Draft resolution of the Council on the 1998 employment guidelines
Date: 1997-12-03
Institutions: European Commission
Subjects: approximation of policies, business policy, employment policy, equal treatment, integration into employment

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COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  03.12.1997 
COM(97)676  final 

Draft 

Resolution  of the Council 

on 

The  1998  Employment  Guidelines 

(presented  by  the  Commission) 

Communication of the Commission for a 

Draft Resolution of the Council 

on 

The 1998 Employment  Guidelines 

At  the  Amsterdam  summit,  the  European  Council  decided  to  make  certain 
provisions  of  the  new  employment  Title  of the  Treaty  immediately  effective  and 
to hold a special  summit on employment.  Accordingly,  the Commission adopted, 
on  1  October  1997,  a  co.mmunication  entitled  Proposal  for  Guidelines  for 
Member  States  Employment  Policies  1998.  This communication  was  addressed 
to  the  Council,  the  European  Parliament,  the  Economic  and  Social  Committee, 
and  the  Committee  of  the  Regions,  and  it  served  as  a  framework  for  the 
discussion  prior  to the  special  meeting  of the  European  Council  on  employment 
which took place  in Luxembourg on 20/21 November  1997. 

In  accordance  with  the  agreement  reached  by  the  European  Council  on  the 
guidelines  as  set  out  in  the  Presidency's  Conclusions  of  the  meeting  of  20-21 
November  1997,  the  Commission  is  now  presenting  a  draft  resolution  of  the 
Council on the  1998 Employment  Guidelines for adoption. The guidelines  centre 
improving  employability,  developing 
on 
entrepreneurship,  encouraging  adaptability  of  businesses  and  their  employees, 
and  strengthening  the  policies  for  equal  opportunities.  Nineteen  specific 
guidelines  are highlighted. 

lines  of  action: 

four  main 

The  Commission  undertakes  to  prepare  and  submit  in  due  course  the  reports 
requested  by  the  European  Council.  The  Commission  will  also  in  due  course 
make  preparations  for  the  submission  of  the  Joint  Report  to  the  Vienna 
European  Council and for the adoption of the  1999 employment  guidelines. 

Draft 

Resolution of the Council 

on 

The  1998 Employment  Guidelines 

THE COUNCIL OF THE EUROPEAN UNION 

Having regard to the Treaty establishing the European  Community; 

In  accordance  with  the  Resolution  of  the  Amsterdam  European  Council  on 
growth  and  employment  which  referred  to  the  procedure  as  envisaged  in  the 
new Title  on employment  in the Treaty  and stated that the  Council  should  seek 
to make those  provisions  immediately  effective; 

On the  basis  of the  Conclusions  of the  extraordinary  European  Council  meeting 
on Employment  (20-21 November  1997); 

Having  regard 
Communication 
Policies  1998' of  1 October  1997; 

to 
'Proposal 

the  draft 

from 

for  Guidelines 

the  Commission  and 

the  Commission 
for  Member  States  Employment 

Having  regard  to  the  Resolution  embodying  the  contribution  of  the  European 
Parliament to the extraordinary  European Council meeting on  Employment; 

Having  regard  to  the  opinion  of  the  Economic  and  Social  Committee  on  the 
Commission  Communication; 

Having  regard  to  the  contribution  of  the  Committee  of  the  Regions  to  the 
extraordinary  European  Council meeting on employment; 

Having  regard to the opinion of the Employment  and Labour  Market Committee; 

Having regard to the opinion of the Economic  Policy Committee; 

Having  regard to the  Social  Partners'  contribution  to the extraordinary  European 
Council meeting on employment; 

Whereas the  issue of employment  is central to the concerns of Europe's  citizens 
and every effort  must be made to combat  unemployment, the  unacceptable  level 
of which poses  a threat to the cohesion of our societies; 

(2) 
(3) 

Whereas  an overall strategy  is required  including three aspects: 
(1) 

the  continuation  and  development  of  a  coordinated  macroeconomic 
policy,  underpinned  by an efficient single market, 
the harnessing of all Community  policies  in support of employment,  and 
the  coordination  of  Member  States  employment  policies  based  on 
common  lines  of  approach  for  both  objectives  and  means, with  a view  to 
converging  towards  jointly  set,  verifiable  and  regularly  updated  targets, 
which  should  be  incorporated 
in  national  employment  action  plans 
elaborated  by Member  States; 

through 

Whereas  such  coordination  of  Member  States'  employment  policies  is  to  be 
implemented 
the  adoption  of  employment  guidelines  which  are 
consistent  with  the  broad  economic  policy  guidelines  and  which  set  specific 
targets,  the  achievement  of  which  is  regularly  monitored  under  a  common 
procedure for assessing  results; 

Whereas  the  guidelines  are  based  on  four  main  lines  of  action:  improving 
employability,  developing  entrepreneurship,  encouraging  adaptability  of 
businesses  and  their  employees  to  enable  the  labour  market  to  react  to 
economic changes, and strengthening the policies for equal opportunities; 

Whereas  the  implementation  of the  strategy  requires  the  combined  efforts  of  all 
concerned:  Member  States,  regions, social partners  and  Community  institutions, 
and whereas the  European  Parliament  and the  European  Investment  Bank  have 
manifested their  commitment  in that  respect; 

Whereas  the  guidelines  will  have  to  be  incorporated  into  national  employment 
action  plans  so  that  they  are  given  practical  effect  in  the  form  of  national 
objectives  which  are  quantified  wherever  possible  and  appropriate,  followed  by 
their transposition  into national regulatory, administrative  and other measures; 

Whereas  the  national  employment  action  plans  will  set  deadlines  for  achieving 
the  desired  result  in  the  light,  inter  alia,  of  the  administrative  and  financial 
resources which  can be drawn upon; 

Whereas  the  objective  of these  measures  is to  arrive  at  a significant  increase  in 
the employment  rate in Europe on a lasting basis; 

Whereas  preventive  measures  are  of  particular  importance  to  reverse  the  trend 
of youth  unemployment  and  long-term  unemployment  through early  identification 
of  individual  needs  and tailor-made  responses  and whereas  active  employability 
measures  are  systematically  to  be  given  precedence  over  passive  support 
measures; 

Whereas  common  indicators,  based  on  comparable  statistics,  are  important  for 
the  effective  monitoring  and  assessment  of  employment  policies  and  for  the 
identification  of good practices; 

HEREBY ADOPTS THIS RESOLUTION 

1.  The  1998  Employment  Guidelines  appended  hereto are adopted; 

2.  The  Member  States  shall  take  these  Guidelines  into  account  in  their 

employment  policies; 

3.  Each  Member  State will draw  up every  year,  in a multiannual perspective, a 
national  employment  action  plan  in which  it will establish  its attitude to  each 
the 
of  the  Guidelines,  and  will  send  this  plan  to  the  Council  and 
Commission, together with a report on the manner of its implementation; 

4.  The Member States are invited 

a) 

b) 

to  submit  their  first  national  employment  action  plan  based  on  these 
Guidelines  to  the  Council  and  the  Commission  in  sufficient  time 
before the Cardiff  European Council; 

to  provide  the  Council  and the  Commission  with  an  annual  report  on 
the  principal  measures  taken to  implement  their  employment  policies 
in  the  light  of  the  Guidelines  with  a  view  to  the  joint  annual  report 
which  the  Council  and  the  Commission  shall  make  to  the  European 
Council. 

5.  The Council undertakes to 

a) 

b) 

carry  out  in  the  second  half  of  1998,  on  the  basis  of  the  reports 
referred  to  in  4.b)  an  examination  of  the  implementation  of  the 
employment  policies  of  the  Member  States  in  the  light  of  the 
Guidelines; 

prepare  jointly  with  the  Commission,  on  the  basis  of  an  initial 
Commission  draft,  a  report  on  the  employment  situation  in  the 
Community  and on the implementation  of the Guidelines which will be 
submitted to the Vienna  European Council; 

6.  The Council notes  that  the Commission  undertakes  to  communicate  by 
15 October  1998  draft  guidelines  for  Member  States  employment  policies  in 
.1999; 

7.  The  Council  affirms  that  the  social  partners  at  all  levels  have  an  important 
contribution  to  make  to  the  implementation  of the  Guidelines,  and  that  this 
contribution  will  be  regularly  assessed,  including  with  the  Commission  and 
the  Council,  and  in  the  course  of  six-monthly  meetings  with  a  troika  at 
Heads of State and Government  level and the Commission. 

THE 1998 EMPLOYMENT  GUIDELINES 

IMPROVING  EMPLOYABILITY 

•  Tackling youth unemployment  and preventing  long-term  unemployment 

In order to influence the trend in youth and long-term  unemployment 
the Member States will develop preventive and employability-oriented 
strategies, building on the early  identification of individual needs; 
within a period to be determined by each Member State which may not 
exceed five years and which may be longer in Member States with 
particularly  high unemployment,  Member States will ensure that: 

- 

- 

every  unemployed  young  person  is  offered  a  new  start  before 
reaching  six months  of  unemployment,  in  the  form  of  training, 
retraining,  work practice,  a job  or other employability  measure; 

unemployed  adults  are  also  offered  a  fresh  start  before  reaching 
twelve  months  of  unemployment  by  one  of  the  aforementioned 
means  or, more  generally,  by  accompanying  individual  vocational 
guidance. 

These  preventive  and  employability  measures  should  be  combined 
long-term 
with  measures 
unemployed. 

the  re-employment  of  the 

to  promote 

•  Transition from passive measures to active  measures 

Benefit  and training  systems -  where that proves  necessary -  must  be 
they  actively  support 
reviewed  and  adapted 
employability  and  provide  real  incentives  for  the  unemployed  to  seek 
and take up work or training opportunities.  Each Member State: 

to  ensure 

that 

- 

will  endeavour  to  increase  significantly  the  number  of  persons 
benefiting  from active measures  to improve  their  employability. 
In 
order  to  increase  the  numbers  of  unemployed  who  are  offered 
training  or  any  similar  measure,  it  will  in particular  fix  a  target,  in 
the light of its starting  situation,  of gradually  achieving  the  average 
of the three most successful Member States, and at least 20%. 

•  Encouraging  a partnership  approach 

The  actions  of the  Member  States  alone will  not  suffice  to  achieve  the 
desired  results in promoting employability.  Consequently 

- 

levels  of 
their  various 
the  social  partners  are  urged,  at 
responsibility  and  action, 
to  conclude  as  soon  as  possible 
agreements  with a  view to increasing  the  possibilities  for  training, 
work  experience,  traineeships  or other  measures  likely  to  promote 
employability; 

- 

the  Member  States  and  the  social  partners  will  endeavour  to 
develop possibilities  for lifelong training. 

•  Easing the transition from school to work 

Employment  prospects  are poor for young people who  leave the  school 
system  without  having  acquired the  aptitudes  required  for  entering  the 
job  market.  Member States will therefore: 

- 

improve  the  quality  of  their  school  systems  in  order  to  reduce 
substantially  the  number  of  young  people  who  drop  out  of  the 
school system early; 

-  make  sure they equip young people  with greater  ability  to adapt  to 
technological  and economic changes and  with skills relevant  to the 
labour  market,  where  appropriate  by  implementing  or  developing 
apprenticeship  training. 

II. 

DEVELOPING  ENTREPRENEURSHIP 

•  Making  it  easier  to  start  up  and  run  businesses  by  providing  a  clear, 
stable  and  predictable  set  of  rules  and  by  improving  the  conditions  for 
the  development  of  risk  capital  markets.  The  new  facilities  offered  by 
the  EIB  combined  with  the  Member  States'  efforts  will  enable  new 
businesses  to  be set  up more easily.  The  Member  States  should  also 
reduce  and  simplify  the  administrative  and  tax  burdens  on  small  and 
medium-sized  enterprises.  To that end the Member States will: 

- 

- 

give  particular  attention  to  reducing  significantly  the  overhead 
costs  and  administrative  burdens  for  businesses,  and  especially 
small  and  medium-sized  enterprises,  in  particular  when  hiring 
additional  workers; 

encourage  the development of self-employment  by examining,  with 
the  aim  of  reducing,  any  obstacles  which  may  exist,  especially 
to 
those  within  tax  and  social  security  regimes, 
to  moving 
self-employment  and  the  setting  up  of  small  businesses, 
in 
particular  by employed persons. 

•  Exploiting the opportunities for job creation 

If the  European  Union wants to deal successfully  with the  employment 
challenge,  all  possible  sources  of  jobs  and  new  technologies  and 
innovations  must  be  exploited  effectively.  To  that  end  the  Member 
States will: 

- 

investigate  measures  to exploit fully the possibilities  offered  by  job 
creation  at local  level,  in  the social  economy  and in new  activities 
linked  to needs  not yet  satisfied by  the market, and examine,  with 
the aim of reducing, any obstacles in the way of such measures. 

•  Making  the  taxation  system  more  employment  friendly  and  reversing 
the long-term trend towards  higher taxes and charges on labour  (which 
have  increased  from  35%  in  1980  to  more  than  42%  in  1995).  Each 
Member  State will: 

- 

set a target, if necessary and taking account of its present level,  for 
gradually  reducing  the  overall tax burden  and,  where  appropriate, 
a  target  for  gradually  reducing  the  fiscal  pressure  on  labour  and 
non-wage  labour costs, in particular on relatively unskilled and low-
paid  labour, without jeopardizing  the recovery of public  finances  or 
the  financial  equilibrium  of  social  security  schemes. 
It  will 
examine,  if  appropriate,  the  desirability  of  introducing  a  tax  on 
energy or on pollutant  emissions or any other tax measure; 

- 

examine,  without obligation, the advisability of reducing  the rate  of 
VAT  on  labour-intensive  services  not  exposed  to  cross-border 
competition. 

III.  ENCOURAGING  ADAPTABILITY  OF  BUSINESSES  AND  THEIR 

EMPLOYEES 

•  Modernizing work  organization 

In  order  to  promote  the  modernization  of  work  organization  and  forms  of 
work: 

- 

the  social  partners  are  invited  to  negotiate,  at  the  appropriate 
levels, in particular  at sectoral and enterprise levels, agreements  to 
modernize  the  organization  of  work,  including  flexible  working 
arrangements,  with the aim of making undertakings productive  and 
competitive  and  achieving  the required  balance  between  flexibility 
and  security.  Such  agreements  may,  for  example,  cover  the 
expression  of  working  time  as  an  annual  figure,  the  reduction  of 
working  hours,  the  reduction  of  overtime,  the  development  of 
part-time  working, lifelong training and career breaks; 

- 

for  its  part,  each  Member  State  will  examine  the  possibility  of 
incorporating  in  its  law  more  adaptable  types  of  contract,  taking 
into  account  the  fact  that  forms  of  employment  are  increasingly 
diverse.  Those working under  contracts  of this kind  should  at  the 
same time enjoy adequate security and higher occupational  status, 
compatible  with the needs of business. 

•  Support adaptability  in enterprises 

In order to renew skill levels within enterprises  Member States will: 

- 

re-examine the obstacles, in particular  tax obstacles,  to  investment 
in  human  resources  and  possibly  provide 
tax  or  other 
incentives  for  the  development  of  in-house  training;  they  will  also 
examine  any new regulations  to  make  sure  they  will  contribute  to 
reducing  barriers  to  employment  and  helping  the  labour  market 
adapt to structural change in the economy. 

for 

IV.  STRENGTHENING  THE POLICIES FOR EQUAL  OPPORTUNITIES 

•  Tackling gender gaps 

Member  States  should  translate  their  desire  to  promote  equality  of 
opportunity  into  increased  employment  rates for  women.  They  should 
also  pay  attention to the  imbalance  in the  representation  of women  or 
men in certain economic sectors and occupations.  Member States will: 

- 

attempt  to reduce the gap in unemployment rates between  women 
and  men  by  actively  supporting  the  increased  employment  of 
women  and will act to reverse  the  under-representation  of  women 
in  certain  economic  sectors  and  occupations  and 
their 
over-representation in others. 

•  Reconciling work and family life 

Policies  on  career  breaks,  parental  leave  and  part-time  work  are  of 
particular  importance  to  women  and  men. 
Implementation  of  the 
various  Directives and social-partner  agreements  in this area should  be 
accelerated  and  monitored  regularly.  There  must  be  an  adequate 
provision  of  good  quality  care-  for  children  and  other  dependents  in 
order  to  support  women's  and  men's  entry  and  continued  participation 
in the  labour market.  The Member  States will: 

- 

strive  to raise levels of access to care services where some  needs 
are not currently met. 

Facilitating  reintegration  into the labour market 

The Member States will: 

- 

give  specific  attention  to women, and men,  considering  a return  to 
the  paid  workforce  after  an  absence  and,  to  that  end,  they  will 
examine  the  means  of  gradually  eliminating  the  obstacles  in  the 
way of such return. 

Promoting the integration of people with disabilities  into working  life 

The Member States will: 

-  give special attention to the problems people  with disabilities may 

encounter  in participating  in working life. 

ISSN 0254-1475 

COM(97) 676  final 

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04  05  10 

Catalogue  number  :  CB-CO-97-704-EN-C 

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