirements for 
improving the safety and health protection of workers in the mineral-extracting industries 
through drilling (eleventh individual Directive within the meaning of Article 16 (1) of Directive 
89/391/EEC). OJN° L 348 of 28.11.92 p. 9. 
Council Directive 92/104/EEC of 3 December 1992 on the minimum requirements for 
improving the safety and health protection of workers in surface and underground mineral-
extracting industries (twelfth individual Directive within the meaning of Article 16 (1) of 
Directive 89/391/EEC). OJN° L 404 of 31.12.92 p. 10. 
Council Directive 91/383/EEC of 25 June 1991 supplementing the measures to encourage 
improvements .in the safety and health at work of workers with a fixed-duration employment 
relationship or a temporary employment relationship. 
O.J. N°L 206, 29/7/91 p. 19. 
Council Directive 92/29/EEC of 31 March 1992 on the minimum safety and health 
requirements for improved medical treatment on board vessels. OJN° L 113 of 30.04.92 p. 19. 
RECOMMENDATIONS 
Commission Recommendation 66/462/EEC of 20 July 1966 to the Member States on the 
conditions for compensation of persons suffering from occupational diseases. OJ N° 147 of 
09.08.66. 
Commission Recommendation 90/326/EEC of 22 May 1990 to the Member States concerning 
the adoption of a European schedule of occupational diseases. OJ N° L 160 of 26.06.90. 
18 
EUROPEAN SOCIAL FUND 
CouncU Regulation (EEC) 2081/93 of 20 July 1993 amending Regulation (EEC) N° 2052/88 
on the tasks of the Structural Funds and their effectiveness and on coordination of their activities 
between themselves and with the operations of the European Investment Bank and the other 
existing financial instruments OJ N° 193/5 of 31.7.93. 
Council Regulation (EEC) 2082/93 of 20 July 1993 amending Regulation (EEC) N° 4253/88 
laying down provisions for implementating Regulation (EEC) N° 2052/88 as regards 
coordination of the activities of the different Structural Funds between themselves and with the 
operations of the European Investment Bank and the other existing financial instruments OJ 
193/20 of 31.7.93. 
Council Regulation (EEC) 2084/93 of 20 July 1993 amending Regulation (EEC) N° 4255/88 
laying down provisions for implementing Regulation (EEC) N° 2052/88 as regards the 
European Social Fund OJ N° 193/39 of 31.7.93. 
PUBLIC HEALTH 
Tobacco related issues 
Council Directive 89/622/EEC of 13 November 1989 on the approximation of the laws, 
regulations and administrative provisions of the Member States concerning the labelling of 
tobacco products. OJN° L 359 of 08.12.89 p. 1. Modified by Council directive 92/41/EEC (OJ 
L 158 11.06.92 p. 30). 
Council Directive 90/239/EEC of 17 May 1990 on the approximation of the laws, regulations 
and administrative provisions of the Member States concerning the maximum tar yield of 
cigarettes. OJN° L 137 of 30.05.90 p. 36. 
IL Cancer 
Resolution 86/723/EEC of the Council and the Representatives of the Governments of the Member 
States, meeting within the Council, of 7 July 1986, on a programme of action of the European 
Communities against cancer. OJN° C 184 of 23.07.86 p. 19. 
Decision 90/23 8/Euratom, ECSC, EEC of the Council and the representatives of the Governments of 
the Member States meeting with the Council, on 17 May 1990 adopting a 1990 to 1994 action plan in 
the context of the "Europe against Cancer" programme. OJN° L 137 of 30.05.90 p. 31. 
Commission Recommendation 89/601/EEC concerning the training of health personnel in the matter of 
cancer. 
19 
m. Aids 
Resolution 86/723/EEC of the Representatives of the Governments of the Member States, meeting 
within the Council of 29 May 1986 on AIDS. OJ N° C 184 of 23.07.86 p. 21. 
Conclusions 89/203/EEC of the Council and the Ministers for Health of the Member States, meeting 
within the Council, on 15 December 1988 concerning AIDS and the work place. OJ N° C 028 of 
03.02.89 p. 1. 
Conclusions of the Council and the Ministers for Health of the Member States meeting within the 
Council of 16 May 1989 regarding the prevention of AIDS in intravenous drug users. OJ N° C 185 of 
22.07.89. 
Conclusions of the Council and the Ministers for Health of the Member States meeting within the 
Council of 16 May 1989 on awareness measures for health care personnel. OJ N° C 185 of 22.07.89. 
Conclusions of the Council and the Ministers for Health of the Member States meeting within the 
Council of 16 May 1989 on the improvement of the general system for collecting epidemiological data, 
including the application of the new definition of AIDS cases. OJN° C 185 of 22.07.89. 
Conclusions of the Council and the Ministers for Health of the Member States meeting within the 
Council of 16 May 1989 regarding future activities on AIDS prevention and control at Community 
level. OJ N° C 185 of 22.07.89. 
Resolution 90/116/EEC of the Council and the Ministers for Health of the Member States, meeting 
within the Council of 22 December 1989 on the fight against AIDS. OJ N° C 010 of 16.01.90 p. 3. 
Conclusions of the Council and the Ministers for Health meeting within the Council of 17 May 1990 
concerning the medical and psycho-social care services in relation to the AIDS epidemic. 
Decision 91/317/EEC of the Council and the Ministers for Health of the Member States, meeting 
within the Council of 4 June 1991 adopting a plan of action in the framework of the 1991 to 1993 
"Europe against AIDS" programme. OJN° L 175 of 04.07.91. 
Resolution of the Council and the Ministers for health of the Member States meeting within the 
Council of 13 November 1992 on the monitoring and surveillance of communicable diseases. OJ N° C 
326 of 11.12.92. 
IV. Drugs 
Conclusions of the Council and the Ministers for Health of the Member States, meeting within the 
Council of 13 November 1992 on the second report on drug demand reduction in the European 
Community. OJN° C 326 of 11.12.1992. 
Resolution of the Council and of the Representatives of the Governments of the Member States, 
meeting within the Council of 3 December 1990 on Community action to combat the use of drugs, 
including the abuse of medicinal products, particularly in sport. OJN° C 329 of 31.12.1990. 
20 
Declaration by the Council and the Ministers for Health of the Member States, meeting within the 
Council of 4 June 1991 on action to combat the use of drugs, including the abuse of medicinal 
products, in sport. OJN° C 170 of 29.06.1991. 
Resolution of the Council and of the Representatives of the Governments of the Member States, 
meeting within the Council on a code of conduct against doping in sport. OJ N° C 44 of 19.02.1992. 
V. Nutrition and Health 
Resolution of the Council and of the Representatives of the Governments of the Member States, 
meeting within the Council of 3 December 1990 concerning an action programme on nutrition and 
health. OJN° C 329 of 31.12.1990 
Conclusions of the Council and of the Ministers for Health, meeting within the Council of 3 December 
1990 concerning cardio-vascular disease in the Community. OJ N° C 329 of 31.12.1990. 
Conclusions of the Council and the Ministers for Health of the Member States, meeting within the 
Council on 15 May 1992 on nutrition and health. OJ N° C 148 of 12.06.1992. 
VL Other issues 
Resolution of the Council and the Representatives of the Member States, meeting within the Council, 
of 16 June 1986, concerning the protection of dialysis patients by minimizing the exposure to 
aluminium. OJN° C 184 of 23.06.1986. 
Council Conclusions of 15 May 1987 on improvement in the use of proprietary medicinal products by 
consumers. OJN° C 178 of 07.07.1987. 
Resolution of the Council and the Ministers for Health, meeting within the Council of 11 November 
1991 on health and the environment. OJN° C 304 of 23.11.1991. 
Conclusions of the Council and the Ministers for Health of the Member States, meeting within the 
Council of 15 May 1992 on hereditary illnesses. OJN° C 148 of 12.06.1992. 
Resolution of the Council and the Representatives of the Governments of the Member States, meeting 
within the Council, of 29 May 1986, on a programme of action of the European Communities on 
toxicology for health protection. OJN° C 184 of 23.07.1986. 
Resolution of the Council and the Representatives of the Governments of the Member States, meeting 
within the Council, of 3 December 1990, on improving the prevention and treatment of acute human 
poisoning. OJN° C 329 of 31.12.1990. 
Conclusions of the Council and the Ministers for Health of the Member States, meeting within the 
Council of 15 May 1992 on toxicology for health protection. OJ N° C 148 of 12.06.1992. 
21 
EMPLOYMENT 
Council Decision 70/532/EEC of 14 December 1970 setting up the Standing Committee on 
Employment in the European Communities. OJ N° L 273 of 17.12.70 (subsequently modified in 1972 
and 1975). 
Council Resolution of 12 July 1982 on Community action to combat unemployment. OJ N° C 186 of 
21.07.82. 
Resolution of the Council of 22 December 1986 "Action programme on employment growth". OJN° C 
340 of 31.12.1986. 
Resolution 89/C 328/01 of the Council and of the Ministers for Labour and Social Affairs meeting 
within the Council of 30 November 1989 on setting up an European Employment survey. OJ N° C 328 
of 30.12.89. 
LOCAL DEVELOPMENT OF EMPLOYMENT 
Resolution of the Council of 7 June 1984 "The contribution of local employment initiatives to combat 
unemployment". OJN° C 161 of 21.06.1984. 
YOUTH EMPLOYMENT 
Resolution of the Council of 23 January 1984 "The promotion of employment for young people". OJ 
N°C 29 of 04.02.1984. 
ACTION TO COMBAT LONG-TERM UNEMPLOYMENT 
Resolution of the Council of 19 December 1984 "Action to combat long-term unemployment". OJ N° 
C 2 of 04.01.1985. 
Conclusions of the Council of 1 December 1987 "Action to combat long-term unemployment". OJ N° 
C 335 of 1987. 
Resolution of the Council of 29 May 1990 "Action to assist the long-term unemployed". OJ N° C 157 
of 1990. 
22 
SOCIAL SECURITY. ELDERLY PEOPLE AND EXCLUSION 
Council Decision 91/49/EEC of 26 November 1990 on Community actions for the elderly. OJ N° L 28 
du 02.02.1991 
Council Decision 89/457/EEC of 18 July 1989 establishing a medium-term Community action 
programme concerning the economic and social integration of the economically and socially less 
privileged groups in society. OJN° L 224 du 02.08.1989 
Council Recommendation 92/442/EEC of 27 July 1992 on the convergence of social protection 
objectives and policies. OJN° L 245 du 26.08.1992 
Council Recommendation 92/441/EEC of 24 June 1992 on common criteria concerning sufficient 
resources and social assistance in social protection systems. OJ N° L 245 du 26.08.1992 
Council Recommendation 85/308/EEC of 13 June 1985 on social protection for volunteer 
Development workers. OJN° L 163 du 22 juin 1985 
Council Recommendation 82/857/EEC of 10 December 1982 on the principles of a Community policy 
with regard to retirement age. OJN° 357 du 18.12.1982 
Conclusions 89/C 277/02 of the Council and of the Ministers responsible for family affairs meeting 
within the Council of 29 September 1989 regarding family policies. OJN° C 277 du 31.10.1989 
Resolution of the Council 89/C 277/01 and of the Ministers for special affairs meeting within the 
Council of 29 September 1989 on combating social exclusion. OJN° C 277 du 31.10.1989 
DISABLED PEOPLE 
Council Recommendation 86/379/EEC of 24 July 1986 on the employment of disabled people in the 
Community OJ No L 225 of 12.08.86. 
Council Decision 88/237/EEC of 18 April 1988 establishing a second Community action programme 
for disabled people (HELIOS) OJNo L104 of 23.04.88. 
Council Decision 89/658/EEC of 18 December 1989 concerning the further development of the 
Handynet system in the context of the Helios programme. OJN° L 393 of 30.12.89. 
Resolution of the council 90/C 162/02 and the Ministers of Education meeting within the council of 31 
May 1990 concerning integration of children and young people with disabilities into ordinary systems 
of education OJNo C 162 of 3.07.90. 
Council Decision 93/136/EEC of 25 February 1993 establishing a third community action programme 
to assist disabled people (Helios H 1993 to 1996). OJN° L 56/30 of 09.03.93. 
23 
ANNEX III 
STATUS OF INITIATIVES 
IN THE ACTION PROGRAMME 
TO IMPLEMENT THE 1989 SOCIAL CHARTER 
(Situation at 30 June 1993) 
24 
THE LABOUR MARKET 
Employment in Europe report 
'Observatory' and documentation system on employment 
- NEC - Network of Employ. Co-ordinators 
- M1SEP - Mutual Inform. System on Employ. Policies 
• SYSDEM - European System of Docum. on 
Employment 
Action programmes on employment creation for specific 
target groups 
- ERGO - Action Programme for the long-term 
unemployment 
- LEDA • Local Employ. Develop. Ad Progr. 
- SPEC - Support Progr- for Employ. Creation 
Monitoring and evaluation of the activities of the European 
Social Fund 
Proposal for a Regulation amending Regulation 
(EEQ4255/88 on the European Social Fund 
Revision of Part II of Regulation 1612/68, concerning 
clearance of vacancies and applications for employment 
(legal basis: Article 49) 
Decision of the Commission on the implementing of 
Regulation (EEC) n°1612/68... as regards in particular, a 
network entitled EURES (EURopean Employment 
Services) 
EMPLOYMENT AND REMUNERATION 
Opinion on the introduction of an equitable wage by the 
Member States Annual Report 
1st meeting 6 April 1990 
Periodical Reports 
launched in October 1989 
three year programme 1989-
1991 
launched in 1986; at present 
third phase (1990-1993) 
scheduled for 3 yrs (at the 
request of the EP) from 1990-
1992 
Annual Report 
COM(93)124 final, 7 April 
1993, OJC 121,1.5.1993 
Amended proposal: 24.6.1993 
COM(93)303 
Adopted the 5.9.1991, 
OOM(91) 316, OJ C254, 
28.09.1991 
Amend, proposal : 27.03.92 
COM(92) 115, OJ C 107, 
28.4.1992 
Adoption by Commission 11 
December 1991 
SEC(91)2116 Opinion 
given 
26.5.1993 
OJC 40, 
17.2.1992 
Opinion 
given 
25.5.92 
OJ C 233, 
31.8.92 
p. 57 Opinion 
given 
22.6.1993 
OJC 94, 
13.4.1992 
OJC 241, 
21.9.1992 Adopted on 
20.07.93 OJ 
L 193, 
31.07.93, p. 
39 
Adopted on 
27.7.92 
Regulation 
2434/92/ 
EEC 
OJ L 245, 
26.8.92, p. 1 
Adopted on 
22.10.93 
Opinion 
given 
9.3.1993 
25 
Proposals for Council Directives on contracts and employ­
ment relationships 
other than full-time open-ended contracts (atypical 
work; 3 proposals) 
Working conditions (legal base: article 100) 
Distortions of competition 
(legal base: article 100a) 
Council Directive supplementing the measures to 
encourage improvements in the safety and health at work 
of workers with a fixed-duration employment relationship 
or a temporary employment relationship (legal basis 
ArU18A) 
IMPROVEMENT OF LIVING AND WORKING 
CONDITIONS 
Proposal for a Council Directive on the organization of 
working time (Art 118a) 
Council Directive on employer's obligation to inform 
employees of the conditions applicable to the contract on 
employment relationship (Art 100) 
Council Directive amending the Directive of 17 February 
1975 (75/129/EEC) on the approximation of the Member 
States pertaining collective redundancies 
Communication on the social integration of migrants from 
non-community countries COM(90)228/I final of 29.6.90 
OJC 224,8.9.1990 
Proposal COM(90)228/n final 
of 29.6.90 OJ C 224,8.9.1990. 
Amended proposal: 
COM(90)533/I final OJ C 305, 
5.12.1990 
Proposal COM(90)228/II final 
of 29.6.90 OJ C 224, 8.9.1990 
Proposal: COM(90)317 final of 
5.12.90, OJ C 254 9.10.1990 
Amended proposal : OOM(91) 
130 final of 23.4.1991 
OJC 124,14.05.91 
Proposal: COM (90) 563 final 
of 8.1.1991, OJ C 24, 
31.1.1991 
Adopted by the COM on 
18.9.1991, OOM(9l) 292 
OJC 310,30.11.1991 
Amended proposal: 31.03.1992 
COM(92) 127, OJ C 117, 
8.5.1992 
Adopted by the Commission 
[SEC (91) 1855 final] Opinion 
20.09.90, 
OJ C 332, 
31.12.1990 
Opinion 
OJ C 332, 
31.12.1990 
Opinion 
OJ C 332, 
31.12.1990 
Opinion 
OJ C 60, 
8.3.1991 
Opinion: 
24.4.1991 
OJC 159, 
17.6.1991 
Opinion 
given on 
30 January 
1992, 
OJC 79 
30.3.1992 Opinion 
OJ C 324, 
24.12.1990 
(rejects the 
legal basis 
chosen by the 
COM.) 
Opinion: 
first reading 
OJ C 295, 
26.11.1990 
Opinion: 
first reading: 
OJ C 295, 
26.11.1990 
sec. reading : 
given in May 
1991 
Opinion: 
first reading 
OJC 72, 
18.03.1991 
Opinion 
8.7.1991 
OJ C 240, 
16.9.1991 
Opinion 
given on 11 
March 1992 
OJC 94 
13.4.1992 under 
discussion 
under. • -^ • 
discussion 
Adoption on 
25 June 91, 
Directive 
91/383/EEC 
OJL206, 
29.07.91. 
p.19 
Common 
position 
adopted on 
30.6.1993 
Directive 
91/533/EEC 
adopted by 
Council on 
14.10.1991, 
OJ L 288 of 
18.10.1991, 
p.32 
Directive 
92/56/EEC 
adopted by 
the Council 
on 24.6.92, 
OJL245 
of 26.08.92, 
M 
26 
FREEDOM OF MOVEMENT 
Revision of Commission Regulation (EEC) No 1251/70 of 
29.6.1970 on the right of workers to remain on the 
territory of a Member State after having been employed in 
that State 
Proposal for a Regulation extending Council Regulation 
(EEC) N° 1408/71 on the application of social security 
schemes to employed persons, to self-employed persons 
and to members of their families moving within the 
Community and Council Regulation (EEC) N° 574/72 
(laying down the procedure for implementing Regulation 
N° 1408/71 ) to all insured persons (articles 51 & 235) 
Proposal for a Council directive concerning the posting of 
workers in the framework of the provision of services 
(articles 57 & 66) 
Proposal for a Community instrument on the introduction 
of a labour clause into public contracts 
Communication on supplementary social security schemes 
Communication on the livbg and working conditions of 
Community citizens resident in frontier regions, with 
special reference to frontier workers 
SOCIAL PROTECTION 
Council Recommendation on social protection: 
convergence of objectives 
Recommendation on common criteria concerning sufficient 
resources and social assistance in the social protection 
systems 
FREEDOM OF ASSOCIATION 
COLLECTIVE BARGAINING AND 
Communication on the role of the social partners in 
collective bargaining Depends on the adoption of the 
revision of part I of Regulation 
EEC No 1612/68 
Adopted by the COM on 
13 December 1991 
OJC 46,20.02.92 
COM (91) 230 final 
OJC 225,30.08.91 
Proposal amended 16.6.1993, 
COM(93) 225 final 
The subject of this instrument is 
dealt with in the above proposal 
Communication SEC (91) 
1332 final of 22.7.91 
Communication COM(90) 561 
final 
ProposakCOM (91) 228 final 
of 26.6.1991, OJC 194, 
25.07.1991 
Proposal : COM (91) 161 final 
of 13.5.91, 
OJC 163,22.6.1991 
Amended proposal : 
04.06.92 
COM(92) 240 
Communication is not yet 
scheduled 18.02.92 
OJC 98, 
21.04.1992 
18.12.1991 
OJ C 49, 
24.02.92 
26.05.92 
OJC 223 
31.8.1992 
27.11.91 
OJC 40, 
17.02.1992 
30.10.91 
OJC 14, 
20.01.92 Opinion 
given on 
13 March 92 
First reading 
OJC 150, 
15.6.1992 
Opinion 
given on 
13.3.1992 
Opinion 
given on 14 
February 
1992 
OJC 67, 
16.3.1992 
14.05.92 
OJC 150, 
15.6.1992 under 
discussion 
under 
discussion 
Adopted 
Recommen. 
92/442/EEC 
of 27.7.92 
OJL245of 
26.08.92, 
p. 49 
27 
INFORMATION, 
PARTICIPATION CONSULTATION AND 
Proposal for a Council Directive on the establishment of an 
European work Counccil in Community scale 
undertakings of groups of undertakings for the purposes of 
informing and consulting employees 
Council Recommendation concerning the promotion of 
participation by employed persons in profits and enterprise 
results (including equity participation) 
EQUAL TREATMENT FOR MEN AND WOMEN 
Council Directive on the introduction of measures to 
encourage improvements in the safety and health at work 
of pregnant workers and workers who have recently given 
birth or are breastfeeding 
Third Community programme on equal opportunities for 
women and men (1991-1995) 
Council Recommendation concerning child care 
Recommendation concerning a code of good conduct on 
the protection of pregnancy and maternity 
VOCATIONAL TRAINING 
Proposal for a Community instrument on access to 
vocational training Proposal: COM (90) 581 final 
of 25.1.91, 
OJC 39,15.02.1991 
amended proposal 
COM(91) 345 final 
OJC 336,31.12.1991 
Adopted on 10.7.91 by the 
Commission; 
COM(91) 259 final of 3.9.91 
OJC 245,20.09.1991 
Proposal: COM(90) 406 final 
of 17.10.90, 
OJC 281, 
9.11.1990 
Amended proposal: COM(90) 
692final OJC25,1.2.91 
COM (90) 449 final, 
6.11.1990 
Proposal: COM (91) 233 final 
of28.8.1991 
OJC 242,17.09.1991 
not yet scheduled 
Commission proposal 
OOM(92) 486 final 
OJC 23,7.1.1993 Opinion: 
OJC 120, 
6.5.1991 
Opinion 
27.02.92 
OJC 98, 
21.4.1992 
Opinion: OJ 
C41, 
18.2.1991 
27.11.91 
OJC 40, 
17.2.1992 Opinion: 
given 
10.7.1991 
OJC 240, 
16.09.91 
09.04.92 
OJ C 125 of 
18.5.92 
Opinion: first 
reading 
OJ C 19, 
28.1.1993 
Opinion 
given 
22.11.1991 
OJ C 326, 
16.12.1991 under 
discussion 
Recom. 
92/443/EEC 
adopted on 
27.07.92 
OJ L 245 of 
26.08.92 
p. 53 
Directive 
92/85/EEC 
adopted on 
19.10.1992 
OJ L 348, 
28.11.1992, 
p.l 
Council 
Resolution of 
21.5.1991 
OJ C 142, 
31.5.1991, 
p.l 
Recom. 
92/241/EEC 
of 31.03.92 
OJ L 123 of 
08.05.92, 
p. 16 
Recommenda 
tion adopted 
by the 
Council on 
30.6.1993 
28 
Updating of the 1963 proposal for a Council decision on 
the general principles for implementing a common 
vocational policy 
Communication on the rationalization and coordination of 
vocational training programmes at Community level 
Council Decision amending the Decision concerning an 
action programme for the vocational training of young 
people and their preparation for adult and working life 
(Petra) 
HEALTH PROTECTION AND SAFETY AT THE 
WORKPLACE 
Proposal for a Council Directive on the minimum health 
and safety requirements to encourage improved medical 
assistance on board vessels 
Council directive on the minimum health and safety 
requirements for work at temporary or mobile work sites 
(article 118a) not yet scheduled 
Adopted by COM the 
21.8.1990 COM (90) 334 final 
COM (90) 467 of 15.10.90. OJ 
C 332 of 21.12.90 
Proposal: COM(90) 272 
final 
OJC 183,24.07.90. 
Amended proposal: 
COM(91) 65 final 
OJC 74,20.03.91 
Reexamined proposition 
COM(91) 552 final 
Proposal: COM(90) 275 final 
SYN 279; OJ C 213, 28.8.90; 
amended proposal: COM(91) 
117 final, decision: 9.4.91 OJ 
C 112,27.4.91 28.02.91 
OJC 102, 
18.4.1991 
Opinion: 
OJC 332, 
21.12.1990 
OJC 120, 
06.05.1991 17.05.91 
OJC 158. 
17.6.1991 
Opinion: first 
reading 
OJC 48. 
25.2.91, 
second 
reading: 
opinion 
delivered in 
plenary 
session 
November 
1991 Council 
decision 
91/387/EEC 
adopted the 
22.07.91 
OJ L 214 of 
02.08.91, 
p.69 
Adopted Dir. 
92/29/EEC 
OJL113 
30.04.92, 
p. 19 
Adopted Dir. 
92/57/EEC 
OJ L 245, 
26.08.92, 
M 
Council directive on the minimum requirements for 
improving the safety and health protection of workers in 
the mineral extracting industries through drilling (article 
118a) 
Council Directive on the minimum requirements for 
improving the safety and health protection of workers in 
surface and underground mineral extracting industries 
(article 118a) Proposal: COM(90) 663 final, 
decision: 19.12.90 
OJC 32,7.2.91 
Amended proposal: 
OOM(91) 493 final, of 
20december 1991 
Adopted by the COM 
in February 1992 
COM(92)14finalof 
17.02.1992 
OJC 58,05.03.92 Opinion: 
OJC 191, 
22.7.91 Opinion: first 
reading 
OJC 46, 
20.02.92 
29.04.92 
OJ C 169, 
06.07.92 first reading: 
13.5.92 Council 
directive 
92/91/EEC 
of 3.11.1992 
OJL348, 
28.11.1992, 
p.9 
Council 
Directive 
92/104/EEC 
of3.12.1992 
OJL404 
31.12.1992, 
p. 10 
29 
Proposal for a Council Directive on the minimum safety 
and health requirements for fishing vessels (article 118a) 
Commission Recommendation on the adoption of a 
European schedule of industrial diseases 
Council Directive on the minimum requirements for safety 
and health signs at the workplace (article 118a) 
Proposal for a Council Directive on the minimum safety 
and health requirements regarding the exposure of workers 
to the risks caused by physical agents (article 118a) 
Proposal for a Council Directive on the protection of the 
health and safety of workers from the risks related to 
chemical agents at work 
Proposal for a Council Directive amending Directive 
83/447/EEC on the protection of workers from the risks 
related to exposure to asbestos at work (article 118a) 
Proposal for a Council Directive on the minimum safety 
and health requirements for activities in the transport sector 
(article 118a) 
Proposal for a Council Regulation for the establishment of 
a safety, hygiene and health agency (article 235) 
PROTECTION 
ADOLESCENTS OF CHILDREN AND 
Proposal for a Council Directive on the approximation of 
the laws of the Member States on the protection of young 
people (article 118a) Proposal: COM(91) 466 
final 
Adopted by the COM 
on 27.11.91 
OJC 337,31.12.91 
Amended proposal COM(92) 
409 final 
OJC311,27.11.1992 
Commission recommenda­
tion 90/326/EEC, 22.5.90, OJ 
L160,26.6.90, p. 39 
Proposal: COM(90) 664 final, 
decision: 19.12.90, OJ C 53, 
28.2.91 
Commission proposal 
COM(92) 560 final of 
8.5.1993, OJC 77,18.3.1993 
Commission proposal 
COM(93) 155 final, 14.5.1993 
OJC 165,16.6.1993 
Proposal: COM(90) 184 final 
12.6.90 
Amended proposal: COM(90) 
539 final, 6.11.90 
Commission proposal 
COM(92) 234 final, 
17.11.1992 
OJC 25,28.1.1993 
COM(90) 564 final, OJ C 271, 
16.10.1991 
Adopted by the COM the 
15.03.91, COM(91) 543 
OJC 84,04.04.1992 
Amended proposal OOM(93) 
35 final, 5.2.1993 
OJC 77,18.3.1993 29.04.92 
OJ C 169, 
06.07.92 
Opinion 
given 
30.6.1993 
OJC 331 
31.12.1992 
Opinion 
given 
28.4.1993 
29.04.92 
OJC 169, 
6.7.1992 
24.9.1992 
OJC 313 
30.11.1992 first reading: 
08.7.92 
OJ C 241, 
21.9.1992 
OJC 284 
12.11.1990 
First reading: 
17.12.1992 
OJC 21 
25.1.1993 Joint opinion 
given on 
30.6.1993 
Adopted Dir. 
92/58/EEC 
of24.6.92, 
OJ L 245, 
26.08.92 
p. 23 
Under 
discussion 
Adoption on 
25.6.91, 
OJ L 206, 
29.7.91, p.16 
91/382/EEC 
Under 
discussion 
Under 
discussion 
30 
ELDERLY PERSONS 
Communication and proposal for a Council Decision 
concerning the elderly 
DISABLED PERSONS 
Council Decision establishing a third Community action 
programme for disabled people (HELIOS II for the period 
1993-1996) 
Proposal for a Council Directive on the introduction of 
measures aimed at promoting an improvement in the travel 
conditions of workers with motor disabilities (article 118a) Communication of the 
Commission and proposal for a 
decision: proposal: COM(90) 
80/1 final of 24.4.1990 
Proposal for a Council decision 
on the organization of the 
European Year of the Elderly 
and of Solidarity between 
Generations, 1993 OOM(91) 
508, OJC 29,1.2.1992 
Adopted by the COM on 
September 2,1991, 
OOM(91)350fin.of 
23.10.91 
Amended proposal adopted 
16.11.1992, OOM(92) 482, 
OJC 25,28.1.1993 
Proposal COM(90) 588 final of 
28.2.91, 
OJC 68,16.3.91 
Amended proposal: 
19.12.91, OOM(91) 539 final 
OJC 15,21.01.1992 OJ C 225, 
10.9.1990 
OJ C 169, 
6.7.1992 
29.01.92 
OJC 79 
30.3.1992 
Opinion: OJ 
C191, 
22.7.91 OJ C 285, 
12.11.90 
OJ C 176, 
13.7.1992 
Opinion 
given 
30.10.1992 
OJC 305, 
23.11.1992 
Opinion on 
first reading 
20.11.1991 
OJ C 326, 
16.12.91 Adopted by 
the Council 
on 26.11.90 
91/49/EEC, 
OJL28, 
2.2.1991 
Decision 
92/440/EEC 
of 24.6.1992 
JO L 245, 
26.8.1992 
Council 
decision 
93/136/EEC, 
25.2.1993 
OJL56, 
9.3.1993, 
p.30 
under 
discussion 
31 
ANNEX IV 
EUROPEAN SOCIAL DIALOGUE 
JOINT OPINION ON VOCATIONAL QUALIFICATIONS AND CERTIFICATION (13 October 1992) 
JOINT STATEMENT ON THE FUTURE OF THE SOCIAL DIALOGUE (3 July 1992) 
A RENEWED COOPERATIVE GROWTH STRATEGY FOR MORE EMPLOYMENT (3 July 1992) 
JOINT OPINION ON WAYS OF FACILITATING THE BROADEST POSSIBLE EFFECTIVE ACCESS TO 
TRAINING OPPORTUNITIES (20 December 1991) 
AGREEMENT OF 31 OCTOBER 1991 
JOINT OPINION ON THE TRANSITION FROM SCHOOL TO ADULT AND WORKING LIFE (5 April 1991) 
JOINT OPINION ON NEW TECHNOLOGIES, WORK ORGANIZATION AND ADAPTABILITY OF THE LABOUR 
MARKET (10 January 1991) 
JOINT OPINION ON EDUCATION AND TRAINING (19 June 1990) 
JOINT OPINION ON THE CREATION OF E EUROPEAN OCCUPATIONAL AND GEOGRAPHICAL MOBILITY 
AREA AND IMPROVING THE OPERATION OF THE LABOUR MARKET IN EUROPE (13 February 1990) 
JOINT OPINION ON THE ANNUAL ECONOMIC REPORT 1987 - 1988 (26 November 1987) 
JOINT OPINION CONCERNING TRAINING AND MOTIVATION, AND INFORMATION AND CONSULTATION 
(6 March 1987) 
JOINT OPINION ON THE COOPERATIVE GROWTH STRATEGY FOR MORE EMPLOYMENT (6 November 1986) 
32 
ANNEX V 
PROGRAMMES, NETWORKS AND OBSERVATORIES 
Human Resources, Education, Training and Youth 
° COMETT 
Programme on co-operation between universities and industry regarding training in the field of 
technology 
Launched in 1986, COMETT was conceived as an education and training counterpart to the ESPRIT 
R+D programme and aims to create greater synergy between university and industry to improve the 
quality of training for technological change. Since 1990 COMETT has been opened to the participation 
of the EFTA countries. 
Budget execution up to 1992 (in MECU): 206.6 
°ERASMUS 
European Community action scheme for the Mobility of University Students 
The ERASMUS programme, set up in 1987, aims at promoting co-operation between universities in 
order to bring about greater mutual recognition of qualificqations as well as to encourage much greater 
mobility of students and staff between institutions throughout the Community. The Commission set a 
target of 10 percent for mobility of students within the EC. Since 1992 ERASMUS has been opened to 
the participation of the EFTA countries. 
Budget execution up to 1992 (in MECU): 307.5 
°EUROTECNET 
Action programme to promote innovation in the field of vocational training resulting from 
technological change in the European Community 
EUROTECNET had its origins in the 1983 Council Resolution setting training policies for the 1980s 
and, building on a 3-year preparatory phase, became formalised from 1990 as a programme addressing 
the impact of technological change on qualification systems and on training methodologies. 
Budget execution up to 1992 (in MECU): 7.0 
°PETRA 
Action programme for the vocational training of young people and their preparation fot adult and 
working life 
Started in 1988, this programme grew directly out of the previous Community Action Programme on 
the transition of young people from school to adult and working life, and was designed to take account 
in particular of concerns arising from high unemployment by setting new standards for initial vocational 
training in the Community. j 
Budget execution up to 1992 (in MECU): 79.7 
33 
°Youth for Europe 
Action programme for the promotion of youth exchanges in the Community 
Youth for Europe was formalised in 1988 as a focus for a range of initiatives designed to give an 
impulse for out-of-school exchanges of young people and had its origins in the Adonino Report on a 
People's Europe, adopted by the European Council in 1985. 
Budget execution up to 1992 (in MECU): 32.2 
°nus 
European Network of Vocational Training Projects for Women 
Launched in 1988, IRIS grew out of the 1987 Council Recommendation on access by women to 
vocational training and has created a European network to support innovation in vocational training 
directed at the more effective participation of women. 
Budget execution up to 1992 (in MECU): 0.75; 
°LINGUA 
Action programme to promote foreign language competence in the European Community 
LINGUA was launched in 1990 and focuses on the growing concern about the Achilles heel of so 
many Community efforts, namely the need for more citizens to be able to communicate through at least 
two languages other than their own. 
Budget execution up to 1992 (in MECU): 68.8 
°TEMPUS 
Trans-European Mobility Scheme for University Students 
Also launched in 1990, this scheme aims to support the transformation of the higher education systems 
in Central and Eastern European countries. It is an integral part of the PHARE Programme, set up by 
the Community to provide assistance in the economic and social restrucuring of Central and Eastern 
European countries. 
Budget execution up to 1992 (in MECU): 194 
°FORCE 
Action programme for the development of continuing vocational training in the European Community 
FORCE was launched in 1991 to focus on policy development, innovation and exchange of experience 
regarding continuing vocational training. 
Budget execution up to 1992 (in MECU): 31.3 
34 
°EURYDICE 
Information Network on Education in the European Community 
Created in 1976 and operational from 1980, EURYDICE provides an exchange of information on 
education systems and policies in the Community and supports Community co-operation in the field of 
education. With a European Unit in Brussels and national Units in each Member State, the network 
carries out surveys andcomparative analyses and disseminates information throughout the Community. 
For the period 1995-1998 it is proposed that all the existing Task Force programmes are rationalised 
under two main action lines: actions relating to universities/higher education and schools,and actions 
relating to training and qualifications. 
Industrial Relations and Social Dialogue 
°European Observatory of Industrial Relations 
The Observatory identifies and records the most significant instances of collective bargaining and 
agreements in Member States. This information is processed, analysed and published from the central 
system database in Brussels, and provides regular general, as well as specialised, data sheets and 
statistics on industrial relations. 
Employment and Labour Market 
°THE EMPLOYMENT OBSERVATORY 
comprises four networks of correspondents and their attendant publications: 
°MISEP - Mutual Information System on Employment Policies 
Set up in 1982 and composed of government experts, MISEP aims to gather, synthesize, translate and 
disseminate information available in the Member States on employment policies, thus providing an aid 
to the national ministries responsible for employment measures in their daily decision-making. MISEP 
publishes the Employment Observatory bulletin on Policies. 
°SYSDEM - European System of Documentation on Employment 
Set up in 1990, SYSDEM is designed to collect, analyse, synthesize and disseminate information on 
studies, reports, documents, etc., available in the Member States on employment trends. It comprises a 
network of independent national experts, an analysis unit and an information department, and publishes 
the Observatory series on Trends. 
°NEC - Network of Employment Co-ordinators 
Composed of officials from the employment administrations of the Member States, NEC was set up in 
1989 to promote discussion and dialogue at Community and national level on certain employment-
35 
related themes chosen by the Commission in consultation with Member States and the Social Partners 
(in 1991, the theme was employment in the textile sector). The results of these studies are published 
annually as the Research papers. 
°Central and Eastern Europe 
The Central and Eastern Europe bulletin, a new addition to the Employment Observatory, contains 
regular reviews of employment in the countries of Central and Eastern Europe. It aims to present up-
to-date information on labour market and social conditions and contains the latest statistical labour 
market indicators and analytical articles on employment developments in the six countries currently 
covered: Bulgaria, the Czech Republic, Slovakia, Hungary, Poland and Romania. 
°ERGO 
Community action programme for the long-term unemployed 
ERGO aims to organise dialogue, co-operation and the exchange of information between partners at 
local, regional, national and Community level in order to identity effective measures to combat long-
term unemployment and labour market exclusion in general. There are two administrative bodies, one 
responsible for action, such as the part-funding of innovative pilot projects, and the other for 
assessment. Phase II (1993-96) has an annual budget of 1 MECU 
°SPEC 
Support Programme for Employment Creation 
SPEC aims to provide technical and financial support for innovative regional or local employment 
creation projects, with a view to accomodating structural changes on the labour market, particularly in 
connection with the completion of the internal market. Priority is also given to regions facing 
employment problems which are given priority under Objectives 1,2 and 5b of the Structural Funds and 
frontier regions where projects involve transfrontier co-operation. Funding is given in three-year 
periods. The Programme's budget for 1993 is 1.2 MECU 
°LEDA 
Local Employment Development Action 
Now in its third phase (1993-96), this action-research programme was launched in 1986 to identify 
successful strategies in combatting unemployment through exploiting local development potential, to 
disseminate this information throughout the Community, and to offer support in the form of advice and 
technical assistance. Both Commission experts and locally-active participants contribute to the 
development of the Programme. LEDA's annual budget is 2 MECU. 
36 
integration or reintegration of offenders 
In 1993 1.5 MECU has been allocated for support of development work on integrating or reintegrating 
offenders into the labour market. Research, development and evaluation of policies and practice in 
Member States aim to improve present approaches, to lead to a better understanding of the problem 
and to raise the profile of the issue. Encouragement and funding will be provided to governmental and 
non-governmental organisations carrying out this work. 
°EURES 
European Employment Services 
The legal basis for the EURES Project is provided by Regulation (EEC) n°1612/68, underpinned by 
Articles 48 and 49 of the Treaty of Rome. This is amended by Regulation (EEC) 2434/921 of July 
1992. 
The EURES project (EURopean Employment Services) is a close partnership between the Commission 
of the European Communities (Directorate-General V -Employment) and the public employment 
services of the Member States. The project seeks to provide detailed information concerning job 
vacancies, job applications, and general information on living and working conditions and the labour 
market - to assist individuals looking for work in another Member State and employers seeking to 
recruit at European level. 
To facilitate access to such information, there is already a network of 100 "Euroadvisers" across the 
Community, with a further 120 to be trained in 1993. By September 1993, Euroadvisers will be linked 
together by an Electronic Mail system, as well as having access to information databases. 
Computerised exchange job vacancies will become a reality in April 1994. 
European Coal and Steel Community Readaptation and Social Aspects of Iron and Steel Policies 
Article 56 of the ECSC Treaty provides the legal basis for the granting of ECSC Readaptation Aid and 
establishes the intervention provisions, namely allowances for tideover payments and resettlement 
grants and the financing of vocational training. Aid is financed by a contribution from the two 
industries by means of an annual levy on production and is conditional upon the payment of a special 
contribution by the Member State. ECSC Readaptation Aid is provided under three forms: traditional 
aid, the Social Volet and the RECHAR Programme. 
°Traditional Aid 
is granted to workers in both the coal and steel sectors and is calculated solely on the basis of the 
bilateral convention. The five standard social accompanying measures financed by ECSC Readaptation 
Aid are early retirement, unemployment, internal transfer, external redeployment and vocational 
training. The budget for traditional aid for 1992 was 170 MECU. 
37 
°The Social Volet 
provides supplementary provisions of aid for workers specifically engaged in the steel industry. The 
1992 budget was 53 MECU. From 1993-95 Social Volet aid will provide financial assistance for 
unemployment as well as the early retirement and redeployment measures of the last programme. It is 
proposed to set average ceilings for assistance at 5000 ECU for early retirement, 4000 ECU for 
redeployment and 2000 ECU for unemployment. 
°RECHAR 
brings together finance from the Structural Funds and other financial instruments (ERDF, ESF, EIB, 
ECSC) to help the economic conversion of those coal mining areas worst affected by industrial decline. 
Under RECHAR (presently 1990-93) the ECSC provides Readaptation Aid towards four measures: 
early retirement, "traditional" vocational training, pre-training and redeployment. RECHAR's 1992 
budget was 50 MECU. 
Equal Opportunities 
°Third Programme on Equal Opportunities 
The third medium-term Community action programme on equal opportunities for women and men 
(1991-95) has as its goal the creation of circumstances in which women can participate fully in the 
labour market and maximise their contribution to economic and social life. It has three basic aims: to 
improve the implementation of existing legal provisions; to promote the integration of women in the 
labour market; and to improve the status of women in society. The Member States are asked to achieve 
the following objectives: raise the level of awareness about legal rights and obligations; develop 
specific measures for equal opportunities for women and men, and promote women's entrepreneurship 
and LEIs; improve the quality of women's employment by maximising their potential; reduce barriers to 
women's access to, and participation in, employment by reconciling the family and occupational 
responsibilities of women and men; develop innovatory programmes presenting a complete, realistic 
picture of women in society; encourage measures designed to promote the participation of women in 
the decision-making process in public, economic and social life. 
°LEI 
Local Employment Initiatives for Women 
Originating in 1984, LEI provides financial aid for the creation by women of initiatives such as co­
operatives and SMEs which create at least two full-time jobs for women. As well as such grants, 
information and advice is also provided in co-operation with local and national institutions, women's 
groups, chambers of commerce and local and regional development agencies. A European network has 
been set up to provide help to initiatives for women in the employment field. 
°IRIS 
European Network of Vocational Training Projects for Women 
With a co-ordination office in Brussels and a network of over 450 projects throughout the Community, 
IRIS provides a network of innovative experiences in the field of vocational training for women in 
38 
order to facilitate their access to jobs of the future or where women are under-represented. 
Six other networks are made up of representatives and/or experts from Member States: 
°Network on the application of the equality directives 
Identifies specific problems such as burden of proof, indirect discrimination, the notion of equal 
value,etc.. Is also preparing a legal encyclopaedia which brings together national and Community 
jurisprudence and law concerning equal opportunities for men and women. 
°Network on the position of women in the labour market 
Aims to analyse the obstacles, problems and challenges confronting women in the area of employment. 
The Third Action Programme on Equal Opportunities has identified three main areas of research: the 
participation of women in the labour market; the value of women's work and, in general, the quality of 
their employment; the identification of obstacles to the integration of women in the labour market and, 
in particular, the division of work and family life. 
°Network on women in decision-making 
Aims to encourage women's participation in decision-making at all levels, one of the two action 
"volets" to improve the status of women in society. 
°Steering Committee for Equal Opportunities in Broadcasting 
Since 1986 the Committee has worked to promote women's employment in television and radio 
throughout the Community because of the influence of the media industry on public opinion. 
°Network on childcare and other measures to reconcile work and family responsibilities 
Responsible for bringing together and evaluating information on chidcare services, and for making 
people aware of the importance of childcare and other measures to reconcile work and family 
responsibilities. 
°Working Group for equal opportunities at school 
Has several goals, including the diversification of choice of profession amongst boys and girls at school 
and the removal of stereotypes present in teaching material. 
Social security, social protection and living conditions 
Social security and social action programmes 
°MISSOC 
Mutual Information System on Social Protection in the Member States of the Community 
The MISSOC Network relating to social protection in the Community was launched in 1990 to 
promote exchanges of information on social protection systems and policies in Member States. It is 
composed of government experts who produce regular tables of statistics accompanied by an annual 
analysis of trends and developments in the field of social security. 
39 
°POVERTYm 
A medium-term Community action programme concerning the social and economic integration of the 
socially and economically less-privileged groups in society 
Poverty III (1989-94) aims to produce pilot projects involving preventive and corrective measures to 
combat social exclusion in Europe. Funding is given to such projects, to innovatory measures designed 
to develop original ways of providing assistance, and to studies of and research into marginalisation 
processes. Information is disseminated through monthly information letters, the Magazine, and an 
annual report and a directory of projects. The Programme is run by DG V with the assistance of a 
central management and organisation unit, a network of nine research and development units covering 
all Member States, and an Advisory Committee composed of national government representatives. 
°The European Observatory of National Family Policies 
Set up in 1989, the Observatory is composed of twelve independent experts, each specialising in a 
particular field (eg sociologists, lawyers) who, on the basis of information collected, submit national 
reports on family policy developments. From these reports an annual report is compiled providing an 
analsis of trends and developments. Comparative tables on specific themes are also drawn up. 
°Observatory on national policies to combat social exclusion 
Created in 1990, the Observatory is charged with studying the efforts of the public authorities within 
each Member State to combat exclusion: the efforts which they make themselves and those which they 
delegate to non-governmental institutions. It produces an annual report, prepared by the members of 
the Observatory (an independent expert from each Member State), which collects, analyses and 
presents quantitative and qualitaive information on social exclusion. The 1991 Report examined 
sectoral policies (health, living conditions, training, education, employment, etc.) and general policies 
conducted in the field of social exclusion. 
°Observatory on Ageing and Older People 
The Observatory was established in 1991 to analyse the impact of social and economic policies on 
older people throughout the European Community, concentrating on four principal areas: living 
standards and way of life, employment and the labour market, health and social care, and the social 
integration of older people in both formal and informal settings. The Observatory comprises a network 
of twelve scientific experts, one from each Member State, who collect and analyse extant national data, 
including official statistics, policy documents, legislation and parliamentary reports, following 
guidelines established by the co-ordination team. This team is then responsible for synthesizing the 
information provided in the national reports and preparing an overview. The first report of June 1991 
has been followed by two during 1992. 
40 
°Community Actions for the Elderly 
This three-year action programme (1991-93) proposes measures to be taken at European level to 
increase awareness of and supplement efforts at national level to help older people. No legislation is 
proposed, but exchanges of information and experience and the transfer of know-how and initiatives 
are encouraged. The Programme has a budget of 13 MECU spread over the three years and culminates 
in 1993 with the European Year of Older People and Solidarity between Generations. Studies and 
analyses have been carried out on the question of aging and its social and economic repercussions, and 
awareness-raising campaigns have been mounted. In implementing this Programme, the Commission is 
assisted by three specialised bodies: the Member States are represented within the Advisory 
Committee; the Observatory on ageing and older people; and the Liaison Group which comprises the 
European non-governmental organisations EURAG, Eurolink Age, FERPA and FIAP A. 
Freedom of movement and migration policy 
The Unit runs a budget of 7 MECU to promote the integration of migrants, under which some 400 
projects submitted by NGO's (e.g. building reception centres and housing for migrants, providing 
specialist social services, financing anti-racism activities, etc.) are funded. 
°RIMET 
Réseau d'information sur les migrations des Etats tiers 
Basic information necessary for closer cooperation as regards national immigration policies is collected 
through independent"experts who report twice a year on new policy undertakings and trends in the 
Member States as regards immigration and integration of third country nationals. 
°Réseau libre circulation 
Reports on the EC free movement of Community workers; members of this network (one national 
expert for each Member State) produce a report and meet yearly. The purpose of these reports is to 
assist the Commission in its task of monitoring the transposition and implementation of Community 
legislation, both by national courts and, especially, by local, regional or national authorities. The 
experts may be requested to provide information on specific points whenever the Commission needs it 
urgently (parliamentary petition or question). 
°ELAINE 
European Local Authorities Information Network on Ethnic Minorities 
Because the first contact migrants usually have with a host country is not with the central governmental 
but with city authorities, this network sets up cooperation and information exchange between local 
authorities dealing with migrants at practical levels. The Commission provides core funding of 250.000 
ECUS, which is complemented by Member City contributions. 
Social security for migrant workers 
°Compendium of Community Provisions on Social Security 
is updated and published by the Unit every two or three years. The Compendium is sent to specific 
41 
representatives on certain committees and is also on sale to the general public. It provides details of 
regulations, information on court cases etc.. 
42 
Measures for the disabled 
°HELIOS n 
Handicapped People in the European Community Living Independently in an Open Society 
The second HELIOS Programme (1992-1996) concerning people with disabilities aims to continue, 
extend and expand the activities of the first programme: exchange of information and experience; 
conferences, seminars, working groups, study visits and training courses; provision of practical 
information on technical aids for disabled people using the HANDYNET computerised database; 
support for participation of disabled people in Community programmes and initiatives relating to 
training, new technologies, youth mobility and exchanges. The Programme covers functional 
rehabilitation, educational integration, vocational training, employment rehabilitation, economic and 
social integration and an independent way of life. Those involved include not only handicapped people 
and their organisations, but also public authorities, the Social Partners, and the public at large. 
European Social Fund 
See Annex III 
°EUROFORM 
The main objective of the EUROFORM Initiative is to support transnational partnerships in the fields 
of vocational training" and employment creation in response to the challenge posed by the completion of 
the internal market and technological change. It promotes convergence of professional skills in the 
Community, as well as the vocational and geographical mobility of workers. Eligible for part-financing 
are transnational partnerships between administrations or public or private bodies responsible for 
vocational training and promotion of employment, and consortia aiming to prepare, programme and 
implement training and employment measures at regional, local, sectoral or technological level. The 
total contribution from the Structural Funds during the period 1990-93 is estimated at 302 MECU. 
°NOW 
New Opportunities for Women 
This Community initiative provides funding for transnational action programmes in the areas of 
vocational training and promotion of employment for women. The following measures are eligible: 
training and financial assistance for women setting up small businesses and co-operatives; advice and 
guidance for women returning to work following long-term unemployment or a career break, 
vocational training and employment promotion; complementary measures to develop childcare facilities 
and technical assistance financed to increase the effectiveness of other actions. The contribution from 
the Structural Funds, the main contributor being the ESF, over the period 1990-93 is estimated at 153 
MECU. 
43 
°Horizon 
This Community initiative provides aid to improve the conditions of access to the labour market and 
the competitive skills of handicapped persons, as well as gaining a better understanding of the problems 
of long-term unemployment and the deterioration in the socio-economic situation of certain population 
groups. The principal eligible measures are: transnational actions involving exchanges of training 
programmes, trainers or trainees; pilot projects involving the provision of guidance and counselling, 
vocational training, the exchange of persons involved in the social integration of disadvantaged 
persons, measures to combat problems of language, aids to recruitment and business creation, and the 
setting up of places of transit for multiple and collective use by persons forced to adapt quickly to 
completely new socio-economic situations. The total contribution from the Structural Funds during the 
period 1990-93 is estimated at 305 MECU. 
Health and safety 
Public Health 
°Europe against cancer 
This second action plan (1990-94), to develop information on the causes of cancer and possible 
methods of prevention and treatment, comprises 40 actions largely based on those in the original 
programme and which concern four areas: prevention, information and health education, training of 
health-care workers and research. With respect to cancer prevention, in addition to continuing 
legislative action, the strategy is designed to support and implement measures to enhance public 
awareness at European and national level. The Programme is implemented by the Commission, in close 
co-ordination with the comptetent authorities in the Member States and with the assistance of an 
advisory committee. The Community contribution amounts to 50 MECU. 
°Europe against AIDS 
Following a Council Decision adopted in 1991, the action programme Europe Against AIDS was 
launched to run from 1991-1993 with the assistance of an advisory committee composed of 
representatives of Member States and chaired by the representative of the Commission. The 
Committee's duties include the examination of projects and measures involving cofinancing from public 
funds and the co-ordination, at national level, of projects partly financed by NGOs. The Programme 
concentrates on four main areas in the field of AIDS prevention: the promotion of information, health 
education, research and international co-operation. The Community contribution for 1992 was 2.5 
MECU and for 1993 is 8.3 MECU 
44 
°European plan to combat drugs 
Objective: to monitor the actions carried out at Community level with a view to reducing the demand 
for drugs, identifying the most urgent measures and specifying the most appropriate information to be 
provided by the Member States. 
Five priority areas and accompanying actions were chosen for 1992-3: primary and secondary 
prevention and rehabilitation (support for pilot projects under a local initiative framework; studies and 
promotion of types of treatment and of rehabilitation); information (analysis of campaigns, exchange of 
information and experience concerning information of the general public; promotion of different 
methods of informing drug addicts; evaluation of the awareness and knowledge of the general public 
and the target audience); education (exchanges of information and experience and pilot projects to 
promote youth health education at school, in the community and within the family); vocational training 
and best practices; research and co-ordination (gathering of statistics; identification of problems of 
analysis; co-ordination with other actions and policies concerning drug-related issues). 
Safety at work 
°Third action programme concerning safety, hygiene and health at work 
Continuing from its programmes launched in 1978 and 1984, on the basis of Articles 117 and 118 of 
the EEC Treaty concerning social policy and Article 118A of the Single Act concerning the 
improvement of health and safety at work, the Commission drew up a Third Programme in 1988. The 
Programme concentrates chiefly on five subjects: safety and ergonomics at work (including safety in 
the high-risk sectors of agriculture, construction and work at sea); occupational health and hygiene; 
information and training; initiatives specifically directed at small- and medium-sized enterprises; social 
dialogue. These areas were also targeted by the 1992 European Year of Safety, Hygiene and Health 
Protection at Work which sponsored a series of projects aimed to promote awareness among the 
general public and the working population of all the measures being taken by the Community. 
45 
ISSN 0254-1475 
COM(93) 551 final 
DOCUMENTS 
EN 05 
Catalogue number : CB-CO-93-590-EN-C 
ISBN 92-77-60747-5 
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