WRITTEN QUESTION E-1255/97 by Mirja Ryynänen (ELDR) to the Commission (8 April 1997)

Subject: New means of creating employment

In 1994 the European Council set the objective of creating 20 million new jobs in Europe. The additional jobs were intended to bring about a gradual reduction in unemployment over a number of years. However, the unemployment level has not fallen, and in Germany and France, for example, it has increased. In my country, Finland, the fall has been extremely slow.

The measures being taken at present by the EU and its Member States are not sufficient to solve this growing, socially divisive problem. At the moment, Europe is not sufficiently competitive in an open world economy. A new way should be sought of improving the employment situation.

1. What steps is the Commission taking to review the European Council's current job creation objectives?

2. What other means besides the internal market and EMU can be employed to improve Europe's competitiveness? Is the Commission preparing new measures, for example in the information and research sectors?

3. How could the division of labour be put into practice on a Europe-wide basis? In the Commission's view, does this call for a different attitude towards free trade?

Answer given by Mr Flynn on behalf of the Commission (16 June 1997)

1. In its proposed confidence pact 'action for employment in Europe' ((CSE(96) 1. )), the Commission recommended several measures to promote job creation. They included the strengthening of placement services, the multiplication of local initiatives for development and employment, the launching by the social partners of a joint initiative for the integration of young people into the labour market, the promotion of lifelong access to and validation of skills, and the re-examination of state aid policies in relation to their effects on employment. These proposals have been updated in the joint report on employment that the Council and the Commission submitted to the Dublin European Council and most recently in the joint interim report on employment prepared for the Amsterdam European Council.

In this report, the Council and the Commission remind all actors of their responsibilities in the implementation of the employment strategy endorsed by the European Council. Member States are requested to bring about modernisation and activation of their labour market policies. Employers are urged to turn profits into investment and new jobs, and to invest in people by supporting them in lifelong learning. Social partners are invited to agree on how industry restructuring and work reorganisation is to be carried out in a socially acceptable way, and to promote better use of capital and equal access to jobs for all groups of society. Local authorities are called to boost cooperation between local actors through territorial employment pacts, in line with the ideas launched in the confidence pact for employment in Europe.

2. To guarantee its competitiveness on increasingly worldwide markets, Europe must make the most of its substantial internal market and of the strong position which this gives in world trade issues. It must also promote lifelong learning, investment in research and development, innovation and other ways of increasing and capitalising on our skills base. The Commission's proposals for the future fifth framework programme for research and technological development ((COM(97) 142 final. )) activities envisage a greater concentration of research efforts to stimulate innovation and contribute to the development of new products and processes with positive benefits for employment. Furthermore, the Commission is currently preparing a communication on the contribution of the Community's structural funds to research and development.

3. As regards working time, the Commission is currently reassessing the possibilities that reorganisation, including possibly some shortening of working time, could open for job creation. The Commission recently adopted a green paper on this subject ((COM(97) 128. )). A copy of this document is being sent directly to the Honourable Member and to the Secretariat general of Parliament.