Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions - Strengthening the local dimension of the European Employment Strategy
Date: 2001-11-06
Institutions: European Commission
Subjects: European Union, cooperation policy, employment policy, regional policy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 06.11.2001
COM(2001) 629 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE
EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND
THE COMMITTEE OF THE REGIONS

Strengthening the local dimension of the European Employment Strategy

TABLE OF CONTENTS

1.

2.

2.1.

2.2.

2.3.

Introduction.................................................................................................................... 3

Towards a local Dimension of The European Employment Strategy............................... 4

The role of the local and regional level in the European Employment Strategy ......... 4

Trends in the Member States .................................................................................... 5

The consultation of local actors -"Acting Locally for Employment" ......................... 7

3. Developing local employment strategies......................................................................... 8

3.1.

3.2.

3.3.

Strengthening the links between local, regional, national and Community levels ...... 9

Building on experience and making better use of existing instruments.................... 10

Gender equality in local employment strategies ...................................................... 14

4. Operational conclusions ............................................................................................... 15

***

ANNEX 1: ORIENTATIONS FOR LOCAL EMPLOYMENT STRATEGIES.................... 17

1.

2.

Development of local employment strategies.......................................................... 17

Implementation of local employment strategies ...................................................... 22

ANNEX 2: SYNTHESIS OF THE CONSULTATION OF LOCAL ACTORS..................... 26

2

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE
EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND
THE COMMITTEE OF THE REGIONS

Strengthening the local dimension of the European Employment strategy

1.

INTRODUCTION

In April 2000, the Commission called on European institutions, and on all those interested in
local development, to reflect on the issues raised in its Communication on “Acting Locally for
Employment - a Local Dimension for the European Employment Strategy 1”. To this end, the
Commission supported a series of European seminars and initiated a six-month consultation,
ending with the Strasbourg Conference organised by the French Presidency in December
2000.

The consultation highlighted a broad political consensus as to the desirability of strengthening
the European Employment Strategy (EES). While the local
the local dimension of
development of employment was once considered as marginal compared to macro-economic
and structural strategies, it is now widely accepted that the mobilisation of local actors can
considerably contribute to the success of employment policies.

This recognition is based on several considerations: employment policies are more often than
not designed centrally but
local actors from small and medium
enterprises to municipalities, can significantly contribute to regional cohesion, innovation and
entrepreneurship, and introduce new forms of employment creation; the promotion of social
inclusion, equal opportunities and gender equality requires social support and democratic
participation at the local level.

implemented locally;

An important local dimension is also implied in areas with severe geographical or natural
handicaps, i.e., mountain areas, peripheral areas and those with a very low population density.
The Second Report on Economic and Social Cohesion highlighted the importance of these
areas, where a strong local dimension focused on economic development and the promotion
of employment must form a feature of cohesion policy in the future.

However, the consultation also confirmed that, while there is a general trend towards a greater
consideration for the local dimension of employment, many obstacles identified in the past2,
as well as in last year's consultation, persist (see annexes). The EES, and National Action
Plans for employment (NAPs) in particular, can provide a useful framework to overcome
these obstacles. Regional and local actors should be better informed and involved in the EES
process, and better use should be made of existing policies and instruments at Community,
national and sub-national level.

To this end, in line with suggestions made by the European Parliament3, Member States and
Community institutions should play a supportive role, notably by: being more accessible to

1

2

3

"Acting Locally for Employment – A local Dimension for the European Employment Strategy", COM
(2000) final 196, 7 April 2000
See for ex. Commission communication on local employment initiatives - COM(95)273
EP Resolution on the “Acting Locally” communication - C5-0597/2000

3

local actors; ensuring better information of local actors and a more coherent use of existing
policies and instruments; promoting capitalisation, evaluation, and the exchange of best
practices and experience.

The Commission's White Paper on European Governance recently stressed the need for a
stronger interaction between European institutions, national governments, regional and local
authorities and civil society,
in line with the principles of openness, participation,
accountability, effectiveness and coherence. The main responsibility for achieving this rests
the Commission should ensure that regional and local
with Member States; however,
knowledge and conditions are taken into account when developing policy proposals, while
fully respecting national constitutional and administrative arrangements4.

This Communication draws on past experience5, on the lessons of existing policies and
initiatives including the White Paper on Governance, and on the results of the Acting Locally
consultation process. The communication suggests ways to help local actors play their full
part in the European Employment Strategy in cooperation with national authorities and
Community institutions, pooling their resources, and establishing local employment strategies
where appropriate, thus eventually increasing the employment rate in Europe and providing
stable, quality jobs. Candidate countries should be fully involved in this process in view of
enlargement.

2.

TOWARDS A LOCAL DIMENSION OF THE EUROPEAN EMPLOYMENT STRATEGY

European institutions took note of the potential of local development in the fight against
unemployment as early as 19846. However,
local employment acquired an increasingly
prominent role only after the Commission's White Paper on Growth, Competitivity and
Employment7 was endorsed by the European Council in 19938.

Since the Luxembourg process was initiated in 1997, the development of the local dimension
of the EES has appeared as a complex process. This chapter analyses recent trends at the
Community, national, regional and local levels.

2.1.

The role of the local and regional level in the European Employment Strategy

Title VIII of the Treaty lays down the principles and procedures of a co-ordinated European
Employment Strategy (EES). Article 128 details the steps leading to the formulation of such
strategy, including, on an annual basis: Guidelines for employment and national reports on
their implementation; recommendations to the Member States; and a Joint Employment
Report by Council and Commission to the European Council9.

While the EES has so far relied mainly on efforts at European and national level, there is a
growing awareness that the objectives that the Union has set itself to improve performance in

4

5

6

7

8

9

Commission White Paper on European Governance, COM(2001)428, 27 July 2001
See chapter 2.3, annex 2 and, among others, the 1998 Report on local development initiatives (SEC 98-
25)
Council Resolution of 7 June 1984 (84/C-161/01). For an inventory of Community initiatives up to
1994, see Commission staff working paper SEC(94) 2199
OPOCE, supplement 6/93
For an overview, see the Commission's Report on local development initiatives, 1998 (SEC 98-25)
For information and documents on employment policy and the EES, see the following website:
http://europa.eu.int/comm/employment_social/index_en.htm.

4

the area of employment cannot be achieved without greater participation of the regional and
local levels.

In fact, since their inception, the Luxembourg process and the Employment Guidelines in
particular have increasingly incorporated the local dimension, by inviting Member States to
involve the regional and local levels. Starting with a focus on job creation at local level, the
Guidelines underlined first "the special role of local authorities and the social partners"
(1999),and then the need to support "the special role and responsibility of (…) other partners
at the regional and local levels, as well as the social partners" (2000).

In March 2000, the Lisbon European Council created a strategy stressing the importance of
interaction between economic, employment and social policies, of the mobilisation of all
players, and established a reinforced open method of co-ordination, described as a "fully
decentralised approach, applied in line with the principle of subsidiarity in which the Union,
the Member States, the regional and local levels, as well as the social partners and civil
society will be actively involved, using variable forms of partnership".

Finally, a consistent, comprehensive approach was included in the Guidelines for 2001:

"All actors at the regional and local levels, including the social partners, must be mobilised to
implement the European Employment Strategy by identifying the potential of job creation at
local level and strengthening partnerships to this end".

11. Member States will (…) take into account, where appropriate, in their overall employment
policy the regional development dimension(…); encourage local and regional authorities to
develop strategies for employment in order to exploit fully the possibilities offered by job
creation at local level and promote partnerships to this end with all the actors concerned,
including the representatives of civil society(…)10.

2.2.

Trends in the Member States

The implementation of the EES at the national level, notably through the National Action
Plans for Employment (NAPs) for 2001,underscores a broad trend within the Member States
towards decentralisation, as well as an increasing support for the social economy and for the
establishment of partnerships.

An increasing role for regional and local actors

National employment policies increasingly take into account the role that local and regional
actors can play in the EES and national employment plans11. The Joint Employment Report
(JER) for 2000 stated that "Member States are continuing to develop the territorial dimension
their employment policies" 12, although NAPs only rarely referred to integrated
of
employment plans promoted by local governments.

10

11

12

The National Action Plans for 2001, the Employment Guidelines for 2002, the Recommendations
addressed to the individual Member States, and the Joint Employment Report for 2001, are available on
the internet as of their adoption: http://europa.eu.int/comm/employment_social/empl&esf/ees_en.htm.
This trend will be examined in depth by the EES impact evaluation, in order to capitalise on its results:
national evaluation projects will try to review the key initiatives for job creation at local level, the
development and evolution of local partnerships, and their impact on employment.
European Commission, Employment policies in the EU and in the Member States, Joint report 2000,
Luxembourg 2001

5

The NAPs for 2001 highlight that Member States increasingly accept or actively promote
local authorities in the establishment and
closer co-operation of the regional and/or
implementation of their plans. Several Member States have allowed their respective regional
and local actors to join the EES process and, in some cases, have actively supported this
development. Although the involvement of the regional level is higher than the local, nation-
wide programmes tend to be designed in a more flexible way that takes into account the
territorial dimension. Programme implementation is being adapted to different circumstances,
and increasingly complemented by specific regional or local programmes.

The forms of co-operation of regional and local authorities in the development of the NAPs
are quite diverse; in some cases, it tends to become institutionalised. Regional Action Plans
(RAPs) are emerging in several Member States (Finland, Portugal and the United Kingdom).
Greece, France, Ireland and Sweden have developed Local Action Plans (LAPs).

Regions themselves are often taking over the task of promoting involvement at the sub-
regional level. Some procedural aspects of the open coordination method (definition of
objectives,
implementation, reporting, assessment) are also taken up and used in the
relationship - in some cases contractual - between national governments and localities.

Support for the Social economy and Partnerships

Member States increasingly address the social economy as an important factor for local
development along with enterprises and an appropriate institutional framework. However, the
NAPs 2001 show widely differing understandings of the meaning of social economy. While
all Member States include the main components of the social economy (co-operatives,
mutuals, associations, foundations, voluntary and community organisations),the principle of
treating these elements as a cohesive group is not common to all Member States.

Greece supports entrepreneurship in the social economy, in particular on remote islands and
in the mountain regions. In France, the social economy is an integral part of the contractual
relationship with regions and localities. Sweden will devote financial support to local co-
operative development centres in 2002, to strengthen knowledge of the co-operative society.
Austria gives financial support to "Sozialökonomische Betriebe" for special target groups
working in market niches.
In Belgium, a co-operative agreement exists between the
Government and the Regions/German community for financial support to job creation in the
social economy

The concept of partnership at the local level is not well defined in all Member states,
particularly as concerns the role of local policy-makers and administrations in creating and
managing partnerships. However, social partners and Public Employment Services (PES) are
increasingly involved in local strategy development and implementation; they have acquired a
specific and important role in the local and regional labour markets. In some cases, PES now
play an active role in implementing and developing regional and local employment strategies
and programmes (e.g. France).

These developments are driven by the political priorities of the European Employment
Strategy. Territorial Employment Pacts, launched by the Commission in 1997 and supported
by the Structural Funds, provide examples on how partnership-based, integrated strategies can
be developed and implemented. (e.g. in Austria, France, Greece, Italy and the Netherlands)

The Commission recently underlined the role that local and regional actors can play in the
development of new forms of governance in the Union. However, the level of involvement of

6

regional and local actors in the EES depends on the political and constitutional structures of
each Member State, and must be determined in accordance with the principle of subsidiarity.

Encouraging entrepreneurship

The local level is ideally suited for encouraging entrepreneurship, especially through the
setting up and development of new, small and innovative enterprises, as underlined by the
Lisbon and Feira European Councils13. The identified areas where substantial progress is
needed include availability of finance for small enterprises, an adequate regulatory and
administrative framework and a climate supportive to entrepreneurship and innovation.

2.3.

The consultation of local actors - "Acting Locally for Employment"

In order to highlight the regional and local dimension of the EES, and to obtain the views of
local actors, the Commission launched in April 2000 a consultation and awareness-raising
campaign.

Over several months, activities of two kinds were organised: a policy debate based on the
Commission communication entitled “Acting Locally for Employment - a Local Dimension
for the European Employment Strategy”14; and experimental activities launched as part of the
“Preparatory Measures for a Local Commitment for Employment”.15

The consultation confirmed that, in the view of local actors, and as underlined by the
European Parliament resolution on the Commission's communication16, the information and
involvement of the local level in the NAP process and in the ESF implementation are largely
insufficient. Reactions collected during the consultation pointed to the need for further action,
along two axes:

• a horizontal one: the development of local employment strategies;

• and a vertical one: better integration of strategies and action between the local, regional,

national and Community levels.

Throughout the consultation, local actors showed considerable experience in developing local
employment initiatives, and a willingness to act more strategically. However, the shift from
individual local employment initiatives to coherent, integrated strategies represents a major
challenge for local actors; it requires commitment and support at the regional, national and
Community level, in the framework of the overall Community's employment strategy.

This Communication draws on the European Employment Strategy process and on results of
the consultation. A comprehensive report on the consultation can be found online at the
following website: http://europa.eu.int/comm/employment_social/; a summary of the results is
in annex 2.

13

14

15

16

See in that respect "European Charter for Small Entreprises" adopted by the General Affaires Council.
13 June 2000 and welcomed by the Feira European Council, 19/20 June 2000
See reference on footnote 1.
VP/2000/05, currently followed, for 2001, by VP/2001/15.
See reference in footnote 3.

7

3.

DEVELOPING LOCAL EMPLOYMENT STRATEGIES

The Commission considers that the development of a local dimension in the EES can
significantly contribute to the wider Community objectives of full employment, sustainable
economic growth, and social cohesion, particularly in an enlarged Union.

This applies also in related processes such as the fight against poverty and social exclusion.
The Commission's first analysis of the member States' National Action Plans for Social
Inclusion (2001-2003) highlights that regional and local authorities can make a particularly
significant contribution to the Union's combat against social exclusion, and to the objectives
for policies in this domain endorsed by the Nice European Council.

The fight against poverty and social exclusion is a complex policy area, not limited to the
issue of access to the labour market: it involves employment as well as housing, education or
health, and requires the mobilisation of a wide range of policies and actors. However, social
exclusion has become an essential element of the Lisbon process and of mainstream ESF17:
special attention will be given to the link between the employment strategy and the inclusion
process in terms of labour market participation for the most vulnerable at the local level.

The Commission seeks to increase the contribution of local actors to the success of all four
thematic pillars of
improving employability; developing entrepreneurship;
encouraging adaptability in enterprises and workers; and gender equality.

the EES:

To this end, in line with Employment Guideline 11 and with the recent trends in the Member
States highlighted in Chapter 2.2. above,the Commission will encourage, on the one hand, the
dissemination of best practices and experiences in the Member States. On the other hand, the
development wherever possible of local employment strategies.

These strategies may be structured and formalised, in agreement between national and sub-
national actors, into Local Action Plans (LAPs) within the framework of the existing
National Action Plans established by Member States.

This can be achieved within the existing process and institutional mechanisms within Member
States, and in full compliance with the principles of subsidiarity and proportionality:

- by strengthening the links between different territorial decision-making levels;

- by increasing the effectiveness and co-ordination of existing Community policies and
instruments;

- by empowering local actors, especially women drawing on their views and experience, and
developing the factors for success of a local employment strategy as outlined in the "Acting
Locally" communication.

Local development is a cross-cutting policy area. It covers not only employment, but also,
among others: gender equality,
innovation,
information society. Indeed, a number of policies and initiatives taken at Community, national
and sub-national levels may have a more significant impact on local employment than those
specifically targeted to local development. Therefore, evaluation in this area is essential for
future policy development.

inclusion, economic development,

social

17

See Chapter 3.2.

8

3.1.

Strengthening the links between local, regional, national and Community levels

The institutional and administrative structures of present and future EU Member States vary
considerably. It would therefore be pointless - and beyond Community competence - to
establish common, prescriptive rules for the articulation between different territorial levels.

Depending on the particular legal and administrative framework of different Member States,
responsibility for different aspects of economic development policy and social policy may be
allocated to the national, regional or local levels. It is therefore important to facilitate co-
ordination between policy-makers at different levels in order to ensure that these policies
contribute effectively to local employment strategies.

The development of a local dimension of the EES requires political will at Community,
national, regional and local level, as well as awareness-raising, experimentation and exchange
of good practices. Local authorities and actors are often confined to implementing measures
decided at national or regional level. The EES, National Action Plans and NAPs for Social
Inclusion, as well as Structural Funds programmes, are not sufficiently well-known at
regional and local levels. That said, projects supported under the Community Initiatives and
Innovative Actions often have a higher visibility at local level and this must be built on in the
future.

Local actors should be fully informed of EU and national policies and, taking these fully into
account, be encouraged whenever possible to design local employment strategies as opposed
to isolated initiatives and projects.

A local employment strategy should aim at developing employment on a given territory
through an integrated set of measures and action plan. The strategy should consist
in:
targeting a local area; establishing a local diagnosis of strengths and weaknesses;
identifying potential actors and developing mechanisms to co-ordinate their
inputs;
analysing opportunities and threats regarding employment in the targeted territory; and
involving regional and national authorities, drawing from the relevant National Action Plan
for employment.

In order to increase their potential for a sustained impact on employment, local strategies
should: be consistent with the objectives and priorities of NAPs; be agreed between the
various levels of competent authorities and local actors, on the basis of a shared diagnosis of
problems and assets; and be translated into a specific action plan. While local authorities and
actors must build on the employment Guidelines and NAPs when drawing up their strategies,
the process should be two-way: Community, national and regional actors should in turn
inform and involve local players in the NAP process.

It this respect, it is particularly important to promote the exchanges of information between all
public and private actors involved in the EES (administrations, social partners, public
employment services, NGOs). Better consistency can also be ensured through direct
involvement
in local partnerships of representatives of head offices and organisations
operating at regional and national level.

In order to contribute to this process while taking into account the member States' diverse
legal and administrative structures, the Commission will propose that Member States include
including
the issue of local employment
through the work programme of the European Social Fund's Informal Network of Information
Officers.

information policy priorities,

in their national

9

The Commission will also propose to hold, at the beginning of 2003, a Local Development
Forum, in which the parties concerned - local and regional actors, Member States and
candidate countries, European institutions - could meet and exchange experiences and
information.

3.2.

Building on experience and making better use of existing instruments

At the EU level, a number of initiatives have highlighted the potential of the local level in
promoting employment. As early as 1993, with the publication of the "White Paper on
Growth, Competitiveness and Employment", the Commission emphasised the importance of
job creation and new sources of employment, particularly in the area of services supplied at
local level18. The 89 Territorial Employment Pacts (TEPs) launched as pilot projects in 1997
reflected this orientation19. The Commission has launched a thematic evaluation of the
Territorial Employment Pacts which will be available by mid 2003. This evaluation will
provide valuable learning on the local dimension to employment promotion which can feed
into the strengthening of this dimension of the European Employment Strategy. Local
employment development has further been explored though various programmes at
the
Community20 and Member State level.

The EU EURES service, designed to facilitate the exercising of the right of EU and EEA
citizens to work in another Member State, provides information, advice and placement
assistance based on a network of experts, a large number of contact points in partner
organisations and a free-access service on the Internet. Cross-border EURES makes a
special contribution to local development on the basis of local partnerships, and to the social
dialogue on employment policy in cross border areas21.

Significant lessons can be extracted from several EU programmes and initiatives conducted in
policy areas other than employment 22. The Leonardo da Vinci programme has contributed to
local employment development, in particular by maintaining traditional skills and professions
as well as developing new ones. It has moreover promoted guidance at local level. »

In the case of the URBAN Community Initiative, an ex post evaluation of its operation
between 1994 and 1999 will be launched by the Commission in 2002. URBAN focuses
explicitly on local areas, in recognition of the fact that national or regional responses are
sometimes to generalised to tackle the particular needs of a locality and that those who live
and work there are often best placed to develop appropriate measures. URBAN has followed
this area based approach, with an emphasis on capacity building, greater local autonomy and
enhanced targeting of action, as well as a greater ability to concentrate on areas of particular
need. It covers a wide range of projects combining renewal of obsolete infrastructure with

18

19

20

21

22

(November 1999) at

Commission Communication on A European strategy for encouraging local development and
employment initiative O J COM (95) 273, Brussels, 13 June 1995
On TEPs, see the Commission services' document
http://inforegio.cec.eu.int/pacts.
Article 6 of the European Social Fund (New Job Sources and Local Social Capital), the Incentive
measure programme under Article 129 of the Treaty, the ADAPT and EMPLOYMENT Community
Initiatives, the pilot projects for long term unemployed (B5-502) and the Third system and Employment
pilot action programme
See Eures website: http://europa.eu.int/comm/employment_social/elm/eures/en/index.htm
e.g. LEADER on rural development, URBAN on urban development, Article 10 of ERDF on new
sources of jobs, innovation and information and communication technology, Fourth Programme of
Targeted Socio-Economic Research and the projects funded under the Preparatory Actions to combat
and prevent social exclusion

the TEP website:

10

measures designed to stimulate the economy and employment. The ex post evaluation will
identify the lessons to be learnt from the 1994 to 1999 period. It will feed into the
implementation of the Initiative in the 2000-2006 period and also into the distillation of
learning on best practice in relation to local employment development.

The role of the Structural Funds mainstream

The emphasis from isolated local employment initiatives to integrated strategies is already
being reflected in mainstream Community policies and programmes.

The new Regulations governing the Structural Funds for the 2000-2006 period state that the
Funds should play a particular role in favour of local economic development, by promoting,
among others, TEPs (now included in the Regional Fund Regulation) and new sources of
employment, and by measures to encourage and support local development and employment
initiatives. 23.

The creation of a broad partnership, encompassing a wider range of institutional, private and
associative actors at regional and local level is a key feature of the new round of Structural
Funds programmes. There is clear trend in the Member States towards greater involvement of
regional and local authorities in the whole programming cycle, which should contribute to
foster regional and local actors' empowerment with respect to the assistance supported by the
Funds. There is a particularly strong emphasis on this aspect
in the Structural Fund
programmes of Italy, Spain and France, where the experience gained under the Territorial
Employment Pacts is reflected in local development priorities in mainstream programmes for
2000-2006.

In the context of a decentralised programming exercise, local authorities have increased their
participation in implementing operations co-financed by the Structural Funds, especially in
those Member States where local partners play a key role in the delivery of policies selected
for support from the Funds. Moreover, their involvement in the formulation of the main
policy priorities for assistance from the Funds has enabled local-tailored needs to be taken
into account in the strategies and priorities set out in the programmes. The fundamental
objective of the greater involvement of regional and local authorities in the programming
cycle is enhanced relevance and therefore effectiveness and impact of the interventions
implemented with the support of the Structural Funds.

Local development will be thus supported by through a dual approach: as a cross-cutting
theme to be mainstreamed throughout the planned priorities, and as a specific measure for
promoting local employment initiatives and the social economy.

A first analysis of how the European Social Fund (ESF) in particular will support the EES24 in
the 2000-2006 programming period highlights improvements in the regional and local
dimension of the implementation of the Fund. The new ESF Regulation contains a specific
provision aimed at facilitating the participation local partners and NGOs in ESF supported
programmes in the form of small grant schemes25. The appointment of local organisations as

23

24

25

Regulation (EC) No 1784/1999 of 12 July 1999 on the ESFund, O.J. 13.8.1999, p L213/6, Article 2.2
(a)
Communication on European Social Fund support for the EES COM(2001) 16 final/2, 23.01.2001
Article 4.2. of Regulation (EC) 1784/1999 on the ESF provides that Member States will allocate a
reasonable amount of Objectives 1 and 3 appropriations for global grants, managed by intermediary

11

intermediate structures responsible for allocating small grants to micro projects, should make
easier for local actors to benefit from ESF co-financing to implement projects stemming from
their own initiative.

Within the new round of programmes under objectives 1,2 and 3, the European Social Fund
embraces an integrated strategy the fight against exclusion in the labour market. Reducing
unemployment is not often possible if other forms of exclusion are not also tackled. This
comprehensive approach in promoting social inclusion in the labour market calls for a greater
participation of all relevant actors, notably those at the core of exclusion problems, in the
design, implementation and monitoring of ESF monies. It represents a new challenge for the
ESF to build on the existing capacities at local level, by promoting wider access of local
actors such as social partners, NGOs and other small local organisations, as full beneficiaries
of the ESF.

Over the next seven years the ESF will devote around 9 Billion
to promote social inclusion
activities in the Member States, through measures aiming to improve the employability and
education of the most disadvantaged groups and measures addressing discrimination and
inequality in the access to labour market.

€

The role of EQUAL

The EQUAL programme provides 2.8 billion Euro over the period 2000-2006. Building on
the lessons from the previous Community Initiatives - especially EMPLOYMENT -, it aims
to test out new approaches to meet the needs of those who are excluded or discriminated
against in the labour market. It has therefore the potential to provide an essential contribution
to local employment development26.

The Commission intends to use EQUAL to develop partnerships, notably at the regional and
local level, and build on the two key success factors identified through evaluation: a high
degree of local/regional networking, and collaboration in disseminating and transferring the
results.

The role of innovative actions under ESF Article 6

Among the various Community financial instruments which can support local employment,
the Innovative Actions under Art.6 of the ESF Regulation27 play an important role in testing
new approaches and identifying good practices which may subsequently improve the
implementation and outcome of operations supported by the Structural Funds.

During the 1994-1999 programming period, ESF Article 6 supported a range of projects in the
field of employment creation and vocational training, most of which had a local focus. In its
January 2001 Communication on the implementation of Article 6,
the Commission
emphasised the importance of close co-operation between European institutions and national,
regional and local governments, as well as the social partners and Third System organisations;
the Communication also stated that, in 2001-2002, innovative measures would concentrate on
a defined number of priority themes, one of which is "Local employment strategies and
innovation".

bodies that will in turn offer support in the form of small grants to NGOs and local partnerships. Most
Member States' programmes have allocated 0.5% to 1 % of the appropriations to this form of support.
See EQUAL website at: http://www.europa.eu.int/comm/employment_social/equal/equal.cfm
Regulation N°1262/1999 of 21 June 1999, OJ 26.6.1999, L 161/48

26

27

12

The Commission wishes to ensure that local development continues to be a priority, so that
that Art. 6 fulfils its role as a test-bed of new ideas and processes that can influence the
mainstream ESF. Greater attention will be paid to ongoing monitoring and evaluation of
projects and networking between project promoters, the Commission, Member States and
experts.

Piloting the implementation of the EES at the local level

For the years 2000 and 2001, the budgetary authority made available a budgetary allocation to
support preparatory actions for local commitment for employment (budget line B5-503).
Considering that the EES offers the framework within which to develop integrated local
employment policies, the purpose of this budget line is to:

Pilot
the application of the European Employment Guidelines as a framework for the
development of local employment strategies that may lead to Local Action Plans for
employment (LAPs);

Raise awareness of the potential for employment creation of action at local level, develop
transnational co-operation; and promote the identification and exchanges of good practice.

The actions envisaged may, at a later stage, be complemented through European Social Fund
(ESF) Article 6 projects, in order to promote the role of the Third System/social economy in
the creation of local employment and to gain experience in the implementation of local
employment strategies.

The evaluation of Third System pilot projects underlines that the Third System has the
potential to make valuable contributions to the creation and maintenance of employment in
Europe, and at the same time to meet market failures in the provision of goods and services in
a wide variety of social, environmental and cultural situations.

A global evaluation of local development

The evaluations of ESF interventions during the period 1994-1999 did not specifically
consider the local dimension as a thematic priority, mainly because it was not considered as
such in the related Community Regulations. However, a number of on-going or planned
evaluations are of direct
the thematic evaluation of the
to local development:
Territorial Employment Pacts, the ex post evaluation of the URBAN Initiative and an
evaluation of the year-2000 Preparatory measures for a local commitment on employment. In
the context of a recently launched evaluation of the EES, national evaluation projects will
examine developments in the area of local employment. Results will be available in the spring
of 2002.

interest

The Commission intends to build on the experiences acquired with local networking. Several
evaluations of ESF interventions relevant for local development are to be conducted, covering
a significant sample of territories.

In order to make better use of existing policies and instruments, the Commission will consider
local development as a priority in its evaluation activities for the present programming period.
It will conduct an overall evaluation of local development. Such comprehensive evaluation
and synthesis on local employment development would provide an overview and ideas for the
future on its impact, including programmes such as social exclusion or equal opportunities
that have an important local element.

13

Such strategic thematic evaluation on local development will be designed to complement and
build on evaluations currently planned or underway. It will focus on the Structural Funds but
extend to other Community policy areas, concentrating mainly on the following issues:

• How have EU policies and programmes taken into account
contributed to a supportive environment for local employment;

local development and

• How EU activities and programmes have been co-ordinated in this field; what means have
been developed to ensure the participation of local actors into EU policy-making; what is
the degree of local actors' information and awareness of EU programmes and policies; how
co-operation between the various local and regional partnerships (employment, innovation,
information society) could be enhanced.

• How the results and innovations of EU activities and programmes on local development

have been included in the mainstreaming process.

3.3.

Gender equality in local employment strategies

The EES establishes that Member States should adopt the gender mainstreaming approach in
implementing the Guidelines. A number of existing projects, serving as examples for
Territorial Employment Pacts, aim at achieving equal opportunities. However,
is the
Commission’s view that gender equality has received insufficient attention in the past, and
that it is at the local level that gender equality measures can be most effective.

it

In the last programming period (1994-99), a number of projects financed by the ESF
mainstream and by Community initiatives have contributed to gender equality in local
employment, e.g. by supporting education in future-oriented professional fields or business
start-ups in rural areas. For the period 2000-2006, Structural Fund regulations make gender
mainstreaming a requirement of all programmes and actions.

A key element of the EES, now at the heart of the ESF, is the promotion of gender equality.
Taking into account Employment Guideline 11, the ESF and local employment strategies
therefore now include gender mainstreaming as well as specific gender equality measures28.

Since local employment is also a horizontal priority in the new ESF regulation, measures to
promote women's access and participation in the labour market must also include support for
local initiatives.

When developing a local employment strategy29, the gender dimension should be integrated
into the diagnosis of the territory. In setting the objectives of a strategy, attention should be
paid to new job opportunities for women to enter or re-enter the labour market (information
society, environment, leisure, tourism, culture, local products, welfare and personal services).

Women should be actors as well as target groups in local employment strategies. This
implies: the involvement of equal opportunities bodies in local authorities; gender balance in
committees; increased participation of women in local social partner organisations; the use of
the skills and experience of women in the social economy and the voluntary sector, where

28

29

Although it is difficult to put a precise figure on overall investment, specific actions to promote gender
between 2000-2006.
equality supported under the ESF in 2000-2006 will provide nearly 4Billion
Funds supporting mainstreaming actions would increase this amount significantly.
see annex, chapter 1.

€

14

women play a major role; and the involvement of women's NGO's in local and regional
partnerships and Territorial Employment Pacts.

Involving local actors in the promotion of gender equality

Local actors themselves should play the most significant role in the establishment of local
employment strategies with a gender equality component. In particular :

• Local authorities, as main or "model" employers, should promote women's/Employment
and quality in the administration and public services, notably by measures to reconcile
work and family life and to promote women in management positions. They should
support entrepreneurial activities of women, and improve infrastructures that are important
for women in rural areas;

• Local enterprises as employers should enhance women's career prospects (for instance, by

acting as mentors for smaller firms set up by women);

• The 3rd system/social economy organisations can improve women's access to the labour
market, by offering services that women deliver in the domestic sphere, and jobs for
women re-entering the labour market;

• Social partners can promote women's career opportunities and the reconciliation of work
and family life, both at enterprise level (e.g. flexible working time arrangements), and at
level, e.g. by speeding up implementation of directives and social-partner
territorial
agreements in this field;

• Local public employment services can act as model employers, e.g. by gender

mainstreaming and by offering gender training to their staff.

• Education and training institutions can help women improve their career prospects, and

provide gender training for local actors.

4.

OPERATIONAL CONCLUSIONS

The European Employment Strategy has introduced a new dimension in the promotion of
more and better jobs. At the Community level, through the employment guidelines, annual
examination and peer review of Member States' performance, and recommendations to
individual countries, the EES is providing an integrated framework to meet the Union's
objectives in the field of employment and labour market reforms. At the Member States
level, through the NAPs and both community and national financial support, the employment
Guidelines are translated into a coherent employment strategy.

At the regional and local levels, actors should be given the opportunity to work increasingly
together, to interact with national and European institutions and policies, and to develop
partnerships in support of the European Employment Strategy. Local actors also have a key
role to play in promoting gender equality and developing integrated approaches to social
inclusion.

While respecting the existing distribution of competencies within the Community and
Member States, the Commission will:

15

• In line with the principles of the White Paper on European Governance promote the
information of local actors on the EES and NAPs, as well as the exchange of best
practices, benchmarking and peer review in the implementation of NAPs in the area of
local development. In particular, the Commission will:

– attach a priority to local employment in its own information activities. It will facilitate
access of local actors to Community programmes and initiatives by setting up a local
development website and coordination between the different Commission services
involved;

– propose the inclusion of local employment among the priorities of Member States'
information policies, notably through the existing institutional bodies such as the Social
the Employment Committee and the Informal Network of ESF
Fund Committee,
Information Officers (INIO);

• monitor and support the development of local employment strategies in order to
promote and integrated approach to local development in the Member States, notably
through National Action Plans and the Employment Committee (EMCO); through NAPs
for Social Inclusion; and through the implementation of the ESF Regulation's provisions
aimed at
facilitating the participation local partners and NGOs in ESF-supported
programmes;

• ensure that the experiences gained in the development of local employment strategies,
including as concerns the promotion of gender equality, are disseminated within Member
the
States and candidate countries, and integrated in the EES. For
Commission proposes to hold, at the beginning of 2003, a Local Development Forum
where the parties concerned - local and regional actors, national governments,
the
the Committee of the Regions and the Economic and Social
European Parliament,
Committee - could meet, exchange experiences and information, and contribute to the
development of the EES. Candidate countries will fully, participate in the forum;

this purpose,

• assist local actors who wish to engage in a more strategic approach to local development,
including local employment strategies and Local Action Plans established in the
institutional framework of the Member States' National Action Plans. The Commission
will provide support through the available financial instruments, and in particular the ESF
Art. 6 programme on innovative actions. Financial support required to implement local
programmes for employment, human resources development, and social inclusion, will
have to be included in mainstream operational programmes such as the ESF.

• undertake an overall strategic evaluation of actions for local development supported
under the various Community policies and financial instruments. Taking into account the
prospect of EU enlargement, results of the evaluation should allow in particular to: ensure
that the experience gained in local actions for employment is brought to bear in developing
the local dimension of other processes and programmes, especially NAPs for Social
Inclusion and EQUAL; improve the overall framework for local action for employment on
the basis of the experience gained from individual actions and programmes, including
Territorial Employment Pacts and URBAN;

• intensify co-operation with other international organisations active in this field, in
particular the OECD and ILO, in order to draw on their experience and to widen the
dissemination of the lessons learnt at European level to candidate countries and other non-
EU countries.

***

16

ANNEX

ANNEX 1: ORIENTATIONS FOR LOCAL EMPLOYMENT STRATEGIES

This annex develops the criteria and requirements for success of local employment strategies
outlined in the April 2000 Communication on "Acting Locally for Employment", and
tentatively identifies action that might be taken at local, regional, national and Community
level to facilitate the approach described in the present Communication.

Employment strategies, established at the initiative of local authorities and actors, may be
transformed into Local Action Plans (LAPs) when they are integrated by Member States into
their National Action Plans.

1.

DEVELOPMENT OF LOCAL EMPLOYMENT STRATEGIES

In the light of past experience and of the results of the consultation described in chapter 2.2 of
the present Communication, six priority areas might be considered in order to facilitate the
development of
environment,
strategies:
experimentation, evaluation, benchmarking, training, and co-operation/exchanges.

employment

creating a

favourable

local

1.1.

Creating a favourable environment

The Member State's legislative, legal, institutional, financial and administrative framework
could be made more conducive to the local development of employment. In particular, there is
ample scope to: clarify the distribution of responsibility between and across levels; simplify
rules and procedures and limit administrative requirements; provide logistical and
methodological support to local players who adopt a strategic approach.

Examples drawn from the Acting Locally for Employment consultation

While a key aspect of an efficient Public Employment Services is the centralised exchange of
information about job opportunities across regions, the decentralisation of service delivery
may allow PES agencies to become real partners
strategies.
Decentralised units should be given more autonomy in the management of funds and the
adaptation of the mix of employment policy tools to local labour markets.

in local employment

Third System Organisations perceive that some of their financial difficulties lie in regulatory
issues : banking regulations impede the development of funding instruments adjusted to their
needs, and competition rules prevent local authorities from adding so-called social clauses in
public procurement.

The Euroméditerranée project in Marseille and the Provence Alpes Côte d'Azur Region

The "Euroméditerranée" idea was born in 1989, but it was only in 1995 that the Etablissement
public d’aménagement Euroméditerranée (EPAEM) was established as a scheme of national
interest with a budget of 1.7 billion FRF for 1995-2001, increased to 2.5 billion FRF in 1999.
Euroméditerranée is State-run in partnership with local authorities (city of Marseille, PAVCA
Region, Département des Bouches-du-Rhône, Marseille Provence Métropole urban
community).
influence, urban
development and measures for inhabitants" in 311 hectares housing 30 000 inhabitants. "We
are urban negotiators", says Jean-Michel Guenod, the Director-General.

Its task is to "ensure economic development, cultural

17

The five sites are: the Zac Joliette, where the docks have already been restructured (80 000 m²
of commercial property) ; the rue de la République, with 4 000 dwellings to be renovated; the
Saint-Charmes-Porte d’Aix quarter with the TGV station; the Belle de mai, where tobacco
factories are being restructured (120 000 m³) into a centre for the culture and communication
industries, with audiovisual studios; and finally the Cité de la Méditerranée (110 hectares),
with 2.7 km of seafront, with plans for the restructuring of the port area, a museum, etc.

1 500 businesses and 6 000 jobs have been created on these sites. Public investment,
including European funds, is estimated at 6 000 million FRF, with total investment, including
private investment, totalling over 20 000 million FRF for 1996-2010.

This project has already received assistance from the Structural Funds in the 1997-99 SPD,
and under the 2000-06 SPD will receive 22.9 million euro, or 150 million FRF.

In Sweden, Growth Agreements were introduced at county level in 1998. They consist of
development programmes to make use of the potential for growth in the business sector that
has been identified locally and regionally. The programme is worked out in partnership. The
objective is to stimulate a sustainable economic growth and thus increased employment for
both women and men. Labour market policy has an important ecological dimension. The
support for local investment programmes is one way of combining measures for environment
and employment. The programmes are also a way of linking together national and local
policy. Municipalities can apply for financial support to local investment programmes that
comply both with environmental criteria and requirements to create employment.

Swedish NAP 2001, p. 4.

Within the framework of "Preparatory measures for a Local Commitment for Employment"30,
a call for proposals has been issued by the Commission in 2001. Projects that will be selected
for support under Measure 1 (Capacity building) will explore ways to create an enabling
environment.

The Commission has also funded preparatory measures in support of actions to combat and
prevent social exclusion. While these have clearly been focussed on objectives in that
particular sphere, they may also provide lessons regarding approaches to locally based
partnership which are of interest in the sphere of employment.

1.2.

Experimentation

Further experimentation will be needed in order to refine the strategic approach to local
employment development, and to establish how the different categories of local players can
act locally for employment.

30

OJ C 130 of 01.05.2001, p. 10.

18

The Cities of Barcelona and The Hague have experimented how local authorities can use
ICTs in a multi-purpose way to improve the working conditions of their staff and the quality
of the services they provide, to promote life long learning and help the local population bridge
the digital gap.

A number of local financial instruments that could match Third System organisations' needs
have been found to require further testing : social-risk or venture capital, guarantee funds, low
interest rates repayable loan funds, micro-finance,
incentives for commercial financial
institutions to invest in social economy organisations, public financial guarantees based on the
accounts of the organisation and approved project finances. Experimentation could also be
conducted in the field of social audit and accounting.

13 projects selected under the Commission's call for proposals launched in 2000 within the
framework of "Preparatory Measures for a Local Commitment
for Employment" are
experimenting the preparation of Local Action Plans in 76 local areas in 2001. Conclusions
from this experiment will be available by mid-2002.

Further experimentation of the whole local employment strategy approach will be supported
under Article 6 of the ESF31. The Commission has issued a call for proposals in 2001 and will
select projects at the beginning of 2002.

The lessons drawn from all these experiments will be taken on board before the approach is
mainstreamed, with the possible support of the ESF, during the second part of the 2000-2006
programming period.

1.3.

Evaluation

Since the launch of the European Employment Strategy in 1997, much progress has been
to evaluate the employment performance.
achieved at EU and Member States level
relating to employment,
Instruments have been developed that
the employment
unemployment,
guidelines32. Further indicators are being defined in relation to quality of work and life 33.

the economic situation and the implementation of

indicators

include

This know-how needs to be disseminated within Member States down to the local level. As
local development strategies help to improve the quality of social policy, the Commission
intends
the
Communication on "Investing in quality"34.

to integrate this dimension in the "quality reviews" proposed under

The Commission will review the way in which ESF programming for the period 2000-2006
has taken account of the provisions of the ESF Regulation concerning local development
measures, and the degree of involvement of the local level in the application of the principle
of partnership in the management of the Fund.

31

32

33

34

Communication on the implementation of Innovative Measures under Article 6 of the European Social
Fund Regulation for the programming period 2000-2006, COM (2000) 894 final, 12.01.2001
JO L 22 of 24.1.2001, p. 18.
Communication Social and Labour Market Policies – Investing in Quality
Communication Social and Labour Market Policies – Investing in Quality

19

Within the framework of "Preparatory measures for a Local Commitment for Employment"35,
Measure 2 of the call for proposals issued in 2001 focuses on monitoring and evaluation.

Ex post evaluation will be commissioned to measure the long term impact of local
employment initiatives. The first of these evaluations will be conducted in 2003 and will
examine local partnerships involved in EU Programmes in the mid-nineties. An attempt will
be made to identify what results they have harvested since then and what changes they have
undergone. Findings from the external evaluation of Territorial Employment Pacts to be
published in 2002 will feed into the general conclusions.

1.4.

Benchmarking

Since 1997, benchmarking has played a key role in the development of the EES. The method
consists in identifying the best labour market performances in the EU, and to draw attention to
best practice in each dimension of the EES. Benchmarking should be applied to the individual
local employment initiatives and to the local employment strategies process itself.

To organise the benchmarking at EU level, inspiration will be found in the peer review
programme 36, an innovative process that was initiated in 1999 between the EU countries as
an instrument to support the European Employment Strategy. The aim is to identify, evaluate
and disseminate good practice across the EU in the field of employment and labour market
policy.

A peer review exercise on best practices in developing local strategies for employment could
be organised on a trial basis at EU level in the second semester of 2003. International
associations and networks associations could also bring in a very useful contribution to such
an exercise.

The benchmarking exercise will also be applied to regional and national environments to
compare to what extent they facilitate or hamper the emergence of strategic bottom-up
initiatives and projects.

Within the framework of "Preparatory measures for a Local Commitment for Employment"37,
Measure 2 of the call for proposals issued in 2001 focuses on benchmarking. Support will go
to projects that develop tools for benchmarking local employment strategies, initiatives and
frameworks.

1.5.

Training

If the local level is to play a more strategic approach in the promotion of employment, local
actors should be equipped with the relevant skills necessary to play that role effectively. This
includes both technical skills (management by objectives, project and financial management,
legal frameworks, policy evaluation, etc) and social or inter-personal skills.

The aim should not be to train local people to become full-time experts in local development,
but rather to target people acting in different fields of activity who can integrate local
employment development concerns in their usual work.

Given their potential role in empowering local actors and establishing many aspects of the
legal, administrative and financial frameworks in which local action takes place, organisations

35

36

37

OJ C 130 of 01.05.2001, p.10.
http:// peerreview.almp.org/en/
OJ C 130 of 01.05.2001, p. 10.

20

at regional and national level should also have the relevant knowledge and know-how to
facilitate work at local level and relay it to the other decision-making levels.

Authorities and bodies at regional, national and EU levels should seek to learn from
successful local initiatives to scale them up and mainstream them. Most of the funding for the
training will have to be provided by the national and regional levels, and their education and
training systems, by making the best use of the ESF support mechanisms.
Within the framework of "Preparatory measures for a Local Commitment for Employment"38,
Measure 1 of the call for proposals published in 2001 is devoted to capacity building. Support
will go to projects that design and pilot skills development programmes with the aim of
enhancing the capacity of local players to promote employment, and the capacity of regional
and national actors to facilitate such initiatives.

1.6.

Exchanges and co-operation

In order to strengthen cohesion, exchanges of good practices, and co-operation can be
organised and information flows increased within Member States, making full use of
information and communication technologies (ICTs).

local employment development agents,

Meetings and exchanges between officials,
local
mediators, people who act as go-between agents between local and upper decision making
levels, conferences for the dissemination of good practices, and comparative studies or
permanent electronic discussion forums, might be organised at national and regional levels.
Staff rotation could be organised between the public and the private sectors, across sectors of
activities and between local branches and central head offices, headquarters or mother
organisations. At local level, players can be encouraged to set up local project banks in order
to promote the exchange of ideas and pool energies and resources. Representative networks
and associations are invited to consider how they can facilitate such exchanges.
Within the framework of "Preparatory measures for a Local Commitment for Employment"39,
Measure 3 of the call for proposals issued in 2001 is devoted to disseminating information on
good practices of projects, programmes and instruments at different levels to support local
action for employment and establish structured and continuous co-operation between
territories.

The applicant countries should gradually be brought into these mechanisms. As they prepare
to apply the EES, they can be encouraged to promote local employment strategies with the
possible support of the Phare programme.

Transnational co-operation in the area of local employment development will also receive a
major impetus from the EQUAL Community initiative40. Its overall purpose is to combat
discrimination and inequalities in connection with the labour market41.

38

39

40

41

OJ C 130 of 01.05.2001, p. 10.
OJ 2001 C 130 of 01.05.2001, p. 10.
Communication from the Commission to the Member States establishing the guidelines for the
Community initiative Equal concerning transnational co-operation to promote new means of combating
all forms of discrimination and inequalities in connection with the labour market O.J. C 127 of
5.5.2000, p. 2.
Regulation (EC) No 1784/1999 of the European Parliament and of the Council of 12 July 1999 on the
European Social Fund, O.J. L213 of 13.8.1999, p. 7.

21

2.

IMPLEMENTATION OF LOCAL EMPLOYMENT STRATEGIES

The implementation of a local development strategy or Local Action Plan (LAP) depends
above all on specific institutional, administrative and socio-economic characteristics that vary
the Acting Locally
considerably within Member States. Drawing on the results of
consultation, the indicative orientations outlined in this chapter are intended as policy support
to be adapted by local authorities and actors on the ground.

2.1.

Targeting a territory and establishing a diagnosis

A local strategy applies to a local area defined in accordance with national circumstances
prevailing in each Member State and considered relevant in socio-economic terms to promote
employment. However, two essential criteria are to be considered to appreciate the relevance:
the territory has to be large enough to give the action for employment a sufficient critical
mass; it has to be sufficiently small to use the assets of proximity, and it has to be coherent
and compatible with existing administrative structures.

A strategy can thus coincide with zones of economic activity, travel-to-work areas, territorial
divisions of social partner organisations, areas retained for the implementation of the
Structural Funds or other European or national programmes such as the Territorial
Employment Pacts.

An important step in the development of a local employment strategy is the establishment of a
diagnosis of strengths and weaknesses, opportunities and threats (SWOT) of a territory
regarding employment. The EU employment guidelines and the corresponding indicators42
offer useful guidance on what type of data to collect.

The analysis should make the best use of existing relevant information, and studies. In
particular, there is a need to exploit local statistical tools as effectively as possible. The
diagnosis can draw on analyses underpinning policies in other fields (social protection,
economic development, urban renewal,
transport,
environment protection etc) and at other territorial levels.

rural development, gender equality,

Based on the diagnosis, local players may define a local employment strategy that sets
objectives for a determined period, spells the measures for achieving these objectives,
allocates human and financial resources for their implementation, identifies responsibilities
and makes provision for monitoring progress and evaluating the impact. The EU employment
Guidelines can offer a valuable guide for local players in the definition of the content of a
strategy.

In setting the objectives, particular attention should be paid to new sources of jobs that can
have a positive impact on gender equality by enabling people to reconcile work and private
local
life throughout their lives:
products, welfare and personal services. The strategy has to take into account the policies
defined at other levels of decision making than the local level and it should be cast in the
context of the National Action Plan for Employment.

the information society, environment,

tourism,

leisure,

42

European Commission, Employment policies in the EU and in the Member States, Joint report 2000,
Luxembourg 2001, pp. 77-87

22

Attention should also be granted to the potential to interact at local level with actions under
the National Action Plans for Social Inclusion43.

2.2.

The role of local actors in the implementation

The Acting Locally for Employment consultation has given useful
different local players can contribute to local employment strategies.

indications on how

A) Local authorities

Local authorities can

• act as model employers e.g. through offering their staff further training for instance in
ICTs and through organising work so as to make it easier for the personnel to reconcile
working and personal lives;

• help other players contribute positively to employment e.g. through setting up friendly
environments for entrepreneurial activities in sectors where additional jobs can be created,
and through simplifying procedures;

• promote integrated approaches to employment development through incorporating the
employment dimension into all their policies, through instigating or facilitating the setting
up and management of partnerships and through using ICTs to promote consultation and
active citizenship.

• Ensure that local services are supportive to employment, e.g by providing transport to new

industrial centres, transport at flexi-time hours, full day-time child care, etc.

The municipality of Gijón is located in Asturias in the North of Spain. It has a population
of 271,320 inhabitants. After experiencing industrial decline it now seeks to become a
city of information and knowledge. In 1999, the municipality brought together political
parties, trade unions and businessmen in order to apply the European Employment
guidelines at local level. Under the leadership of the local government, policies have
been combined in order to modernise traditional sectors, to make the public sector more
flexible and dynamic, to help the unemployed back into work, and to offer financial and
other support to the private sector so that they can invest, grow and generate more and
better employment.

B) Enterprises

• In their capacity as employers, they can contribute to all four pillars of the EES e.g. they
can offer unemployed people temporary on-the-job training and work experience under the
employability pillar, they can mentor smaller firms under the entrepreneurship pillar,
organise work so as to combine flexibility and security under the adaptability pillar,
enhance women's career prospects under the equal opportunities pillar.

43

Experience to date under the sequence of EU-funded preparatory actions to combat and prevent social
exclusion shows that there is likely to be considerable overlap between the two policy areas, both in
terms of thetarget groups identified and in terms of the actors which participate.

23

• In their capacity as partners, they can help other players improve their own contribution
to employment development e.g. through informing training organisations of what skills
they will need in the future, they will help them to develop adequate training programmes.

• Their skills in planning, and management can be a valuable contribution to the smooth,

efficient running of partnerships.

The Berlin-Neukölln Territorial Employment Pact is build on the co-operation between the
Local Authorities (Mayor and parts of the administration), politicians at the levels of the
district and the Land Berlin, large enterprises and SME`s, retailer organisations, the local
employment office, third sector institutions, a big housing company, training institutions and
job creation scheme providers. Under the auspices of the Pact, large companies award initial
orders to young small business founders, sponsor a new business and growth funds, sponsor
special events like the "Start up your own business award" and the "Neukölln Trades and
SMEs days" and second employees for the Pact activities. Networking of SMEs is an
additional permanent pact activity.

C) Third system/social economy organisations and NGOs

NGOs can potentially play two different roles in local employment strategies:

• As promoters of third system activities, they can contribute to all four pillars of the EES :
e.g. they enhance the employability of disadvantaged people through giving them work
they provide new goods and services to meet
experience combined with training,
unsatisfied needs and create jobs as a result, they tend to involve their staff in the
management and they make it easier for women to access the labour market because they
offer services that women had formerly to deliver in the domestic sphere;

• As representatives and advocacy organisations on behalf of citizens and groups, NGOs
help the partnership to be more participatory. Because they pursue a multiplicity of
economic and social objectives, they voice the concerns of different groups of citizens, and
they are usually close to groups targeted by programmes.

In the Local motion project, the FMI organisation in Denmark organised sports and
leisure activities for disadvantaged and elderly people in six localities. The idea was to
use sports facilities that are not used by the working population during the daytime. This
led to the creation of jobs and a new profession of sports animators.

In underprivileged areas in four major cities : Brussels, Paris, London and Rotterdam, a
led by the Marcel Hicter Foundation demonstrated how artists who start
project
valorising an area, create trends that attract ancillary professions such as printers,
carpenters who offer their services to the artists. Cafes, restaurants, delivery services,
banks and the press follow, public transport is reorganised, all of which contribute to
direct and indirect employment creation and to the revival of a formerly underprivileged
area.
From Third System and Employment pilot action

http://europa.eu.int/comm/employment_social/empl&esf/3syst/index_en.htm

24

D) Social partners

• at enterprise level, social partners can contribute to the adaptability and equal
opportunities pillars of the EES : e.g. they can promote agreements to achieve the required
balance between flexibility and security, and they can improve the quality of jobs

• at territorial level, they can contribute to all four pillars of the EES : e.g. they can
influence the services provided by public employment services and training organisations
in particular if they are involved in their management. They can offer organisational back-
up for small businesses and valuable local assistance in crisis situations. To promote
female career opportunities and to ease the reconciliation of work and family life, they can
speed up the implementation of the various directives and social-partner agreements in this
field, and see that high quality care services for children and other dependants are
provided.

E) Public employment services (PES)

• Public Employment Services can act as model employers e.g. through offering training to
their staff and promoting equal opportunities. In fulfilling their task of matching labour
they can identify local employment opportunities in a
market supply and demand,
proactive way, offer customised and easy-to-access services to users, and use ICTs to
improve their service provision and help to reduce the digital gap in the local area;

• in the local employment strategy process, they have a key role to play in producing
detailed intelligence of the local
labour market and business needs. They should
experiment new solutions and promote integrated approaches linking unemployment to
broader social needs, such as housing, health, culture and education. They can act as
interfaces between enterprises and training organisations, and develop links with schools,
training institutions, universities, research bodies and with private employment agencies.

F) Education and training providers

• contribute in a decisive way to all four pillars of the EES : they help the unemployed
improve their competencies and all citizens to subscribe to life long education and training,
they enhance the entrepreneurial skills of those seeking to set up an enterprise and they
give all local players and citizens the necessary skills to act as civic entrepreneurs and
active citizens, they help workers upgrade their skills and women improve their career
prospects;

• play a vital role through equipping all the players with the necessary competencies to

promote local employment in a strategic way.

• The Memorandum on lifelong learning, which launched a wide debate on developing
education and training in Europe, had, among its six key messages, that of « bringing
learning and learners together » and aimed to improve learning provision at
local
level. The development of eLearning is one step towards making learning more accessible
at local level.

***

25

ANNEX 2: SYNTHESIS OF THE CONSULTATION OF LOCAL ACTORS

In its April 2000 Communication entitled "Acting Locally for Employment - A local
dimension for the European Employment Strategy"44, the Commission initiated a consultation
on how local actors can better contribute to job creation at local level and how the regional,
national and European levels can support that process, particularly within the framework of
the European Employment Strategy.

The Communication was addressed to the Council, the European Parliament, the Economic
and Social Committee and the Committee of the Regions. Furthermore, in order to encourage
all actors concerned to express their views, the Commission directly organised or supported
six thematic seminars on the various issues raised by the Communication, thus enabling a
large number of actors to be involved in the debate.

The consultation, which was completed in December 2000, was a wide exercise of awareness-
raising and brainstorming on the possibilities of local action for employment, and the
obstacles hindering that potential. The fact
to the
programming phase of the 2000-2006 programming period of the Structural Funds, was an
additional element stirring debate.

the debate has run in parallel

that

Moreover, through an open written consultation, a wide variety of players expressed their
views: associations of local authorities, individuals, regional and local governments, Third
Sector organisations and networks, social partners.

Most participants considered, on the one hand, that the April 2000 Communication was a
useful framework for debate, mapping the actors involved and relevant issues. On the other
hand, that the Communication was a supportive tool for local actors, and a recognition of the
role they play in developing employment, particularly as concerns local authorities.

Main themes:

• The need to respect the principle of subsidiarity was underlined, particularly as concerns
the introduction of local action plans for employment and ensuring that local action is
compatible and consistent with national guidelines and priorities. The possible conflicts
labour market policies were also
between local action and national objectives of
mentioned.

• The consultation procedure and benchmarking of the Luxembourg process was generally
considered to be a suitable tool, although some actors would have preferred a stronger
reference to the regional dimension of the European Employment Strategy (EES). One of
the assumptions of the Communication was that the EES provided an appropriate policy
framework for local players to integrate the employment dimension in all their actions. It
was also assumed that the employment guidelines provided a framework that could be
adapted to the local level. Most of the comments agreed with this view, but considered that
the specific local employment development guideline was not yet a sufficient basis for
local action on employment.

44

COM(2000) 196

26

• The Committee of the Regions and the European Parliament45, as well as many other
actors, consider that both local and regional government organisations should be involved
in drawing up and implementing the NAPs. In as far as the preparation of the NAPs is
concerned, it was suggested that formal consultation processes, briefing sessions and
seminars on policy changes should be organised to enable local level involvement and the
development of local plans supporting the EES objectives. Some think this involvement
should be extended to TSOs.

• The European Parliament draft resolution called for the NAPS to clearly indicate the
degree of participation of the local and regional authorities, as well as the distribution
of competencies and responsibilities between the different levels. Some requested further
reflection and more clarity as to the respective roles and competencies of the different
levels. Risks of fragmentation of the labour markets should be avoided. .

• Most participants in the consultation stressed that local actors should not remain as a mere
delivery level. Throughout the consultation, a good number of experiences in developing
local employment plans emerged, showing that there is a change from a project - based
approach to a more strategic mindset. The regional level can contribute to building the
capacity of local authorities and other local actors to develop strategies adapted to their
communities' needs. Through all the consultation, there was a general plea from all sides in
favour of
co-operation between all decision-making levels. Further use of
"contractualisation" of the relations between the various levels of action was suggested.

• Many reactions underlined that employment policy instruments should not be considered
in isolation, and that employment strategies should be placed within broader strategies
for sustainable development. The consultation has recognised the importance of
European-level support for the implementation of the European Employment Strategy at
the local level. A useful contribution from the European Union would be to provide the
elements that enable the benchmarking, i.e. the comparison against good practices, of local
action for employment. Finally, according to some participants, the Structural Funds'
administrative procedures should be made more flexible and friendly towards Third
System organisations.

• Most comments emphasised the need for integrated approaches and for working in
partnership. Multidimensional approaches were felt to be particularly needed to tackle
social exclusion, which is not caused simply by economic but also by other factors (e.g.
cultural, generational, technological, etc.).

• Several contributors also identified the absence of a gender dimension in the
into local

Communication, and suggested that gender mainstreaming should be built
development initiatives.

• The consultation stressed the key role of local authorities in the area of employment.
Responses underlined that local authorities may represent a real driving force in shaping
territorial projects, and the partnership approach was particularly mentioned as the
institutional framework for such action.

• Many Third System Organisations (TSOs), and some local authorities, mentioned the
possibility of introducing social clauses in public tendering and contracting out of

45

European Parliament resolution A5-0341/2000 of 30.11.2000

27

services, in order to promote employment, socially responsible firm behaviour and the
promotion of TSOs service provision. Many comments addressed the issue of the financing
sources of Third System organisations (TSO), since the instability of funding is a major
problem for the third sector. Some comments stressed that the third sector requires the
same level of assistance and support as SME's, including business planning, financial
management, systems development and access to traditional financial instruments.

• As pointed out by the Committee of the Regions46, appropriate skills and structures are
a prerequisite for local employment development. In order to perform a strategic role local
authorities need a cultural as well as a management and organisational change,
to
overcome policy fragmentation,
areas of
competence, co-operate with other players, and adopt more beneficiary oriented
approaches.

co-ordination between different

foster

• Several comments focussed on the key role local authorities can play in promoting the use
of ICT and new modes of learning, in developing strategies, in providing a clear vision
for local players as drivers of local economic growth, and in setting up the conditions for
new activities in high tech industries and services.

• Within the context of

the knowledge-based economy,

the Economic and Social
Committee47 suggested that the encouragement of "territorial training initiatives and
agreements" should aim to enhance cultural awareness, disseminate know-how, introduce
the technologies of the information society, encourage innovation in manufacturing and
services, and promote professionalism and employability.

• There was a large consensus on the importance of SMEs for the development of local
employment. However, some participants made the point that the role of large or global
enterprises should not be neglected, as they largely structure local employment through
subcontracting and supply-chain linkages.

• There was a wide acknowledgement that local strategies should start by creating an
adequate regulatory and support framework for business. It was also recognised that
important regulatory areas are, in general, not within the competence of local or regional
authorities (e.g. taxation and social security, labour, company law).

• The issues raised in the Communication on the Third System were extensively debated.

Many reactions stressed on the need for a common definition and reliable statistics.

• Comments generally confirmed that the social economy plays a role in meeting unsatisfied
needs in fields such as sport, environment or biological farming. However, it was noted
that social economy organisations are involved in all four pillars of the European
Employment Strategy and not only in the specific local employment development
guideline.

• It was recognised that the voluntary sector can play a key role in local employment
partnerships, if it is accorded an equal place in decision-making, if its independence is
respected, and if the sector itself accepts the responsibility of delivering mutually agreed
policy priorities.

46

47

Opinion of the Committee of the Regions of 21.01.2000, CdR 187/2000 final
Opinion of the Economic and Social Committee, CES 1186/2000, Brussels, 18/19.10.2000

28

• The necessity of the participation of social partners in the different networks and
instruments of strategic co-ordination at local level was widely acknowledged. Some
comments have pointed out
the consultation structures and inter-professional
negotiations at the territorial level are weak, and that social dialogue could be more
realistic and effective at regional level than local. Difficulties in the co-ordination between
the different levels (European, national, regional, local) within the social partners were
mentioned.

that

• Many comments stressed local public employment services (PES) should be more
proactive and market better their services. On the one hand, they should bring their
services closer to those who need them while integrating job search with responses to
broader social needs (housing, health, culture, education). On the other hand, they should
better respond to the needs of enterprises. Their role as intermediaries in the labour market
should not be limited to matching labour supply and demand: PES should also become
intermediaries between enterprises and training centres, thus developing further links with
research bodies and private employment
schools,
agencies.

training institutions, universities,

29