Opinion of the Economic and Social Committee on the 'Communication from the Commission entitled "Growth and Employment in the stability-oriented framework of EMU - Economic policy reflections in view of the forthcoming 1998 Broad Guidelines"'
Date: 1998-04-29
Institutions: European Economic and Social Committee
Subjects: Economic and Monetary Union, budget policy, economic growth, economic policy, employment policy, monetary policy

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Opinion of the Economic and Social Committee on the ‘Communication from the Commission
entitled “Growth and Employment in the stability-oriented framework of EMU — Economic
policy reflections in view of the forthcoming 1998 Broad Guidelines”’

(98/C 214/27)

On 2 March 1998 the European Commission, acting in accordance with Article 198 of the EC
Treaty, decided to ask the Economic and Social Committee for an opinion on the
above-mentioned communication.

The Section for Economic, Financial and Monetary Questions, which was instructed to
prepare the Committee’s work on this matter, adopted its opinion on 3 April 1998 (rapporteur:
Mr de Bigault du Granrut).

The Committee adopted the opinion set out below at its 354th plenary session held on 29 and
30 April 1998 (meeting of 29 April). The opinion was adopted by 70 votes to 36, with
19 abstentions.

1.

Introduction

2. Contents of the report

The Commission has submitted its 1998 annual

1.1.
economic report. This report:

— has been issued in a new form: it summarizes the
major challenges confronting the EU, namely growth
and employment;

— comes at a historic moment in time, namely in the
run-up to the decisions on the third stage of economic
and monetary union (participating states, rates of
exchange); and

— coincides with a period of exceptional stability, in
view of the degree of convergence achieved by the
Member States as they move towards EMU.

1.2.
The Committee welcomes this opportunity to
give its views on the Commission report, despite the
short deadline for the preparation of its opinion. The
report will provide the basis for formulation by the
Council, in June, of the ‘Broad guidelines of the economic
policies of the Member States and of the Community’
(Article 103 of the EC Treaty). These ‘broad guidelines’
will increasingly function as the benchmark for the
economic policies of the EU and its Member States and
also for the policies which fall within the remit of the
EU social partners and socio-economic associations.

1.3.
The Committee notes that the Commission’s
economic forecasts are based on estimates made in
autumn 1997 and in essentials confirmed by the March
1998 estimates. The forecasts fundamentally point to
maintenance of stability and growth and, consequently,
of employment. The report is clearly optimistic, but it
does also demonstrate how essential it is to persist with
the convergence and stability policy — shortly to be
bolstered by the institutional framework for EMU — if
the EU is finally to make progress as regards employment.
It is against this background that the Committee has
considered the Commission’s report.

2.1.
The ‘Autumn economic forecasts’, published by
the Commission in October 1997, stated that the annual
growth rate would turn out to be 2,6 % in 1997 and
would gradually increase to 3 % in 1998 and 1999. This
rate of growth signifies a net increase in jobs of 0,5 %
in 1997, 0,8 % in 1998 and 1,3 % in 1999. Bearing in
mind the increase in the workforce (particularly women
workers), the unemployment rate in the EU is expected
to fall from 10,7 % in 1997 to 10,3 % in 1998 and 9,8 %
in 1999.

2.1.1.
The ‘Spring 1998 Economic Forecasts’ refer to
the events which have taken place in Asia and alter only
very slightly the figures set out in the Autumn 1997
Economic Forecasts: growth is expected to rise from
2,8 % in 1998 to 3 % in 1999. The rate of unemployment
is expected to fall from 10,7 % in 1997 to 10,2 % in 1998
and 9,8 % in 1999.

These same forecasts clearly indicate that in
2.2.
the course of the period under-review (1997-1999),
investment and personal consumption will progressively
take over from exports as the driver of growth.

2.3.
The EU’s poor record as regards growth (1,6 %
per year in the period 1991 to 1996) and employment
(- 0,4 %) can mainly be put down to an ill-judged
economic policy mix which failed to prevent consider-
able tensions and monetary upheavals. In general terms,
the following obstacles may be identified:

— stability conflict of fiscal policy, wage policy and

monetary policy;

— the increase in long-term interest rates and the 1995

monetary crisis;

— the fall in investment rates in the climate of instability

which has prevailed since the first oil crisis.

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2.4.
It is imperative to avoid these obstacles in future.
There is a good chance that this can be done. The EMU
will bring stability to the EU; against this background
Member States will pursue stringent economic policies,
facilitated by price stability, wage moderation,
low
long-term interest rates and the absence of perturbations
in the exchange rates of EMU states against each other.
The EU should continue rigorously to enforce the
economic strategy of ‘the broad economic policy guide-
lines’.

The factors conducive to growth are, in particu-

2.5.
lar, supply-side factors:

— inflation is under control;

— investments are achieving an increasingly high level

of return of investment;

— slack in the economy.

in demand. This

2.6. Monetary conditions, including long-term inter-
est rates and exchange rates are favourable to an
internally-generated increase
is
important since demand must not be stimulated by
excessive wage increases or expansionary fiscal spend-
ing. In the years ahead, growth is expected to stem
increasingly from domestic demand,
in response to
favourable monetary conditions, especially contracting
risk premiums of long-term interest rates, the strength
of the dollar against European currencies, and improved
confidence of business and consumers. These favourable
monetary conditions were brought about by the remark-
able progress made by the vast majority of Member
States towards convergence of inflation rates and the
correction of excessive fiscal imbalances (second para-
graph of point 1.1 of the Commission’s communication).

2.7.
The Commission takes the view that, whilst it
brings risks, growth in the EU will only be marginally
affected by the crisis that is having such a devastating
effect on Asia. The negative effects on trade could be
offset by a further easing on the monetary front and the
dynamics of domestic demand.

2.8. With a view to maintaining monetary stability
and market confidence (in the short-term) and trans-
forming the economic upturn into strong sustainable
growth (in the medium-term), there is a need to ensure
a harmonious transition to EMU and steadily resolve the
unemployment problem. The fundamental prerequisites
are in place. What is needed is a willingness to implement
both macro-economic and structural policies which
match up to the task.

3. The unemployment challenge: the Commission’s

view

3.1. Within the space of some three pages the Com-
mission gives an excellent survey of the unemployment

challenge facing the EU. The Commission draws atten-
tion first of all to Article 2 of the EC Treaty (subsequently
amended by the Treaty of Amsterdam) which stipulates,
inter alia, the need to achieve ‘a high level of employ-
ment’.

It can be argued that a competitive economy has
3.2.
three characteristics: (1) productivity gains not less than
those of a state’s principal trading partners, (2) an
external trade equilibrium based on an open market
economy and (3) a high level of employment. The EU
may be regarded as ‘competitive’ only in terms of
conditions (1) and (2). The employment performance of
the EU economy is mediocre.

In 1997 the EU unemployment rate was 10,7 %
3.3.
of the labour force,
i.e. 18 million people had no
jobs. The level of employment (number of persons in
employment divided by the number of persons of
working age) has fallen from 67 % in 1961 to 60 %; the
current figure for the US and Japan is 74 %. If the
employment rate in the EU is to be increased to 67 % or
72 % the EU economy will have to create a total of
22 million jobs or 34 millions jobs respectively.

The Commission points out that whilst unem-
3.4.
it does however
ployment constitutes a weakness,
provide the EU with a potential for growth — over and
above productivity gains — which is not available to
the US and Japan. This potential is all the greater in
that, if we take account of the various part-time working
arrangements, the level of employment in the EU is
55 %. Exploitation of this potential would make it
possible to promote the European social model and
switch to ‘greener’ production methods.

3.5.
This employment potential should be exploited
by enhancing the ‘employability’ of workers, on the one
hand, and job creation by the economy, on the other
hand. The provision of upskilling training for all workers
(both employed and unemployed) is important but the
overriding factor for persons who are unemployed is
that jobs should be available. It is not vocational training
which constitutes the bottleneck on the EU labour
market. The Commission has shown that of the 10,7 %
of the labour force which is currently unemployed
6 percentage points could re-enter the job market if jobs
were offered to them.

3.6. Over the last 20 years, the annual productivity
gain has held steady at 2 %. Growth increase will have
to be significantly higher than 2 % if the requisite
number of jobs are to be generated. Agreement on
moderate wage increases could, however, slow down
the substitution of capital for labour (this factor is
responsible for approximately half productivity gains).
The Commission also points out that ‘by incorporating
new technologies, the new investment [backed up by

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wage moderation, which increases the profitability
prospects] will contribute to sustaining total factor
productivity growth and, to the extent it is capacity
widening, slow down the substitution process’ (substi-
tution of capital for labour) (see page 8 of the Com-
mission’s Communication).

3.7.
The Commission highlights the success of the
common, consensus-based macroeconomic strategy pur-
sued by the EU, within the framework of the ‘broad
economic policy guidelines’. This common macro-
economic strategy comprises:

— a stability-oriented monetary policy;

— progress towards sounder public finances (in accord-
ance with Article 104 of the EC Treaty and the
Stability and Growth Pact);

— wage trends consistent with the price stability objec-
tive and the need to increase the return on investment
and the purchasing power of workers.

3.8. Once again the Commission underlines the fact
that ‘the more the stability task of monetary policy is
facilitated by appropriate budgetary measures and wage
development, the more monetary conditions, including
exchange rates and long-term interest rates, will be
favourable to growth and employment’ (page 9). The
realization of EMU will consequently rule out exchange-
rate turbulence, avoid stability conflicts between mone-
tary policy, on the one hand, and fiscal and wage trends,
on the other hand,
improve investment prospects,
strengthen production capacity and, consequently, gen-
erate more jobs.

3.9.
In a subsection entitled ‘monetary policy’ the
Commission points out that the primary monetary
objective will be to maintain price stability in the euro
land; the ECB and the ESCB will also have to play their
part in achieving the economic objectives of the EU set
out in Article 2 of the EC Treaty, including sustained,
non-inflationary growth and a high level of employment.
The credibility of the ECB as guardian of price stability
will promote low long-term interest rates and appropri-
ate wage trends.

3.10. On the basis of the Stability and Growth Pact,
fiscal policy will increasingly:

— promote private-sector investment, given that long-
term interest rates will drop as the state syphons off
a lower percentage of savings;

— more headroom for fiscal policy once fiscal equilib-

rium is restored;

— reduce debt-servicing and therefore make it possible
to redirect social and quasi-fiscal expenditure.

3.11.
The Commission points out that, overall, the
reduction in fiscal deficits in the EU over the last few
years has been brought about as a result of a reduction
in the percentage of GDP accounted for by public
expenditure; the Commission does, however, recognize
that the Member States should do more to reduce
taxation, in particular taxes on wages, the real rate of
which has gone up from 35 % in 1980 to 42 %.

3.12. Wage movements are the province of manage-
ment and labour but governments also have a role to
play as large employers. Whilst paying due regard to the
subsidiarity principle, stakeholders in the economy
cannot disregard what is going on in the EU as a whole,
where responsibility for monetary stability falls within
the remit of the Community authorities. Increases in
nominal wages have to be compatible with price-
stability. Real wage increases linked to productivity
should help to increase returns on investment, whilst at
the same time maintaining purchasing power of wages.

If productivity conditions differ, it will be both
3.13.
possible and necessary for wage increases to differ
according to regions and skills. If wage trends fail to
reflect productivity patterns, they may destroy jobs. Any
asymmetric shocks which may occur should be dealt
with by means of increased market flexibility.

The Commission draws attention to the import-
3.14.
ance of structural policies which promote growth and
employment. The Community framework for such
policies is not well defined; these policies are also subject
to the principle of subsidiarity. There are however a
number of provisions which provide the basis for a more
consensus-driven approach in this field, namely: the
programmes for completing the single market; the broad
economic policy guidelines; and the employment chapter
agreed upon at Amsterdam. It has not, however, yet
been possible to reach the same level of consensus in
this field as that achieved on macroeconomics. The
fundamental economic role played by structural policies
is to: a) shield the process of macro-economic growth
from upheavals; (b) make the EU more competitive
(and thereby enhance its productivity potential); and
(c) ensure that growth leads to the creation of more jobs
and is more environmental-friendly. If they are to be
really effective, however, structural policies must not
run counter to the pursuit of sound macro-economic
policies. EMU will, moreover, make it necessary to
pay more attention to structural adjustments. The
Commission draws attention to the earlier commitments
in respect of TENs and the promotion of SMEs but does
not provide any further details with regard to the action
taken in respect of these commitments.

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3.15.
The Commission calls for improvements to be
made in the operation of the markets in goods and
services so as to give free rein to competition and to
enable market-driven sectoral adjustments to take place
against a background of growth. There are still too
many unnecessary rules and regulations which are
damaging to employment. We therefore need to speed
up the implementation of the Commission’s action plan
for the internal market. The most significant barriers
are to be found in the fields of public procurement and
the construction industry. There are also major barriers
affecting services to business and consumers. The
Commission is endeavouring to simplify the business
environment through its SLIM BEST programmes.

3.16.
Turning to labour-market measures, attention
is drawn to the ‘Employment Guidelines’, which seek
to:

— improve the ‘employability’ of manpower;

— promote entrepreneurship;

— encourage the adaptability of firms and workers;

— strengthen equal-opportunity policies. (See point 4.5

of the Commission’s communication.)

3.17.
Finally, the Commission examines a number of
areas in which the labour-intensity of growth could be
increased through structural measures. These areas are
as follows:

— a slow down in the process of substituting capital
for labour, to be achieved by broadening the spread
of wage costs; the Commission puts forward two
options: downward widening of wage-(income) dis-
tribution — a development regarded as unattainable
by the Commission — and/or reducing non-wage
labour costs;

— a reduction in working hours, subject to a number

of conditions.

4. Observations

The Economic and Social Committee congratu-
4.1.
lates the Commission on the conceptual quality of the
1998 economic report, which clearly pinpoints the
economic priorities of the Commission — and thus of
the European Union — namely growth and employment.

4.2. With a view to achieving these objectives, the
Committee shares the Commission’s view as to the
importance of further convergence and monetary stab-
ility. The Committee welcomes the fact that a decision
will very soon be taken as to which Member States
— and the Committee hopes that it will be a large
number — will be in the first wave to adopt the single
currency. The euro-area is set to be an area of stability
which will promote investment and therefore encourage
growth and employment.

4.3.
The Committee is pleased to note that it is clear
from the forecasts that the export-led economic upturn
brought about in 1996 is now developing into growth
led by investment and personal consumption. The
Committee would however point out that the figures
for 1998 and, more especially those for 1999 are only
forecasts and there is at present no guarantee that
demand will continue to expand. Whilst the growth
forecasts for 1998 may be regarded as reliable, uncertain-
ties remain as regards 1999.

4.4.
In particular, the crisis affecting Asian states and
the impact of this crisis on the Japanese and US
economies could have a very much worse effect on the
EU than suggested by the low proportion of overall
EU trade which is with the south-east Asian states
concerned (1). Given this possibility, the EU must be in
a position to react swiftly by introducing a series of
appropriate macro-economic measures. Such measures
are that much more likely to be successful
if the
underlying economic and monetary situation in the EU
is sound and if fiscal deficits are brought down or even,
if possible, eliminated.

4.5.
The forecasts for the EU are mean figures which
frequently mask considerable differences as between
Member States; this applies particularly in the case
of the forecasts with regard to the corporate sector
(investments).

4.6.
The Committee takes the view that the situation
and prospects described in the Commission’s report are
based on an optimistic diagnosis. The Committee would
like to share this optimism but notes that unemployment
remains at a high level and current expectations are that
the increase in the number of jobs will not be adequate.

4.6.1.
The figures set out in point 3.3 underline the
extent of the challenge facing the EU if it wishes to
achieve an employment rate comparable to that of the
USA and Japan. Over a period of ten years the
employment rate would need to increase by between
20 % and 25 %.

4.7.
The Committee thus totally endorses the state-
ment by the Commission, in its proposal for guidelines
for Member States’ employment policies in 1998 (2), that
if there is to be real progress at EU level, member
governments will have to put forward detailed action
plans which not only reflect the situation applying
in their own countries but are also formulated and
implemented within a joint European framework of
objectives and guidelines.

(1) It is always possible that this crisis will have medium-term

effects, because of its impact on investment flows.

(2) OJ C 95, 30.3.1998.

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to pursue

4.8.
The Committee shares the Commission’s view
that the EU, its Member States and the social partners
the macro-economic
should continue
approaches advocated in the broad economic policy
guidelines so as to pursue the drive for stability and
growth in order to generate the jobs which the Com-
munity needs. The policy pursued to this end in a
number of Member States is already bearing fruit.

4.9.
Economic and monetary union should certainly
provide favourable conditions for revival of investment
and consequently of growth. Lasting, dynamic growth
is the sine qua non for the creation of jobs. Appropriate
economic and structural policies also have a vital role
to play.

joined the ERM and the measures taken by this country
to enable it to participate in EMU without delay.

4.13.
The Committee agrees that every effort should
be made to avoid bottlenecks on the labour market, in
order to achieve an optimum balance between supply
and demand. Vocational training must match future
jobs.

The Committee attaches crucial importance
4.13.1.
to the measures set out in the Employment Guidelines
for improving the labour-market situation (see point 3.6
above).

4.9.1.
The minimal inflation and low interest rates
(for short- and long-term loans) resulting from monetary
stability will be a key factor in boosting investment and
creating sufficient production capacity for a non-
inflationary increase in demand.

4.13.2.
The Committee urges that the ratio of unem-
ployment benefit to wages be set at a level which takes
account of the need to (a) ensure an appropriate net
income, (b) encourage people to look for and take jobs
and (c) encourage people to be ready, in some cases, to
accept a place on a vocational training scheme.

This prospect must be backed up by a wage
4.9.2.
policy which takes account of the need for wage increases
not to outstrip productivity, whilst at the same time
providing for real annual wage increases which are
adequate to stimulate demand.

4.10.
If the Member States are to be in a position to
reflate the economy when and where necessary, they
must continue to pursue the convergence policy which
was launched at Maastricht and has subsequently been
backed up by the Stability and Growth Pact; there must,
however, be no increase in the overall tax-burden. By
controlling public-sector deficits, Member States will
provide themselves with new scope for action in the
event of a subsequent recession.

4.11.
There can be no changes in exchange rates
within euro land, and thus there can be no devaluations
to offset wage-driven erosion of competitiveness. This
will be conducive to the establishment of appropriate
wage trends, i.e. wage increases linked to increased
productivity and geared towards monetary stability and
economic growth.

4.12.
The Committee believes that it is in the interests
of the EU as a whole that Member States which do not
join EMU from the outset should nonetheless apply the
broad economic guidelines and adhere to the stability
and growth pact, in order to ensure continuation of
economic convergence between all Member States. If
those Member States (temporarily) remaining outside
the euro land joined the EMS this would remove one of
the final obstacles to their participation in EMU. The
Committee welcomes the fact that Greece has recently

4.14.
The EU should invest in manpower. People
must be ready to change jobs several times during their
working careers and therefore need access to on-going
training. The broadest possible basic education is
a fundamental prerequisite for this training. Special
attention should be paid to the training requirements of
women rejoining the labour market.

4.15.
The Committee draws attention to point 3.11
above; it shares the Commission’s view that the Member
States should endeavour to reduce the tax burden on
wages.

4.16.
Selective — and fiscally neutral — action in
respect of non-wage costs (at the lower end of the wage
scale) could in a number of cases make growth more
employment-intensive. Recent surveys have shown that
service industries, such as hotels and restaurants, are an
important source of jobs, even though they may not
always be full-time jobs. As tourism is becoming ever
more important because people have more free time, the
prospects in this sector are favourable and they deserve
to be encouraged. Social services and the health sector
are also major sources of job.

4.17. Negotiated reorganization and reduction of
working time, as outlined by the Committee in one of
its earlier opinions (1) may make a significant contri-

(1) OJ C 18, 22.1.1996.

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bution to the improvement of the employment situation,
and therefore to social progress and well-being, in the
European Union.

— the quantitative distinction between full-time
and part-time working and the calculations used
to determine equivalent full-time jobs;

4.18.
Financial market trends need to be carefully
monitored. These markets are increasingly globalized;
portfolio managers therefore constantly seek to improve
returns to their investors; often to the detriment of
labour — and hence employment.

4.19.
Improving the way in which the markets in
goods and services operate must remain an ongoing
priority in the context of the completion of the single
market. The single market is still burdened with too
much unnecessary red tape. The Committee is addressing
this issue in greater detail in its work on the Single
Market Observatory. In this opinion it would draw
attention to the need to combat — possibly working
together with the WTO — the restrictions hampering
EU exports of goods and services, particularly exports
involving intellectual property.

5. Comparability of employment statistics

The Committee(1) wishes to highlight the lack
5.1.
of comparability between national unemployment stat-
istics. The figures used in all international analyses
should be the harmonized figures published by the
Statistical Office of the European Communities. The
statistics forwarded by the Member States should also
be comparable, i.e. compiled by harmonized methods.

If a full and accurate assessment is to be made
5.1.1.
of the problem of employment, the following conditions
need to be met:

a) A precise picture needs to be available with regard
to employment levels in the various EU Member
States; this picture should be based on statistics,
compiled using the same method throughout the EU,
which make it possible to compare the following
factors:

— the conditions for including persons on the lists
of job-seekers. This data should indicate, inter
alia, the way in which each Member State applies
international standards, such as those in respect
of the minimum number of hours which have to
be worked a week before persons are excluded
from the list of job-seekers and the conditions in
respect of the exclusion of persons receiving
invalidity pensions from the list of job-seekers;

— the quantitative distinction between permanent
full/part-time and fixed term contract working;

— the distinction between persons choosing to work
under a fixed term contract and those who do
so while seeking permanent full or part-time
employment (2).

b) The potential of the sectors which offer promising
prospects for employment, such as services during
periods of growth, as opposed to the sectors currently
shedding labour (industrial sector) needs to be
explored more effectively;

c) Job-creation broken down by size of enterprise needs

more careful study.

5.1.2.
possible to:

The abovementioned statistics will make it

— identify measures which have proved successful in
Member States with the best record in combating
unemployment;

— identify, in a pragmatic way, those sectors in which

it will be possible to create long-term jobs.

6. Conclusions

6.1.
Employment remains the major challenge facing
not only the Member States and the EU, but also
the socio-economic organizations. The goal should be
sustained strong growth in order to generate a sufficient
number of jobs to offset productivity gains and the
number of new arrivals on the labour market and
thereby bring down the level of unemployment, as soon
as possible, to levels which can be supported by society.
Unemployment continues to have serious consequences
in terms of individual suffering and hardship; it is
therefore unworthy of a highly-developed industrial
society. Unemployment brings about the destruction of
human resources, thereby giving rise to enormous costs.
Unemployment jeopardizes the credibility of politics in
the eyes of the public, whereas we should endeavour to
increase this credibility and acceptability with a view to
future projects, such as the single currency and EU
enlargement.

6.2.
The driving forces of growth should shift more
quickly towards increased investment and private con-
sumption. Vocational training and other structural
measures to facilitate the achievement of a better balance

(1) OJ C 19, 21.1.1998.

(2) OJ C 129, 27.4.1998.

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between supply and demand on the labour market
remain necessary.

dialogue, the macroeconomic strategy geared to growth
and employment and appropriate structural measures.

6.3.
The broad economic policy guidelines are a very
important tool for coordinating the economic policies
of the Member States. These guidelines should continue
to target growth and job-creation, whilst being backed
up by: EMU, the Stability and Growth Pact, the social

Finally, the Committee calls upon the EU, the
6.4.
Member States and the social partners to reach the
consensus in respect of structural policy that they have
already achieved for macro-economic policy, so as to
enable the latter policy to fulfil all
its job-creating
potential.

Brussels, 29 April 1998.

The President

of the Economic and Social Committee

Tom JENKINS

APPENDIX

to the opinion of the Economic and Social Committee

The following amendment, supported by at least a quarter of the votes cast, was rejected in the course
of the debate:

Point 4.15

Amend the final part of the sentence to read as follows:

‘... should endeavour to reduce taxation which is placing an excessive burden on labour.’

Reasons

One of the key conclusions of the Ruding Report on taxation dealt with fiscal competition between the
Member States. Such competition leads to a redistribution of the burden of taxation between the
different production factors. A higher level of taxation has been applied to factors which are more
immovable, such as labour, whilst the reverse has been the case with regard to moveable factors, such
as capital (tax on savings and profits).

In its document the Commission does, however, once again call for a reduction in the taxation on labour
with a view to reversing the trend which has been in evidence for about ten years.

In its opinion the Committee, too, should highlight this priority which is based on phenomena which
have been duly recorded and fully studied in surveys carried out at both national and EU level.

Result of the vote

For: 33, against: 53, abstentions: 4.

The following passages contained in the section opinion were amended in the course of the debate but
their retention was supported by at least a quarter of the votes cast:

Point 4.17

‘The realignment of working hours — and hence the reshaping of the living conditions of the persons
concerned — together with the acceptance of greater flexibility in the field of employment regulations
continue to be key objectives with a view to creating jobs across the economy. This is a task for
management, labour and other socio-economic organizations at EU level.’

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Voting on the deletion of this point

For: 77, against: 31, abstentions: 9.

Point 4.18

The EU has to reduce payroll taxes, rather than increase them, in order to boost the economic
performance and international competitiveness of its enterprises, to prevent relocations and ensure that
an adequate level of investment, in real terms, is maintained within the EU.

Voting on the deletion of this point

For: 57, against: 53, abstentions: 14.