2000/228/EC: Council Decision of 13 March 2000 on guidelines for Member States' employment policies for the year 2000
Date: 2000-03-13
Institutions: Council of the European Union
Subjects: EU Member State, employment policy, fight against unemployment

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(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 13 March 2000

on guidelines for Member States' employment policies for the year 2000

(2000/228/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 128(2) thereof,

Having regard to the proposal from the Commission

Having regard to the opinion of the European Parliament (1),

Having regard to the opinion of the Economic and Social
Committee (2),

Having regard to the opinion of
Regions (3),

the Committee of

the

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

Whereas:

(1)

(2)

(3)

Employment remains the top priority of the European
Union. Coordinated action must be pursued in a
sustained manner to combat unemployment and raise
the present levels of employment on a lasting basis.

the

The Luxembourg process, based on the implementation
of the coordinated European Employment Strategy, was
launched by
extraordinary European Council
meeting on employment on 20 and 21 November 1997.
The Council Resolution of 15 December 1997 on the
1998 Employment Guidelines (4), confirmed by the
European Council, has launched a process with high
visibility, strong political commitment and a wide-
ranging acceptance by all parties concerned.

The Council resolution of 22 February 1999 on the
1999 Employment Guidelines (5) has allowed consolida-
tion of the Luxembourg process through compliance
with those guidelines.

(1) Opinion delivered on 4 November 1999 (not yet published in the

Official Journal).

(2) OJ C 368, 20.12.1999, p. 31.
(3) OJ C 57, 29.2.2000, p. 17.
(4) OJ C 30, 28.1.1998, p. 1.
(5) OJ C 69, 12.3.1999, p. 2.

(4)

(5)

(6)

(7)

(8)

(9)

(10)

The contribution of the social partners in the framework
of the Standing Committee on Employment, the social
dialogue and the contacts established with the Heads of
State or Government and the Commission should be
taken into account.

The opinion of the Employment and Labour Market
Committee was drafted jointly with the Economic Policy
Committee.

The 1999 Joint Employment Report, drawn up by the
Council and the Commission, describes the employment
situation in the Community and examines the action
taken by the Member States in implementing their
employment policy in line with the 1999 Employment
Guidelines.

On 14 February 2000 the Council adopted recommen-
dations on the implementation of Member States'
employment policies.

In Cologne on 3 and 4 June 1999 the European Council
took the initiative for a European employment pact
which provides a basis for a sustained and compre-
hensive strategy for more growth and employment and
has added macroeconomic dialogue (Cologne process) as
a third pillar to the coordinated employment strategy
(Luxembourg process) and economic reform (Cardiff
process).

Consistency and synergy between the employment
guidelines and the broad economic policy guidelines
must be ensured.

In Helsinki on 10 and 11 December 1999 the European
Council adopted conclusions on Employment Guidelines
for the year 2000,
introducing a limited number of
changes to further sharpen the guidelines' focus and
aims.

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The preventive and active measures to be taken should
encourage effective integration into the labour market.

national targets which they contain. Good practice from
the Member States should also be taken into account.

(20) A mid-term review of the employment guidelines during
the year 2000 would be desirable, with a view to
streamlining and consolidating them within the existing
four-pillar structure.

(21)

(22)

(23)

Focused national reports, supported by indicators, will
permit an effective peer-group review by other Member
States and the Commission in order to assess progress
achieved by each Member State in implementing the
guidelines.

The contribution of the European Social Fund to the
European Employment Strategy in the new program-
ming period should be highlighted.

Sustainable development and the integration of environ-
mental concerns into other Community policies were
in Amsterdam.
endorsed by the European Council
Member States are invited to give effect to such integra-
tion within their national employment strategies by
promoting employment creation in the environmental
field,

HAS DECIDED AS FOLLOWS:

Sole Article

The guidelines for Member States' employment policies for the
year 2000, annexed hereto, are hereby adopted. They shall be
taken into account by the Member States in their employment
policies.

Done at Brussels, 13 March 2000.

For the Council

The President

E. FERRO RODRIGUES

(11)

(12)

(13)

(14)

(15)

(16)

There is a need to develop skills in information technol-
ogies and to provide schools with computer equipment,
as well as access to the Internet.

The social partners at all levels as well as the regional
and local authorities need to be involved in the imple-
mentation of the guidelines so that they can contribute,
in their field of responsibility, to promoting a high level
of employment.

Public employment services should play an important
role in delivering preventive and active measures and in
identifying job opportunities at local level, to achieve a
better functioning of the labour market.

implementation of

the guidelines may

The
vary
according to their nature, the parties to whom they are
addressed and the different situations in the Member
States. They should respect the principle of subsidiarity
and Member States'
responsibilities with regard to
employment.

In implementing the employment guidelines, in accord-
ance with the subsidiarity principle, Member States
should be able to take regional situations into account,
while fully respecting the attainment of national targets
and equal treatment of all citizens.

(17) Directive 1999/85/EC (1), which provides for the poss-
ibility of applying a reduced VAT rate on labour-inten-
should be
sive services on an experimental basis,
followed up in order to examine,
the
impact of national initiatives in terms of job potential.

in particular,

(18)

(19)

The implementation of the employment guidelines could
play a positive role in dealing with the problem of
undeclared work.

The Commission and the Member States have agreed to
continue and accelerate work on indicators and systems
for the collection of comparable data, which will make it
possible to assess the implementation and impact of the
annexed guidelines and to refine the Community and

(1) OJ L 277, 28.10.1999, p. 34.

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ANNEX

THE EMPLOYMENT GUIDELINES FOR 2000

I. 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 intensify their efforts
to 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 three years and which may be longer
in Member States with particularly high unemployment, Member States will ensure that:

1. 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 with a view to effective
integration into the labour market.

2. 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 with a view to
effective integration into the labour market.

These preventive and employability measures should be combined with measures to promote the re-employment of
their public
the long-term unemployed.
employment services so that they can deal with the strategy of prevention and activation in the most effective way.

In this context, Member States should pursue the modernisation of

Transition from passive measures to active measures

Benefit, tax and training systems, where that proves necessary, must be reviewed and adapted to ensure that they
actively support employability. Moreover, these systems should interact to increase the incentive to return to the
labour market. Each Member State:

3. will endeavour to increase significantly the number of persons benefiting from active measures to improve their
employability with a view to effective integration into the labour market. 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 of at least
20 %.

4. will review and, where appropriate, refocus its benefit and tax system:

— to provide incentives for unemployed or inactive people to seek and take up work or measures to enhance

their employability and for employers to create new jobs, and

— in addition, it is important to develop a policy for active ageing, encompassing appropriate measures such as
lifelong learning and other flexible working arrangements, so that older

maintaining working capacity,
workers are also able to remain and participate actively in working life.

Encouraging a partnership approach

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

5. the social partners are urged, at their various levels of 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 of the young and adult unemployed and to promote entry into the
labour market.

6.

in order to reinforce the development of a skilled and adaptable workforce, both Member States and the social
partners will endeavour to develop possibilities for lifelong learning, particularly in the fields of information and
communication technologies, and each Member State will set a target according to national circumstances for
participants benefiting from such measures. Easy access for older workers will be particularly important.

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:

7.

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. Particular attention should also be given to young people with learning
difficulties.

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8. make sure they equip young people with greater ability to adapt to technological and economic changes and
with skills relevant to the labour market. Member States will give particular attention to the development and
modernisation of their apprenticeship and vocational training systems, where appropriate in cooperation with
the social partners, to developing appropriate training for the acquisition of computer literacy and skills by
students and teachers as well as to equipping schools with computer equipment and facilitating student access to
the Internet by the end of 2002.

Promoting a labour market open to all

Many groups and individuals experience particular difficulties in acquiring relevant skills and in gaining access to, and
remaining in, the labour market. A coherent set of policies promoting the integration of such groups and individuals
into the world of work and combating discrimination is called for. Each Member State will:

9. give special attention to the needs of the disabled, ethnic minorities and other groups and individuals who may
be disadvantaged, and develop appropriate forms of preventive and active policies to promote their integration
into the labour market.

II. DEVELOPING ENTREPRENEURSHIP

Making it easier to start up and run businesses

The development of new enterprises, and the growth of small and medium-sized enterprises (SMEs), is essential for
job creation and for the expansion of training opportunities for young people. This process must be promoted by
Member States encouraging greater entrepreneurial awareness across society and in educational curricula, by
providing a clear, stable and predictable set of rules, by improving the conditions for the development of, and access
to, risk capital markets. The Member States should also reduce and simplify the administrative and tax burdens on
SMEs. These policies will support Member States' attempts to tackle undeclared work. To that end the Member States
will:

10. give particular attention to reducing significantly the overhead costs and administrative burdens for businesses,
and especially SMEs, in particular when an enterprise is being set up and when hiring additional workers.

11. encourage the development of self employment by examining, with the aim of reducing, any obstacles which
may exist, especially those within tax and social security regimes, to moving to self-employment and the setting
up of small businesses as well as by promoting training for entrepreneurship and targeted support services for
entrepreneurs and would-be entrepreneurs.

Exploiting new 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:

12. 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 in the way of such measures. In this respect, the special role and responsibility of local
and regional authorities, other 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 local labour markets, should be fully exploited.

13. develop framework conditions to fully exploit the employment potential of the services sector and industry-
related services, inter alia, by tapping the employment potential of the information society and the environmental
sector, to create more and better jobs.

Making the taxation system more employment friendly

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

14. 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 jeopardising 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.

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III. ENCOURAGING ADAPTABILITY OF BUSINESSES AND THEIR EMPLOYEES

Modernising work organisation

In order to promote the modernisation of work organisation and forms of work, a strong partnership should be
developed at all appropriate levels (European, national, sectoral,

local and enterprise levels):

15. the social partners are invited to negotiate and implement at all appropriate levels agreements to modernise the
organisation of work, including flexible working arrangements, with the aim of making undertakings productive
and competitive and achieving the required balance between flexibility and security. Subjects to be covered may,
for example, include training and retraining, the introduction of new technologies, new forms of work and
working time issues such as the expression of working time as an annual figure, the reduction of working hours,
the reduction of overtime, the development of part-time working, and access to training and career breaks.

16. 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:

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

IV. STRENGTHENING EQUAL OPPORTUNITIES POLICIES FOR WOMEN AND MEN

Gender mainstreaming approach

Women still have particular problems in gaining access to the employment market,
earnings and in reconciling professional and family life. It is therefore important,

inter alia:

in career advancement,

in

— to ensure that active labour market policies are made available for women in proportion to their share of

unemployment,

— to reduce tax-benefit disincentives, wherever identified, because of their negative effects on the female labour

supply,

— to give particular attention to obstacles which hinder women who wish to set up new businesses or become self

employed,

— to ensure that women are able to benefit positively from flexible forms of work organisation on a voluntary

basis. Therefore, the Member States will:

18. adopt a gender-mainstreaming approach in implementing the guidelines of all four pillars. In order meaningfully
to evaluate progress on this approach, Member States will need to provide for adequate data collection systems
and procedures.

Tackling gender gaps

Member States and the social partners 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, as well as to the improvement of female career opportunities.
Member States will:

19. attempt to reduce the gap in unemployment rates between women and men by actively supporting the increased
employment of women and will take action to bring about a balanced representation of women and men in all
sectors and occupations. They will initiate positive steps to promote equal pay for equal work or work of equal
value and to diminish differentials in incomes between women and men. In order to reduce gender gaps,
Member States will also consider an increased use of measures for the advancement of women.

Reconciling work and family life

Policies on career breaks, parental leave and part-time work, as well as flexible working arrangements which serve the
interests of both employers and employees, 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 dependants in order to support women's
and men's entry and continued participation in the labour market. An equal sharing of family responsibilities is
in this respect. In order to strengthen equal opportunities, Member States and the social partners will:
crucial

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20. design, implement and promote family-friendly policies, including affordable, accessible and high quality care

services for children and other dependants, as well as parental and other leave schemes.

Facilitating reintegration into the labour market

Those returning to the labour market after an absence may have outmoded skills and experience difficulty in gaining
access to training. The Member States will:

21. 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.