Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Scoreboard on implementing the social policy agenda
Date: 2003-02-06
Institutions: European Commission
Subjects: EU employment policy, European Union, European social policy, activity report, economic situation, labour market, socioeconomic conditions, working conditions

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 6.2.2003
COM(2003) 57 final

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

SCOREBOARD ON IMPLEMENTING THE SOCIAL POLICY AGENDA

1.         Introduction

This is the third scoreboard the Commission presents to report on the implementation of the
social policy agenda1. This edition focuses essentially on the main achievements of the  year
20022.

The  presentation  of  an  annual  scoreboard  responds  to  the  invitation  made  both  by  the
European  Parliament  and  the  European  Council  to  keep  track  of  the  achievements  and  to
verify the commitment and  contributions  from  the different  actors  in  executing  this  agenda.
Its  objective  is  not  to  provide  any  ranking  of  Member  States'  performance,  but  rather  to
monitor  how  the  agenda  is  transformed  into  policy  measures  and  concrete  action.  The
Scoreboard  complements  the  annual  synthesis  report  to  the  Spring  European  Council  with
regards to the actions which are part of the Social Policy Agenda.

The point of reference against which to measure progress is the Commission Communication
of  June  2000  and  the  political  orientations  endorsed  at  the  Nice  European  Council  in
December 2000.

The social policy agenda is the EU's roadmap for modernising and  improving the European
social model by investing in people and building an active welfare state. It should contribute
to achieving the strategic objective defined at the Lisbon European Council in March 2000.

Its  objective  is  to  respond  to  the  common  challenges  the  EU  is  facing  and  to  ensure  at  the
same  time  that  it  can  take  full  advantage  of  the  new  opportunities.  Transposing  the  Lisbon
objective - refined at subsequent European Council meetings - by establishing a dynamic and
mutually  reinforcing  interaction  between  economic,  employment  and  social  policy  is  at  the
heart of this agenda.

The  agenda  should  strengthen  social  policy  as  a  productive  factor  as  well  as  solidarity  and
social fairness. The promotion of 'quality' is a major driving force behind this agenda.

2.         The economic, employment and social situation

On the economic situation

The  European  economy  created  in  2001  about  2  million  new  jobs.  As  a  result,  the
employment  rate3  continued  to  increase  from  63.4%  in  2000  to  64.1%  in  2001.  The
employment  rate  for  women  went  up  from  54.1%  to  55%.  During  the  same  period,  the
unemployment rate decreased from 7.8% to 7.4% . Also long-term unemployment continued
to  decline  –  from  3.5%  in  2000  to  3.1%  in  2001.  The  improvement  in  employment
performance took place in a deteriorating economic environment.

1

2

3

COM(2000)  379  of  28/06/2000;  EP  resolution  A5-291/2000  of  25/10/2000;  Nice  European  Council:
Conclusions.
Although  the  relationship  with  work  undertaken  in  the  past  years  and  future  initiatives  is  made
throughout the document to present an overview as clear as is possible in such a synthetic report.
Data  for  employment  rates  and  long-term  unemployment  as  revised  and  made  available  on
16 December 2002.

2

                                                
From 2000 to 2001, GDP growth fell from 3.4% to 1.5% and the Commission Autumn 2002
Economic  Forecasts4  project  that  recovery  is  slower  than  originally  expected.  The  average
growth rate for 2002 is estimated to be 1% in 2002 and 2% in 2003. It is anticipated now that
economic growth will start gaining momentum again from the second half of 2003. Whereas
employment  creation  is  expected  to  continue  with  about  1  million  new  jobs  in  the  period
2002-2003, the unemployment rate  is projected to increase  slowly  at  the  same  time  –  up  to
7.6% in 2002 and 7.7% in 2003. The unemployment rate is expected to start falling again to
the 2001 level of 7.4% in 2004. At the same time, inflation is estimated not to fall below 2%
in 2003 and government deficit is expected to widen to 1.9% of GDP in the EU (and 2.3% in
the Euro area).

On the employment situation

Despite  the  recent  economic  slowdown,  EU  labour  markets  continued  to  improve
performance in that new additional jobs were created and that job-friendly policies have been
pursued.  However,  in  the  short  run,  the  other  side  of  the  resilient  labour  market  is  that
productivity gains are anticipated to remain low5.

Since 1997, more than 10 million jobs have been created - 6 million of these jobs have been
taken up by women – and there are 4 million less unemployed. In the review and evaluation
of  the  European  employment  strategy,  it  was  concluded  that  during  the  five  years  of  the
implementation  of  the  strategy,  structural  improvements  in  the  EU  labour  market  have
matured and that the improvements in job creation cannot be solely attributed to the business
cycle.

That improvements have a structural nature is illustrated by a reduced structural component of
unemployment,  a  pattern  of  economic  growth  which  is  increasingly  employment  intensive,
and a more rapid response, from the side of the labour market, to economic and social change.
However, significant structural improvements are still to be made to increase the economy's
capacity to react to shocks through product, capital and labour market reform.

Despite  the  observed  improvements,  pervasive  weaknesses  remain  and  need  to  be  urgently
addressed. These include:

– 

– 

– 

– 

– 

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5

the continuing high levels of unemployment and long term unemployment;

the still low employment rates for women;

the  unequal  distribution  of  the  employment  rates  according  to  age  levels,  where
particularly  the  older  workers,  but  also  the  young  are  confronted  with  significant
problems to find a job or to remain in employment

immigrants,  people  from  ethnic  minorities  and  other  disadvantaged  groups  are  still
confronted with significant obstacles to the labour market;

the  regional  differences  in  several  Member  States  which  affect  Europe's  social
cohesion;

European Commission: European Economy n°5/2002.
Improving the relationship between more jobs and productivity is at the heart of the measures to support
quality in work (see further).

3

                                                
– 

the persistence of regional labour market bottlenecks and skill shortages.

In  order  to  reach  the  Lisbon  targets  by  2010,  another  15  million  additional  jobs  are  to  be
created.6  The  challenges  are  well  known  –  the  promising  path  of  labour  market  reform
facilitated through the European  employment  strategy should be  further  pursued,  with  more
vigour and determination, particularly in a less attractive economic climate. The risk of hasty
measures  that  would  hamper  sustainable  employment  performance  improvements  over  the
medium and longer term should be avoided at all costs.

On the social situation

The structural weaknesses identified in the labour market are to a large extent responsible for
the persistence of poverty and social exclusion as one of the most intractable problems in the
Union.  However,  other  drivers  are  to  be  considered  such  as  ill  health  and  disability,  family
break-ups, or the lack of basic skills. On the other hand, a job may not be sufficient to afford
jobholders the necessary means to escape poverty and social exclusion, particularly when it is
associated  to  low  wages,  poor  task  quality,  job  precarity  or  insufficient  training.  For  these
reasons, the improvement in the employment situation across the Union, while a very positive
development, may not be sufficient by itself to make a significant impact on the eradication of
poverty and social exclusion.

The  latest  available  income  data  (referring  to  1999)7  shows  that  15%  of  the  population,  or
about 56 million people, were at risk of poverty living as they do below a threshold of 60% of
the  national  median  equivalised  income.  Especially  striking  is  the  fact  that  9  %  of  the  EU
population are at a persistent risk of poverty (i.e. they were at risk of poverty in at least 2 of
the  preceding  3  years).  Social  security  is  crucial  to  reducing  the  risk  of  poverty.  Without
welfare transfers the risk of poverty would have been 24 % (if pensions are excluded from the
definition of welfare transfers) or 40 % (if they are included). This shows at the same time the
role and the limits of income redistribution.

There is significant variation in the extent of the problem between Member States. While low
income and insufficient access to basic goods and services are endemic and still affect large
sections  of  the  population  in  some  Member  States,  in  others  comprehensive  social  security
schemes and generalised access to public services in vital fields (education, health, long term
care for the elderly, housing) have concentrated the problem into well defined groups of the
population.

However,  statistical  data  can  only  give  an  approximate  picture  of  the  extent  of  social
exclusion,  as  many  of  the  hardest-hit  social  groups  remain  largely  "invisible"  in  terms  of
social statistics, at least as far as EU comparable data are concerned. That is particularly the
case of the homeless and people living in institutions.

6

7

COM(2002)  9  and  Council  agreement  on  8  March  2002  –  Increasing  labour  force  participation  and
promoting active ageing.
Cf. Last wave of ECHP (1999) as became available in December 2002. The December 2002 version of
the ECHP user database incorporates important data revisions for certain countries and methodological
improvements  to  avoid  extreme  weights  and  adjust  for  within-household  non-response.  For  these
reasons,  indicators  for  1998  and  earlier  years  derived  from  the  December  2001  database  cannot  be
considered to be comparable with indicators for those same years derived from the new database.

4

                                                
The 2001 Eurobarometer survey on social precarity and social integration reveals that a high
proportion of people consider themselves as poor (subjective poverty), especially in Southern
Europe.

As  far  as  income  distribution  is  concerned,  the  latest  available  data  from  the  Structural
Indicators highlights significant and persistent inequalities in the distribution of income. The
ratio for the highest-earning 20% of the income distribution to the lowest-earning 20% is 4.6
for the EU overall, a figure disguising big differences between Member States.

3.         The implementation of the social policy agenda

The  implementation  of  the  social  policy  agenda  is  well  on  track.  Initiatives  and  measures
were launched as announced.

3.1.      More and better jobs

An  absolute  top  priority  of  the  Social  Policy  Agenda  is  to  work  towards  the  goal  of  full
employment,  defined  in  the  Lisbon  strategy  as  raising  the  employment  rate  to  as  close  as
possible to 70% by 2010 and increasing the number of women in work to more than 60% in
2010.

The  Spring  European  Council  of  Stockholm  in  2001  complemented  the  Lisbon  targets  by
adding the intermediate targets of reaching 67% for the overall employment rate and 57% for
the  employment  rate  for  women  by  2005.  It  also  introduced  the  target  of  50%  as  the
employment  rate  for  older  persons  (55-64)  to  be  reached  in  2010.  At  the  Barcelona  Spring
European  Council  in  2002,  the  quantified  objectives  were  still  further  refined,  in  that  a
progressive  increase  of  about  5  years  in  the  effective  average  age  at  which  people  stop
working in the European Union should be sought by 2010. In this context, it should be noted
that  the  Commission  and  the  Council  adopted  a  joint  report  on  increasing  labour  force
participation and promoting active ageing.

A  benchmark  on  child-care  provision  was  introduced  by  the  Barcelona  Spring  European
Council of March 2002:  by 2010 at least  33%  of children under  3  years of  age  and  at least
90%  of  children  between  3  years  old  and  the  mandatory  school  age  should  have  access  to
childcare.  Reaching  this  objective  should  directly  contribute  to  attracting  more  women  into
paid work. It should also help both men and women  to better  reconcile working  and  family
life.

However, whereas there is an increasing call to set European targets, there is no widespread
commitment by Member States in the form of national targets. Such approach undermines the
potential of the EU to reach the overall objective the political leaders of each Member State
are committed to.

Key measure

–  Joint Report on increasing labour force participation and promoting active ageing8

8

COM(2002) 9 of 24/01/02 and adoption in Council in March 2002.

5

                                                
Strengthen and continue the co-ordinated strategy for employment

The Employment Guidelines for 2002 were the last ones of the five year cycle agreed at the
extraordinary Luxembourg European Council on employment in November 1997. They were
presented  by  the  Commission  in  September  2001  and  formally  adopted  by  the  Council  in
February 2002, following an opinion by the European Parliament. While consistent with the
Broad  Economic  Policy  Guidelines9,  the  Employment  Guidelines  focus  essentially  on
employment policy reforms.

The Commission proposed the streamlining of the annual economic and employment policy
co-ordination cycles as of 2003. The synchronisation of the respective timetables introduces a
policy implementation review phase leading to an implementation package, presented to the
Spring  European  Council,  and  a  policy  formation  phase  after  the  Spring  European  Council
leading to formal adoption of the Employment Guidelines and the BEPGs.

As  a  transition  measure  to  the  synchronisation  of  policy  co-ordination,  the  Commission
presented  only  the  draft  Joint  Employment  report  2002  to  the  Council  in  November,  and
delayed its proposal for Employment Guidelines and Recommendations until after the  2003
Spring  European  Council.  The  draft  Joint  Employment  report,  which  is  part  of  the
implementation  package,  gives  a  detailed  account  and  evaluation  of  the  measures  and
initiatives  implemented  by  Member  States  in  response  to  the  2002  European  Employment
Guidelines and the country specific employment recommendations.

The  streamlining  is  particularly  timely,  in  particular  as  a  new  phase  for  the  European
employment strategy  is  being  prepared  for  2003. A major input into  the  framework  for  this
new  phase  is  the  evaluation  of  the  co-ordination  of  national  employment  policies  since  the
extraordinary Luxembourg European Council on employment in 1997. The evaluation was a
joint  exercise  by  the  Commission  and  the  Member  States.  The  Communication  on  taking
stock of five  years of the European employment strategy provides an extensive summary of
the evaluation and concludes positively on the impact of the strategy as such, as well as of the
individual  guidelines  and  policy  measures.  The  evaluation  and  subsequent  discussions  and
contributions will lead the Commission to adopt a further Communication on the future of the
European Employment Strategy in early 2003.

In  2002,  the  Council  and  the  European  Parliament  agreed,  following  conciliation,  an  action
programme  on  Community  incentive  measures  in  the  field  of  employment,  which  the
Commission  had  proposed  in  July  2000.  This  programme  contributes  to  exchange  of  good
practice, networking, and in depth analysis of the labour market situation.

Key measures:

–  Guidelines for Member States' employment policies for the year 200210

–  Recommendation on the implementation of Member States' Employment Policies11

9

10

COM(2002) 93 of 21/02/2002 on the implementation of the 2001 Broad Economic Policy Guidelines;
COM(2002) 191 of 24/04/2002 on the Commission proposal for a Recommendation for the 2002 Broad
Guidelines  of  the  Economic  Policies  of  the  Member  States  and  the  Community;  Formal  adoption  by
Council in June 2002 (OJ L 182 of 11/07/2002, p. 1).
COM(2001)  511  of  12/09/2001;  EP  Resolution  B5/2001/739  of  29/11/2001;  Political  agreement
in  Council  in  December  2001;  Formal  adoption  by  Council  in  February  2002  (OJ  L  60  of
01/03/2002, p. 60) .

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–  Taking stock of five years of the European employment strategy12

–  Streamlining the annual economic and employment policy co-ordination cycles13

–  Draft Joint Employment Report 200214

–  Incentive measures in the field of employment15

Quality in work

The  Lisbon  European  Council  introduced  the  twin  objective  of  more  and  better  jobs,
underlining  the  strong  interdependency  between  quantity  and  quality.  The  goal  of  full
employment – both for men and women - is facilitated by an increase in quality in work, as
quality  in  work  can  be  improved  thanks  to  an  increase  in  the  number  of  jobs.  This  was  a
strategic  choice  made  at  the  highest  political  level:  Europe's  future  and  the  competitive
position of European enterprises rests on producing high quality goods and services, which is
only sustainable with a well qualified, healthy, committed and productive workforce.

This approach was at the heart of the Social Policy Agenda and was further elaborated in a
Commission  Communication  on  investing  in  quality16.  The  European  Council  of  Laeken
endorsed  indicators  to  monitor  progress.  The  priority  to  be  given  to  this  dimension  is
illustrated by evidence, presented in the Employment in Europe 2002 report17.

A  clear  positive  link  between  the  employment  rate  and  quality  in  work  can  be  empirically
observed,  as  well  as  a  positive  quality-productivity  link.  Simulations  of  possible  future
scenarios show that quality improvements in European labour markets are a precondition for
further reductions in the various age, gender and skill-related gaps that continue to be among
the main obstacles  to  improved employment  performance  in  the EU,  as well as  for tackling
the regional employment performance gap. However, the patterns of labour market dynamics
currently  observed  in  the  European  labour  markets  do  not  yet  reflect  the  quality  dynamics
necessary  to  meet  the  ambitious  objectives  set  at  the  Councils  in  Lisbon,  Stockholm  and
Barcelona.  Thus,  without  further  quality  improvements,  employment  creation  will  remain
well below its potential, underlining the economic costs of not having quality social policies.
In view of the piecemeal approach to quality in work reflected in the National Action Plans
for  2002,  the  Commission  has  emphasised  in  the  draft  Joint  Employment  Report  2002  the
need  for  Member  States  to  better  reflect  quality  in  work  improvements  in  their  National
Action Plans for employment.

In addition to targeted public policy, in particular through the European employment strategy,
social partnership is crucial to achieving the objective of 'more and better jobs'.

11

12

13

14

15

16

17

COM(2001) 512 of 12/09/2001; Political agreement in Council in December 2001; Formal adoption by
Council in February 2002 (OJ L 60 of 01/03/2002, p. 70).
COM(2002) 416 of 17/07/2002; EP Resolution A5/2002/301 of 25/09/2002; Discussions in Council of
October 2002.
COM(2002) 487 of 03/09/2002.
COM(2002) 621 of 13/11/2002.
Decision by the European Parliament (approval in April 2002) and the Council (approval in May 2002).
COM(2001) 313 of 20/06/2001.
European  Commission  (2002):  Employment 
Luxembourg: Office for official publications of the European Communities.

in  Europe  2002.  Recent 

trends  and  prospects.

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The local and regional dimensions of the employment strategy

The  regional  gap  in  employment  performance  remains  high:  both  for  unemployment  levels
and employment rates. Analysis to examine the underlying reasons for the divergence and the
exchange of information are identified as instruments to help bridge the gap between regions.
The Structural Funds contribute to strengthening convergence and cohesion.

For policy-making in the employment field, the active involvement and participation of local
and  regional  authorities  in  the  definition  and  execution  of  the  national  action  plans  for
employment  is  a  pre-condition.  The  involvement  of  regional  and  local  authorities  is  also  a
major component of the open method of co-ordination and better governance.

Training and lifelong learning

Investment in education, training and lifelong learning is pivotal to reach the Lisbon objective
of full employment with quality jobs. The main trend in the demand for labour is one of rising
skills.

Evidence suggests that the EU suffers from under-investment in human capital. Such under-
investment as a result of not having social policies, provides a cost to the economy.  It is an
impediment  to  matching  demand  and  supply,  creates  bottle  necks,  drives  up  the  cost  of
labour,  as  seen  for  instance  in  the  ICT  sector,  and  restrains  the  output  potential  of  the
European economy. An effective policy response will require to define a framework, provide
for  quality  standards  and  design  incentives  for  employers  and  individuals  to  enhance  the
volume and quality of private investment in human capital. It will also entail the revision of
public spending with a view to redirecting it towards human capital accumulation, including
research and development18.

The  memorandum  on  lifelong  education  and  training19  triggered  off  a  large  debate  across
Europe involving all interested parties and actors. In its Resolution20, the European Parliament
called upon the Member States to co-operate by using the open method of co-ordination and
to focus on defining concrete objectives for participation in education and training measures
and guaranteeing the right to educational access to vocational and continuing training for all.
Drawing  from  this  public  debate,  the  Commission  presented  a  follow-up  Communication
outlining future possible action to make a European area of lifelong learning a reality.

The European employment strategy as such reflects this top priority well with its emphasis on
employability,  in  particular  through  preventing  workers  becoming  trapped  in  long-term
unemployment  as  well  as  through  the  active  labour  market  policies.  The  Community
resources provided through the European Social Fund are of strategic importance.

However,  increased  efforts  are  needed.  To  be  noted  is  the  agreement  drawn  up  by  Social
Partners at interprofessional level with regards to the development of skills and competencies.
The  Social  partners  committed  themselves  to  monitor  developments  at  all  levels  and  to
undertake an evaluation in Spring 200621.

18

19

20

21

This  is  identified  as  'high  quality'  public  spending  in  the  Commission  Communication  on  public
finances in EMU-2002 (COM(2002) 209 of 14/05/2002).
SEC (2000) 1832 of 30/10/2000.
EP resolution A5/2001/322 of 23/10/2001.
Agreement of 28/02/2002.

8

                                                
Key measure

–  Making a European area of lifelong learning a reality22

Employment and social dimension of the information society

Skills  development  is  also  at  the  centre  of  the  employment  and  social  dimension  of  the
information  society.  Specific  attention  was  given  in  2002  to  examining  and  exploiting  the
information society' contribution to managing change and enhancing quality in employment.
It  underlines  the  crucial  role  information  society  jobs  have  in  facilitating  change  and
transforming the European economy.

E-learning has been identified as a major asset in making such change happen gradually. To
monitor trends, the Commission has published an interim report on the state of the  art of e-
learning.

Key measures

–  Information Society Jobs – quality for change23

–  E-learning: designing tomorrow's education24

Mobility

Following  the  report  of  the  High  level  task  force  on  skills  and  mobility,  the  Commission
adopted  an  action  plan  for  skills  and  mobility  in  2002.  The  action  plan  should  help  in
improving skills and the adaptability of the European labour force.  It envisages measures to
overcome inadequate occupational mobility, low geographical mobility, the fragmentation of
information  on  mobility  and  the  lack  of  transparency  of  job  opportunities.  The  measures
announced,  including  the  European  health  insurance  card  and  the  creation  of  a  one-stop
European job mobility information site, are designed to make European labour markets more
open and more  accessible.  Specific  measures tailored  to  the  needs  of  researchers  have  been
launched.  They  include  the  researchers'  Mobility  Portal  and  the  Pan-European  Network  of
Mobility Centres for researchers.

One  aspect  identified  in  the  action  plan  concerns  improving  cross-border  recognition  of
qualifications on which the Commission presented a proposal for a directive of the European
Parliament  and  of  the  Council.  Reference  should  also  be  made  to  the  social  partners
agreement  on  the  development  of  skills  and  competencies.  The  Commission  adopted  end
December  2002  a  Decision  to  renew  and  update  the  EURES  network  (based  on  Regulation
1612/68),  aimed  at  upgrading  the  responsibility  of  the  public  employment  services  for
delivering  and  managing  EURES  services,  including  at  crossborder  level,  and  streamlining
the network  in readiness for  enlargement.  The  Commission  Decision  is  complemented  by  a
EURES Charter, outlining the main operational aspects of the network.

22

23

24

COM(2001) 678 of 21/11/2001; EP resolution  A5/2002/62 of 14/03/2002;  Council  resolution  of  June
2002 (OJ C 163 of 09/07/2002, p. 1).
SEC(2002) 372 of 03/04/2002.
SEC(2002) 236 of 28/02/2002.

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Another  aspect  here  concerns  the  modernisation  of  the  existing  rules  on  free  movement  of
persons,  called  for  by  the  Nice  European  Council  and  to  be  completed  in  2003.  The
Commission adopted a proposal for a directive on the right of residence and free movement of
workers, which is now being negotiated in the European Parliament and the Council.

Along  similar  line,  the  Nice  European  Council  had  also  encouraged  the  adaptation  and
extension of the rules with regards to social security rights in cross-border situations. Progress
has  been  made  on  the  modernisation  of  Regulation  1408/71  and  a  proposal  was  made  to
extend the regulation to nationals of third countries; this proposal was adopted by the Council
in  December  2002.  The  same  Council  also  agreed  the  orientations  of  several  chapters  to
reform  the  co-ordination  of  social  security  systems.  Particularly  relevant  is  the  chapter  on
health  care  underlining  the  progress  being  made  towards  the  introduction  of  a  European
Health Insurance Card on which the Commission will present a Communication in 2003.

Finally,  specific  reference  should  be  made  to  the  consultation  of  the  social  partners  on  the
portability of pensions.

Key measures:

–  Action Plan for skills and mobility25

–  Proposal for a directive of the European Parliament and of the Council on the recognition

of professional qualifications26

–  Proposal  for  a  European  Parliament  and  Council  directive  on  the  right  of  citizens  of  the
Union  and  their  family  members  to  move  and  reside  freely  within  the  territory  of  the
Member States27

–  Agreement  of  a  Council  Regulation  extending  the  provisions  of  Regulation  1408/71  to

nationals of third countries28

–  Consultation of the social partners on the portability of pensions29

Employment, internal market and competition policy

The Commission adopted in 2002 a regulation on state aid for employment. This regulation
exempts certain types of state aid from notification and determines the ceilings for exemption.
The objective is to preserve an appropriate balance between the need to provide incentives to
employment  and  the  risk  of  dead-weight  and  substitution  effects.  The  regulation  underlines
the  importance  of  implementing  the  European  employment  strategy  and  bringing  about  the
necessary labour market changes necessary to increase the employment rate in a sustainable
way.

25

26

27

28

29

COM(2002)  72  of  13/02/2002;  Council  resolution  of  may  2002;  EP  resolution  A5/2002/313
of 10/10/2002.
COM(2002) 119 of 07/03/2002.
COM(2001) 257 of 23/05/2001.
COM(2002) 59 of 06/02/2002.
SEC(2002) 597 – adopted by Commission on 03/06/2002.

10

                                                
In  its  Communication  on  Corporate  Social  Responsibility30,  the  Commission  stated  that  the
EU public procurement rules are of an essentially economic nature but have also to be seen in
the  light  of  the  sustainability  requirement  of  Art.  2  of  the  EC  Treaty.  The  interpretative
communications of the Commission on the Community law applicable to public procurement
and  the  possibilities  for  integrating  social31  and  environmental32  considerations  into  public
procurement  have  clarified  how  Community  law  offers  numerous  possibilities  to  public
purchasers  who  wish  to  integrate  social  and  environmental  considerations  into  public
procurement procedures,  whilst  at  the  same  time  ensuring  respect  for  the  principle  of  value
for money for taxpayers and equal access for all EU suppliers.33

Key measure:

–  Commission Regulation on the application of articles 87 and 88 of the EC Treaty to State

aid on employment34

3.2       Anticipating and managing change

The strategic view taken within the European Union is that change should be embraced. It is
at the core of economic dynamism as it rejuvenates the economy. It contributes to innovation,
increases productivity, including as a result of the modernisation of the organisation of work,
and raises profitability. This view was reinforced in the Lisbon strategy.

The  choice  made  in  Europe  is  based  on  a  positive  approach  to  change.  Therefore,  change
should  be  encouraged  and  facilitated.  Standstill  in  terms  of  economic  developments  would
lead  to  shrinking  living  standards.  Managing  change  underpins  sustainable  improvement  of
living conditions and quality of life, and therefore helps to create more and better jobs.

Any  strategy  to  reap  the  benefits  of  change  should  be  based  on  a  pro-active  and  positive
approach. However, managing change requires solid partnerships and commitments. It is built
on  dialogue  in  particular  between  the  social  partners,  and  a  common  understanding  of  the
challenges and the opportunities change brings.

Involving workers more in managing change

As a top priority for 2002, the Commission initiated a consultation of the social partners on
anticipating and managing change and establishing a dynamic approach to the social aspects
of corporate restructuring. The issue of managing change has now also been taken up in the
social partners' multi-annual work programme.

Following the political agreement in late 2001, the European Parliament and Council formally
adopted  the  directive  laying  down  a  general  framework  for  informing  and  consulting
employees  in  the  European  Community  early  2002.  This  directive  establishes  minimum

30

31

32

33

34

COM(2002) 347 of 02/07/2002.
COM(2001) 566 final of 15/10/2001.
COM(2001) 274 final of 04/07.2001.
In  addition,  non-compliance  with  relevant  legislation  i.e.  in  the  social  or  environmental  field  may  be
taken into account by the purchaser in order to exclude a contractor from participating in a contract.
OJ L 337 of 13/12/2002.

11

                                                
requirements for the right to information and consultation of employees in undertakings35 and
establishments36 within the Community. It is the responsibility of each Member State to make
a choice determining whether the directive will apply to undertakings employing at least 50
employees  in  any  one  Member  State  or  establishments  employing  at  least  20  employees  in
any one Member State. The deadline for transposition of the directive by the Member States is
23 March 200537.

Since the final breakthrough in 2001 on the European Company Statute and the involvement
of  workers  in  such  companies,  the  negotiations  for  a  European  Parliament  and  Council
regulation  on  the  statute  for  a  European  co-operative  structure  have  been  intensified  in  the
Council,  together  with  the  debates  on  a  European  Parliament  and  Council  directive
supplementing the draft regulation with regards to involvement of employees.

Key measures:

–  Consultation  of  the  social  partners:  'Anticipating  and  managing  change:  a  dynamic

approach to the social aspect of corporate restructuring 38

–  Formal  adoption  of  a  European  Parliament  and  Council  directive  establishing  a  general

framework for informing and consulting employees in the European Community39

–  Negotiations increased on a European Parliament and Council Regulation on the statute for
a European co-operative society40 and the accompanying directive41 on the involvement of
employees

Health and safety at work

In 2002, the Commission proposed a new Community strategy on health and safety at work to
cover  the  period  2002-2006.  It  builds  on  the  knowledge  that  the  absence  of  high  quality
occupational health and safety policy generates a significant economic cost42.

In the past, the European Union has managed to build up a positive record, exemplified in the
falling number of occupational accidents. Nonetheless, the absolute figures remain high  and
since  1999  a  rising  scale  of  accidents,  in  certain  Member  States  and  in  certain  sectors,  has
been observed again. Therefore, working towards a healthier occupational environment has to
be addressed as part of the general trend in economic activities (more service-oriented), forms

35

36

37

38

39

40

41

42

Undertaking is defined as "a public or private undertaking carrying out an economic activity, whether or
not operating for gain, which is located within the territory of the Member States".
Establishment is defined as a "unit of business defined in accordance with national law and practice and
located within the territory of a Member State, where an economic activity is carried out on an ongoing
basis with human and material resources".
However, there are transitional provisions extending transposition beyond this date for Member States
in which there is no general system of employee representation at the workplace.
SEC(2002) 22/5 of 15/01/2002.
OJ L 80 of 23/03/2002, p. 29.
COM(1991) 273 –3 of 18/12/1991; legal base changed since Amsterdam Treaty – since then 1st reading
in EP (27/10/1999) and discussions in Council (21/05/2002 and 03/06/2002).
COM(1991) 273/4 of 18/12/1991; legal base changed since Amsterdam Treaty – since then 1st reading
in EP (27/10/1999) and discussions in Council (21/05/2002 and 03/06/2002).
See also COM(2002) 89; Furthermore the theme of 'cost of non-social policy' is well documented by the
European agency for safety and health at work – see http://agency.osha.eu.int

12

                                                
of employment (more diversified), the active population (more women, and an older working
population) and society in general (more diverse, but more marked by social exclusion).

Moreover, the candidate countries have an average frequency of occupational accidents which
is well above the average for the EU, mainly because of their higher degree of specialisation
in sectors which are traditionally regarded as high-risk.

The new situation called for a more global approach to health and safety at work. This also
implies  a  more  diversified  use  of  instruments,  involving  not  only  legislation  establishing
minimum  standards  but  also  the  promotion  of  progressive  approaches,  whether  they  be
performance rating, based on transparent and reliable data and indicators, action on the part of
the social partners (at sectoral or multisectoral level), or voluntary company schemes.

The new strategy addresses the key themes outlined in the European Parliament Resolution of
October 2000  and  the Nice political  orientations on  the social policy agenda:  to consolidate
and simplify the acquis communautaire; to respond to new risks (e.g. stress); to promote the
application of legislation to SMEs; to facilitate exchange of good practice.

Against  this  background,  the  Commission  proposed  a  draft  Council  Decision  in  September
2002 to set up an advisory Committee on safety, hygiene and health protection at work.

In addition, the Commission presented a draft recommendation with regards health and safety
provisions for self-employed persons, which was adopted by Council in December 2002

In terms of legislation, the  European Parliament and Council formally  adopted  the directive
on vibrations (physical agents) in mid 2002, establishing common standards with regards to
vibration throughout the European Union. Also the draft noise directive has been negotiated
in conciliation between the European Parliament and the Council in September and October
2002.

Finally,  the  Council  adopted  a  common  position  on  amending  the  current  directive  on
asbestos following the opinion in first reading by the European Parliament.

Key measures:

–  A new Community strategy on health and safety at work 2002-200643

–  Proposal for a Council Decision setting up an advisory committee on safety, hygiene and

health protection at work44

–  Proposal  for  a  Council  recommendation  concerning  the  application  of  legislation

governing health and safety at work to self-employed workers45

–  European Parliament and Council directive on vibrations (physical agents)46

43

44

45

46

COM(2002)  118  of  11/03/2002;  EP  resolution  A5/2002/310  of  23/10/2002;  Council  resolution
OJ C 161 of 05/07/2002; p. 1.
COM(2002) 486 of 04/09/2002.
COM(2002)  116  of  03/04/2002;  EP  opinion  A5/2002/326;  political  agreement  in  Council  in
December 2002.
OJ L 177 of 06/07/2002, p. 13.

13

                                                
–  Agreement  in  conciliation  for  a  European  Parliament  and  Council  directive  on  noise

(physical agents)47

–  First  reading  in  EP  and  common  position  by  Council  on  a  proposal  for  a  European
Parliament  and  Council  directive  amending  Council  directive  83/477/EEC  on  the
protection of workers from the risks related to exposure to asbestos at work48

Working environment and working relations

Modernising the working environment and working relations are at the centre of gravity  for
connecting  economic  and  societal  trends  within  a  context  of  growing  interdependence  of
European economies. For instance, it should address the introduction and spread of  ICT and
how the work organisation can be improved to take full benefits for both the company and the
workers. It is also at the heart of the debate on flexibility and security.

The modernisation and improvement of working relations is an area in which many actors are
involved  as  policy  makers  and  in  which  in  particular  the  social  partners  at  all  levels  –
interprofessional and sectoral as well as European, national, and regional – have an important
responsibility.

The year 2002 has seen important developments in this domain.

First  of  all,  the  High  Level  Group  on  industrial  relations  submitted  its  report  early  2002.
Taking  account  of  the  recommendations  made  in  this  report,  the  Commission  presented  a
Communication on the social dialogue in which it documented the role that could be played
by social partners to support innovation and change. The Communication also addresses how
social  dialogue  can  contribute  to  a  better  European  governance  through  increased
consultation, a better articulation between the different levels, and an increased transparency
of the dialogue.

Against  this  background,  the  Commission  also  proposed  a  Council  Decision  to  establish  a
Tripartite Social Summit for Growth and Employment. Such Summit should ensure  that  the
social  partners'  initiatives  and  actions  are  fully  taken  into  account  into  the  policy-making
process at European level.

Furthermore,  the  social  partners  agreed  in  November  2002,  for  the  first  time,  a  work
programme for autonomous social dialogue covering the period 2003-2005, hereby following
up  on  their  joint  declaration  to  the  Laeken  European  Council  in  December  2001.  The
priorities in the work programme are employment, mobility and enlargement and the specific
measures planned  are  aimed  to  facilitate  the  transformation  of  the  economy,  by  striving  for
increased  competitiveness,  improving  the  working  environment,  promoting  equal  access  to
the  labour  market  and  strengthening  equal  treatment  at  work  (gender,  age,  disability,  anti-
racism etc).

47

48

COM(1992) 560 of 23/12/1992, agreement in conciliation on 23/10/2002.
COM(2001)  417  of  20/07/2001;  EP  first  reading  A5/2002/91  of  11/04/2002  and  Council  common
position CS/2002/9635/1 of 23/09/2002.

14

                                                
The agreement on the joint work programme is an important step for strengthening the input
by the social partners at European level and underlines the importance given to the autonomy
of the social partners and their responsibility to take decisions affecting interests of both sides
of industry.

With  regards  to  achievements  in  2002,  the  European  social  partners  signed  a  framework
agreement on telework in June. It is a direct consequence of the intention they announced in
the  second  phase  consultation  on  modernising  and  improving  employment  relations  to
negotiate  a  voluntary  agreement  to  establish  a  framework  at  the  European  level  to  be
implemented by the members of the signatory parties.

The  Commission  also  launched  the  second  phase  consultation  of  social  partners  on  the
protection  of  workers'  personal  data.  The  first  phase  consultation  of  social  partners  was
launched on stress.

At sectoral level, special reference should be made of the establishment of a social dialogue
committee  in  the  mining  sector.  Also  voluntary  guidelines  on  supporting  age  diversity  in
commerce  were  agreed  by  EuroCommerce  and  UniEuropa  Commerce.  In  the  agricultural
sector,  a  European  agreement  was  made  on  vocational  training49.  Social  partners  of  the
telecommunication sector concluded the first review of the implementation of their telework
agreement of February 2001.

The Commission proposed in March 2002 a draft European Parliament and Council directive
on  temporary  work.  This  legislative  initiative  was  called  for  particularly  by  the  European
Parliament, following the failure by social partners to come to an agreement on this issue. The
aim of the draft Directive for the Commission is to establish a suitable framework for the use
of  temporary  work  to  contribute  to  creating  jobs  and  the  smooth  functioning  of  the  labour
market while at the same time improving the quality of temporary work by ensuring that the
principle of non-discrimination is applied to temporary workers.

In  terms  of  legislation,  the  European  Parliament  and  the  Council  reached  an  agreement  on
amending  the  insolvency  directive.  The  amended  directive  revises  the  former  directive  in
order  to  adapt  it  and  bring  it  in  line  with  Community  case  law  and  the  changing  world  of
work.  Also  final  agreement  was  reached  by  the  European  Parliament  and  the  Council  on
provisions with regards to working time for the road transport sector.  The Commission also
proposed  a  draft  European  Parliament  and  Council  directive  concerning  the  organisation  of
working time. The purpose of this proposal is to codify rules that have frequently be amended
in order to simplify Community law and make it clear and transparent.

Following the working paper of 2001 on financial participation, the Commission presented in
2002  a  Communication  on  a  framework  for  the  promotion  of  employee  financial
participation.  This  is  an  aspect  of  motivating  workers  to  take  initiative  and  contribute
dynamically to the performance of the company while also letting them share in the benefits
of the company's achievement.

The  Commission  also  formally  established  the  Group  of  Directors-General  for  Industrial
Relations,  which  should  support  a  close  co-operation  between  the  respective  national
administrations  and  the  European  Commission.  The  group  should  facilitate  exchange  of

49

Agreement of 05/12/2002.

15

                                                
information  with  regards  to  the  situation  in  the  Member  States,  the  implementation  of  the
legal acquis as well as its revision and simplification.

Key measures:

–  Report by the High Level Group on Industrial Relations50

–  Commission Communication on the European social dialogue, a force for innovation and

change51

–  Proposal  for  a  Council  decision  establishing  a  Tripartite  Social  Summit  for  Growth  and

Employment52

–  Framework agreement on telework concluded by social partners53

–  Second  stage  consultation  of  the  social  partners  on  the  protection  of  workers'  personal

data54

–  First stage consultation of the social partners on stress

–  Proposal for Directive of the European Parliament and the Council on working conditions

for temporary workers55

–  European Parliament and Council directive amending Council directive 80/987/EEC on the
approximation of the laws of the Member States relating to the protection of employees in
the event of the insolvency of their employer56

–  European Parliament and Council Directive concerning working time for mobile workers

(road transport and self-employed drivers)57

–  Commission proposal for a European Parliament and Council Directive concerning certain

aspects of the organisation of working time58

–  Commission  Communication  on  a  framework  for  the  promotion  of  employee  financial

participation59

–  Commission  decision  concerning  the  creation  of  a  Group  of  Directors-General  for

Industrial Relations60

–  Autonomous action by social partners:

50

51

52

53

54

55

56

57

58

59

60

See http://europa.eu.int/comm/employment_social/soc-dial
COM(2002) 341/1 of 26/06/2002.
COM(2002) 341/2 of 26/06/2002.
Signed on 16/06/02.
C 2002/4084 – adopted by Commission on 29/10/2002.
COM(2002) 149 of 20/03/2002; EP amendments in first reading A5/2002/356; discussed in Council on
03/12/2002.
OJ L 270 of 08/10/2002, p. 10.
OJ L 80 of 23/03/2002, p. 35.
COM(2002) 336 of 24/06/2002.
COM(2002) 364 of 26/07/2001.
C 2002/1140 – adoption by Commission on 27/03/2002.

16

                                                
–  Framework of actions for the lifelong development of competencies and qualifications61

–  Multi-annual Work programme of the European social partners62

Corporate social responsibility

Following the Green Paper in 2001, the Commission presented in July 2002 a Communication
on Corporate Social Responsibility (CSR), taking into account the opinions expressed in the
consultation by stakeholders as  well as  the views of the European Parliament, The  Council,
the Economic and Social Committee and the Committee of the Regions.63

Corporate  Social  Responsibility  is  identified  as  an  approach  whereby  companies  integrate
social  and  environmental  concerns  in  their  business  operations  and  in  their  interaction  with
their stakeholders on a voluntary basis. Through CSR, enterprises can contribute significantly
to sustainable development.

This  initiative  is  particularly  important,  with  regards  to  more  and  better  jobs,  improving
governance,  better  regulation,  improved  competitiveness  and  sustainable  development.  The
Commission aims at promoting the business case for corporate social responsibility as well as
external evaluation and benchmarking of  companies'  social  and environmental performance.
The  Commission  also  proposed  setting  up  a  Multi-Stakeholder  Forum  on  CSR,  which  was
launched  on  16  October  2002,  bringing  together  European  representative  organisations  of
employers, trade unions and civil society, as well as other business organisations with the aim
to promote transparency and convergence of CSR practices and instruments.

Key measure

–  Commission Communication concerning Corporate Social Responsibility64

–  Establishment of the European Multi-Stakeholder Forum

3.3       Promoting social inclusion and fighting discrimination

Social inclusion strategy – the open method of co-ordination

The Lisbon European Council had called for steps to be taken to make a decisive impact on
the eradication of poverty by 2010. Accordingly the European Council of Nice in December
2000  agreed  objectives  and  working  methods  to  implement  the  Open  Method  of  Co-
ordination  in  this  domain.  During  2001  Member  States  produced  National  Action  Plans  for
social  inclusion  covering  the  period  mid  2001  to  mid  2003  and  a  Joint  Inclusion  Report
analysing these plans was endorsed by the Laeken European Council. Laeken also approved a
set of commonly  agreed indicators in this field  with  a  view  to  monitoring  progress  towards
the Lisbon objective, to improve understanding of the issues and to support exchange.

61

62

63

64

ETUC, UNICE, CEEP of 28/02/2002.
As adopted by the Social Dialogue Summit on 28/11/2002.
resolution
See  website  http://europa.eu.int/comm/dgs/employment_social/index_en.htm 
A5/2002/159  of  30/05/2002;  Council  resolution  of  03/12/2002;  ESC  opinion  CES/2002/355  of
20/03/2002 and COR opinion CDR/2001/345 of 14/03/2002.
COM(2002) 347 of 02/07/2002.

;  EP 

17

                                                
A main development during 2002  was  the  formal  agreement  on  the  objectives  and  working
methods  for  the  second  round  of  NAPS  inclusion,  to  cover  the  period  after  Mid-2003.  A
series of discussions and consultations were undertaken during the second half of 200265. A
Round Table to consult NGOs, social partners and other actors was held in October.

For the most part the new common objectives did not depart from those agreed at Nice. The
most significant change was to incorporate the conclusion of the Barcelona European Council
that Member States should build into the NAPs inclusion targets for the reduction of poverty
and  social  exclusion  by  2010.  In  addition,  the  gender  dimension  and  links  between
immigration and social exclusion should be dealt with more fully.

The Community Action Programme to Combat Social Exclusion came into effect in January
200266.  This  programme  also  supports  partnerships,  in  particular  of  organisations  managing
social services, NGOs, social partners and regional and local authorities.

Key measures

–  Implementation of National Action Plans

–  Council agreement on common objectives67

The digital divide

Preventing that the transition to the knowledge based economy would automatically result in
a digital divide and increased divergence  is  a  major  part of the  Lisbon  strategy.  The  choice
made  is  therefore  one  of  embracing  the  new  possibilities  offered  by  new  information  and
communication  technologies.  The  ongoing  e-Europe  initiatives  are  particularly  pertinent  in
this context. An update of the Benchmarking report was published in 2002.

Special reference should be made of the action on improving disabled people's access to the
knowledge based society.

Key measures

–  Benchmarking Report eEurope 200268

–  Delivering  eAccessibility  –  improving  disabled  people's  access  to  the  Knowledge  Based

Society69

–  Council Resolution on e-Accessibility for the Disabled70

65

66

67

68

69

70

The  slightly  revised  set  of  common  objectives  were  formally  adopted  by  the  Council  in
December 2002.
OJ L 10 of 12/01/2002, p. 1.
December 2002.
COM(2002) 62 of 05/02/2002.
SEC(2002) 1039 of 26/09/2002.
Adopted by Council in December 2002.

18

                                                
Equal treatment for third country nationals

The proposal to extend Regulation 1408/71 on the co-ordination of social security schemes to
third  country  nationals  was  agreed  by  Council  in  December  200271.  The  same  Council
meeting also reached political agreement on the orientation to reform the chapter on sickness,
accidents  at  work,  and  industrial  diseases  and  death  grants.  Of  particular  importance  is  the
progress made related to introducing a European Health Insurance Card.

Key measure

–  Agreement by Council of the extension of regulation 1408/71 to third country nationals –

December 2002

Combating discrimination

Work in this field in 2002 was concentrated on the implementation of the Community action
programme  to  combat  discrimination  2001-2006  and  preparations  for  the  transposition  into
national  law  in  2003,  of  the  two  European  Directives  prohibiting  discrimination  on  the
grounds of race or ethnic origin, religion or belief, disability, age and sexual orientation.

Integration of disabled people72

The year 2003 will be particularly important to increase awareness about the rights of people
with  disabilities  in  the  context  of  the  European  Year  of  People  with  Disabilities.  Both  at
Community level as well as in the Member States – at national, regional and local level – the
preparatory measures for  a  wide  range  of actions  throughout  Europe  are well advanced.  An
intense debate is expected to take place throughout the year which will help shape new ideas
for action in this area.

3.4       Modernising social protection

The  approach  outlined  in  the  Social  Policy  Agenda  builds  further  on  the  communication  of
July  1999  on  "A  Concerted  Strategy  for  Modernising  Social  Protection"  in  which  the
Commission proposed that there should be policy exchange between the Member States and
the Commission based on four core topics: to make work pay and provide a secure income; to
make  pensions  safe  and  pension  systems  sustainable;  to  promote  social  inclusion  and  to
ensure high quality and sustainable health care.

In June 2000 the Council formally established the Social Protection Committee as the forum
for advancing work on these issues.

There was progress in each of these domains during 2002; work on the promotion of  social
inclusion is described in Section 3.3

Whereas social protection systems are an essential feature of the European Social Model, they
remain the responsibility of each Member State. The EU level can contribute to the necessary

71

72

COM(2000) 186 of 28/04/2000.
See also the section on the digital divide and e-accessibility for people with a disability.

19

                                                
modernisation  of  Social  Protection  Systems  by  streamlining  the  current  actions  linked  to
social inclusion and pensions and, in time, co-operation in relation to health care and 'making
work pay' into a single open method of  co-ordination. This will considerably  strengthen  the
social dimension of the Lisbon Strategy.

Adequate and sustainable pensions

The  Lisbon  European  Council  requested  a  co-operative  exchange  regarding  the  future
sustainability  of  social  protection  systems,  in  particular  pensions.  The  Laeken  European
Council of December 2001 endorsed proposals to apply the Open Method of Co-ordination in
this domain. In order to ensure that both the social and financial dimensions are fully reflected
in  this  work,  the  process  is  jointly  organised  by  the  Social  Protection  Committee  and  the
Economic  Policy  Committee.  Member  States  submitted  national  strategy  reports  on  their
pensions  policies  in  September  2002,  on  the  basis  of  which  a  Joint  Council/Commission
Pensions Report will be presented to the Spring 2003 European Council.

Key measures

–  Commission  Communication  on  supporting  national  strategies  for  safe  and  sustainable

pensions73

–  Draft joint report on pensions adopted by the Commission in December 200274

High quality and sustainable health care

The  Gothenburg  European  Council  of  June  2001,  in  its  consideration  of  what  is  needed  to
meet  the  challenges  of  an  ageing  society,  asked  the  Social  Protection  and  Economic  Policy
Committees to prepare an initial report  on the  challenges  of  providing health and long-term
care  for the  elderly in the context of  an  ageing society.  This  was  seen as  an  addition  to  the
work on pensions described above.

On the basis of a Communication from the Commission of December 2001, a report was sent
to  the  Barcelona  European  Council  of  March  2002.  This  proposed  three  broad  headings  -
access for all; a high level of quality of care; and the financial sustainability of systems - as a
basis for a co-operative exchange in this field. Following endorsement of the approach by the
European  Council,  a  questionnaire  was  sent  to  the  Member  States  as  a  basis  for  examining
policies  by  reference  to  these  headings  more  thoroughly.  Member  States  responded  in
Autumn  2002.  The  Commission  is  drafting  a  Joint  Council/Commission  report  to  be
submitted to the Spring 2003 European Council.

Key measure

–  Commission  Communication  on  the  future  of  health  care  and  care  for  the  elderly:

guaranteeing accessibility, quality and financial viability75

73

74

75

COM(2001) 362 of 03/07/2001; EP resolution A5/2002/71 of 11/04/2002.
17 December 2002.
COM(2001) 723 of 05/12/2001.

20

                                                
3.5       Promoting gender equality

The Social Policy agenda defines two major approaches to promote gender equality: specific
initiatives and mainstreaming.

Mainstreaming gender equality

Mainstreaming stands for integrating gender equality into all relevant policy areas, including
through gender impact assessments of proposed policies. Within the better regulation package
presented by the Commission in June 2002, gender impact assessments have become now an
integral part of the impact assessments the Commission will carry out systematically on draft
proposals  for  legislation  and  policy  initiatives.76  The  Commission  reports  annually  on  the
progress made. It also puts forward each year a strategy on gender equality in the policies and
practices of the European Commission.

Within the areas of employment and social policy, the gender dimension has been assessed in
the  European  Employment  Strategy,  gender  mainstreaming  has  been  strengthened  in  the
objectives  for  the  preparation  of  the  next  round  of  the  National  Action  Plans  on  social
inclusion,  and  the  gender  dimension  has  been  introduced  in  the  common  objectives  on
pensions. Finally, mainstreaming of gender in the Structural Funds is being addressed.

The  Commission  introduced,  in  its  Communication  on  structural  indicators,  gender
breakdown of indicators as a general principle.

Special  reference  should  be  made  to  the  conclusions  drawn  up  by  the  Council  on
incorporating  the  gender  perspective  in  Environment,  Employment  and  Social  Affairs,  and
Agriculture.  Following  the  conclusions  at  the  May  Agriculture  Council  gender  equality  in
rural areas is set to become a major point on the rural development agenda.

Specific measures

The European Parliament and Council formally  adopted in 2002, following conciliation, the
directive  amending  directive  76/207/EEC  on  the  implementation  of  the  principle  of  equal
treatment  for  men  and  women  as  regards  access  to  employment,  vocational  training  and
promotion, and working conditions.

With regards to equal participation and access to  decision-making,  the  European Parliament
agreed an own initiative report on the representation of women among the social partners of
the European Union.

The  theme  of  violence  against  women  has  been  addressed  within  the  Council,  emphasising
that its eradication requires an unstinting effort by governments and society as a whole. In the
context of the annual follow-up of the implementation of the Beijing Platform for Action, the
Council agreed on indicators on domestic violence against women.

76

COM(2002) 276 of 05/06/2002.

21

                                                
It  should  also  be  noted  that  the  Commission  has  been  attentive  to  incorporate  gender  in  its
work  and  policy  contributions  on  external  relations,  as  for  instance  exemplified  in  the
Commission's input into the World Summit on Sustainable Development in Johannesburg.77

A  feasibility  study  on  the  creation  of  a  European  institute  for  gender  issues  has  been
completed in January 200278. This study is now at the basis of future reflection on this theme.

Finally,  reference  should  also  be  made  to  the  Barcelona  Spring  European  Council  and  the
benchmarks for childcare in order to better reconcile work and family life79.

Key measures

–  Annual report on equal opportunities for women and men (2001)80

–  Framework strategy on gender equality work programme for 200281

–  Council conclusions on incorporating the gender perspective into the agriculture Council82

and gender mainstreaming in EU policies83

–  Formal adoption by European Parliament and Council of the Directive amending directive

76/207/EEC84

–  EP  report  on  the  representation  of  women  among  the  social  partners  of  the  European

Union85

–  Mainstreaming of gender in the Structural Funds

3.6       Strengthening the social policy aspects of enlargement and the European union's
external policies

Enlargement

Also  in 2002 significant attention was  given to  facilitating  and  monitoring  compliance  with
the acquis communautaire in the employment and social field. Decisions have been taken so
as  to  ensure  that  Candidate  Countries  can  participate  in  the  action  programmes  on  equal
opportunities between women and men, anti-discrimination, the fight against social exclusion,
and  the  incentive  measures  for  employment.  This  step  is  particularly  important  as  these
programmes support exchange of information and networking and provide financial resources
including  for  actors  at  local  and  regional  level,  whether  public  or  private86,  to  actively
participate in these exercises.

77

78

79

80

81

82

83

84

85

86

See for example COM(2002) 82 of 13/02/2002.
January 2002; carried out by PLS RAMBOLL Management; see
http://europa.eu.int/comm/employment_social/equ_opp/documents_en.html
This point is covered in detail in the section on more and better jobs.
COM(2002) 258 of 28/05/2002.
COM(2001) 773 of 17/12/2001.
May 2002.
June 2002 meeting of the Employment and Social Affairs Council.
OJ L 269 of 05/10/2002, p. 15.
A5/2002/279 of 25/09/2002.
Including social partners and NGOs.

22

                                                
Both  through  bilateral  contact  and  through  conferences,  the  Commission  has  intensified  the
debate with policy makers and actors in the Candidate Countries. Two major conferences took
place  in  2002  with  a  view  to  review  the  implementation  of  the  acquis,  including  the  open
method of co-ordination in the field of employment and social policy87. A series of seminars
and  round  tables  were  organised  by  the  European  social  partners,  notably  at  sectoral  level,
together with the social partners of the Candidate Countries to prepare for enlargement and to
future participation in social dialogue committees.

Whereas the Candidate Countries are gradually all starting to mirror the employment strategy,
as  illustrated  in  the  Joint  Assessment  Papers  on  employment  policy  priorities,  a  similar
activity  has  been  developed  throughout  2002  to  prepare  Joint  Inclusion  Memoranda.  Such
memoranda  would  reflect  per  country  the  measures  needed  to  shadow  the  social  inclusion
process and provide policy orientations in the field of fighting poverty and promoting social
inclusion.

Key measures

–  Facilitating and monitoring implementation of acquis communautaire

–  opening up of the four action programmes in the field of employment and social affairs to

Candidate Countries88

–  Joint Assessment Papers on Employment Policy Priorities89

–  Preparation of Joint Inclusion memorandum with Candidate Countries

International co-operation and external relations

The  Commission  co-operates  intensively  with  international  organisations  on  the  themes  of
employment and social policy. The co-operation with the OECD and the  ILO is particularly
important.  The  Commission  has  intensified  co-operation  with  the  latter  organisation  on  the
promotion  of  core  labour  standards,  social  governance  and  decent  work  promotion  in  the
context of globalisation. This also includes setting up  common  statistical data  collections in
pilot areas. The European Commission will contribute to the work of the World Commission
on  the  social  dimension  of  globalisation  established  by  ILO  by  organising  early  February
2003 a high level seminar.

Also the co-operation with the UN and within the G-8 is important. Employment and social
policy was at the centre of international debate at the World Assembly on Ageing in Madrid
and at the G-8 in Montreal in April 2002.

Furthermore, there are bilateral co-operation programmes in the social field with the USA and
Japan.

87

88

89

February and December 2002.
C  2002/2035  adopted  by  Commission  on  06/06/2002  (fight  against  social  exclusion);  C  2002/2036
adopted by Commission on 06/06/2002 (equal opportunities); C 2002/2037 adopted by Commission on
06/06/2002  (anti-discrimination);  C  2002/3964-1  and  C  2002/3964-2  adopted  by  Commission  on
23/10/2002 (incentive measures for employment).
Signed with virtually all Candidate Countries; signature of Joint Assessment with Latvia early 2003 and
review process with Turkey launched.

23

                                                
Employment  and  social  affairs,  in  particular  with  regards  to  poverty  reduction,  gender
equality  and  quality  in  work,  are  integrated  into  the  Commission's  external  policies.  In
particular,  development  co-operation  is  based  on  integrated  strategies  that  incorporate
economic,  social,  cultural,  environmental  and  institutional  elements  that  must  be  locally
owned.

The  main  tool  of  the  EC  development  assistance  is  the  Programming.  This  is  centred  on
Country/regional  Strategy  Papers,  which  set  out  a  'strategic  framework'  for  the  EC's  central
priorities in a given country or region.

The Millennium Development Goals are at the core of development policy. They highlight the
importance of social and human development to achieve development and poverty reduction.

The integrated approach fostering economic, social and environmental development is at the
heart of the EU's sustainable development strategy, as exemplified in the contribution to and
follow-up of the Johannesburg World Summit.

Key measures

–  Contribution to the achievement of the Millennium Development Goals by 2015

–  Contribution to the 2nd World Assembly on ageing90

–  Contribution to the Johannesburg World Summit91

4.         Conclusion and future outlook

4.1.      Public support for employment and social policy

An overwhelming majority of EU citizens support active public intervention to guarantee fair
social  and  economic  standards  for  everyone92.  Almost  90%  of  the  population  state  that  the
fight against unemployment and against poverty and social exclusion should be priorities for
policy action in the EU. Moreover, half this group considers that current policies and efforts
fall short of meeting the objective of fairness.

The opinion poll of those of 15-24 illustrate that the demand for social policy is not expected
to wane in coming decades93. In the contribution of youth to the Convention, the fight against
unemployment, social exclusion and poverty are identified as being of the highest priority.

4.2.      Mid-term review of the social policy agenda

However,  strengthening  actions  in  the  employment  and  social  domain  should  be  shaped
within the overall policy orientation defined in the Lisbon strategy. This means that policies
should  be  geared 
interaction  between  economic,
employment and social policies. This is why the role of social policy as a productive factor is
crucial in the formulation of policies and why the costs of not having quality social policies

towards  maximising 

the  positive 

90

91

92

93

COM(2002) 143 of 18/03/2002; EP resolution A5/2002/184 of 11/04/2002.
See for instance COM(2002) 82 of 13/02/2002.
Eurobarometer - May 2002.
Eurobarometer – July 2002.

24

                                                
will feature strongly in the mid-term review of the social policy agenda that will take place in
2003.

In  order  to  ensure  that  all  actors  and  stakeholders,  including  the  European  Parliament,  the
Member  States,  the  Economic  and  Social  Committee,  the  Committee  of  the  Regions,  the
social partners, NGOs, local and regional authorities, international organisations and scientific
experts, can provide an input in assessing the implementation of the agenda so far and debate
the  priorities  for  the  remaining  period  of  the  agenda  94,  the  Commission  organises  a
conference in march 2003. The mid-term review itself will be adopted by the Commission in
May 2003 and presented subsequently to the European Parliament, the Council, the Economic
and Social Committee and the Committee of the Regions.

A  starting  point  for  the  debate  on  the  costs  of  non-social  policy  at  the  mid-term  review
conference  will  therefore  be  that  the  labour  market  does  not  deal  with  goods  and  abstract
production factors but with people and social relations. It therefore needs a built-in dimension
to motivate people to perform well95. Social partnership and social dialogue play a crucial role
here  by  reducing  actors'  uncertainty  about  the  behaviour  of  others.  In  this  sense  they
contribute to social capital96.

Social capital shapes the relationships and social structures between groups and increases the
potential of the development of human capital in a dynamic environment.

Embodied  in  networks,  norms  and  trust  it  allows  the  relevant  actors  and  institutions  to  be
more  effective  in  achieving  common  objectives.  Social  dialogue,  as  a  component  of  social
capital, contributes to as large as possible a number of workers sharing in skills development
as well as in productivity gains.

Social partnership is essential to re-define the flexibility-security nexus, including through the
modernisation  of  work  organisation.  In  an  increasingly  knowledge  based  economy  social
partnership becomes a collective resource for innovation. After all workers rather than 'jobs'
are the bearers of skills.

However, for social partnership to contribute to dynamism and innovation collective action, in
particular by employees, may not be locked in the past.

This understanding, albeit not universal, can already be observed in many agreements drawn
up with the involvement of social partners. The bipartite (and tripartite) concertation policies
at  interprofessional  level  in  most  EU  Member  States  provide  for  regulation  of  the  labour
market aimed at employment growth and competitiveness97.

The proposal for a tripartite social summit should facilitate to make a similar forward-looking
approach  by  social  partners  at  European  level.  The  multi-annual  work  programme  for  an
autonomous  social  dialogue  testifies  now  of  such  a  comprehensive  approach  by  European
social partners to focus on objectives beneficial to both sides of industry.

94

95

96

97

Until end 2005.
This is the essence of promoting quality in work.
Social capital refers to the role of 'intangible' assets as institutions and social relationships and the role
of good governance (implying increased participation) and social cohesion.
The pacts for employment and competitiveness in several countries confirm this trend.

25

                                                
This  approach  supports  the  view  that  the  relationship  between  economic  and  social
performance is such that more of the one does not necessarily reflect less of the other.

Also  with  regards  to  social  protection  is  the  observation  made  that  it  can  be  positive  or
negative to economic performance, as well as that not having social policy can have economic
benefits or costs. An underlying view in the modernisation of social policy is that it should be
designed,  where  appropriate,  as  an  investment  that  promotes  market  efficiency  rather  than
correcting  inefficiencies.  Although  the  ultimate  aim  of  social  protection  is  not  to  improve
economic growth, it can play an unmistakably positive role in the economy.

The Commission approach outlined in the June 2002 Communication on impact assessments
will  contribute  to  articulating  better  the  benefits/costs  of  (non)  social  policy  by  installing  a
new culture in which the economic, environmental and social consequences of new legislation
and major policy initiatives should be fully reflected.

4.3.      Major initiatives for 2003

As to the year 2003, a number of important initiatives will be launched by the Commission.98

(cid:1)  Mid-term review of the Social Policy Agenda

(cid:1) On the employment front, key initiatives will concern:

(cid:1)  Communication  outlining  the  approach  for  the  revision  of  the  European  Employment

Strategy

(cid:1)  Proposal for a Council decision on Guidelines for Member States' employment policies for

the year 2003

(cid:1)  Recommendation for a Council recommendation on the implementation of Member States'

employment policies for the year 2003

(cid:1)  Commission report on the exit age from the labour market

(cid:1)  Communication  on  the  interaction  between  immigration,  employment  and  social  policies

in the EU

(cid:1)  Mid-term review of the ESF in the context of the Structural Funds Review

(cid:1)  Communication  from  the  Commission  to  Member  States  revising  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

98

See  also  the  Commission's  legislative  and  work  programme  for  2003  (COM(2002)  590),  where
employment  and  social  policy  is  presented  within  the  framework  of  the  Commission's  strategic
priorities.

26

                                                
(cid:1) On change and the working environment

(cid:1)  Follow-up of social partners consultation on processing of personal data and the protection

of privacy in the employment context

(cid:1)  Consultation of the social partners on the opportunity to revise Directive 94/45/EC on the
establishment  of  a  European  Works  Council  on  a  procedure  in  Community-scale
undertakings and Community-scale groups of undertakings for the purposes of informing
and  consulting  employees,  taking  into  account  the  new  work  programme  of  the  social
partners, notably concerning the issue of restructuring

(cid:1)  Commission  Communication  on  the  review  of  the  Directive  96/71/EC  concerning  the

posting of workers in the framework of the provision of services

(cid:1)  Communication  from  the  Commission  on  the  review  of  Directive  93/104/EC  on  the

organisation of working time

(cid:1)  Commission Directive establishing a second list of indicative occupational limit values in
implementation of Council Directive 98/24/EC on the protection of the health and safety of
workers from the risks related to chemical agents at work

(cid:1)  Commission  Communication  on  the  effective  implementation  of  health  and  safety

legislation (Directive 89/391 and 6 others)

(cid:1) On promoting social inclusion and fighting discrimination

(cid:1)  Draft Joint Report on Social Inclusion 2003

(cid:1)  Communication of the Commission on the follow up of the European Year of People with

Disabilities 2003

(cid:1)  Commission  Communication  on  an  evaluation  of  the  progress  made  by  the  European
Monitoring Centre on Racism and Xenophobia, including proposals for the amendment of
Regulation EC 1035/97 establishing the Centre

(cid:1)  Communication  from  the  Commission  to  the  Council  on  the  UN  Convention  on  Human

Rights of people with disabilities

(cid:1)  First European report on equality and discrimination

(cid:1) On social protection

(cid:1)  Communication to the Council, European Parliament, the Economic and Social Committee
and  the  Committee  of  the  Regions  on  next  steps  for  policy  co-operation  in  the  area  of
health and long-term care

(cid:1)  Enhancing  EU  co-operation  to  promote  work  incentives  within  social  protection  systems

(make work pay)

(cid:1)  Communication on the introduction of the European Health Insurance Card

27

(cid:1)  Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending
Council  Regulation  (EEC)  No  1408/71  on  the  application  of  social  security  schemes  to
employed  persons,  to  self-employed  persons  and  to  members  of  their  families  moving
within  the  Community  and  Council  Regulation  (EEC)  No  574/72  laying  down  the
procedure for implementing Regulation (EEC) No 1408/71

(cid:1)  Measures  to  improve  the  portability  of  occupation  pension  rights  (second  stage

consultation of social partners)

(cid:1) On equal opportunities

(cid:1)  Recasting of Gender Equality directives

(cid:1)  Annual Report on Equal Opportunities in the EU

(cid:1)  Gender Mainstreaming Report

(cid:1)  Work programme on gender equality

(cid:1)  Mainstreaming of gender in Structural Funds

(cid:1) On enlargement

(cid:1)  Pursue preparation for enlargement

(cid:1)  Signature Joint Inclusion Memoranda

(cid:1)  JAPs progress report

(cid:1)  Launch an initiative with NGOs to develop civil society in the Candidate Countries

28