Opinion of the Economic and Social Committee on "The mid-term review of the three processes that underpin the European Employment Strategy"
Date: 2001-02-28
Institutions: European Economic and Social Committee
Subjects: EU employment policy, economic development, report, sustainable development

11.5.2001

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Official Journal of the European Communities

C 139/33

Opinion of the Economic and Social Committee on ‘The mid-term review of the three processes
that underpin the European Employment Strategy’

(2001/C 139/10)

At its plenary session of 2 March 2000, the Economic and Social Committee, acting under Rule 23(3) of
its Rules of Procedure, decided to draw up an opinion on ‘The mid-term review of the European
Employment Strategy’.

Pursuant to Rules 11(4) and 19(1) of its Rules of Procedure, the Committee appointed a subcommittee to
prepare its work on the subject.

The subcommittee adopted its draft opinion on 14 February 2001. The rapporteur was Mr Olsson and
the co-rapporteur Mrs Engelen-Kefer.

At its 379th plenary session on 28 February to 1 March 2001 (meeting of 28 February 2001), the
Economic and Social Committee adopted the following opinion by 93 votes to one, with two abstentions.

1.

Background for the review

1.1.1. T h e L u x e m b o u r g p r o c e s s

1.1.

The scope of this opinion is to:

— review the different processes (Luxembourg, Cardiff,

Cologne) within a global approach;

— target the Spring Council in Stockholm 2001 as the first
follow-up to the Lisbon summit, which confirmed the
need to coordinate the three processes and bring in new
elements.

The Luxembourg process (November 1997), aims at strength-
ening co-ordination of national employment policies. The
essence of the process is to commit the Member States to an
integrated set of common objectives and targets grouped
under the four pillars of employability, entrepreneurship,
adaptability and equal opportunities. A process of regular
programming, reporting, peer review, assessment and adjust-
ment of the objectives has been established. Its main expression
at EU level are the Employment guidelines which are adopted
each year and then transposed into National Action Plans for
Employment in each Member State.

Bearing in mind that the Committee represents different actors
of organised civil society, the review is based on the following
criteria:

With a view to boosting the impact of the Luxembourg
process,
the Lisbon European Council called for a mid-
term review, the conclusions of which are reflected in the
employment guidelines for 2001.

— the participation of organised civil society in preparing
and implementing the three processes and the follow-up
of the Lisbon strategy;

— the respective role and responsibility of the different
actors with regard to the need to strike a suitable balance
between legislation and non-legislative measures, while
meeting the objectives of fostering a knowledge-based
economy within a framework combining social cohesion,
increased employment and sustainable development with
justice and equal opportunities for everyone.

The structural
indicators presented by the Commission to
follow up the Lisbon Summit are assessed in another Com-
mittee opinion (1).

The medium-term review (2) finds that the process has helped
to focus attention on employment and that several actors have
been mobilised as part of an integrated approach. It also
observes a steady accentuation of regional discrepancies, along
with an increasing shortage of skilled labour in particular. In
addition, an imbalance is apparent in implementation of the
various guidelines, especially as regards the adaptability pillar.
Gender mainstreaming too has only partly been achieved.
Proposals for the future included fewer guidelines, more
effective coordination with other processes, definition of
indicators, better monitoring and the dissemination of good
practice. A more clearcut division of responsibilities among
the actors was recommended, particularly with a view to
involving the social partners more closely. Lastly, the review
advocates that the process should be more visible to the
general public.

(1) Structural indicators.

bourg process.

(2) Internal Commission document: Mid-term review of the Luxem-

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The Committee endorses the medium-term review’s con-
clusions, above all, the stress on key issues, clearer quantitative
and qualitative aims, the need to foster a spirit of entrepreneur-
ship and the involvement and role of the social partners in the
guidelines most relevant to them at all levels. The Committee
also emphasises that the Luxembourg process must have
widespread roots in the Member States, both locally and
among all the various business and social organisations. At the
end of the five year period, a one year pause should therefore
be considered so that all actors concerned can be truly
mobilised. Further, in order to be able to focus on and finetune
objectives, the process should be streamlined.

together all the Union’s employment measures. The process
entails coordination of economic policy and improvement of
mutually supportive interaction between wage developments
and monetary, budget and fiscal policy and which, through
macro-economic dialogue, aims to preserve a sustained non-
inflationary growth and the lasting success of Economic and
Monetary Union.

The Broad Economic Policy Guidelines (BEPG) are a central
element in the economic policy co-ordination process. They
provide the interface between economic policy and the
Luxembourg and Cardiff processes and are to be discussed
from 2000 onwards in other Council constellations — not
just the Finance Ministers.

1.1.2. T h e C a r d i f f p r o c e s s

The Cardiff process (June 1998) aims at economic reform to
makes the single market a motor for new jobs and to promote
entrepreneurship and competitiveness.

The Council, the Commission, the ECB and the social partners
take part in the macro-economic dialogue. Meetings are held
twice yearly since 1999 and are chaired by the president of the
Ecofin Council.

The process covers measures that will dismantle impediments
to trade between Member States, increase performance of the
service sector, make the environment for small and medium
size business more conducive to growth and employment,
lead to efficient capital markets and an adequate supply of risk
capital, further an effective competition policy and reduce state
aids.

The Committee observes that the Cologne Process has got off
the ground but draws attention to the European labour
organisations’ joint recommendations regarding effective par-
ticipation of the Finance Ministers and that the dialogue must
also encompass relations between macro-economic policy and
structural reforms (2).

In response to the mandate from the Cardiff European Council,
the Member States and the Commission produce annual
reports on matters relating to reform of the production and
capital markets.

In the second Cardiff report (1), the Commission called on the
EU and the Member States to introduce economic reforms
compatible with economic and social cohesion, to ensure
participation of all stakeholders and to call on public auth-
orities to guarantee actual
impact on competitiveness and
improving consumer welfare as well as to ensure a simple and
high quality regulatory environment.

The Committee supports this challenge but would stress the
need for more systematic, coordinated follow-up so that the
Cardiff process be implemented with more active commitment
from the social partners and other business and social organis-
ations.

1.1.3. T h e C o l o g n e p r o c e s s

The Cologne process (June 1999) complements the Luxem-
bourg and Cardiff processes within a comprehensive overall
approach — the European Employment Pact — bringing

(1) COM(1999) 61 final. Economic and structural reforms in the EU

(Cardiff II).

2.

The Lisbon Summit — The new open method of
coordination

2.1.
Following on from the European Councils in Cologne
and in Helsinki, the Lisbon European Council focused on the
consistency between, and improved articulation of, the various
coordination processes.

However instead of launching a new process, the Council
introduced a new political method, the so-called new open
method of coordination in order to implement the new
strategic goal adopted at the Lisbon Summit.

2.2.
The new method involves fixing guidelines and specific
timetables to achieve the goals, establishing quantitative and
qualitative indicators, benchmarks against the best in the
world, comparing best practice. The European guidelines
should be transposed into national and regional policies by
setting specific targets and adopting measures taking into
account national and regional differences.

(2) Common UNICE/CEEP/ETUC position before the high-level forum
in June 2000 (Union of industrial and employers’ confederations
of Europe; European centre of enterprises with public participation
and enterprises of general economic interest; European Trade
Union Confederation).

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2.3.
In line with subsidiarity and a decentralised approach
the Council suggested that the European Union, the Member
States, regional and local authorities as well as ‘social partners
and civil society’ should be actively involved. The strategy
thereby relies primarily on the private sector as well as on
public-private partnerships.

2.4.
The Committee notes that the new method implies the
whole of organised civil society to implement the strategy. The
European project shall progress not by a ‘top-down’ approach,
but by ‘bottom-up’ co-ordination of policies of public and
private actors.

2.5.
The Committee has on various occasions suggested
that social and economic organisations should be involved in
defining, implementing and monitoring EU policies, both at
level as regards, for instance the broad
EU and national
economic policy guidelines,
the employment guidelines,
enterprise policy, the single market, social protection, financial
markets’ regulation, the social exclusion action programme,
etc. The Committee notes that the Lisbon strategy has paved
the way for the introduction of new ‘processes’ in other policy
areas, such as policy for combating social exclusion and
poverty.

2.6.
As a next step, European policies on transport, energy
and environment should be integrated into the Lisbon strategy.

2.7.
The new open method of coordination corresponds to
the diversity of Europe in culture, life-styles and economic and
social conditions. Diversity has increased over the years.
Diversity needs a variety of instruments — legislative and non-
legislative — and the creation of a culture in which everyone
participates: enterprises in both the ‘new’ and the ‘old’ econ-
omy, trade union organisations, social protection institutions,
other social and economic players, formal and non-formal
educational bodies, private associations and authorities. The
policy’s territorial dimension, based on a broad partnership, is
also crucial in order to tackle diversity.

However, the Committee also wishes to highlight the common
values that underpin the European model and stress that the
new open method of coordination requires that the monitoring
and assessment of the policy (which can operate differently
from one Member State to another), on the basis of common
criteria, must encompass all EU countries.

2.8.
The private sector’s co-responsibility is a challenge for
organised civil society and hence to the Committee as a
mouthpiece of a wide spectrum of representative organisations
in business and the community.

The Committee has therefore a responsibility to mobilise these
actors, thus providing value added to the process.

2.9.
The Committee points to the need for the applicant
countries to prepare themselves as speedily as possible for
participation in the new method of coordination since
accession to the EU does not merely involve technical adjust-
ment to the existing acquis communautaire and establishing
the requisite official machinery for its implementation. It is
equally important for business and social organisations to play
an active part so that the enlargement process is as broadly
based as possible. Within its own remit the Committee will
follow this development closely so as to involve organised civil
society organisations.

2.10.
The new method of coordination should also be seen
in the context of the upcoming White Paper on the new
governance for Europe which is to be published after the
Stockholm European Council.

3. Are civil society organisations involved? — An

enquiry

3.1.
A questionnaire was sent out to the members of the
Committee, European organisations and national economic
and social councils. The questions related to the extent they
were actively involved in different areas of policy (macro-
economic dialogue, employment guidelines, enterprise policy,
single market,
financial services, social security schemes,
action plans to combat social exclusion and regional/local
development programmes).

The replies received from Committee members covered 13 out
of the 15 Member States. Around 20 European organisations
and eight national ESCs answered.

Though the number of replies was relatively low, the following
preliminary conclusions can be drawn: The social partners are
fairly closely involved at both European/national and at
regional/local
level, especially in those areas which are of
particular concern to them. Organisations representing specific
interests (e.g. financial services or social exclusion) also indicate
a high rate of involvement. However, in some Member States
the answers show that the partners play no part in, for
instance, framing employment policy. On single market issues,
the answers show that participation is relatively low. The
‘various interest groups’ (Group III) record a consistently lower
rate of participation (except as regards enterprise policy and
social exclusion at national level) than workers’ and employers’
organisations. The answers show that national ESCs are not
always involved (six out of the eight which replied indicated
participation in only a few, if any, of the specified areas of
policy) even at national level.

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3.2.
In order to increase participation in the process, the
Committee urges that the socio-economic organisations of
civil society make themselves heard at national, regional and
local level, and the authorities at the same level to establish
public-private partnerships based on openness, mutual confi-
dence and equality.

The Committee advocates that public authorities in the
Member States be encouraged to exchange experiences of
administrative reform so that, as in the case of organised civil
society, good practices in other countries can serve as example.

At the Stockholm Summit the Council should reiterate the
importance of involving civil society organisations.

5.

The maintenance and improvement of services of
general interest

However, the Committee feels that it is important for both the
Commission and national governments to leave the social
partners to play their roles and not to intervene unsuitably or
with excessive haste; instead they should be allowed to assume
full responsibility within their area of competence.

4.

Public-private partnerships and the role of govern-
ment

4.1. Within the shared responsibilities between the public
and private sectors underlying the Lisbon strategy, the role of
government should be to provide a framework of provisions
regarding organised civil society’s contribution to achieving
the objectives set by the various processes and in the Lisbon
strategy. Here the Committee supports the Cardiff II report’s
recommendation of a simple, high-quality regulation (1).

Private-public partnership should be enhanced and a
4.2.
benchmarking process should be established in order to
identify good practice of how responsibilities are shared.

4.3.
A horizontal approach is needed by government in
order to overcome segmentation, both to boost effectiveness
and to match the integrated approach by organised civil
society. This would be in line with the administrative reform
called for as part of necessary economic reforms by the Lisbon
Summit.
In order to underpin administrative reform and
guarantee high quality of services, measures must be taken to
develop staff policy, increase staff participation and improve
management. An active policy is also needed to provide greater
opportunities for women and disadvantaged staff categories as
well as to achieve ‘internal modernisation’, innovation and
better performance in tandem with the dismantling of rigid
hierarchies. In addition, account must be taken of the regional
consequences of administrative reforms.

(1) COM(1999) 61 final. Economic and structural reform in the EU

(Cardiff II).

EU measures to promote competitiveness increasingly
5.1.
affect public sector activities. Many sectors are no longer
within the ambit of regulation by Member States, but under
the rule of the free market.

This development is to be welcomed, insofar as it ensures
higher quality of services and lower prices, as well as giving all
users access to the services provided at reasonable cost.

5.2.
However, government is responsible for improving
services of general interest and they are a key element of the
European social model. A lack of such services has negative
consequences for citizens, for jobs and for the quality of the
local environment.

5.3.
The quality of the available services of general interest
must be guaranteed. The aim should be a productive, efficient
public sector which combines user participation, economic
viability and good conditions for employees while offering
citizens high-quality and reasonably priced services. These
aims hold good regardless of whether the public or private
sector are responsible for providing such services.

5.4.
Innovation and increased productivity which lead to
better service, a wider choice and lower costs are necessary,
while at the same time new ways should be found to meet the
growing demand for services of general interest, especially new
socially-oriented and environment-friendly services. This is
consistent with the employment guidelines’ call for optimisa-
tion of the service sector’s potential for job creation.

6.

Employment

The Committee notes with satisfaction that

6.1.
employment was fixed as a goal at the Lisbon Summit.

full

6.2.
In order to achieve this goal, increased coordination of
and coherence between all the processes are needed within the
framework of the Lisbon strategy which is now the policy
focus. Here the Committee would stress the importance of
defining comparable indicators for the purpose of assessing
employment trends.

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It is not sufficient, however, for Member States to seek only to
reduce unemployment. They should also have as an objective
an increase in overall employment levels, so as to achieve the
average employment rates set out in 6.9.

6.6.
The Committee notes that the High Level Forum
organised in June 2000 was not considered a success. The
Forum should be organised with greater attention to oper-
ational details and take place after the publication of the
synthesis report and before the spring Summit in order to be
more useful for all concerned.

6.3.
The Committee calls for coordination to be established
so as to generate synergies between independent actors, along
the lines of the ECB in conducting monetary policy and the
social partners in the framing of pay policy. Such coordination
promotes better understanding of the respective aims and
constraints of the various protagonists in economic policy.

6.7.
The Committee urges Member State governments to
build up close co-operation with the social partners in order
to discuss and implement the Employment Strategy. To ensure
the strategy’s success, the social partners should, entirely
independently, define their contribution in practical terms, to
be heeded by governments.

A sustainable anti-cyclical budgetary policy, without com-
promising the medium-term balance of public finances,
is
necessary. With this in mind, the Committee feels that it is
vital to pursue efforts to ensure sustainable public finances in
the context of the growth and stability pact while taking care
to ensure optimum structuring of public consumption and
investment spending.

6.4.
The ESC supports regular macro economic dialogue,
involving the Finance Ministers and the ECB President, in order
to help ensure that the economic climate is conducive to the
need for social cohesion and that the social partners shoulder
their responsibility for a job-oriented wages policy which
promotes investment. Such dialogue is necessary to raise the
citizens’ trust in the euro as well as to face unforeseen risks
that may cause economic instability and social problems.
Whilst macro-economic dialogue and coordinated financial
policy are needed in order to sustain economic growth,
national diversity should be taken into consideration, and the
choice of the actual measures of economic and fiscal policy
should lie with Member States, within a coherent overall
strategy.

6.5.
The ESC would draw attention to the major ties which
inextricably interlink macro-economic and structural policies.
Efforts must therefore be made to achieve a policy mix, i.e. a
coherent mix of macro-economic and structural measures
tailored closely to the desired growth and employment objec-
tives.

Such a policy mix must not be confined to macro-economic
and structural policies but this permanent fine-tuning must
also operate within each of the two policies. In other words,
the best possible balance must be sought between monetary
policy, budgetary policy and pay policy, which combine to
constitute macro-economic policy. Similarly, technological
innovation, research, competition, labour market, infrastruc-
ture and other reforms must all focus on the two core elements
of structural policy.

The Committee calls on the Member States to invest substan-
tially in knowledge and education since this is vital for the
employment strategy’s success. This point is reiterated in
several ESC opinions (1).

The Committee is pleased to see that the Education Ministers
have also been involved in the debate on the employment
guidelines.

The Committee expects the Stockholm Summit to take a
further step towards achieving an across-the-board ‘knowledge
leap’ among the population at large.

6.8.
The Committee suggests that the development towards
an ageing European population and the need for quality of
work should be particularly addressed by the employment
strategy over the next years. In this context, the Committee
notes that the demographic trend towards an ageing popu-
lation, which can generate higher savings, must be channelled
into investments in human resources, R&D and new knowl-
edge technologies to bridge gaps in skills, age and gender
participation rates, as well as between different groups and
regions.

6.9.
The major challenge will be to increase the average
employment rates of all Member States so that the overall
goals (60 % for women and 70 % for men) can be attained.
This increase must be accompanied by appropriate measures
to achieve social cohesion. In order to tackle this, the whole of
organised civil society is needed.

6.10.
In the Committee’s view, this means that measures
must be taken as part of a tax and incentive system designed
to promote employment to:

(1) OJ C 14, 16.1.2001. New knowledge, new jobs. OJ C 117,
26.4.2000, p. 62. Employment, economic reforms and social
its nature,
cohesion. The European dimension of education:
content and prospects. OJ C 168, 16.6.2000, p. 30. European
cooperation: Quality evaluation in school education.

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— increase older workers’ participation in work: the Com-
mittee reiterates its proposal (1) for a Europe-wide infor-
mation campaign to foster awareness of the role older
workers can play, in addition to a social dialogue which
could reinforce existing employment guidelines;

— achieve a higher female employment rate based on
improved possibilities for combining family and working
life. Organising care of children and of other non-working
members of the household is a key factor, along with
opportunities for switching careers, the introduction of
new forms of working arrangements and achieving
economic independence for women;

— integrate vulnerable groups into the labour market.
Support policies involving the whole of organised civil
society are needed to promote ‘pathways’ for all disadvan-
taged persons so as to avoid the poverty trap;

— improving health and safety in the workplace by realising
the commitment to a new programme provided for in
the Social Agenda;

— making sure that the employment promotion policy
and structural reforms on the labour market generate
meaningful jobs and well defined forms of employment;

— introducing measures which stimulate innovative ways
of organising work, good management and flexible
workingtime arrangements that meet the needs both of
enterprises and workers. Career changes and mobility
must be encouraged;

— special consideration of ways to improve the situation of
women and other groups that are paid less and have less
access to career developments.

— promote equal opportunities and treatment of people
with disabilities, on the labour market and in all employ-
ment-related areas (internal market, information society,
etc.);

7.

Legislation on employment issues and social protec-
tion

— improve the situation of third country nationals and
other immigrants resident in the EU to enable them to
find a job on the open labour market and receive proper
social protection and basic rights;

Pending EU legislation on social and employment
7.1.
in order to strike a balance
matters should be reviewed,
between legislative and non-legislative measures,
in close
cooperation with the social partners but also, where appropri-
ate, with other socio-economic organisations concerned.

— reconsider immigration policies from all aspects with a
view to controlled immigration beneficial to both the EU
and the country of origin concerned. The Committee is
in the process of exploring this matter, along with policy
on refugees, but would stress that the latter must be dealt
with separately from general immigration policy.

7.2.
The Committee notes with satisfaction the establish-
ment of the Social Protection Committee and its current focus
on pensions and social exclusion. It also observes that the
Social Protection Committee has two further tasks: aspects
connected with ensuring that it is more profitable to work
than not to work, and a sustainable health care system.

6.11.
The Committee considers that the Stockholm Council
should be the launching pad for new initiatives to improve
working life, for instance:

7.3.
The viability of the pension system is inextricably
linked to long-term sustainable economic development, irres-
pective of the way in which the pension insurance scheme is
organised — public, collective or mutual schemes, supplemen-
tary pensions or private personal pensions.

— improving educational standards through launching a
Europe-wide campaign for
lifelong learning which
involves not only enterprises but also all players active in
both formal and non-formal education and training. At
the same time ways should be found of making fuller use
of the knowhow already existing in the workforce;

(1) OJ C 14, 16.1.2001; Older workers, points 5.3 and 5.5. OJ C 14,

16.1.2001; Employment guidelines 2001.

7.4.
The financial markets are fuelled by an increase in
pension funds: on an individual basis, mutual and as an
outcome of agreements between employees and employers. As
funded pensions comprise withheld income, the beneficiaries’
representatives should have influence over placement of the
funds, provided that this does not have a detrimental impact
on the beneficiaries returns. The Committee suggests that
guidelines on the placement of pension funds should be
established, either through agreements between social partners,
or by codes of good conduct for the funds, aiming at long
term growth and sustainability.

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The Social Protection Committee should therefore also be
assigned the task of examining developments in supplementary
pension schemes, in close cooperation with the social partners.

Workers’ mobility should not be impeded by differences
between occupational pension schemes (1).

7.5.
The Social Protection Committee should also urgently
look into systems of social protection that combine flexibility
and security, with particular emphasis on identifying good
practice and potential solutions in this sphere.

7.6.
Another area in which the Member States have com-
mitted themselves to modernise social protection is the
provision of quality health services.

7.7.
As regards the right of equal access to health care,
the Committee considers that statutory and supplementary
schemes can be combined, as long as both are based on the
principle that this right is a universal service and that risk
selection or genetic data must not be used for discriminatory
insurance purposes. As pointed out in earlier opinions (2),
the Committee considers that guidelines are preferable to
legislation in such an obviously complex area. The aim is that
the Member States,
in consultation and negotiation with
private insurers, should determine contractual specifications,
to serve as code of practice.

8.3.
It is important to ensure great diversity in entrepreneur-
ship and not only focus on innovative and ‘high tech’
sectors. Most enterprises are small, local and labour-intensive,
particularly in the service sector. There is a strong growth in
new forms of enterprise, not least involving full time or
part time self-employment and enterprises founded by non-
traditional business creators,
for instance women, young
people and minority groups. Appropriate support structures
are needed. Proper social protection of workers in the new
forms of enterprise (both owners and employees) must also be
found.

An important condition to foster a culture of entrep-
8.4.
reneurship in all sections of society is the development of a
culture of independence and responsibility at the workplace.
Business creators come generally from employed work.
Upgrading quality of work and greater participation of
employees in defining work are prerequisites for creating such
a culture of independence.

8.5. Worker ownership in different forms can also help
strengthen enterprise culture as well as promoting social
cohesion while upgrading quality of work. The Commission
should follow up the Pepper reports by examining different
models as a basis for exchange of good practice.

8.

The role of the enterprise

8.6.
The social economy has an important role as model
for enterprise with social and mutual aims, based on co-
participation and targeting persons and their needs.

8.1.
The enterprise should be seen as an economic actor
that promotes social cohesion. Member States should therefore
further the culture of entrepreneurship in all sections of
society.

8.2.
Efforts aimed at facilitating the creation and transfer of
enterprises are key factors in increasing the employment rate.
Improved framework conditions for small enterprises and
simplified administrative rules are of utmost importance to
exploit new areas of growth and employment, especially in the
service sector. The Committee reiterates its proposal (3) that
the ‘European Charter for small enterprises’ should become the
benchmarking reference for progress.

8.7.
As most enterprises develop primarily at grass-roots
level, the territorial dimension of the Employment Strategy
should be more clearly highlighted. The Committee suggests
that the EU Commission’s proposed action plan for 2001
place strong focus on new and small enterprises and on the
creation of ‘skills development and innovation partnerships’
between different actors (small and large enterprises, trade
unions, social economy, NGOs, local authorities, public service
providers) (3) to boost competitiveness. The Territorial Employ-
ment Pacts and similar local action plans could serve as models
for successful local partnership.

(1) OJ C 157, 25.5.1998; Supplementary pension rights of persons

moving within the EU.

(2) OJ C 204, 18.7.2000, section 3, point C, Supplementary health

insurance.

(3) OJ C 14, 16.1.2001.

8.8.
Now that the European Company Statute and the
related directive have been approved, corresponding pro-
visions must be speedily adopted for cooperative firms,
voluntary organisations and mutual societies.

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8.9.
The conclusions of Lisbon made a special appeal to
companies’ corporate sense of social responsibility, and a
follow up is proposed in the Social Agenda.

8.10.
In addition to the regulations introduced by the social
partners or by lawmaking bodies, the Committee advocates
that businesses assume social responsibility by taking account
of the interests of all stakeholders. It feels that industry and
commerce should strive for legitimacy by stating a long term
commitment
to society and sustainable development by
promoting good practice in terms of integration in the local
environment,
in-depth social dialogue, attempts to achieve
equality and equal treatment, integration of minorities, finan-
cing micro-enterprises, etc. Here, for instance, the recently
adopted OECD guidelines for multinational companies, which
encompass non-binding ethical, social and environmental
commitments can serve as model.

9.

Internal market rules should be simplified

The Lisbon Summit made commitments to complete
9.1.
the internal market so as to satisfy the interests of business
and consumers.

9.2.
The Committee recognises the urgent need to set in
train a new simplification policy in order to ensure the proper
functioning of the Single Market.

The Committee is in favour of framing rules in a balanced
way, avoiding the introduction of new constraints which are
out of proportion to the objective being pursued, yet at the
same time taking care not to compromise the quality of goods
or services. The Committee has itself undertaken to introduce
a proposal for a code of good conduct for the EU players in
the regulatory process.

9.5.
The Committee also calls on the Council to propose
special measures aiming to ensure that the single market also
has a positive impact on the permanent specific problems of
the disadvantaged islands and rural areas and on the outlying
EU regions (1).

10. Financial markets and services should contribute to

social cohesion

10.1.
The Committee is in favour of rules that integrate the
fragmented financial and banking markets in the EU but
which take account of the interests of all major stakeholders
(consumers, savers, enterprises and investors).

10.2.
Financial markets and financial services should not
only contribute to economic performance but also to social
cohesion.

10.3.
There is concern for that the development of financial
lead to exclusion of
markets and financial services will
citizens with limited resources, peripheral regions and small
enterprises. Against this background there should be an EU
drive to ascertain how, without compromising banking secre-
cy, banks, insurance companies and other providers of finan-
cial services could be required to disclose how their services
are distributed according to social and regional criteria.

10.4.
banking criteria,

The Committee considers that, subject to normal

9.3.
Against this background, the Committee urges the
European Council to adopt, by 2001, a multiannual simplifi-
cation programme for the period up to 2005, setting out
priorities and a timetable for action including resources for
follow-up, monitoring and drawing up annual reports and
scoreboards.

— citizens should have the access right to a basic bank
account and basic quality financial services that serve
their needs including accessible consumer credit, protec-
tion from usury and other forms of exploitation as well
as the possibility to save for ethical, social or ecological
purposes;

The multiannual plan should, among other things,

9.4.
make provision for:

— more effective use of impact statements;

— alternative courses of action such as codes of conduct,
contractual arrangements as well as greater use of labels,
certification and other self-regulation procedures involv-
ing enterprises,
trade unions and consumers in the
process.

— small enterprises should have access to credits.

In order to fulfil these commitments, financial institutions can
make use of intermediaries that are set up by a small enterprise
or citizens themselves.

(1) Articles 158 and 299 of the EU Treaty.

11.5.2001

EN

Official Journal of the European Communities

C 139/41

11. Research and innovation

The ESC has endorsed in various opinions the EU
11.1.
commitment to proceed towards a European Area of Research
and Innovation to underpin the knowledge society (1).

To optimise research performance and use of financial
11.2.
resources, both coordination and decentralisation are needed.
The Committee would stress the need also to make research
accessible to sections of society which previously were disad-
vantaged.

11.3.
Therefore the Committee suggests that the forth-
coming 6th EU RTD programme should focus on a limited
number of priorities under the direct control of the Com-

(1) OJ C 14, 16.1.2001; New knowledge, new jobs. OJ C 117,
26.4.2000, p. 62, Employment, economic reforms and social
cohesion.

mission; provide for decentralised management at national and
local level of small scale projects and for small Community
financial participation in national projects that are within the
Community priorities (2).

11.4.
The Committee also hopes that the Stockholm Sum-
mit endorses its proposal that a few ‘networks of excellence’
should be set up initially on a trial basis and for a limited
period. It also approves of the establishment of a network of
strategic intelligence systems for science and technology so as
to disseminate results and organise exchanges (3).

Finally, the Committee supports the setting up of an
11.5.
agency for information technology to promote a competitive
European information society.

(2) OJ C 367, 20.12.2000; Follow-up, evaluation and optimisation of
the economic and social impact of RTD: from the Fifth Framework
Programme towards the Sixth Framework Programme.

(3) OJ C 14, 16.1.2001; New knowledge, new jobs. OJ C 204,

18.7.2000, p. 70; Towards a European research area.

Brussels, 28 February 2001.

The President

of the Economic and Social Committee

Göke FRERICHS