Opinion of the Committee of the Regions on the 'Proposal for Guidelines for Member States' Employment Policies 2000'
Date: 1999-11-18
Institutions: European Committee of the Regions
Subjects: EU employment policy, aid to undertakings, regional aid, regional and local authorities, small and medium-sized enterprises

29.2.2000

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Official Journal of the European Communities

C 57/17

Opinion of the Committee of the Regions on the ‘Proposal for Guidelines for Member States’
Employment Policies 2000’

(2000/C 57/04)

THE COMMITTEE OF THE REGIONS,

having regard to the Proposal for Guidelines for Member States’ Employment policies 2000 COM(1999)
441 fin

having regard to the decision taken by the Council on 6 October 1999, under the first paragraph of
Article 265 of the Treaty establishing the European Community, to consult the Committee of the Regions
on this matter;

having regard to its Bureau decision taken on 2 June 1999 to draw up an opinion on the subject and to
direct Commission 6 — Employment, Economic Policy, Single Market, Industry, SMEs — to undertake
the preparatory work;

having regard to The decision of its President of 14 October 1999 to appoint Mr Bodfish UK, PES and
Mrs Lund DK, PES as rapporteurs general to draw up an opinion on this subject, in accordance with Rule
39 of the Rules of Procedure of the Committee of the Regions;

having regard to the draft opinion CdR 360/99 rev1, drawn up by the general rapporteurs Mr Bodfish
UK, PES and Mrs Lund DK, PES;

whereas the COR has repeatedly underlined the importance the local and regional aspects in the
framework of the European employment strategy (the Resolution on the European Employment Pact (1),
Rapporteur: Mr Jensen, DK, PES; the Opinion on the European Employment Guidelines (2), Rapporteur:
Mr Bodfish, UK, PES and the Opinion on the Territorial Employment Pacts (3), Rapporteurs: Mr
Efstathiadis, GR, PES and Mr Virtanen, FIN, PES;

adopted the following opinion at its 31st plenary session on 17 and 18 November 1999 (meeting of
18 November).

1. Background and Introduction

— The Proposal for Guidelines for Member States’ Employ-

ment Policies 2000 (5)

in November ’97 that

1.1.
Following the adoption of the Amsterdam Treaty,
which introduced a new title on employment, it was agreed at
the
the Luxembourg Job Summit
European Employment strategy should be built on four main
pillars of employability, entrepreneurship, adaptability and
equal opportunities. Every year, a set of Guidelines are adopted
for each of the pillars, which set out a number of specific
targets for Member States to achieve in their employment
policies. The Member States respond to these Guidelines on an
annual basis via a National Employment Action Plan (NAP).

On 8 September the Commission adopted its ‘Employ-
1.2.
ment Package’ which sets out the EU key orientations on
employment policy and structural reform of
the labour
markets. This ‘package’ consists of the following:

— The draft report on Member States employment policies (4)

— The proposal for Council recommendations on the imple-
mentation of Member States employment policies (6)

1.3.
The European Council will discuss and conclude its
deliberations of the Employment Guidelines at the Helsinki
Summit on 11 and 12 December.

1.4.
This Opinion is intended to set out a clear view from
the COR as to the importance of the local and regional role in
employment; to point to ways in the Guidelines in which this
may be carried into effect; suggest that local and regional
authorities be enabled to participate in the drafting of the
response by each Member State; and, to take the call for greater
recognition of the role of local and regional government to
the Helsinki Summit on 11 and 12 December.

(1) CdR 156/99 fin — OJ C 293, 13.10.1999, p. 70.
(2) CdR 279/98 fin — OJ C 51, 22.2.1999, p. 59.
(3) CdR 91/99 fin — OJ C 293, 13.10.1999, p. 1.
(4) SEC(1999) 1386 final.

(5) COM(1999) 441 final.
(6) COM(1999) 445 final.

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2. General remarks

local and regional authority involvement can bring to local job
creation.

2.1. European employment strategy

2.1.1.
The COR has participated actively in the process of
developing the European Employment Strategy. In its recent
opinions the COR has underlined the importance the local and
regional aspects in this framework. The COR believes, that the
implementation of the employment guidelines requires an
active role by local and regional authorities. Furthermore it is
important to bear in mind that experiences from local and
regional level can be a source of inspiration at National and
European levels.

2.1.2.
Consequently, in co-operation with the CEMR, the
COR has proposed a campaign called ‘Local Action for
Employment’ to be launched at the European level in order to
foster the local and regional authorities’ efforts to transfer the
guidelines into action in their own policies. The COR welcomes
the fact that the European Commission has supported this
initiative and that the European Parliament in its capacity as
the Budgetary authority has also taken this initiative on board.

However the COR feels that there is still room for
2.1.3.
better recognition of
the local and regional
the role of
authorities in the framework of the employment guidelines
and their implementation by the Member States.
In the
current opinion the COR will focus on the draft Employment
guidelines for the year 2000. Later the COR would like to
continue the debate with the Member States concerning the
implementation of the guidelines.

Local and regional authorities are unique in their
2.3.2.
large
dual role as service provider and in many cases,
employers, therefore their role in generating employment is
crucial. Working in partnership with local partners and
specialist groups, local and regional authorities help to provide
an environment that promotes job creation and through local
economic strategies actively promote the development of
businesses.

Also as the democratically elected body close to its
2.3.3.
citizens,
local and regional authorities take on additional
non-statutory responsibilities to enhance the quality of life for
all their citizens. Therefore local authorities actively promote
policies that generate equality of opportunities for older
citizens and disadvantaged groups.

2.3.4.
The 1999 joint report shows that only a few
countries have decentralised their active labour market politics
to the regional or local level. Where it has been done, the
positive results indicate that this should be considered in all
member states. In an increasingly differentiated and global
economy, tailored initiatives — based on a firm knowledge of
regional and local business conditions — are crucial
for
success. Thus, the member states should to a larger extent take
the ‘local in the Global’ into account, when drawing up and
implementing the NAPs. As the examples included in Annexe
A show, the role of local and regional authorities is relevant
for all four pillars.

2.2. The Draft Joint Employment Report for 1999

2.2.1.
The draft Joint Employment Report is based on an
analysis of the implementation reports submitted by the
Member states as to the 1998 National Action Plans (NAPs)
and the measures taken at national level to implement the
1999 employment guidelines. Generally, there is evidence that
the Member States have taken on a more preventative approach
in combating unemployment by the adoption of new initiati-
ves, the report states that ‘key policy areas need to be tackled
with more rigour, namely by setting national targets’.

2.3.5. Much can be learned by studying the lessons made
by European ‘Industrial Districts’, such as the Italian ‘Emiglia
Romana’, the German Baden Württenberg or small scale
clusters as the Portuguese Vale Do Ave or the Danish
Herning/Ikast. In all these regions, regional and local authori-
ties have joined their strengths and competences with business,
the community and trade unions, working for a common
interest; that is, the development of regional or local centres
of growth and employment, exploiting the ‘windows of
opportunity’ that all regions face in the global economy.

2.3. The role of local and regional authorities in the development

and implementation of the NAPs

Local and regional authorities have a valuable role to
2.3.1.
play in bringing the NAPs to fruition in the Member States.
Previous Opinions of the COR have detailed the benefits which

2.3.6.
The employment initiatives now under way in the
the territorial employment
15 Member States as part of
pacts promoted by the Commission have been particularly
important. In this context, the Commission has promoted the
role of consultation and mediation between the local authority
interest groups and the
and the economic players, social
public. These initiatives are producing beneficial effects on
both the economic and employment fronts.

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An obvious start

2.3.7.
for the process of supporting
the local initiative is mainstreaming the regional and local
dimension in the relevant Guidelines in order to make the
NAPs, and therefore politicians, take account of local and
regional authorities. To this end, the COR calls on the Member
States to include representatives of the regional and local
authorities on the national committees which are to draw up
and implement the national employment plans.

2.4. Recommendations on the implementation of Member States’

Employment Policies

For the first time the Commission has proposed to
2.4.1.
the Council of Ministers recommendations which the Council
may make to individual Member States on employment
policies. These recommendations have been drawn up on the
basis of a comparative analysis of Member State Performance
and of the major shortcomings in implementing the 1998
Guidelines and putting into action the 1999 Guidelines.

The COR accepts the principle of

the Council
2.4.2.
making recommendations to individual Member States on
their performance. However, Member States should be afforded
the flexibility to be creative in the development of employment
policies and not be pushed into a particular path of action by
the Council. The COR calls for (a) sufficient freedom to be
granted for possible regional aid measures and (b) regional and
local activities to be facilitated, with a view to providing
meaningful employment for all marginalised groups.

2.5. Employment Guidelines for 2000

2.5.4.
The themes education and training discussed in
Guidelines 7 and 8 fall within the statutory responsibilities of
many local and regional authorities across the Community.
Many authorities are actively tackling the issue of early leavers
from schools and also have adopted measures to accommodate
the Information Society.

2.5.5.
The Committee supports the amendments made to
Guideline 8 for the coming year but have some added
concerns. Initially there will be added costs involved to meet
this target in terms of teacher training and equipment, secondly
it will produce additional duties on teachers to ensure that
pupils do not access inappropriate pages of the Internet.
Therefore, although warmly welcomed there may be const-
raints in achieving this target.

3. Specific comments: Suggested amendments to the

Employment Guidelines for 2000

3.1. Recognition of local and regional role in supporting SMEs —

Guideline 11

3.1.1.
In their role as facilitators for job creation, local and
regional authorities extend a number of support services to
SMEs. These services include giving advice and guidance,
providing premises (including managed workspaces for start
up firms) giving grants, and co-ordinating enterprise policy
with wider economic development and social inclusion strate-
gies.

2.5.1.
The Commission has proposed some minor changes
to the text of the Guidelines in areas, which it feels, should be
more rigorously addressed by the Member States.

3.1.2.
In order that the Guidelines should reflect this role,
the Committee would propose the following insertion to the
end of Guideline 11:

2.5.2.
The COR welcomes the minor changes as they
promote integration of potentially disadvantaged groups and
promote the training and retaining in the field of information
technology. As mentioned earlier their role as a service
provider and an employer affords this sector the unique
opportunity to implement these Guidelines.

2.5.3.
Such activity can be demonstrated with regards to
Guideline 4 where local authorities are active in encouraging
the participation of older citizens particularly in lifelong
learning. A previous opinion of this Committee (1) clearly
expresses the role local authorities may have and can continue
to play in support of the older citizen.

‘In respect of the latter training and support, and the
removal of any obstacles to self-employment falling within
or relevant to their functions or activities, the special role
and responsibility of local and regional government, and
of the social partners, needs to be more fully recognised
and supported. ’

3.2. The local/regional role in promoting employment creation —

Guideline 12

(1) CdR 442/98 fin — OJ C 374, 23.12.1999, p. 36.

Guideline 12 has been significantly re-written. The
3.2.1.
Committee feels that the unique position of local and regional
authorities is not sufficiently represented by the current text.

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3.2.2.

The proposed Guideline states:

buttress local development initiatives placing priority on the
beneficial impact on employment.

‘promote measures to exploit fully the possibilities offered
by job creation at local level and in the social economy,
especially in new activities linked to needs not yet satisfied
by the market, and examine, with the aim of reducing, any
obstacles the way of such measures. In this respect, the
special role and responsibility of partners at the
regional and local levels, as well as the social partners,
needs to be more fully recognised and supported. In
addition, the role of the Public Employment services
in identifying local employment opportunities and
improving the functioning of the local labour markets,
should be fully exploited (1).’

3.2.3.
In the 1999 guidelines, Guideline 12 specifically said
that ‘the special role of local authorities and the social partners
should be taken into account’. The COR considers it necessary
explicitly to spell out the key role of local and regional
tasks and general
authorities, which due to their special
political responsibilities differs essentially from the roles of
other local and regional players. Therefore the COR could
propose the following revised text:

‘promote measures to exploit fully the possibilities offered
by job creation at local level and in the social economy,
especially in new activities linked to needs not yet satisfied
by the market, and examine, with the aim of reducing, any
obstacles the way of such measures. In this respect, the
special role and responsibility of
local and regional
authorities and their partners at the regional and local
levels, as well as the social partners, needs to be more fully
recognised and supported. In addition, the role of the
Public Employment services working in partnership
with local and regional authorities in identifying local
employment opportunities and improving the functioning
of the local labour markets, should be fully exploited (2). ’

3.3. Local and Regional authorities as employers — Guideline 20

3.3.1.
In their role as employers and in some instances
large employers, local and regional authorities have a responsi-
bility to all their citizens to promote themselves as employers
offering equal opportunities with regards to employment, thus
ensuring that
the authority reflects the
community that it serves. Local and regional authorities have
experience of applying this principle of equality as major
employers; therefore the Committee would like to propose a
further refinement to Guideline 20 as follows:

the make up of

3.3.2.

At the end of Guideline 20, insert:

‘Member States shall make joint agreements with local
and regional authorities, from their experience as major
employers, with a view to responding to and implementing
this Guideline.’

3.4.

Involving local and regional government directly in the
production of NAPs — additional Guideline

3.4.1.
As indicated in relation to particular Guidelines
above, Member States need to recognise and support the
special role and responsibility of local and regional govern-
ment, and of the social partners,
in carrying into effect a
number of these activities. To that end the Committee would
like to propose an additional Guideline:

‘23. Member States should invite local and regional
government, as well as the social partners, to produce or
have a direct input to the preparation and implementation
of the national action plans for employment.’

3.2.4.
Partnership between local and regional authorities
and public employment services is no less necessary when
setting up active job development measures, and in framing
and activating vocational guidance and support services to

The COR can demonstrate that local and regional
4.1.
authorities have, and continue to actively bring the European
Employment Strategy to fruition at the local level.

4. Recommendation for the Helsinki Summit

(1) The bold text here refers to new elements in the guideline

proposed by the Commission.

(2) The bold text here refers to the changes proposed by the COR in

comparison to the proposal of the Commission.

The unique role of local and regional authorities as the
4.2.
democratically elected body close to the citizens and as
employers and service providers enables authorities to promote
and engage in activity concerning the employment of older
persons and equality of opportunity between men and women
and disadvantaged groups, adding credibility and value to
these.

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4.3.
The COR calls again for National Governments formal-
ly to acknowledge and include local and regional authorities in
the development and implementation of the NAPs. It calls on
the Helsinki Summit and the Council to add this element to
the employment guidelines. It also calls on Members of the
European Parliament to endorse this call.

COR would welcome the opportunity to discuss with
4.4.
the Commission the background and rationale of recommen-
dations being made to the Council of Ministers.

5. Conclusions

5.1.
The COR continues to call for the involvement of local
and regional authorities in the development and implementa-
tion of the NAP. Such involvement is necessary given the
extent of co-funding provided by local and regional authorities.

5.2.
The COR has proposed a number of amendments to
the Guidelines that acknowledge the role played by local and

regional authorities inter alia in the promotion of employment
development policies. It is also important that the national
the employment measures
action plans take account of
introduced by local and regional authorities, as priorities other
than those of national governments also need to be reflected.

The COR has proposed a campaign, ‘Local Action for
5.3.
Employment’ which, at the European level, will foster the local
and regional authorities activity in bringing the NAPS to
fruition.

The COR accepts the principle of recommendations

5.4.
being made to Member States on the employment policies.

The COR calls on the Helsinki Summit and the Council
5.5.
to endorse the role and involvement of local and regional
authorities in the NAPs.

Brussels, 18 November 1999.

The President

of the Committee of the Regions

Manfred DAMMEYER

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APPENDIX A

to the opinion of the Committee of the Regions

Employability

The Danish Government has decided (by law) that each of the 275 local authorities are obliged to form committees
in order to combat unemployment and prevent social exclusion. The committees include the local authorities, the
social partners and other relevant actors in the labour market. This is done in an attempt to make all relevant actors
responsible for this difficult challenge.

Entrepreneurship

Entrepreneurship is an area where companies face many obstacles from different levels of administration. Local
authorities in Italy have taken steps to alleviate some of these obstacles through the ‘Single Counter’ programme
promoted by the Catania municipality and subsequently established by national law in all municipalities. The Italian
government has undertaken to deregulate and streamline 122 procedures lay down in over 400 administrative
provisions. Through the ’Investi a Catania’ Project 252 projects have been submitted that have resulted in the creation
of 1 700 new jobs.

Adaptability

In the UK local authorities cannot directly participate in schemes which provide the opportunity for an unemployed
person to be given a work placement. Sandwell Metropolitan authority in the West Midlands in co-operation with
the Employment Services has developed a scheme where jobs in the authority are identified for which and
unemployed person stands a good chance of obtaining on merit. These posts are available on a six-month basis. A
co-ordinator is appointed to provide support to the post holder and existing staff. Using the ESF the authority
envisaged that a further 20 placements could be funded over the next three years.

Equal Opportunities

With the legal basis for gender equality being firmly laid down in the Treaty Many proposals and frameworks with
regards to childcare have been initiated by national government but implemented by local authorities. Local
authorities in Finland spend around 1.3 billion a year resulting in all children under 7 having the right to a full time,
municipal child-care place and children attending school receiving a free warm meal at school. These activities have
made it possible for both parents to have jobs.