Proposal for a COUNCIL DECISION setting up an Employment and Labour Market Policy Committee
Date: 1996-03-27
Institutions: European Commission
Subjects: EU employment policy, committee (EU), exchange of information, labour market

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels, 27.03.19% 
COM(96)  134  final 

96/0097  (CNS) 

Proposal  for a 
COUNCIL  DECISION 
setting up an Employment  and Labour Market Policy  Committee 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Implementing  a European  employment  strategy 

At the Essen  summit,  in  December  1994, the European  Council  gave  a decisive  impetus to 
the European  employment  strategy.  It declared that the fight against  unemployment  and  for 
equal opportunities was the most important task of the European Union and its Member States 
and it identified  priority  areas for  structural  action  in favour  of  employment. 

To  back  up  these  political  recommendations,  the  European  Council  set  out  a  number  of 
procedures  and  responsibilities.  It  asked  the  Member  States to  adopt  multiannual  national 
programmes reflecting  the common priorities  It invited the Council  of Ministers responsible 
for  social  affairs  and employment  and the "Economic and Financial  Affairs"  Council  as well 
as the Commission  to keep  close track  of employment  trends,  monitor  the  relevant  policies 
in Member  States and  submit  an  annual  report  to the European  Council  on further  progress 
in the labour  market. 

This approach  was confirmed  by the European Council  both  in Cannes in June  1995 as well 
as in Madrid in December  1995.  In Madrid,  the European  Council  welcomed the substantial 
progress  made in  putting  the  Essen  strategy  into  practice.  In  particular,  all  Member  States 
have adopted their multiannual programmes and the "Social Affairs"  and Ecofin  Councils and 
the  Commission  presented,  as  requested,  a  single,  joint  report  on  employment  to  the 
Madrid  Council  which  approved  its recommendations 

To  ensure  the  continuing  success  of  this  strategy  the  Madrid  European  Council  asked  the 
Council (Ecofin  and Labour and Social  Affairs)  to monitor the application of the multiannual 
programmes  continuously  and  to  present  a  further  joint  annual  report  for  its  meeting  in 
December  1996.  This meeting would  examine the degree of application  of the programmes 
and  recommendations  adopted  in  Madrid  "with  the  aim  of  reinforcing  the  employment 
strategy  and  adopting further  recommendations". 

This confirms  that European-level  monitoring  of  national  employment  measures,  exchanges 
of  information  and  experience  between  Member  States  and  with  the  Commission  on  these 
measures,  updating  multiannual  employment  programmes  to  meet  common  priorities  and 
adopting  further  recommendations  are  essential  elements  of  a  European  strategy  for 
employment  which  is  now  well  established  and  which  will  henceforth  be  progressively 
strengthened. 

Need  for  a new  structure 

In  order  to  put  the  Essen  mandate  into  effect,  the  Social  Affairs  Council  established,  at 
its  meeting  on  27  March  1995,  an  Ad  Hoc  Group  of  personal  representatives  of  the 
Ministers of  Labour  "Follow-up  to  the  Essen  European  Council".  This  Group,  comprising 
Directors-General  of  Employment,  met  five  times  in  1995  under  the  French  and 
It  permitted  the  exchange  of  information  and  experience  between 
Spanish  Presidencies. 
Member  States on their employment  policies,  particularly  in terms  of the five priority  areas 
for  action  on  the  labour  market  identified  at  Essen.  At  the  request  of  the  Social  Affairs 
Council,  it  presented  an  interim  report  on  employment  to  the Cannes  European  Council  in 

The  Group  prepared 

the 
June  1995. 
Social  Affairs  Council on 5 December  1995 for submission to the Madrid European Council. 
Finally,  the  Group  gave  its  opinion  on  the  single  report  on  employment  presented  by  the 
Ecofin  Council,  the  Social  Affairs  Council  and the  Commission  at Madrid. 

the  report  on  employment  adopted  by 

Taking  into account  both the  importance  of the work  which  the Ad  Hoc  Group was given  as 
well  as  the  inadequacy  of  the  means  at  its  disposal,  a  large  majority  of  Member  States 
expressed  the  wish  to  see  the  formal  establishment  of  a  stable  structure  which  would 
the 
have  more  effective 
Economic  Policy  Committee  in  the  latter's relationship  with  the  Ecofin  Council. 

tools,  and  which  would  have  an  equivalent  role 

to 

The need was felt  in particular to have a secretariat with  adequate human resources,  ensuring 
continuity  of the work  and offering  sufficient  analysis  and drafting  capacity  Effectively,  the 
Commission  largely  fulfilled  this  role  for  the  Ad Hoc  Group. 

At  the  informal  Council  of  Social  Affairs  Ministers  on  27-29  October  at  Cordoba,  the 
Commission  was asked to submit  an appropriate  proposal.  The need  to set up a structure  of 
this  kind  was  also  highlighted  in  the  report  on  employment  by  the  Social  Affairs  Council 
adopted  on  5  December  as  well  as in  the joint  Commission  and  Council  report  for  Madrid. 

The  Madrid  European  Council  welcomed  the  way  in  which  the  procedure  for  monitoring 
employment  provided  for  at  Essen  had  been  established  and  put  into  practice  for  the  first 
time.  However,  it  felt  that  "so  as  to  facilitate  practical  application  of  the  employment 
monitoring  procedure decided  on at Essen,  it is necessary  to establish  as soon  as possible the 
mechanisms  envisaged  in  the joint  report  (structure  and  common  indicators)". 

Relationship  with  the  Standing  Employment  Committee  and with  the  social  partners 

The  Standing  Employment  Committee  was  created  in  1970(1).  It  is  a tripartite  consultative 
body comprising the Council, the Commission  and representatives of employers' and workers' 
organizations. 

Its role  is to  "enable,  in  compliance  with  the Treaties and with  due  regard  for the  powers  of 
the  institutions  and  organs  of  the  Community,  that  there  shall  be  continuous  dialogue,  joint 
action  and  consultation  between  the  Council  -  or,  where  appropriate,  the  Representatives  of 
the  Governments  of  the  Member  States  -  the  Commission  and the  two  sides  of  industry  in 
order to  facilitate  coordination  by  Member  States  of  their  employment  policies  in  harmony 
with  the  objectives  of  the  Community". 

The Council  has requested  a reform  - currently  in preparation - of the  Standing  Employment 
Committee  to  reinforce 
its  capacity  for  analysis. 
its  effectiveness  and,  particularly, 
Appropriate  links  between  the  Standing  Committee  and  the  Employment/Labour  Market 
Committee  should  therefore  be  provided  for 

The  two  bodies  are of  different  levels,  one  meeting  at ministerial  level  and the  other  at that 
of  national  administrations.  Their  composition  is  also different,  as the  Standing  Committee 
is  a tripartite body. 

(1)  OJ No  L 273,  17.12  1970  and OJ No  L 21,  28.1.1975. 

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Although  the  two  committees  have  very  similar  fields  of  interest,  they  will  therefore 
each  have  their  own  role  to  play  whilst  reinforcing  each  other  mutually.  The 
Employment/Labour Market Committee  could,  in  particular,  play the role of  interface with 
the social partners in preparing the meetings of the Standing Employment Committee.  A joint 
meeting between the Employment/Labour Market Committee and representatives of the social 
partners  could  be  held,  for  example,  on  a  twice-yearly  basis.  In  this  way,  the 
Employment/Labour Market Committee will help meet the need to strengthen the capacity of 
the  Standing Employment  Committee in terms of the analysis and preparation of its work. 

In February  1996, the Commission  called for a European Confidence  Pact for Employment, 
to involve all  economic actors in the promotion of employment in the European Union. The 
proposal to create the Employment /Labour Market Committee is entirely consistent with the 
Pact  since  both  are  part  of  the  process  of  cooperation  and  coordination  in  the  field  of 
employment. 

Relationship with the Economic  Policy  Committee 

Aside  from  improving  the  structure  and  operation  of  the  labour  market,  the  European 
employment  strategy  is also characterized by close  interaction between  macroeconomic and 
structural  policies.  This approach requires full  collaboration between the parties involved in 
defining  policies which  can have an impact on employment. 

With  this  in  mind  the  European  Council  requested  the  two  Councils  with  responsibility, 
respectively,  for  Economic  and Financial  Affairs  and for  Social  Affairs  to present,  together 
with  the  Commission,  a  report  and  recommendations  on  employment.  Collaboration 
between  the  Economic  Policy  Committee  and  the  aforementioned  Ad  Hoc  Social  Affairs 
Council  Group made this possible. 

The Economic Policy  Committee was established by  a Council  Decision  in  1974(2) with the 
objective of promoting the coordination of Member States' short and medium-term economic 
policies.  It consists  of  four  representatives  of  the  Commission  and four  representatives  of 
each Member State.  The Commission provides the secretariat.  A working group has specific 
responsibility  for  employment  policies.  The  Committee  regularly  submits  opinions  and 
reports to the Ecofin  Council. 

The establishment  of  an Employment  Labour Market Committee to assist,  in  particular, the 
Social  Affairs  Council  will  enable more  structured  collaboration  between  the two  Councils 
and promote in a more effective way close interaction between macroeconomic and structural 
policies.  In order to  strengthen  the coordination between  the two  Committees,  and in order 
to  fully  analyse  and  take  into  account  these  mutual  benefits  of  better  coordination  of 
macroeconomic and structural policies, the Chairmen of the two Committees will  coordinate 
their work programmes with each other. 

(2)  Decision  74/122/EEC of  18 February  1974, OJ No  L 63,  5.3.1974,  p. 21 

4 

Proposal  for  a Decision  setting up the Employment  and Labour Market Policy  Committee 

The Decision  is based  on Article  145  of the Treaty,  which is  also the basis  adopted for the 
Economic Policy  Committee  and the  Standing Employment  Committee. 

The  role  given  to  the  Committee  and  the tasks  set  out  for  it  in  a  non-exhaustive  way  are 
appropriate  for  a body  assisting  the  Social  Affairs  Council  in  the  implementation  and the 
development  of the European Employment  Strategy. 

The provisions concerning the composition and the functioning of the Committee are broadly 
based  on  those  applying  to  the  Economic  Policy  Committee.  The  provision  for  the 
Commission  to  provide  the  Committee's  secretariat  responds  to  the  need  to  guarantee  a 
permanent and sufficient  capacity  - in terms of human resources - to fulfil  the  needs of the 
presidency  and members  of the Committee. 

Proposal  for  a 
COUNCIL  DECISION 
setting  up  an Employment  and  Labour  Market  Policy  Committee 

THE  COUNCIL  OF  THE  EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  145 thereof, 

Having  regard  to the  opinion  of the European  Parliament, 

Whereas  the  European  Council,  in  its  recent  meetings,  confirmed  that  the  fight  against 
unemployment  and  the  effort  to  achieve  equality  for  men  and  women  were  the  paramount 
tasks  of  the European  Union  and  of  its Member  States; 

Whereas,  at its meeting of December  1994 at Essen, the European  Council  identified  priority 
areas  for  action  to  overcome  structural  employment  problems;  whereas  it  requested  each 
Member  State to incorporate these recommendations into a multiannual  programme;  whereas 
it invited the Council  of Ministers with responsibility  for  Social Affairs  and Employment,  the 
"Economic  and  Financial  Affairs"  Council  and  the  Commission,  to  monitor  employment 
trends  attentively,  to  examine  the  relevant  policies  of  the  Member  States  and  to  report 
annually  to the European  Council  on  further  progress  on the  employment  market; 

Whereas  the  Committee  is  established  in  the  light  of  the  monitoring  and  reporting  process 
defined  in  the White Paper  on  Growth,  Competitiveness  and  Employment; 

Whereas the "Economic and Financial  Affairs"  Council is assisted in its work on employment 
by  the Economic Policy  Committee  set up by  Council  Decision  74/122/EEC(1);  whereas  the 
Social  Affairs  Council  set  up, for  the  same purpose,  on 27 March  1995, an  "Ad Hoc  Group 
of  personal  representatives  of  the Ministers  of  Labour"; 

Whereas,  in  order  to  ensure  the  continued  success  of  the  Community's  strategy  for 
employment,  and  to  facilitate  the  practical  implementation  of  the  employment  monitoring 
procedure  decided  on  in  Essen,  the  European  Council  at  its  meeting  in  Madrid  in 
December  1995 felt  that  it was  necessary  to  establish,  as soon  as possible,  a stable  structure 
to  assist  the  "Social  Affairs"  Council  in the  field  of  employment, 

HAS  DECIDED  AS FOLLOWS: 

Article  1 

1.  An  Employment  and  Labour  Market  Policy  Committee  (hereinafter  referred  to  as 
"the  Committee") is hereby  set up to assist the Council in carrying out its responsibilities 
in the field of employment  and labour market policy,  in full  compliance with  the Treaty 
and  with  due  regard  for  the powers  of  the  Community's  institutions  and  organs. 

(i)  O J N o L 6 3,  5.3.1974,  p. 21 

2.  The  Committee  shall,  in  particular,  be  responsible  for: 

monitoring  trends  in  employment  in the  Community, 
examining  the Member  States'  employment  and  labour  market  policies, 
exchanges  of  information  and  experience  between  Member  States  and  with 
the  Commission  in  these  fields, 
preparing  reports  and  recommendations  on these  questions. 

3.  The opinion of the Committee on a specific  subject  may be requested  by the Council  or 
the Commission.  Moreover, the Committee may,  on its own initiative, undertake  work 
within  its  area  of  competence. 

4.  The Chairman of the Committee shall coordinate with the Chairmen of other Committees 
the 

on 
Standing  Employment  Committee,  to take  account  of  their  respective  responsibilities. 

the  Economic  Policy  Committee  and 

related  work, 

in  particular 

Article  2 

1.  The  Committee  shall  consist  of  two  representatives  of  each  Member  State  and 
two  representatives  of  the  Commission.  These  representatives  may  be  assisted  by 
two  alternates.  The  members  of the  Committee  appointed  by  the  Member  States  shall 
be  selected  from  among  persons who in their  countries participate in the formulation  of 
employment  and  labour  market  policy. 

2.  The  Committee  may  call  on  external  experts  where  appropriate  to  its  agenda. 

Article  3 

1.  The Committee  shall  elect  its Chair from  among its members for  a non-renewable  term 

of two years. 

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

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

4.  Meetings  of  the  Committee  shall  be  convened  by  the  Chair,  either  on  his  or  her  own 
initiative  or  at the  request  of  the  Commission  or of  at  least  eight  Committee  members. 

Done  at Brussels, 

For  the  Council 
The  President 

FINANCIAL  STATEMENT 

FINANCIAL  STATEMENT 

1.  TITLE OF  OPERATION 

Creation  of an  employment  and  labour  market  policy  committee 

2.  BUDGET  HEADINGS  INVOLVED 

AO 2510 

3.  LEGAL  BASIS 

Application  of  Article  145 of the Treaty.  Council  Decision  expected  during  1996 

4.  DESCRIPTION  OF  OPERATION 

4.1  Objectives 

The  European  Council  of  Madrid  requested  the  Social  Affairs  Council,  the 
EcoFin  Council  and the Commission  to continue to monitor the application  of the 
multiannual  programmes  and  to  prepare  an  annual  single  report  "with the  aim  of 
reinforcing the employment strategy and adopting further recommendations"  It also 
noted that in order to facilitate the practical application of the monitoring procedure, 
the  necessary  mechanisms,  of  which  one  is  a  "stable  structure",  should  be 
established  as soon  as possible. 

4.2  Period  covered 

Indefinite 

5.  CLASSIFICATION  OF  EXPENDITURE 

5.1  Non-compulsory  expenditure 

5.2  Non-differentiated  appropriations 

5.3  Type of revenue involved:  none 

6.  TYPE OF  EXPENDITURE 

6.1  100% for  the necessary  personnel  and  costs of  meetings 

6.2 

6.3  Interest  subsidy:  none 

6.4  Other:  none 

6.5  Reimbursement:  none 

The proposed  operation  will  not  cause any  change in the level  of revenue 

7.  FINANCIAL  IMPACT 

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

8.  FRAUD PREVENTION MEASURES 

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

9.  ELEMENTS  OF  COST-EFFECTIVENESS  ANALYSIS 

9.1  Specific  objectives 

To  set  up  an  Employment  and  Labour  Market  Policy  Committee  to  assist  the 
Social  Affairs  Council in carrying out its responsibilities in the field of employment 
and labour market policy,  in full  compliance with the Treaties and with  due regard 
for  the  powers  of the  Community's  institutions  and  organs. 

The  Committee  shall,  in  particular,  be  responsible  for: 

monitoring  trends  in  employment  in the  Community, 
examining  the Member  States' employment  and  labour  market  policies, 
exchanges of information  and experience between Member States and with the 
Commission  in  the  aforementioned  fields, 
preparing  reports  and  recommendations  on these  questions. 

The  work 
Economic Policy  Committee  and  the  Standing  Employment  Committee. 

the  Committee 

coordinated  with 

shall 

be 

of 

the 

9.2  Grounds  for  the  operation 

In  order  to  ensure  the  continued  success  of  the  Community's  strategy  for 
employment,  and  to  facilitate  the  practical  implementation  of  the  employment 
monitoring procedure decided  on  in Essen, the European  Council  in its meeting in 
Madrid  in  December  1995  felt  that  it  was  necessary  to  establish,  as  soon  as 
possible,  a  stable  structure  to  assist  the  "Social  Affairs"  Council  in  the  field  of 
employment, 

9.3  Monitoring  and  evaluation  of  the  operation 

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

9.4  Coherence  with  financial  programming 

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

10.  Administrative  expenditure  (Part  A  of the  budget) 

The  effective  use  of  the  required  adminsitrative  resources  will  depend  on  the  annual 
decision  of  the  Commission  on  the  allocation  of  resources,  taking  into  account  the 
additional  posts  and  resources which  are granted  by  the budgetary  authority. 

10 

10.1 

Impact  on  the  number  of  posts 

Types  of  posts 

Personnel  to be 
attributed  to the  activity 

of  which 

duration 

permanent 
posts 

temporary 

use  of 
existing 
resources 

use  of 
additional 
resources 

officials 
or 
temporary 
agents 

A 
B 
C 

other  resources 

TOTAL 

2 

1 

3 

2 

1 

3 

indefinite 

10.2  Overall  financial  impact  of  additional  human  resources 

Amount 

Calculation 

Officials 
Temporary  agents 
Other 

The  Secretariat  of  the  Committee  will  be  provided  by  the  staff  of  the 
Employment  Directorate  of  DG  V.  Travel  costs  for  national  government  officials 
in  accordance  with  the  rules  currently  in  force  will  be  provided.  Meetings  of  the 
Committee  will  be  organized  by  the  Commission  in  Commission  meeting  rooms. 
Interpretation  will  be  provided  by  the  Commission.  It  is  estimated  that  the 
Committee  will  meet  between  six to  eight  times  a year.  To  a  certain  extent,  these 
meetings may replace meetings of the Group of Directors-General  for  Employment 
and  the Directors  of  Employment  Agencies. 

11 

10.3 

Budget line 

Amount 

Calculation 

AO 2510 

125 000 

Six meetings per year at an 
average cost of ECU 20 850 
per meeting (30 participants) 

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ISSN 0254-1475 

COM(96) 134  final 

DOCUMENTS 

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