Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Mid-term review of the social policy agenda
Date: 2003-06-02
Institutions: European Commission
Subjects: EU employment policy, EU regional policy, European social policy, economic and social cohesion, enlargement of the Union, social security

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.6.2003
COM(2003) 312 final

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

MID-TERM REVIEW OF THE SOCIAL POLICY AGENDA

   
TABLE OF CONTENTS

1.

2.

2.1.

2.2.

3.

3.1

3.2

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

Meeting the challenges – seizing the opportunities ..................................................... 3

A new political and economic situation....................................................................... 3

Enlargement ................................................................................................................. 4

The Lisbon strategy and the Social Policy Agenda acquis .......................................... 6

The Social Policy Agenda: its origin and development within the Lisbon strategy .... 6

Progress to date ............................................................................................................ 7

3.2.1

The employment situation............................................................................................ 7

3.2.2

The social situation ...................................................................................................... 7

3.3

3.4

The 'cost of non-social policy'...................................................................................... 8

Improved governance................................................................................................. 10

3.4.1

The actors ................................................................................................................... 10

3.4.2

The combination of policy instruments ..................................................................... 10

4.

5.

5.1

5.2

5.3

5.4

5.5

5.6

The social acquis – consolidating social standards throughout the EU ..................... 11

Policy headlines and action........................................................................................ 12

More and better jobs .................................................................................................. 12

Anticipating and capitalising on change in the working environment by creating a
new balance between flexibility and security ............................................................ 14

Fighting poverty and all forms of exclusion and discrimination ............................... 17

Modernising social protection.................................................................................... 19

Promoting gender equality ......................................................................................... 20

Strengthening the social policy aspects of enlargement and the European Union's
external relations ........................................................................................................ 20

6.

Conclusion and outlook ............................................................................................. 22

ANNEX.................................................................................................................................... 24

2

1.

INTRODUCTION

The  European  Commission  launched  in  June  2000  the  social  policy  agenda1  for  the  period
2000-2005,  following  extensive  consultation  with  actors  and  stakeholders.  The  agenda
provides the roadmap  for employment and social policy, translating the policy objectives of
the Lisbon strategy for economic and social renewal into concrete measures.

The European Parliament hosted a large conference in September that year to help shape the
Resolution2 which it adopted in October.

Finally,  the  agenda  was  endorsed  by  the  Nice  European  Council3  in  December  2000  and
provided  six  main  policy  orientations,  on  the  progress  of  which  the  Commission  reports
annually in its Scoreboards4.

From the outset, a mid-term review was scheduled in 2003. On the basis of the assessment of
the  past  years,  the  mid-term  review  should  help  in  determining  the  new  policy  measures
needed to complete the agenda, with specific reference to the years 2004 and 2005.

The  mid-term  review  should  thus  ensure  that  the  implementation  of  the  agenda  remains
dynamic  and  flexible,  capable  to  respond  to  new  challenges  and  needs  while  taking  into
account the experiences from the first years.

The Commission organised in March 2003 a conference5 to prepare this Communication. The
event provided a public forum to debate the future of employment and social policy. The rich
exchange of views between the major actors has contributed significantly to the development
of this Communication.

The conference ascertained successful enlargement as the EU's key challenge for the coming
period.  The  mid-term  review  provides  a  unique  opportunity  to  reflect  the  full  scope  of  this
dimension. However, the debate also validated that the established challenges underlying the
social agenda – including the pervasive structural weaknesses in labour markets, demographic
trends,  the  persistent  gender  inequalities,  the  changing  nature  of  families,  technological
change and the requirements for the knowledge-based economy, disparities and poverty, the
internationalisation of the economy - should remain a  firm basis for future EU action in the
field of employment and social policy as well.

2.

MEETING THE CHALLENGES – SEIZING THE OPPORTUNITIES

2.1.

A new political and economic situation

The  economic  and  political  situation  in  20036  is  very  different  from  the  one  in  2000.  The
early  2000  economic  optimism  has  been  replaced  since  2001  with  an  economic  slowdown

1

2

3

4

5

6

COM(2000) 379 final of 28.6.2000.
EP Resolution A5-291/2000 of 25.10.2000.
Nice European Council: conclusions (December 2000)
COM(2001) 104 final  of  22.2.2001;  COM(2002) 89 final  of  19.2.2002;  COM(2003) 57 final  of
6.2.2003.
See http://europa.eu.int/comm/employment_social/news/2003/jan/1041848954_en.html
See for instance European Commission (2003). Spring 2003 Economic Forecasts. European Economy
Nr. 2/2003

3

                                                
which  is  turning  out  to  last  longer  and  cut  deeper  than  originally  anticipated  by  economic
experts. In addition, geo-political stability has been put to the test and the war against Iraq has
added further uncertainty.

In those domains for which there are recent data, the picture looks very different now than the
outlook in 2000. Economic growth has fallen sharply, employment creation has been slowing
down, unemployment is on the rise, and consumer and business confidence remains low.

However,  this  situation  should  not  blur  the  appreciation  for  the  past  years  of  reform  in  the
areas  of  employment  and  social  policy  through  the  implementation  of  the  social  policy
agenda. A synthesis of the findings has been published earlier this year by the Commission in
its main report to the Spring European Council7.

The  mid-term  review  of  the  agenda  is  intended  to  contribute  to  the  formulation  of  policy
actions which should underpin the conditions for a continued period of high, non-inflationary
growth. It should help in creating jobs, wealth, prosperity and enhance social cohesion.

This  requires 
to  seize  new
improving  competitiveness  and  facilitating  businesses 
opportunities  for  development.  Success  will  be  build  on  pursuing  policies  that  take  fully
account of the interaction between different policy strands, as outlined in the Lisbon strategy:
economic,  internal  market,  enterprise,  education  and  training,  research8,  environmental
policies to name just a few whose interaction with employment and social policy is crucial to
help Europe in strategically pursuing an improvement of quality of life, shared by all people
living in the European Union.

The  vulnerability  of  Europe's  economy  to  external  circumstances  strengthens  the  case  for
pursuing the Lisbon strategy and speeding up the pace of change, including through the social
policy agenda.

2.2.

Enlargement

In May 2004 the European Union will welcome ten new Member States, bringing a definitive
end to the division of Europe following the second World War.

The 2004 enlargement will distinguish itself from previous enlargements in terms of growing
diversity across the board. A new challenge in the social field will concern the discrimination
faced  by  ethnic  minorities  and  in  particular  the  Roma  for  which  joined-up  solutions  to  the
multiple layers of discrimination and deprivation will be imperative.

The increased diversity also concerns particularly economic divergence. The average income
level of the ten accession countries will be less than half of the average GDP per head of the
current Member States.

In  the  Kok  report  on  enlarging  the  European  Union,  it  was  argued  that  "even  in  the  most
positive of scenarios,  the  economic convergence  of the new member states with the  present
members will be a long-term process – a matter of decades. The  costs  and  benefits will not

7

8

COM(2003) 5 of 14.1.2003
About 1.2 million additional research personnel, including 700 000 additional researchers, are deemed
necessary to attain the Barcelona objective to raise investment in Research and Development to 3% of
GDP. See in particular 'Investing in Research: an Action Plan for Europe', COM(2003) 226.

4

                                                
necessarily  occur  in  the  same  period;  costs  associated  with  increased  competition  and
adjustment  may  come  sooner,  in  the  early  years  of  membership.  However,  the  long-term
benefits can be very large, if appropriate policies are followed."9

GDP per head in PPS - 2001

 ‘000€

Convergence in GDP per head

Relative to EU15 average
Purchasing power =100

Bulgaria

Cyprus

Czech Rep

Estonia

Hungary

Latvia

Lithuania

Malta

Poland

Romania

Slovak Rep

Slovenia

Turkey

CC10

EU15

130

%

120

110

100

90

80

70

60

50

40

Spain

Portugal

Ireland

Greece

0

5

10

15

20

25

Employme nt & S ocia l Affa irs

Eu rop ea n Co mmis s io n

1015

1960-2001

Accession to the EU

Employme nt & S ocia l Affa irs

Eu rop ea n Co mmis s io n

1019

70

80

90

00

Experience shows that convergence is not automatic. On the contrary, evidence suggests that
there  are  several  paths  of  economic  development  following  EU  accession,  making  the  case
that there is no recipe for rapid success and that periods of convergence and divergence may
alternate.

New Member States will continue to undergo rapid change in their economic structure. This
will  create  immense  new  opportunities,  which  should  be  seized  to  underpin  sustainable
economic and employment growth, and thus contribute to long-term convergence in income.
However,  it  will  also  contain  adverse  effects  to  segments  of  the  population.  The  effective
management of this process will be a main issue in the years to come.

Enlargement will slightly reduce the average employment rate in the European Union. On the
basis  of  the  Spring  2003  economic  forecasts  and  demographic  considerations,  the
employment rate in 2002 for the EU15 is now estimated at about 64.3% and that of the EU25
would stand at 62.4%, more than 7.5% below the Lisbon 2010 target. However, the decline at
the  time  of  enlargement  does  not  justify  a  retreat  from  the  Lisbon  employment  targets  and
should not jeopardise the attainment of these very targets.

Countries10 like the Czech Republic and Cyprus have already employment rates above the EU
average.  The  data  also  highlight  the  difference  in  full-time  and  part-time  work  between  the
current EU-15 and the accession countries.

Employment rates 2001 - EU15

Employment rates 2001 - CCs

80

%

70

60

50

40

30

20

10

0

Unadjusted

Full-time equivalents

Lisbon target 2010

80

%

70

60

50

40

30

20

10

0

Unadjusted

Full-time equivalents

Lisbon target 2010

US EU15

DK

NL

SW UK

P

AU

FIN

DE

IRL

F

LUX

B

ES

GR

IT

US

EU15

CY

CZ

SI

EE

LV

LT

SK

HU

PL

Employment as a percentage of the working-age population (15-64 years of age)

Em ployme nt & Socia l Affa irs

Source: Eurostat

Employment as a percentage of the working-age population (15-64 years of age)

Em ployme nt & Socia l Affa irs

Source: Eurostat

Eu rope an Co mmis s io n

961

Eu rope an Co mmis s io n

1017

9

10

W. Kok (2003): Enlarging the European Union. Achievements and Challenges. Report to the European
Commission, p.37-38.
Data taken from the Employment in Europe 2002 Report. Data for Malta were lacking.

5

                                                
One element that has featured strongly in the public debate on accession is labour mobility in
an  enlarged  Europe.  Despite  the  fears,  the  most  likely  scenario11  is  one  in  which  labour
mobility  will  be  moderate  to  limited  and  will  after  a  likely  short  upsurge  just  after  the
accession period  -  with  some  250.000  persons  per  year  -  start  declining  again  to  fall  below
100 000 persons per year before the end of the decade.

Past  experience  shows  that  fears  of  mobility  at  previous  rounds  of  enlargement  were
unfounded. On the  contrary,  the  developments  in  those  countries  meant  that  many  previous
migrant workers actually returned to the home country, following EU membership.

The  impact  of  enlargement  on  the  employment  and  social  situation  will  need  to  be  closely
monitored.  It  is  clear  that  the  ten  accession  countries  have  chosen  to  sign  up  to  a
constitutional  framework,  in  which  the  improvement  of  social  standards,  including  through
social dialogue and social regulation forms an important part12. Specific attention will need to
be  paid  to  this  issue  in  the  coming  years.  The  correct  application  of  the  social  acquis
communautaire is crucial in that respect.

3.

3.1

THE LISBON STRATEGY AND THE SOCIAL POLICY AGENDA ACQUIS

The  Social  Policy  Agenda:  its  origin  and  development  within  the  Lisbon
strategy

The 2000 Lisbon Summit gave the European Union a decade long strategy for economic and
social  renewal.  A  year  later,  at  Gothenburg,  the  EU's  Sustainable  Development  Strategy
added  an  environmental  dimension  to  the  Lisbon  Strategy.  In  addition,  it  identified  the
unsustainable nature of certain social trends and the need to promote social inclusion as part
of the Sustainable Development Strategy. The EU's response will shape the changes which are
affecting  every  aspect  of  people's  lives  in  a  manner  consistent  with  the  EU's  values  and
concepts of society and with a view to the forthcoming enlargement.

As  much  as  the  political  orientation  on  the  substance  of  policies,  the  Lisbon  strategy  also
created  an  innovative  method  of  policy  delivery,  by  introducing  and  generalising  the  open
method of co-ordination as an instrument improving EU governance. This new co-ordination
method  complements  the  set  of  policy  instruments,  in  particular  to  help  Member  States  to
progressively develop their own policies.

The Lisbon policy framework was at the basis of the Social Policy Agenda, as initiated by the
Commission in June 2000. At the centre of the past three years of work on implementing the
agenda  was  the  formulation  of  structural  responses  to  the  question  as  to  how  the  European
social model can be modernised and improved to better cater to existing and new social needs.
This  requires  attention  to  social  rights  and  social  equity,  as  it  calls  for  welfare  systems
adapted to facilitate economic transformation, granting individuals the opportunity to realise
their full potential. This key objective will be further pursued in the coming two years.

11

12

See  for  instance  European  Integration  Consortium  (DIW,  CEPR,  FIEF,  IAS,  IGIER)  (2001):  The
impact of Eastern enlargement on employment and labour markets in the EU Member States. European
Commission.  Also:  K.F.  Zimmerman  (2003):  Can  migration  from  Eastern  Europe  alleviate  the
demographic burden of current EU Member States? DIW, Berlin.
See also on this point W. Kok (2003): Enlarging the European Union.  Achievements and Challenges.
Report to the European Commission, p.2.

6

                                                
3.2

Progress to date

3.2.1

The employment situation

Despite the rise in unemployment in response to the downturn and the anticipated net loss of
jobs  in  200313  ,  there  are  strong  signs  that  reforms  over  the  last  five  years  have  produced
important structural changes in many, but not all, European labour markets. Since 1997 – the
launch  date  of  the  European  Employment  Strategy,  about  10  million  new  jobs  have  been
created, more than half of them taking up by women. In 2002, a year of economic downturn,
500,000 jobs were still added. Structural improvements have also been visible in the decline
of long-term unemployment. Moreover, the improvement in the labour market and the net job
creation  has  not  led  to  a  short-term  increase  in  inflation.  Nevertheless,  several  structural
weaknesses continue to persist.

Although the employment rate increased from 62.3% in 1999, the  year before the launch of
the Social Policy Agenda, to 64.3% in 2002, it remains still well below the 67% intermediate
employment target for 2005.

Moreover, performance varies considerably between countries – both in pursuing successfully
a reform agenda  and increasing  the  employment  rate. Additional efforts  will be required, to
reach  the  Lisbon  employment  targets,  including  the  one  of  keeping  at  least  50%  of  older
workers in the workforce by the end of the decade and raising the average effective exit age
from  the  workforce  by  five  years.  In  addition,  performance  also  differs  importantly  with
regards to providing the workforce with the skills needed in an increasingly knowledge-based
economy and improving quality of jobs, contributing to better productivity.

It has been shown that labour market reform and investment in quality in work is a necessary
precondition to bring more people into work and improve productivity14. The evidence of past
achievements and simulations shows that quality improvements in European labour  markets
are a precondition for further reductions in the various age, gender – in particular for people
with care responsibilities - 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.

Those employed in jobs of relatively low quality – jobs that do not offer training and career
development opportunities or job security - remain at much higher risk of unemployment and
social  exclusion.  Moreover,  the  risk  to  be  trapped  in  a  vicious  circle  of  low  quality  -  low
productivity employment, unemployment and social exclusion is real.

3.2.2

The social situation

Monitoring  progress  in  relation  to  the  fight  against  poverty  and  the  promotion  of  social
inclusion  remains  impeded  by  the  lack  of  up  to  date  data  in  several  areas.  However,  the
improvements  in  employment,  in  particular  the  fall  in  structural  unemployment  with  about
40% over the past couple of years should have contributed in strengthening social cohesion.

Performance  differs  considerably  between  countries,  both  for  poverty  rates  and  for  income
distribution. On the latter point, the gap between  the  income  of  the  top  and  bottom  20%  of

13

14

European  Commission  (2003)  Spring  2003  Economic  Forecasts.  Published  as  European  economy
n°2/2003.
See for instance 'Employment in Europe 2002', published by the Commission.

7

                                                
society  in  the  three  best  performing  Member  States  is  half  of  that  in  the  three  worst
performers.  Furthermore,  little  progress  has  been  made  in  reducing  gender  inequality  or  in
bringing back the numbers of early school leavers.

The  modernisation  of  social  protection  systems  is  a  crucial  aspect  of  the  reform  of  the
European social model. The long-term sustainability and quality of social protection systems,
particularly in the face of an ageing population, is a crucial aspect determining the success of
the reform agenda.

3.3

The 'cost of non-social policy'

A  major  guiding  principle  in  the  Social  Policy  Agenda  was  to  strengthen  the  role  of  social
policy  as  a  productive  factor.  This  has  been  extended  during  the  past  years  in  particular
through the promotion of quality as the driving force for a thriving economy, more and better
jobs and greater social cohesion.

After  three  years,  the  progress  made  so  far  is  most  clearly  visible  in  the  European
employment strategy, as the promotion of quality in work has been fully incorporated into the
strategy.

For the coming  years,  particular  attention  will be paid  to  quality in industrial  relations.  The
basis has been laid15. The Commission will strengthen the work on indicators and increasing
the understanding of industrial relations' practices. This is a crucial task now, as enlargement
will require increased capacity building to ensure delivery in this essential component of the
European social Model16.

Also within the field of social protection, significant progress has been made in the work on
quality.  One  example  here  concerns  pensions,  in  particular  the  work  done  on  adequate  and
sustainable  pensions.  The  streamlined  social  protection  approach,  in  particular  through  the
generalised use of the open method of co-ordination, should deepen this.

The  Commission  has  been  pursuing  the  rationale,  initiated  by  social  policy  as  a  productive
factor  and  the  promotion  of  quality,  by  examining  'the  costs  of  non-social  policy'17.  This
approach is related to the 'better regulation' approach and the impact assessments to be carried
out  on  major  new  future  initiatives,  examining  the  economic,  environmental  and  social
consequences of new legislation and policy measures, catering both for shorter and long-term
costs and benefits18.

In the light of these analyses and debates, it is now easier to appreciate that the role of social
policy is integral to the dynamic development of modern, open economies and societies and
that  it  brings  cumulative  benefits  through  time.  Social  policies  cover  a  variety  of  areas,
including:

15

16

17

18

For instance in the Report by the High-level Group on Industrial Relations; in COM(2002) 341-1 and
341-2  of  26.6.2002  on  the  European  social  dialogue  and  the  Tripartite  Social  Summit;  and  in  the
autonomous  work  programme  of  the  social  partners  for  the  period  2003-2005  (agreed  in  November
2002)
Presidency Conclusions from the Barcelona European Council (2002)
See  for  instance  COM(2002) 89  of  19.2.2002  and  COM(2003) 57  of  6.2.2003;  D.  Fouarge  (2003):
Costs of non-social policy: towards an economic framework of quality social policies – and the costs of
not 
conference
http://europa.eu.int/comm/employment_social/news/2003/jan/1041848954_en.html
COM(2002) 275 final, 276 final, 277 final, 278 final of 5.6.2002

European  Commission;  webpage 

having 

Study 

them. 

the 

for 

8

                                                
(cid:1)  Promoting  active  labour  market  policies  and  investments  in  research,  education  and
training  –  which  strengthens  human  capital  for  a  knowledge-based  economy,  underpins
productivity  growth  and  reduces  social  failure.  Research  demonstrates  how  increased
educational  attainment  substantially  increases  productivity  and  life-time  earning.19  Skills
development is crucial to increase the ability to adapt to changes in the workplace.

(cid:1)  Investments in high performance standards (including health and safety) at the workplace –
which raise productivity and reduce accident losses. Poor or unsafe working conditions are
estimated to cost the EU economy some 3 per cent of GNP a year, with some 500 million
workdays a year lost20.

(cid:1)  Investments in active inclusion policies, as well as equal opportunities for all - to increase
the prospects of bringing into economic life those groups and individuals who  risk  being
unable to participate without help21.

(cid:1)  Investments  in  social  peace  –  minimising  costly  social  or  industrial  conflict.  Social
partnership strengthens the social capital and institutional infrastructure that enables other
policies to be effective. A recent World Bank report shows how social partnership can lead
to  reduced  earnings  inequalities,  lower  unemployment  and  inflation,  as  well  as  higher
productivity and a more rapid adjustment to shocks.22

The  main  structure  of  the  European  social  model  has  proved  very  resilient.  There  is  strong
popular support, as evidenced by recent Eurobarometer results, and it has been shown that the
most dynamic, high performance economies in the EU are those where economic and social
policies  inter-act  in  positive  ways.23  It  has  also  been  shown  that  labour  market  reform  and
investment in quality in work is a necessary precondition to bring more people into work and
improve productivity.24

In this context, the Community action programmes25 and the flagship reports, such as those on
Employment in Europe, the social situation, industrial relations in Europe and gender equality
play  a  crucial  role  in  the  in-depth  analysis  of  the  employment  and  social  situation  and
contributes  to  shaping  the  appropriate  response  to  the  diverse  challenges  and  needs  the
European social model is confronted with. However, the lack of appropriate and timely data
and statistics, holds back the research and leads to suboptimal conclusions.

19

20

21

22

23

24

25

See  for  instance  A.  de  la  Fuente  (2002):  Human  capital  in  a  global  and  knowledge-based  economy.
Study for the European Commission.
See  for  instance  COM(2002)  118 of  11.3.2002;  this  theme  is  also  well  documented  by  the  European
Agency for safety and health at work – see http://agency.osha.eu.int
For instance, work undertaken in the OECD suggests that increased active social spending - on active
labour market policies, payments to low income households, expenditures on family and child care, and
investment in health – may have a significant impact on productivity and economic growth. R. Arjona,
M. Ladaique and M. Pearson (2001): Growth, inequality and social protection. OECD.
World Bank (2003): Unions and Collective Bargaining: Economic Effects in a Global Environment.
See  for  instance  COM(2003)  5  of  14.1.2003  and  European  Commission  (2002):  Public  Finances  in
EMU 2002. European Economy Nr 3/2002
See for instance European Commission (2002): Employment in Europe; G. S. Lowe (2003): The case
for  investing  in  high  quality  work.  Presentation  to  the  European  Commission’s  Mid-Term  Review  of
the Social Policy Agenda: Achievements and Perspectives Brussels, 19-20 March 2003 (see conference
webpage).
This  concerns  in  particular  the  current  action  programmes  on  employment  incentive  measures,  social
inclusion, non-discrimination and gender equality.

9

                                                
3.4

Improved governance

An innovation of the social policy agenda was that right from the beginning it was developed
with a view to achieve an improved form of governance. This concerns a better involvement
of actors in the shaping and implementation of the agenda and an appropriate combination of
different policy instruments.

3.4.1

The actors

The  social  policy  agenda  provides  an  active  role  to  a  wide  range  of  actors  to  participate
effectively in managing the policies associated with this agenda: European institutions, bodies
and  agencies;  Member  States,  including  authorities  at  regional  and  local  level;  the  social
partners, civil society, companies.

In the Communication on the Social Policy Agenda26, the Commission spelled out how it saw
the  tasks  and  responsibilities  of  each  actor  in  an  agenda  based  on  an  improved  form  of
governance.

The  Commission  will  make  all  relevant  proposals  using  its  right  of  initiative.  Furthermore,  it  will  act  as  a
catalyst and will support Member States'  and  other  actors'  policies  with  all  means  at  its  disposal.  It  will  also
monitor and steer the implementation of the Agenda. The Council of Ministers and the European Parliament
will have to fulfil their legislative responsibility. Within the Member States, the  national governments and the
regional and local authorities should undertake their own policies to implement this Agenda. Social partners at
all  levels  should  play  their  full  role,  in  particular  to  negotiate  agreements  and  to  modernise  and  adapt  the
contractual framework and contribute to a sound macro-economic policy. The Non governmental organisations
will be closely associated with the development of inclusive policies and equal opportunities for all.

The  Commission  considers  that  the  direct  involvement  of  actors  is  a  strong  point  of  the
agenda and believes that this approach should be further pursued vigorously. However, there
is significant scope for further improvement, at all levels to contribute to the modernisation of
the  European  Social  model  and  to  ensure  that  this  agenda  is  widely  shared  and  supported,
establishing a large ownership.

3.4.2

The combination of policy instruments

The  role  of  the  actors  differs,  according  to  the  method  and  instrument  being  used.  The
Communication  on  the  Social  Policy  Agenda  also  underlined  that  meeting  the  challenges
would  require  finding  the  appropriate  combination  of  the  different  instrument  available  at
European  level,  while  fully  respecting  the  EC  Treaty.  These  instruments  involve  the  open
method  of  co-ordination,  legislation,  social  dialogue,  structural  funds,  action  programmes,
'mainstreaming' measures, policy analysis and research. The appropriate European Agencies,
notably  the  European  Foundation  for  the  improvement  of  living  and  working  conditions  in
Dublin,  the  European  Agency  for  Health  and  Safety  at  work  in  Bilbao  and  the  Monitoring
Centre on racism and xenophobia in Vienna, have a key contribution to make to furthering the
social policy agenda.

A consequence of that approach is that reaching policy objectives is based on the success of a
wide range of initiatives and measures. Also on this point, there is evidence that the first half
of the implementation of the social agenda has been largely successful. However, there is no
reason for complacency, as the EU has still a long way to go to meet the Lisbon objectives.

26

COM(2000)379fin of 28/06/2000

10

                                                
As  to  the  future,  reinforced  attention  will  be  given  to  the  evaluation  of  existing  policies,
building further in particular on the experience gained in assessing the European employment
strategy. Such policy evaluation will concern for instance the financial instruments in support
of  the  European  social  dialogue  in  2004  and  the  mid-term  evaluation  of  the  said  inclusion
process in 2005.

An in-depth evaluation will also be carried out for the financial support measures, including
the  action  programmes  on  employment 
inclusion,  non-
discrimination  and  gender  equality,  as  well  as  on  the  Year  of  European  people  with
disabilities. This will help determining the most appropriate follow-up to these activities.

incentive  measures,  social 

4.

THE SOCIAL ACQUIS – CONSOLIDATING SOCIAL STANDARDS THROUGHOUT THE EU

The European Union has an important acquis in the employment and social field. Legislation,
whether in the form of directives, regulations or other regulatory instruments are a crucial part
of  the  European  achievements.  A  table  with  an  overview  of  EU  employment  and  social
legislation  is  attached  (annex  1).  They  ensure  a  level-playing  field  for  businesses,  facilitate
the workings of the internal market, and address social needs of workers in an economically
integrated  Europe.  In  addition  the  co-ordination  of  national  policies  belong  to  the  social
acquis.

In  the  employment  and  social  field,  the  regulatory  instruments  concern,  in  the  first  place,
workers (and sometimes their family) and businesses. Working conditions, free movement of
people,  occupational  safety  and  health,  equality  between  women  and  men,  and  non-
discrimination,  are  a  few  areas  which  have  a  tremendous  impact  on  the  quality  of  life  of
people living in the European Union.

The European Commission has committed itself to ensure that the legislative acquis is fully
complied  with.  The  European  Council,  reinforced  at  each  Spring  Summit,  has  entirely
endorsed this approach. In Stockholm in 2001, the European Council set a target transposition
rate  of  98.5%  of  all  internal  market  directives.  In  Barcelona  in  2002,  Heads  of  State  and
Government  committed  to  a  zero  tolerance  for  measures  which  were  more  than  two  years
overdue.  In  2003,  the  European  Council  reinforced  this  approach  and  called  for  a  progress
report for the 2004 Spring European Council.

Simply  transposing  Community  rules  into  national  law  is  not  enough,  however.  The  law
should also be correctly applied in  practice.  The  correct  application  and  the  enforcement  of
European  legislation  is  a  pre-requisite  for  the  European  Union  to  function  well  and  to
guarantee the citizens, workers, consumers and businesses fair and equal treatment. Effective
monitoring  of  correct  application  is  also  decisive  to  guarantee  that  Community  rights  can
effectively be exercised.

In  the  second  half  of  the  Social  Policy  Agenda,  the  Commission  will  make  of  compliance
with the social acquis as well as the monitoring of its application27 a top priority. Close co-
operation  between  the  Commission  and  the  Member  States  being  a  crucial  element  in  the
effective monitoring of the application of Community law, effective use should be made of all
available instruments allowing  effective  and rapid  handling  issues  or  cases  concerning  non-
compliance  with  or  wrong  application  of  Community  law.  It  will  benefit  heavily  from  the

27

See  also  Commission  Communication  "Better  monitoring  of  the  application  of  Community  law",
COM(2002) 725 final of 11 December 2002

11

                                                
working  groups  and  networks  that  have  been  put  in  place  of  the  past  couple  of  years,  in
particular to associate the services in the Member States more closely to the implementation,
monitoring and follow-up of Community law. Recently established structures such as the high
level group on industrial relations or the network of labour inspectors should play a major role
in detecting implementation problems and should  help  overcoming  the  obstacles  at  national
level, in particular through exchange of information.

Such networks and groups, involving the lead actors at national level, will play a determining
role  in  supporting  the  implementation  and  respect  for  Community  law.  Enlargement  will
make  the  task  of  these  groups  even  more  important.  They  will  help  in  ensuring  that  the
legitimate  expectations  from  workers  from  the  new  member  states  can  be  met,  in  the  most
efficient and cost-effective way.

5.

POLICY HEADLINES AND ACTION

During  the  first  half  of  the  implementation  of  the  social  policy  agenda,  virtually  all  actions
have  been  launched  as  foreseen.  During  the  second  half,  this  work  should  receive  the
appropriate follow-up. This includes that specific attention will be given to verify and ensure
that  the  initiated  measures  are  correctly  implemented  and  applied  throughout  the  European
Union.

The  following  sections  contain  a  detailed  set  of  intended  actions  with  a  time  schedule,
building on the structure of the Nice political orientations, to guarantee the  consolidation of
the  work  launched  and,  importantly,  to  announce  new  planned  measures  to  address  the
outstanding challenges and new needs in the fields of employment and social policy. This list
should  ensure  full  transparency  concerning  the  priorities  and  activities  for  the  period  until
2005.  However,  it  is  obvious  that  the  agenda  and  its  implementation  should  remain
sufficiently  flexible  and  dynamic  to  allow  the  most  suitable  measures  to  be  taken  at  the
appropriate time.

5.1

More and better jobs28

The  prospect  of  achieving  full  employment  must  be  underpinned  by  resolute  efforts  to  open  up  access  to  the
labour market to as many people as possible; this in particular means firming up policies on the promotion of
gender equality at work, on reconciling professional and family life, on helping older workers to keep their jobs,
on combating long-term unemployment and (by mobilising all of the actors concerned, especially those working
in the social economy) on providing the most vulnerable categories of people with the prospect of integration.
Opting for a knowledge-based society requires investment in human resources to encourage workers to acquire
skills  and  accept  mobility.  At  the  same  time  it  is  important  to  promote  quality  in  employment  and  to  develop
effective life-long learning and training strategies to benefit as many people as possible.

A top priority is to realise Europe’s full employment potential by working towards raising the
employment  rate  to  as  close  as  possible  to  70  %  by  2010,  with  specific  employment  rate
targets of 60% for women and 50% for older workers, whilst taking into account the different
starting positions of the Member States.

The review of five years of the European Employment Strategy confirmed the positive role of
the  strategy  in  supporting  the  employment  performance  and  facilitating  Member  States'
structural  reforms  in  recent  years.  It  inspired  the  architecture  of  a  renewed  strategy  which

28

The  text  in  italics  and  in  a  box  is  taken  from  the  Social  Policy  Agenda  as  endorsed  by  the  Nice
European Council (December 2000).

12

                                                
should be better harnessed to cope more effectively with challenges such as the demographic
trends, regional disparities, globalisation and restructuring.

The  revamped  employment  strategy  is  built  around  three  key  overarching  objectives:  full
employment by increasing employment rates; quality and productivity at work; cohesion and
an inclusive labour market which are interrelated and mutually supportive. The March 2003
Spring European Council confirmed that the Employment Strategy has the leading role in the
implementation  of  the  employment  and  labour  market  objectives  of  the  Lisbon  strategy.  It
also  demanded  that  the  new  three-year  perspective  of  Employment  Guidelines  provides  a
stable  basis  for  a  simplified,  better  governed  and  more  effective  strategy.  The  Commission
adopted on 8  April 2003, as  part  of  a  "guidance  package"  with  the  Broad  Economic  Policy
Guidelines,  proposals  for  employment  guidelines  and  recommendations.29  The  proposed
employment  guidelines  contain  a  list  of  ten  priorities  for  action  underpinning  the
aforementioned  key  objectives,  including  new  priorities  such  as  the  transformation  of
undeclared work in regular employment and a better visibility of the immigration issue.

The implementation of the Lisbon strategy and the social policy agenda will benefit from the
streamlining  in  a  new  three  year  perspective  of  the  Union's  main  policy  tools  for  structural
reforms  –  the  Broad  Economic  policy  guidelines  (BEPG),  the  Internal  Market  Strategy  and
the Employment Guidelines.

Further to the invitation of the 2003 Spring European Council, the Commission established a
European Employment task force, with a mandate to identify practical reform measures that
can help the Member States to implement the revised European Employment Strategy.

The European Social Fund mid-term review will be finished by the end of 2003. Appropriate
conclusions will be drawn for the rest of the programming period  2000-2006 as  well  as  the
future ESF assistance. While being the key financial instrument of the European Employment
Strategy, the ESF is also involved in the social inclusion process. The ESF also supports the
common agreed dual goals of achieving and strengthening equal opportunities for women and
men and gender mainstreaming. Furthermore, the launch in 2004 of the second phase of the
Community Initiative EQUAL will support innovative approaches and the exchange of good
practices, in particular  with regards to measures developed in the Employment Strategy, the
Social Inclusion Process and the Framework Strategy on Gender Equality.

Actions

Implementing the revised European employment strategy
(cid:1)  The implementation of the revised European employment strategy, based on Employment
Guidelines  and  Recommendations  and  monitored  through  an  annual  Joint  Employment
Report (2004-2005)

(cid:1)  Revision and development of indicators for the monitoring of the employment strategy, to

be used in the Joint Employment Reports (2004-2005)

(cid:1)  Strengthening employment analysis for an EU of 25 Member States (2004-2005)

29

COM(2003) 170, 176 and 177 of 8 April 2003

13

                                                
(cid:1)  Exploitation of the reports by the social partners on the implementation of the Employment
Guidelines  in  the  Member  States  with  the  aim  of  launching  a  'peer  review'  by  the  social
partners (2004)

(cid:1)  Follow-up to the Employment Task Force report (2004)

(cid:1)  Invite the Social Partners to submit an input into the Tripartite Social Summit (2004-2005)

(cid:1)  Increase  the  visibility  of  the  macro-economic  dialogue  within  the  context  of  European

economic and social governance (2004-2005)

Implementing the Skills and mobility action plan
(cid:1)  Introduction of a European Health Insurance Card (2004)

(cid:1)  Commission Communication on the knowledge based economy with more and better jobs

and greater social cohesion (2005)

Role of the European Social Fund
(cid:1)  Investment in human capital formation through the European Social Fund

(cid:1)  Report on the mid-term review of the European Social Fund (2004)

(cid:1)  Launch  of  second  phase  of  the  Community  Initiative  EQUAL  (2004),  and  integration  of
the  innovations  and  good  practices  already  developed  into  the  Employment  Strategy  and
Social Inclusion process.

5.2

Anticipating and capitalising on change in the working environment by creating
a new balance between flexibility and security

The far-reaching changes in the economy and the labour market, resulting specifically from the emergence of a
knowledge-based economy and from globalisation, are gaining momentum in all Member States. These changes
call for fresh collective responses that take account of workers' expectations. Social dialogue and consultation
must  create  the  right  conditions  for  workers  to  participate  in  change,  by  anticipating  new  developments  in
enterprises,  sectors  of  industry  and  countries.  The  search  is  on  for  new  kinds  of  collective  framework  more
suited  to  the  new  forms  of  employment  and  these  must  allow  for  mobility  and  individual  investment  in
increasingly  diversified  forms  of  work  by  making  it  easy  to  go  from  one  situation  or  one  job  to  another.  The
measures adopted to accompany these changes must strike a balance between the various existing Community
instruments, in particular the open method of co-ordination and leave the social partners considerable scope for
initiative.

The key message underlying the Lisbon strategy is 'transformation', engendering a structural
process of economic and social renewal. The policy approach following from this objective is
to  embrace  change  as  a  factor  renewing  Europe's  economy  and  fostering  dynamism  and
innovation as well as accelerating productivity growth and strengthening businesses' capacity
to raise profitability. Public authorities and  social partners in Europe  and its  Member  States
have a long tradition in facilitating change and accompanying the process of change through
rules and practices.

The convergence process which will be brought about by enlargement will further accelerate
the  need  to  manage  such  economic  change  to  ensure  that  it  contributes  to  a  sustainable
improvement of the standard of living, largely shared and with equal opportunities for all to
benefit  from  change.  At  the  same  time,  measures  will  continue  to  be  necessary  to  maintain
social stability and to accommodate the needs of those adversely affected by that change.

14

Managing  change  is  built  on  partnership.  However,  partnership  is  also  crucial  to  adapt  and
improve  working  conditions  and  contractual  relations.  It  also  underpins  the  development  of
social capital. The social partners have a crucial role to modernise the employment relations
and  to  strengthen  the  quality  of  industrial  relations  to  meet  that  challenge.  Fostering
adaptability will remain a crucial objective for both sides of industry.

The  development  of  interprofessional  and  sectoral  social  dialogue  at  European  level,  as  a
specific component of the Treaty, is a key tool for the modernisation and further development
of the European social model. With the adoption of their joint work programme for the period
2003-2005, the social partners have taken a decisive step to act, in full autonomy, in support
of the implementation of the  Lisbon Strategy. Enlargement will have a major impact  on  the
functioning of the social dialogue, as social partners' structures still have to be developed and
strengthened, especially at sectoral level. The Commission intends to facilitate this process by
an  appropriate  strengthening  of  capacity  building  and  the  promotion  of  good  practice.  The
continuation  of  the  representativeness  study  and  monographies  on  social  partners  in  several
sectors in the new Member States will help to focus such activities.

Furthermore,  the  approach  launched  on  Corporate  Social  Responsibility  (CSR)  can  play  a
crucial role in strengthening Europe's capacity for sustainable development, helping in finding
acceptable  trade-offs  and  reaching  win-win  scenarios  concerning  economic,  social  and
environmental needs and desires.

Finally,  the  promotion  of  health  and  safety  at  work  will  be  a  top  priority  in  the  following
years, in particular through the further implementation of the new health and safety strategy
(2002-2006)  and  by  consolidating  a  culture  of  risk  prevention  on  the  basis  of  a  global
approach to well-being at work, combining a variety of policy instruments.

Actions

Social partnership
(cid:1)  Commission  Communication  on  the  implementation  of  negotiated  agreements  through

voluntary instruments (2004)

(cid:1)  Commission  report  on  the  implementation  of  the  social  partners'  autonomous  working

programme (2005)

(cid:1)  Review  of  the  European  centre  for  managing  change,  based  in  the  European  Foundation
for the  Improvement of  Living  and Working  Conditions,  to  adjust  to  enlargement  and  to
reinforce  the  network  with  national  centres  (2004-2005);  as  well  as  the  development  of
exchange of experience of the modernisation of work organisation to be undertaken by the
Foundation (2004)

Corporate social responsibility
(cid:1)  Report of the Corporate Social Responsibility Forum (2004)

(cid:1)  Commission Communication on Corporate Social Responsibility (2005)

(cid:1)  Establishment  of  a  consultative  group  of  enterprise  representatives  in  the  social  field

(2004)

15

Consultation and agreements
(cid:1)  Follow-up  to  the  discussion  of  the  social  partners  on  the  social  consequences  of

restructuring (2004)

(cid:1)  Consultation of social partners on recasting the Working Time Directives (2004)

(cid:1)  Consultation of social partners on a possible revision of Directive 2001/23/EC to address

cross border transfers (2005)

(cid:1)  Follow-up  to  the  consultative  document  of  the  social  partners  on  alternative  modes  of

dispute resolution (2004)

Labour law
(cid:1)  Negotiation  and  adoption  of  a  Parliament  and  Council  Directive  on  the  protection  of

workers' personal data (2004-2005)

(cid:1)  Negotiation  and  adoption  of  pending  legislative  proposals  on  the  European  Association

and Mutualities (2004-2005)

(cid:1)  Commission Communication on economically dependent work (2005)

Follow-up reports and studies
(cid:1)  Study on the social and legal implications of cross border transfers (2004)

(cid:1)  Follow-up to the study on individual dismissals (2004-2005)

(cid:1)  Setting up  an advisory  expert group  to  facilitate  a  harmonious  and  correct  application  of

the review of Directive 96/71 on posting of workers (2004-2005)

(cid:1)  Report  of  the  High-Level  group  on  obstacles  to  transnational  financial  participation

schemes (2004), and exchange of information and benchmarking (2005)

(cid:1)  Report on the evolution of labour law (2004)

(cid:1)  Study on transnational collective bargaining (2004)

(cid:1)  Establishment  of  a  technical  group  on  the  development  of  indicators  on  the  quality  of

industrial relations (2004)

Health and safety at the workplace

The  occupational  health  and  safety  agenda  is  based  on  carrying  out  and  correctly
implementing the full health and safety strategy30 agreed in 2002, which includes:

Legislation

(cid:1)  Simplification of the administrative follow-up to all health and safety legislation (2005)

(cid:1)  Codification of the Directive on carcinogenic agents (2004)

30

COM(2002) 118 of 11.3.2002

16

                                                
(cid:1)  Codification of the asbestos and work equipment directives (2004 and 2005)

(cid:1)  Negotiation and adoption of directives  on  physical agents – electromagnetic fields (to be

completed in 2004) and optical radiation (to be completed in 2005)

Consultations, follow-up reports and studies

(cid:1)  Analysis of the results of the joint programme of the social partners on stress (2004) and on

moral harassment and violence at work (2005)

(cid:1)  Preparation of practical guidelines to facilitate the application of the directives  'Chemical

Agents' (2004), and 'Scaffolding' (2005)

(cid:1)  Creation of a risk observatory within the European Agency for Safety and Health at Work

(2004)

5.3

Fighting poverty and all forms of exclusion and discrimination

The return to sustained economic growth and the prospect of full employment in the near future do not mean that
poverty and exclusion in the European Union will automatically decrease. These factors do, however, make the
continued existence of poverty and exclusion even less acceptable. The Lisbon European Council underlined the
need to take steps to make a decisive impact on the eradication of poverty. That political will has been affirmed
at the highest level in each of the Member States and must be transmitted to the grass roots by mobilising all the
local actors, in particular NGOs and the social services. It must be accompanied too by action to ensure equal
treatment for all third country nationals residing lawfully on Union territory.

Poverty is unacceptably high,  as Europe's Heads of State  and Government acknowledged  at
the Lisbon Summit. This was the signal to give effect to a policy to fight poverty throughout
the European Union on the basis of an intensified co-operation between the Member States, as
implemented  in  the  social  inclusion  open  method  of  co-ordination  launched  at  the  Nice
Summit. Enlargement will make of social exclusion and poverty an even more pressing issue.

A high level of social cohesion is based on  the principles of solidarity  and  social inclusion.
The  second  generation  of  National  Action  Plans  should  support  bringing  the  2010  Lisbon
objective  in  reach,  in  particular  through  the  setting  of  appropriate  national  targets  to
significantly reduce the number of people at risk of poverty and social exclusion. Success will
require an integrated and comprehensive approach, under which a  concern with poverty and
exclusion  is  mainstreamed  in  all  relevant  branches  of  public  policy  making  and  which
includes  a  gender  perspective,  and  advances  through  a  strong  partnership  at  all  levels,
between  public  authorities,  social  partners,  non-governmental  organisations  and  other
interested parties.

Simplifying  and  streamlining  the  various  strands  of  work  on  social  protection  and  social
inclusion into a coherent framework within the open method of co-ordination31 should help in
facilitating making effective progress on these fronts.

During  2003  the  Commission  is  working  with  the  acceding  countries  to  conclude  Joint
Inclusion Memoranda with each of them; a synthesis report on these will be submitted to the
Spring  2004  European  Council  meeting,  at  the  same  time  as  the  Joint  Commission/Council
report  on  the  2nd  round  of  the  National  Action  Plans  for  inclusion.  This  means  that  all  25

31

See Presidency conclusions from the Brussels European Council of 20 and 21 March 2003, § 51.

17

                                                
Member States in the enlarged Union will be in a position to proceed together in relation to
the next steps in this process.

At  the  same  time  the  European  Union  must  continue  to  underpin  fundamental  social  rights
and develop effective policies and measures to combat discrimination and eliminate barriers
to participation on the grounds of race or ethnic origin, religion or belief, age, disability and
sexual orientation. It is also important that measures are taken to ensure equal treatment for all
third country nationals legally resident in the European Union.

Non-discrimination  is  one  of  the  most  fundamental  of  human  rights  and  the  fight  against
discrimination  constitutes  a  major  challenge  for  the  European  Union.  The  adoption  of  the
Anti-discrimination  package  (two  directives  and  a  Community  Action  Programme)  in  2000
was  a  major  step  forward  to  achieving  equality  in  a  whole  new  range  of  grounds.  Member
States are now in the process of transposing this legislation into national law and developing
their own strategies and policies in this area.

A  key  priority  over  the  next  years  is  to  ensure  that  the  ground-breaking  anti-discrimination
legislation is correctly transposed and fully enforced in the  enlarged European Union. Apart
from consolidating and taking stock of the gains that have been made, there is a need to look
to the future strategy in this area, in order to address new challenges post enlargement, such as
the discrimination faced by ethnic minorities and in particular, the Roma. In this context, the
work  being  carried  out  in  the  area  of  fundamental  rights  in  the  Convention  for  a  future
Constitution, will be of great importance.

Actions

Social inclusion

(cid:1)  Joint Report on social inclusion (2004)

(cid:1)  Revised indicators on poverty and social exclusion (2004)

(cid:1)  Consultation  of  Social  Partners  regarding  the  feasibility  concerning  minimum  income
following the 1992 Council Recommendation on minimum guaranteed resources (2004)

Disability
(cid:1)  Follow-up  to  the  EU  action  plan  and  Communication  on  the  integration  of  people  with

disabilities (2004-2005)

(cid:1)  Commission report on the situation of people with disabilities (2005)

Non-discrimination and fundamental rights
(cid:1)  Commission  Communication  on  the  future  strategy  on  the  fight  against  discrimination

(2004)

(cid:1)  Report to the European Parliament and the Council on the application of Council Directive

2000/43/EC (2005)

18

5.4

Modernising social protection

Social protection systems are an essential component of the European social model, and although they remain
the responsibility of each Member State, they face common challenges. To confront them more effectively, co-
operation between Member States must be strengthened, particularly through the Social Protection Committee.
The modernisation of social protection systems must meet the requirements of solidarity: that is what is at stake
in  the  action  we  have  to  take  on  retirement  and  health  and  to  achieve  an  active  welfare  state  that  strongly
encourages participation in the employment market.

The  modernisation  of  the  European  social  model,  linking  the  objective  of  economic
performance  and  solidarity,  requires  the  improvement  of  social  protection  to  respond  to  the
transformation  to  the  knowledge  economy,  as  well  as  to  the  change  in  social  and  family
structures. It should build on the role of social protection as a productive factor and take into
account the costs of non-social policy.

Increased  co-operation  in  the  different  strands  of  social  protection  calls  for  the  increased
involvement of all relevant actors at all levels. The streamlining of the different policy strands
into  a  coherent  framework  within  a  single  open  method  of  co-ordination,  will  considerably
strengthen  the  social  dimension  of  the  Lisbon  Strategy32.  A  fundamental  component  of  EU
action on social protection concerns the regulatory framework to facilitate free movement of
people,  in  particular  through  the  co-ordination  of  social  security  systems.  The  original
regulation 1408/71 is undergoing major modifications and will continue to require legislative
action in the  years  to  come.  This  is  particularly the  case  for  the  European  Health  Insurance
Card and for updating the list of non-exportable benefits for which work is ongoing. Another
major element to facilitate free movement concerns the portability of pension rights.

Actions

Implementing the Open method of co-ordination
(cid:1)  Gradual move towards a streamlined social protection process, including an annual social
protection  report  as  a  mechanism  for  assessing  progress  towards  the  overall  goal  of
modernising and improving social protection (2004-2005)

(cid:1)  Exchange  of  good  practice  on  main  issues  at  stake  and  of  policy  strategies  in  order  to

improve co-ordination in the field of health care (2004)

Regulatory framework for facilitating free movement
(cid:1)  Conclude negotiations on the Regulation simplifying and modernising Regulation 1408/71

on the co-ordination of social security systems (2004)

(cid:1)  Commission  legislative  proposal  for  an  implementing  Regulation  for  the  simplified  and

modernised co-ordination Regulation (2004)

(cid:1)  Commission  Report  on  the  implementation  of  Directive  98/49/EC  on  supplementary

pensions (2004)

(cid:1)  Follow-up  to  the  second  stage  consultation  of  the  social  partners  on  the  portability  of

occupational pension rights (2004)

32

See also COM(2003) 5 of 14.1.2003.

19

                                                
5.5

Promoting gender equality

Equality between the sexes must be established across the board throughout the whole Social Policy Agenda and
be  supplemented  by  a  number  of  specific  measures  concerning  women's  access  to  decision-making  and  the
reinforcement of equality-related rights and those reconciling family life and working life.

The  long-standing  commitments  to  equality  between  women  and  men  at  European  level
should be reinforced.

Initiatives  announced  in  the  Scoreboard  of  February  2003  are  well  advanced.  A
communication  on  gender  mainstreaming  in  the  Structural  Funds  has  been  published33.  A
proposal for a new directive to extend the domains in which the principle of equal treatment
should apply and discrimination  based  on  sex  should  be  eliminated,  should  be  submitted  in
2003. The Commission has also launched a wide consultation on the recasting of the existing
directives on equal treatment. In addition a joint communication on domestic violence and a
report on parental leave34 are in preparation.

A major step forward in 2004 will be the first reporting to the March 2004 Spring Summit on
developments  towards  gender  equality  and  orientations  for  gender  mainstreaming  of  policy
areas. Also the possibilities to create a European Institute for Gender should be considered.

2005 is the  last  year  of the  current  Framework  Strategy to promote  gender equality  and  the
Commission  will  make  a  proposal  to  renew  it.  The  Commission  will  take  stock  in  2005  of
several initiatives taken in the field of women in decision making.

Actions

(cid:1)  Annual  Report  for  the  Spring  European  Council  on  strengthening  gender  equality  and

gender mainstreaming (2004 and 2005)

(cid:1)  Recasting of Equality directives in the areas of employment and social policy (2004)

(cid:1)  Communication on a new Framework Strategy on gender equality 2006-2010 (2005)

(cid:1)  Communication on women in decision-making (2005)

(cid:1)  European conference to celebrate Beijing +10 (2005)

5.6

Strengthening  the  social  policy  aspects  of  enlargement  and  the  European
Union's external relations

Enlargement  and  external  relations  are,  in  several  respects,  a  challenge  and  an  opportunity  for  Community
action in the social field. It is necessary to develop the sharing of experience and strategy with applicant States,
particularly so as better to face together the challenges of full employment and the fight against exclusion; and
to promote an integrated economic and social agenda consistent with the European approach in international
bodies.

Following  the  Copenhagen  European  Council  Conclusions  (2002),  the  Commission  is
intensifying from 2003 onwards the monitoring of legislative and policy developments in the
ten  acceding  countries  with  a  view  to  ensure  their  best  preparation  for  membership.  In  the

33

34

COM(2002) 748 final
implementation of directive 96/34

20

                                                
employment and social area, this includes efforts with regards to legislation, social dialogue,
preparation for the participation in the European employment strategy and in the open method
of  co-ordination  in  the  areas  of  social  inclusion  and  pensions  as  well  as  preparation  for  the
future intervention of the European Social Fund.

Furthermore,  the  participation  of  the  ten  acceding  countries  in  Community  programmes,
agencies  and  Committee  meetings  will  provide  a  useful  preparation  for  accession  by
familiarising them with the Union's policies and working methods.

As  to  international  co-operation,  the  social  dimension  should  be  actively  promoted  in  EU
international  relations,  co-operation  with  international  organisations  and  bilateral  co-
operation. In this context a strong emphasis should be put on social development and poverty
alleviation  contributing  to  the  achievement  of  the  UN  Millennium  Development  Goals  by
2015.  Key  elements  include  the  employment  and  social  dimension  of  globalisation  through
the  promotion  of  core  labour  standards,  an  integrated  approach  to  sustainable  development,
promotion  of  gender  equality  in  development  co-operation  and  promotion  of  health  and
education as key factors for poverty alleviation.

Actions

(cid:1)  Continue and reinforce the monitoring exercise of candidate countries' implementation of

the employment and social acquis

(cid:1)  Ensure  the  correct  application  of  the  transitional  arrangements  on  the  free  movement  of

workers

(cid:1)  Continue the preparation for accession of Bulgaria, Romania and Turkey

(cid:1)  Commission Communication on the social dimension of external relations (2005)

(cid:1)  Further  develop  Community  co-operation  with  international  organisations  in  the  field  of
employment,  education  and  training,  health,  gender  equality,  social  protection  and
fundamental social rights

(cid:1)  Continue the strengthening of relations and co-operation with the ILO on the decent work
agenda  and  the  promotion  of  core  labour  standards  with  particular  attention  to  the  fight
against child labour

(cid:1)  Contribute  to  the  implementation  of  the  report  of  the  World  Commission  on  the  social

dimension of globalisation

(cid:1)  Contribution to UN convention on the rights of people with disabilities

(cid:1)  Promote the social dimension in Euromed and Balkans co-operation

(cid:1)  Pursue bilateral co-operation with Japan and the USA

(cid:1)  Ensure correct functioning of the EU/Swiss Agreement on the Free Movement of Persons

and the Working Group on Social Security

21

(cid:1)  Negotiations on the free movement and social  security provisions of the  Association and
Stabilisation  Agreements  between  the  EU  and  Croatia,  Russia,  Macedonia,  former
Yugoslavia and Albania

(cid:1)  Decisions  of  the  EEA  and  EU/Swiss  Joint  Committees  on  amending  the  social  security

annexes to those Agreements with a view to the accession of the new Member States

Employment
(cid:1)  JAP with Turkey - 2004

(cid:1)  Co-operation  with  OECD  to  ensure  convergence  between  the  European  Employment

Strategy and the OECD Jobs Strategy

Social inclusion
(cid:1)  Synthesis  Report  on  Joint  Memoranda  on  social  inclusion  of  the  ten  acceding  countries

(2004)

(cid:1)  Conclusion of a Joint Memorandum on social inclusion with Bulgaria and Romania (2004)

Social protection
(cid:1)  Enlargement Conference on the co-ordination of social security systems (2004)

(cid:1)  Commission  legislative  proposal  for  decisions  of  the  Association  Councils  of  the  EU
Association  Agreements  with  Morocco,  Tunisia,  Turkey  and  Macedonia  on  the  co-
ordination of social security (2004)

6.

CONCLUSION AND OUTLOOK

The Social Policy Agenda has created an enormous momentum to pursue the modernisation
of the European Social Model, helping to redesign the architecture of the welfare state to meet
the  new  economic  and  social  challenges  and  needs  of  the  European  society  of  today  and
tomorrow.

The mid-term review has  given  a unique opportunity  to  reflect about  the  past  achievements
and to orient the key measures to the future of an enlarged Europe with 25 Member States.

The years 2004 and 2005 will be crucial to facilitate the integration of ten countries into the
European  Union.  That  is  why  the  mid-term  review  makes  the  compliance  with  the  social
acquis, and in particular the identification of supportive measures to do so, a top priority. The
European  Social  Fund  will  provide  significant  help  in  facilitating  integration  through  its
policy-oriented financial support. Enlargement can only be successful if all relevant actors at
all levels are fully involved in shaping and implementing policies.

Knowledge and understanding are key words in bringing about a Europe in which all energy
is geared towards improving living standards and quality of life, widely shared and with equal
opportunities  for  all,  to  benefit  from  economic  and  social  prosperity.  The  European
Commission invests significantly in analysis, publishing its results and transferring the gained
insight  in  appropriate  policy  measures.  The  analysis  and  information  made  available  by  the
European  Foundation  for  the  improvement  of  living  and  working  conditions  in  Dublin,  the
European  Agency  for  Health  and  Safety  at  work  (Bilbao)  and  the  Monitoring  Centre  on

22

racism  and  xenophobia  (Vienna)  contribute  richly  to  this  goal.  The  Lisbon  objective,
formulated  around  a  dynamic  economy  with  non-inflationary  growth,  more  and  better  jobs,
greater  social  cohesion,  and  respect  for  the  environment  give  the  European  Union  a  clear
long-term focus. The mid-term review of the social policy agenda has as its ultimate aim to
contribute to reaching this strategic objective.

For  the  period  beyond  2005,  the  European  Commission  has  established  a  High-level  expert
group on the future of employment and social policy. The mandate of this group is to examine
the new needs the European Union will be confronted with in the second half of the decade
and to reflect about the main orientations for future action.

The High-level expert group will submit a report in 2004 to the Commission, which will be
made  available  to  the  actors  and  the  public  at  large.  This  report  should  feed  into  a  public
debate on the future direction of EU policy and measures and should help the Commission to
develop in 2005 a new agenda, suited to the needs and expectations of European society and
businesses.

The debate on the new Agenda will be further supported through a Conference on the main
lessons  to  be  learned  from  the  evaluation  of  the  policies  and  instruments  of  the  2000-2005
Social Policy Agenda.

23

ANNEX

1. LABOUR LAW

Directives in force:

80/987/EEC protection of employees in the event of the insolvency of their employer

91/383/EEC  to  encourage  improvements  in  the safety  and  health  at  work  of  workers  with  a  fixed-duration  employment
relationship or a temporary employment relationship

91/533/EEC  an  employer's  obligation  to  inform  employees  of  the  conditions  applicable  to  the  contract  or  employment
relationship

93/104/EC organisation of working time

94/33/EC protection of young people at work

94/45/EC establishment of a European Works Council or a procedure in Community-scale undertakings and Community-
scale groups of undertakings for the purposes of informing and consulting employees

96/71/EC posting of workers in the framework of the provision of services (deadline: 16.12.99)

97/74/EC  extending,  to  the  United  Kingdom  of  Great  Britain  and  Northern  Ireland,  Directive  94/45/EC  on  the
establishment  of  a  European  Works  Council  or  a  procedure  in  Community-scale  undertakings  and  Community-scale
groups of undertakings for the purposes of informing and consulting employees (15.12.99)

97/81/EC 
(deadline:20.01.2000)(98/23-UK)

framework  agreement  on  part-time  work 

concluded  by  UNICE,  CEEP  and 

the  ETUC

98/23/EC extension of Directive 97/81/EC on the framework  agreement  on  part-time  work  concluded  by  UNICE,  CEEP
and the ETUC to the United Kingdom of Great Britain and Northern Ireland (7.4.00)

98/50/EC approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of
transfers of undertakings, businesses or parts of businesses (deadline:17.07.2001)

98/59/EC approximation of the laws of the Member States relating to collective redundancies – codification - OJ 98.225
16-21

99/63/EC  agreement  on  the  organisation  of  working  time  of  seafarers  concluded  by  the  European  Community
Shipowners' Association (ECSA) and the Federation of Transport Workers' Unions in the European Union (FST) (deadline
30.06.2002)

99/70/EC framework agreement on fixed-term work concluded by ETUC, UNICE and CEEP (deadline: 10.07.2001)

2001/23/EC approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event
of transfers of undertakings, businesses or parts of undertakings or businesses (codification Dir 77/187 and 98/50)

Directives whose transposition deadline has not yet expired:

2000/34/EC organisation of working time to cover sectors and activities excluded from that Directive (transposition date:
1.8.03)

2000/79/EC European agreement on the organisation of working time of mobile workers in civil aviation concluded by the
Association  of  European  Airlines  (AEA),  the  European  Transport  Workers'  Federation  (ETF),  the  European  Cockpit
Association (ECA), the European Regions Airline Association (ERA) and the International Air Carrier Association (IACA)
(1.12.03)

2001/86/EC statute for a European company with regard to the involvement of employees (8.10.04)

2002/14/EC general framework for informing and consulting employees in the European Community (23.3.2005)

24

2002/74/EC approximation of the laws of the Member States relating to the protection of employees in the event of the
insolvency of their employer (amendment Dir. 80/987) (08.10.05)

2. EQUAL TREATMENT

Directives in force:

75/117/EEC approximation of the laws of the Member States relating to the application of the principle of equal pay for
men and women

76/207/EEC implementation of the  principle  of  equal treatment for men  and  women  as  regards  access  to  employment,
vocational training and promotion, and working conditions

79/7/EEC progressive implementation of the principle of equal treatment for men and women in matters of social security

86/378/EEC  implementation  of  the  principle  of  equal  treatment  for  men  and  women  in  occupational  social  security
schemes

86/613/EEC  application  of  the  principle  of  equal  treatment  between  men  and  women  engaged  in  an  activity,  including
agriculture,  in  a  self-employed  capacity,  and  on  the  protection  of  self-employed  women  during  pregnancy  and
motherhood

92/85/EEC  introduction  of measures to  encourage  improvements  in  the  safety  and  health  at  work  of  pregnant  workers
and workers who have recently given birth or are breastfeeding

96/34/EC  framework  agreement  on  parental  leave  concluded  by  UNICE,  CEEP  and  the  ETUC  (97/75  –  UK)
(deadline:15.12.99)

96/97/EC implementation of the principle of equal treatment for men and women in occupational social security schemes
(amendment Dir 86/378)

97/75/EC extending, to the United Kingdom of Great Britain and Northern Ireland, Directive 96/34/EC on the framework
agreement on parental leave concluded by UNICE, CEEP and the ETUC (15/12/99)

97/80/EC burden of proof in cases of discrimination based on sex (deadline:1.1.2001)(UK: 98/52)

98/52/EC extension of Directive 97/80/EC on the burden of proof in cases of discrimination based on sex to the United
Kingdom of Great Britain and Northern Ireland (22/07/2001)

Directives whose transposition deadline has not yet expired:

2000/43/EC  implementing  the  principle  of  equal  treatment  between  persons  irrespective  of  racial  or  ethnic  origin
(19/07/03)

2000/78/EC establishing a general framework for equal treatment in employment and occupation (02/12/03)

2002/73/EC implementation  of  the  principle  of  equal  treatment  for men  and  women  as  regards  access  to  employment,
vocational training and promotion, and working conditions (05.10.05)

3. FREE MOVEMENT OF WORKERS

Directives in force:

68/360/EEC abolition of restrictions on movement

98/49/EC  safeguarding  the  supplementary  pension  rights  of  employed  and  self-employed  persons  moving  within  the
Community (deadline: 25.01.2002)

25

Council Regulations:

1612/68/EEC

freedom of movement for workers within the Community

1408/71/EEC
moving within the Community

application  of  social  security  schemes  to  employed  persons,  to  self-employed  and  their  families

574/72/EEC

procedures for implementing regulation 1408/71

Commission Regulation

1251/70/EEC

right of workers to remain in the territory of a Member State after having been employed in that state

4. HEALTH AND SAFETY AT WORK

Directives in force:

78/610/EEC approximation of the laws, regulations and administrative provisions of the Member States on the protection
of the health of workers exposed to vinyl chloride monomer

82/130/EEC  approximation  of  the  laws  of  the  Member  States  concerning  electrical  equipment  for  use  in  potentially
explosive atmospheres in mines susceptible to firedamp

83/477/EEC protection of workers from the risks related to exposure to asbestos at work

86/188/EEC protection of workers from the risks related to exposure to noise at work

88/35/EEC adapting to technical progress Council Directive 82/130/EEC on the approximation of the laws of the Member
States concerning electrical equipment for use in potentially explosive atmospheres in mines susceptible to firedamp

89/391/EEC introduction of measures to encourage improvements in the safety and health of workers at work

89/654/EEC minimum safety and health requirements for the workplace

89/655/EEC minimum safety and health requirements for the use of work equipment by workers at work

89/656/EEC  minimum  health  and  safety  requirements  for  the  use  by  workers  of  personal  protective  equipment  at  the
workplace

90/269/EEC minimum health and safety requirements for the manual handling of loads where there is a risk particularly of
back injury to workers

90/270/EEC minimum safety and health requirements for work with display screen equipment

90/394/EEC protection of workers from the risks related to exposure to carcinogens at work

91/269/EEC  adapting  to  technical  progress  Council  Directive  82/130/EEC  on  the  approximation  of  the  laws  of  the
Member  States  concerning  electrical  equipment  for  use  in  potentially  explosive  atmospheres  in  mines  susceptible  to
firedamp

91/322/EEC  establishing  indicative  limit  values  by  implementing  Council  Directive  80/1107/EEC  on  the  protection  of
workers from the risks related to exposure to chemical, physical and biological agents at work

91/382/EEC protection of workers from the risks related to exposure to asbestos at work

92/29/EEC minimum safety and health requirements for improved medical treatment on board vessels

92/57/EEC minimum safety and health requirements at temporary or mobile construction sites

92/58/EEC minimum requirements for the provision of safety and/or health signs at work

26

92/91/EEC  minimum  requirements  for  improving  the  safety  and  health  protection  of  workers  in  the  mineral-extracting
industries through drilling

92/104/EEC minimum requirements for improving the safety and health protection of workers in surface and underground
mineral-extracting industries

93/103/EC minimum safety and health requirements for work on board fishing vessels

94/44/EC adapting to technical progress Council Directive 82/130/EEC on the approximation of the laws of the Member
States concerning electrical equipment for use in potentially explosive atmospheres in mines susceptible to firedamp

95/30/EC adapting to technical progress Council Directive 90/679/EEC on the protection of workers from risks related to
exposure to biological agents at work

95/63/EC minimum safety and health requirements for the use of work equipment by workers at work

96/94/EC establishing a second list of indicative limit values in implementation of Council Directive 80/1107/EEC on the
protection of workers from the risks related to exposure to chemical, physical and biological agents at work

97/42/EC protection of workers from the risks related to exposure to carcinogens at work (deadline: 27.06.00)

97/59/EC adapting to technical progress Council Directive 90/679/EEC on the protection of workers from risks related to
exposure to biological agents at work

97/65/EC adapting to technical progress Council Directive 90/679/EEC on the protection of workers from risks related to
exposure to biological agents at work

98/24/EC  protection  of  the  health  and  safety  of  workers  from  the  risks  related  to  chemical  agents  at  work  (deadline:
5.5.2001)

98/65/EC adapting to technical progress Council Directive 82/130/EEC on the approximation of the laws of the Member
States  concerning  electrical  equipment  for  use  in  potentially  explosive  atmospheres  in  mines  susceptible  to  firedamp
(dead: 31.12.99)

99/38/EC protection of workers from the risks related to exposure to carcinogens at work and extending it to mutagens
(deadline: 29.04.2003)

2000/39/EC establishing a first list of indicative occupational exposure 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
(31.12.01)

2000/54/EC protection of workers from risks related to exposure to biological agents at work

Directives whose transposition deadline has not yet expired:

99/92/EC  minimum  requirements  for  improving  the  safety  and  health  protection  of  workers  potentially  at  risk  from
explosive atmospheres (30.06.2003)

2001/45/EC  minimum  safety  and  health  requirements  for  the  use  of  work  equipment  by  workers  at  work  (deadline:
19.04.04)

2002/44/EC minimum health and safety requirements regarding the exposure of workers to the risks arising from physical
agents (vibration) (06.07.05)

2003/10/EC minimum health and safety requirements regarding the exposure of workers to the risks arising from physical
agents (noise) (15.2.06)

27