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: 2004-03-01
Institutions: European Commission
Subjects: European social policy, enlargement of the Union, foreign policy, gender equality, job creation, social change, social security

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 01.03.2004 
COM(2004) 137 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 

EN 

   EN 

 
 
 
  
TABLE OF CONTENTS 

1. 

2. 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

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

The economic, employment and social situation ......................................................... 3 

The implementation of the social policy agenda.......................................................... 5 

More and better jobs..................................................................................................... 5 

Anticipating and managing change............................................................................ 10 

Promoting social inclusion and fighting discrimination ............................................ 14 

Modernising social protection.................................................................................... 17 

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

Strengthening the social policy aspects of enlargement and the European Union's 
external policies ......................................................................................................... 21 

4. 

Major initiatives for 2004........................................................................................... 22 

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1. 

INTRODUCTION 

The social policy agenda is the EU's roadmap for modernising and improving the European 
social  model.  Its  purpose  is  to  respond  to  the  common  challenges  the  EU  is  facing  and  to 
ensure at the same time that full advantage can be taken 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. As foreseen, the Commission presented in 2003 the mid-
term review of the social policy agenda1 with a view to determine the new policy measures 
needed to complete the agenda, with specific reference to the years 2004 and 2005, ensuring 
that the implementation of the agenda remains dynamic and flexible. 

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. 

This is the fourth scoreboard the Commission presents to report on the implementation of the 
social policy agenda2. This edition focuses essentially on the main achievements of the year 
20033. 

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.  For  ease  of  presentation,  the  scoreboard  retains  the  six  headlines  of  the 
Social Policy Agenda as annexed to the Nice Presidency Conclusions.  

2. 

THE ECONOMIC, EMPLOYMENT AND SOCIAL SITUATION 

On the economic situation 

In the first half of 2003, the European economy's performance continued to be weak. This is 
the third year in a row that economic growth remained well below potential so that the period 
covered by the social policy agenda until now is essentially marked by a period of sustained 
growth slowdown. For the year 2003, average GDP growth is expected to be 0.8%, while it 
was  1.1%  in  2002  and  1.7%  in  2001.  The  Autumn  Economic  Forecasts4  project  that  the 
average GDP growth for the EU will pick up to reach 2% in 2004.  

Inflation is anticipated to be 2.1% in the euro-area in 2003 and to reach 2% in 2004. At the 
same time, public finances remain under pressure, with an average general deficit of 2.8% in 
2003, widening further since the close to balance situation in 2000. 

1 
2 

3 

4 

COM(2003)312 of 02/06/2003 
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. 
European Commission (2003): European Economy – 5. Luxembourg: Office for Official Publications. 

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As  for  the  acceding  countries,  average  GDP  growth  is  anticipated  to  be  3.1%  in  2003  and 
3.8% in 2004. Inflation is expected to accelerate from  2.4% in 2003 to an average of about 
3.5% in 2004. Government deficit is expected to reach 5.0% of GDP.  

On the employment situation 

The benefits of the structural reforms implemented since the second half of the 1990s became 
apparent during the past period of sluggish economic growth. Compared to the early 1990s, 
employment  endured  more  successfully  the  weak  economic  performance.  However,  the 
sustained growth slowdown and the insufficient implementation of labour market reforms are 
expected  to  have  pushed  up  unemployment  to  8%  in  2003  –  up  from  7.7%  in  2002  -  and 
contained  employment  growth.  For  2004,  there  is  a  risk  of  continuing  stagnation  in 
employment,  and  possibly  higher  unemployment,  unless  further  labour  market  reforms  are 
implemented.  

Consequently, the EU will not reach the Stockholm intermediate employment target in 20055. 
With employment growth reaching a standstill in 2003 holding the employment rate at 64.3%, 
the 67% employment target for 2005 is now out of reach. The weak employment growth over 
the period 2002-2004 has put the full employment target for 2010 almost out of reach. Unless 
the  Member  States  step  up  their  reform  efforts,  it  is  looking  increasingly  unlikely  that  the 
employment objectives for 2010 will be attained.  

On the positive side, the Stockholm intermediate target for 2005, defined as an employment 
rate  of  57%  for  women,  remains  in  reach,  underlining  the  effectiveness  of  the  structural 
reforms to increase the participation of women in the labour market. To reach the 2010 goal 
the EU cannot rely on economic growth alone, the pace of reform must also be maintained, in 
particular  to  encourage  part-time  and  flexible  working  and  to  improve  access  to  affordable 
childcare. In 2003 the employment rate for women amounted to 55.6%.  

Although  employment  rates  for  older  workers  increased  substantially  to  just  over  40%  in 
2002,  the  target  of  50%  by  2010  is  a  considerable  way  off.  Progress  towards  the  full 
employment  goal  will  depend  tremendously  on  retaining  older  workers  longer  in  the  labour 
market.  

For the acceding countries, it is expected that there will not have been a difference in the net 
job situation in 2003, while employment creation is expected to pick up in 2004 with 0.6%. At 
the same time, unemployment is expected to remain high, reaching 14.3% in 2003. 

On the social situation 

The  latest  available  income  data  shows  that  about  15%  of  the  EU  population,  or  about  55 
million individuals, were at risk of poverty in 2001, thus living below a threshold of 60% of 
the  national  median  equivalised  income6.  More  than  half  of  them,  or  9%  of  the  EU 
population, is at persistent risk of poverty (i.e. they were at risk of poverty in at least 2 of the 
preceding 3 years).  

5 

6 

See for further details, including on the situation of individual countries, the Joint Employment Report 
2003/2004. 
The national differences in the monetary value of the national at-risk of poverty thresholds underline the 
different  level  of  economic  well-being  across  countries.  Whereas  the  value  of  the  "at-risk  of  poverty 
threshold for a single adult household in PPS" amounts to 15000 in Luxembourg, it is barely 5000 in 
Portugal.  

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Within the EU, differences between countries are important. For instance, the risk of poverty 
was  10%  in  Sweden  but  reached  21%  in  Ireland.  Some  groups  are  significantly  more 
vulnerable to the poverty risk than others. The household situations play an important role in 
that respect as the economic well-being of a person depends on the sum of all the resources 
contributed  by  all  members  of  their  household.  By  household  type,  the  risk  of  poverty  is 
highest among single parent households (35% for the EU average). Also those living in large 
households  with  three  or  more  dependent  children  are  particularly  exposed  to  income  risk 
poverty (27% for the EU average).  

The absence of employment at the level of households is a key risk factor of poverty. In the 
EU  as  a  whole,  in  2003,  9.6%  of  individuals  aged  between  18  and  59  years  were  living  in 
jobless  households  with  women  being  more  likely  to  live  in  a  jobless  household  than  men. 
The share of children living in jobless households amounts to 9.8% as an EU average. 

Children  deserve  special  attention  as  they  tend  to  experience  levels  of  poverty  higher  than 
those of adults. The material deprivation of the 19% of children who live at the risk of poverty 
in 2001 may have a tremendous impact on their future opportunities for development. 

Also women are generally more at risk of poverty (16% for women as opposed to 13% of men 
for persons aged 16 or more). 

Finally,  the  data  re-confirm  that  employment  alone  is  not  necessarily  sufficient  to  avoid 
poverty.  About  7%  of  the  employed  population  lives  at  risk  of  poverty.  However,  the 
importance  employment  can  play  in  poverty  reduction  is  also  clear  given  that  38%  of  the 
unemployed and 25% of the inactive are in poverty. 

3. 

THE IMPLEMENTATION OF THE SOCIAL POLICY AGENDA 

The focus in the social agenda has started to shift from initiating new measures to monitoring 
implementation.  The  majority  of  new  policy  oriented  measures  announced  have  been 
introduced.  Nevertheless  in  a  number  of  crucial  areas,  new  measures  have  been  slightly 
postponed until 2004 to allow a more in-depth analysis and evaluation of possible scenarios. 
This holds true for the review of the European Works Council and the Communication on the 
future  co-operation  in  the  field  of  health  care  and  care  for  the  elderly.  Importantly,  the 
Council  also  failed  to  find  agreement  on  a  draft  directive  on  temporary  agency  work, 
inhibiting the progress needed to strike a new balance between flexibility and security.  

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  and  refined  with  complementary  targets  added  at  subsequent  European  Council 
meetings. 

As  mentioned  above,  reaching  the  employment  target  for  2005  has  become  unattainable. 
There is a risk that the 2010 target will not be reached either, in particular as a consequence to 
the insufficient progress in keeping older workers at work.  

Increasing  active  employment  starts  with  encouraging  specific  categories  to  have  access  to 
jobs or to stay in a job. This involves in particular the development of policies for reconciling 
family  and  professional  life  as  well  as  increasing  the  employment  of  older  workers  and 

5 

 
 
  
 
delaying the exit from the labour market through active ageing. The Commission followed up 
on  its  January  2002  Communication  with  a  working  paper  deepening  this  issue,  leading  to 
operational Conclusions in the Council7 at the end of 2003.  

Strengthen and continue the co-ordinated strategy for employment 

In 2003, the streamlining of the annual economic and employment policy co-ordination cycles 
was  put  into  practice,  synchronising  the  Broad  Economic  Policy  Guidelines  and  the 
Employment Guidelines in time and emphasising their effective implementation.  

The  experiences  of  the  first  five  years  of  the  employment  strategy  have  been  extensively 
evaluated.  The  analysis  underlined  the  need  for  continuity,  in  particular  to  address  the 
remaining structural weaknesses in the labour markets and to incorporate the new challenges 
to  be  faced  in  an  enlarged  European  Union  with  a  focus  on  better  implementation  and 
governance. 

The renewed strategy, as announced in the early 2003 Communication8 on the future of the 
European Employment Strategy and specified in the employment guidelines, is based on three 
overriding  objectives:  full  employment,  improving  quality  and  productivity  at  work,  and 
strengthening social cohesion and inclusion. These cross-cutting objectives are supported by 
ten  specific  guidelines  and  strengthened  governance  provisions.  In  response  to  the  new 
Employment  Guidelines,  Member  States  have  submitted  National  Action  Plans  in  Autumn 
2003, which have been assessed in the Joint Employment Report 2003/2004 submitted to the 
2004 Spring European Council.  

The  policy  orientation  should  in  principle  cover  the  time  span  2003-2006,  just  like  the 
application time of the current set of Broad Economic Policy Guidelines9, thus allowing more 
time  for  on  the  ground  implementation.  Recommendations  are  addressed  to  the  Member 
States, identifying specifically the key policy issues Member States should concentrate on in 
the immediate future. 

The Brussels Spring European Council of March 2003 invited the Commission to establish a 
European Employment Taskforce, headed by Mr Wim Kok, to carry out an independent in-
depth  examination  of  key  employment  related  policy  challenges  and  to  identify  practical 
reform measures that can have the most direct and immediate impact on the ability of Member 
States to implement the revised European employment strategy. The Kok Taskforce presented 
its report end November 200310. In line with the European Council conclusions, the Taskforce 
reported  to  the  Commission  in  time  for  the  Joint  Commission/Council  Employment  Report 
submitted to the 2004 Spring European Council.  

The key message of the report is that the success in creating more employment will depend on 
the  following  four  key  requirements:  increasing  adaptability,  attracting  more  people  to  the 
labour market, investing more and more effectively in human capital, and ensuring effective 
implementation of reforms through better governance 

7 
8 
9 
10 

OJ C:2003/260/3 of 29/10/2003 
COM(2003) 6 of 14/01/2003 
OJ L 195/1 of 01/08/2003 
Jobs, Jobs, Jobs. Creating more employment in Europe. Report of the Employment Taskforce chaired 
by Wim Kok. 

6 

 
 
  
 
                                                 
Key measures: 
–  Guidelines for Member States' employment policies for the year 200311 
–  Council  Recommendation  on  the  implementation  of  Member  States'  Employment 

–  Draft Joint Employment Report13 
–  Report of the Kok Employment Taskforce: Jobs, Jobs, Jobs. Creating more employment in 

Policies12 

Europe14.  

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  Brussels  March 
2003 European Council urged a review of the measures to improve quality in work by the end 
of  2003.  The  Commission  adopted  in  November  a  Communication  in  which  it  reports  on 
recent progress.  

Quality improvements in European labour markets are important 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. For Europe to reach its full employment goal and step up its 
productivity  levels,  labour  market  dynamics  need  to  be  encouraged.  The  employment 
guidelines provide a clear orientation to work towards this goal. 

Key measure: 
–  Review of recent progress on improving quality in work15 

Role of the ESF 

The  Structural  Funds  contribute  to  strengthening  convergence  and  cohesion.  The  European 
Social  Fund  backs  up  employment  policies  with  European  financial  resources.  The 
Commission adopted early 2003 the second progress report on economic and social cohesion 
providing a comprehensive overview of the state of play16. The mid-term review of the ESF in 
the context of the Structural Funds Review is scheduled for 2004. 

With regards to EQUAL, the Community initiative to combat all forms of discrimination and 
inequalities in connection with the labour market, the Commission presented a revision of the 
guidelines.  While  reconfirming 
the 
administrative  implementation  to  enhance  effectiveness,  particularly  within  an  enlarged 
European Union.  

the  EQUAL  principles, 

the  revision  simplifies 

11 
12 
13 
14 
15 
16 

OJ L 197/13 of 05/08/2003  
OJ L 197/22 of 05/08/2003 
COM(2004)24 of 21/01/2004 
http://esnet.cec/comm/employment_social/employment_strategy/pdf/etf_en.pdf 
COM(2003)728 of 26/11/2003 
COM(2003)34  of  30/01/2003;  EESC  opinion  2003/929  of  16/07/2003;  COR  opinion  2003/391  of 
02/07/2003; EP resolution 2003/267 of 02/09/2003 

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Key measure: 
–  Communication revising the Guidelines for the Community initiative EQUAL17 

Training and lifelong learning 

The efforts to increase participation in education and training should be further pursued and 
coherent  and  comprehensive  national  lifelong  learning  strategies  should  be  developed  and 
implemented  as  a  matter  of  urgency18.  With  regard  to  vocational  training  in  enterprises, 
special  efforts  should  be  made  to  increase  the  participation  rate  of  women,  gender  equality 
being  a  priority  for  lifelong  learning  policy.  Also  special  measures  to  encourage  the 
participation of disadvantaged groups, including disabled people, should be foreseen19. 

Age, gender and educational level remain important parameters determining participation in 
training. There is also strong evidence showing that the social partners play a key role in this 
respect. The provision of training in collective agreements reduces for instance the difference 
between big and small and medium-sized enterprises with regards to participation in training 
activities20. 

In co-operation with the OECD and the World Bank, and through its agencies CEDEFOP and 
ETF, the Commission commissioned a study of policies for career guidance in all European 
countries.  Country  reports  showed  that  governments  view  career  guidance  as  making  a 
significant  contribution  to  the  public  policy  goals  of  lifelong  learning,  social  inclusion  and 
social equity21. 

Overall,  the  quality  and  attractiveness  of  vocational  education  and  training  remains  too 
variable  throughout  Europe.  Significant  efforts  are  required  at  both  national  and  European 
level to improve the status of the vocational route. Education Ministers have set benchmarks 
in five key areas in order to facilitate comparison among Member States and with the rest of 
the world, and to monitor progress. These include ensuring the attainment of a participation 
rate  in  training  of  12.5%  of  the  adult  working-age  population  by  201022,  together  with 
ensuring that 85% of the 22 years old have completed upper secondary education. 

Key measure: 

–  Implementation of the Education and Training 2010 workprogramme and the Copenhagen 

process of enhanced co-operation in vocational education and training23 

Employment and social dimension of the information society 

The  training  issue  is  pivotal  for  Europe's commitment  to  the  knowledge  based  economy.  In 
2003,  particular  attention  has  been  given  to  outlining  the  interactions  between  social  and 
human capital for the knowledge society24. Through a resolution25, the Council underlined the 

17 
18 
19 
20 
21 

22 
23 
24 
25 

COM(2003)840 of 30/12/2003 
COM(2003)685 of 11/11/2003 
Council Resolution of 5 May 2003 and OJ C 134/6 of 07/06/2003 
See Report on Employment in Europe 2003 published by the European Commission. 
See  Guidance  Policies  in  the  Knowledge  Society:  Trends,  Challenges  and  Responses  across  Europe 
(CEDEFOP 2004) 
The current rate is 8.5% 
See draft joint interim report of the Council and the Commission – COM(2003)685 of 11/11/2003 
SEC(2003)652 of 28/05/2003 
OJ C/2003/175/3 of 24/07/2003 

8 

 
 
  
 
                                                 
strategic importance for investing in the development of social and human capital, zooming in 
on learning, work, social cohesion and gender.  

Mobility 

The implementation of the action plan for skills and mobility was a major concern in 2003. 
The  measures  developed  should  reduce  the  obstacles  to  occupational  mobility,  low 
geographical  mobility,  the  fragmentation  of  information  on  mobility  and  the  lack  of 
transparency of job opportunities. As follow-up to the Commission Communication26 on free 
movement of workers of end 2002 in which information and guidelines are provided on the 
most  important  legal  aspects  of  free  movement  of  workers,  the  Commission  continued  to 
provide  information  to  citizens  and  to  monitor  closely  the  Member  States'  rules  and  their 
application. To support citizens in finding jobs in another Member State and help employers 
in  their  recruitment  efforts,  the  Commission  completed  the  implementation  of  the  reformed 
EURES network through the adoption of its related Charter and Guidelines. This process was 
also bolstered by the launch of new web portals for job and learning mobility, which not only 
publish  vacancies  but  also  provide  information  on  living  and  working  conditions,  learning 
opportunities, as well as labour market conditions in all Member States. The Commission also 
adopted the Europass proposal for decision27, rationalising instruments and networks for the 
transparency  of  qualifications  and  competences,  expected  to  be  adopted  by  the  European 
Parliament and Council by the end of 2004. The Europass will be supported by an information 
system integrated with the job and learning mobility web portals.  

On  the  right  of  citizens  of  the  Union  and  their  family  members  to  move  and  reside  freely 
within  the  territory  of  the  Member  states,  the  Council  reached  a  common  position  in 
December 2003 following the first reading in Parliament earlier in the year, and transmitted it 
to Parliament for the second reading. 

Finally,  specific  reference  should  be  made  to  the  2nd  phase  consultation  of  social  partners 
which  was  launched  on  the  measures  to  improve  the  portability  of  occupational  pension 
rights. 

Key measures: 
–  Commission Decision on EURES28 and adoption of EURES Charter29 
–  New  web  portals  to  help  citizens  to  find  jobs  and  learning  opportunities  in  other  EU 

–  Launch  of  2nd  phase  consultation  of  social  partners  on  the  portability  of  occupational 

Member States30 

pension rights31 

Immigration policy and employment 

Specific attention has  been given to the development of an immigration policy and its links 
with  employment  and  social  integration.  The  Commission  launched  the  debate  with  a 
Communication  mid  2003  following  an  extended  impact  assessment  evaluating  the  options. 
On the basis of an analysis of the economic and demographic challenge, the Communication 

26 
27 
28 
29 
30 

31 

COM(2002)694 of 11/12/2002 
COM(2003)796 of 17/12/2003 
OJ L/2003/5/16 of 10/01/2003 
OJ C/2003/106/3 of 03/05/2003 
http://europa.eu.int/eures/index.jsp: (URL for the new portal) and http://europa.eu.int/ploteus as well as 
www.ploteus.net 
SEC (2003)916 of 12/09/2003 

9 

 
 
  
 
                                                 
identifies  a  number  of  orientations  and  strategic  priorities  for  the  future.  Essentially,  it 
predicts that labour migration to the EU will become increasingly necessary, but warns that 
immigrants  will  not  be  able  to  fulfil  their  potential  nor  make  their  full  contribution  to 
economic  development  unless  more  effective  policies  are  developed  to  integrate  these 
migrants entirely into the labour market, as well as into social, cultural and civic life. 

Key measure: 
–  Commission Communication on immigration, integration and employment32 

3.2. 

Anticipating and managing change 

The Nice European Council political orientations on the social policy agenda called for fresh 
collective  responses  that  take  account  of  workers'  expectations  to  manage  the  far-reaching 
changes in the economy and the labour market. It identified social dialogue and consultation 
as key instruments to create the right conditions for workers to participate in change. 

The implementation of the social partners' multi-annual work programme adopted end 2002 is 
of crucial importance in this respect. 

Involving workers more in managing change 

As  their  response  to  the  consultation  launched  by  the  Commission,  the  social  partners  have 
established  preliminary  orientations  for  managing  the  social  consequences  of  restructuring, 
which include the effective involvement of workers in managing change and which constitute 
a useful basis for further work on this issue.  

Following  the  final  breakthrough  in  2001  on  the  European  Company  Statute  and  the 
involvement of workers in such companies, the negotiations for a regulation on the statute for 
a European co-operative structure have now also been successfully completed, together with 
the  European  Parliament  and  Council  directive  supplementing  the  regulation  with  regard  to 
the involvement of employees. 

Key measures: 
–  Social partners' orientations for reference in managing change and its social consequences 
–  Adoption of a Council Regulation on the statute for a European cooperative society33  
–  Adoption  of  a  Council  Directive  supplementing  the  statute  for  a  European  cooperative 

society with regard to the involvement of employees34  

Health and safety at work 

In 2002, the Commission proposed a new Community strategy on health and safety at work to 
cover  the  period  until  2006.  It  builds  on  the  knowledge  that  the  absence  of  high  quality 
occupational  health  and  safety  policy  generates  a  significant  economic  cost35.  To  underline 
the  principle  of  prevention  within  this  strategy,  the  Commission  adopted  a  recommendation 
on the European schedule of occupational diseases.36  

32 
33 
34 
35 

36 

COM(2003)336 of 03/06/2003 
OJ L/2003/207/1 of 18/08/2003 
OJ L/2003/207/25 of 18/08/2003 
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. 
OJ L 2003/238/28 of 25/09/2003 

10 

 
 
  
 
                                                 
The Senior Labour Inspectors Committee (SLIC) adopted a resolution on their role in the new 
strategy on safety and health at work. SLIC agreed to initiate a working group to propose a set 
of  revised  principles  for  labour  inspection  throughout  the  EU.  It  also  highlighted  that  in 
addition to quantitative inspection objectives also qualitative objectives can be established in 
the form of common initiatives on enforcement. Such qualitative objectives can contribute to 
the realisation of the primary objectives of consistent and uniform enforcement. 

To strengthen the cooperation between labour inspectorates, SLIC decided to set up a working 
group to prepare a simple permanent network for the exchange of information, in particular on 
the  content  of  different  educational  demands  with  regards  to  the  performance  of  work 
requiring special qualifications; enforcement in relation to enterprises that infringe the rules; 
mutual assistance on criminal law; management of new, broader and more complex working 
environment problems; and exchange of labour inspectors. 

In  2003,  important  progress  was  reached  by  the  European  Parliament  and  the  Council.  The 
directive  on  noise  protection  was  agreed  early  in  the  year.  They  also  adopted  a  directive, 
amending a 1983 directive, on the protection of workers from the risks related to exposure to 
asbestos at work. A common position was reached on the European Parliament and Council 
directive on the minimum health and safety requirements regarding the exposure of workers 
to the risks arising from electromagnetic fields and waves.  

In response to the new health and safety strategy, work also accelerated on carcinogens. The 
Commission presented in March an amended proposal for a European Parliament and Council 
directive  on  the  protection  of  workers  from  the  risks  related  to  exposure  to  carcinogens  or 
mutagens at work for which the EP adopted in September its opinion in first reading.  

The Council also agreed a recommendation on the application of legislation governing health 
and  safety  at  work  to  self-employed  workers.  The  Decision  on  the  establishment  of  an 
Advisory  committee  on  safety,  hygiene  and  health  protection  at  work  was  adopted  by  the 
Council.  

With  a  view  to  facilitate  the  application  of  the  European  Parliament  and  Council  directive 
1999/92/EC on explosive atmospheres, the Commission presented a guide of good practice.  

Key measures: 
–  Resolution by the Senior Labour Inspectors Committee on the new Community strategy on 

safety and health at work37  

–  Adoption of a European Parliament and Council directive on noise (physical agents)38 
–  Adoption  by  the  European  Parliament  and  the  Council  of  a  Directive  amending  Council 
directive  83/477/EEC  on  the  protection  of  workers  from  the  risks  related  to  exposure  to 
asbestos at work39  

–  Common position on a European Parliament and Council directive on the minimum health 
and  safety  requirements  regarding  the  exposure  of  workers  to  the  risks  arising  from 
physical agents - electromagnetic fields and waves40 

–  Amended  proposal  for  a  Directive  of  the  European  Parliament  and  Council  on  the 
protection  of  workers  from  the  risks  related  to  exposure  to  carcinogens  or  mutagens  at 
work41 

37 
38 
39 
40 

As agreed at the 43rd Plenary session in Billund, Denmark  
OJ L 2003/42/38 of 15/02/2003 
OJ L/2003/97/48 of 15/04/2003 
based on COM(2003)127 of 20/03/2003 

11 

 
 
  
 
                                                 
–  Council  recommendation  concerning  the  application  of  legislation  governing  health  and 

safety at work to self-employed persons42 

–  Council  Decision  setting  up  an  advisory  committee  on  safety,  hygiene  and  health 

protection at work43 

–  Presentation  of  a  guide  of  good  practice  to  facilitate  the  application  of  the  European 
Parliament and Council directive1999/92/EC on minimum requirements for improving the 
safety and health protection of workers potentially at risk from explosive atmospheres44  

Working environment and working relations 

The  Council  adopted  in  March  the  proposal  to  establish  a  Tripartite  Social  Summit  for 
Growth  and  Employment.  The  Summit,  to  be  held  each  year  on  the  eve  of  the  Spring 
European Council, should ensure that the social partners' initiatives and actions are fully taken 
into account into the policy-making process at European level and should help in monitoring 
the contributions delivered by the social partners towards the effective implementation of the 
Lisbon strategy. 

A special Social Summit was held on 11 December 2003, on the eve of the European Council, 
focusing in particular on the Employment Task Force report, presented by Mr. Kok. 

The  implementation  of  the  joint  work  programme  for  autonomous  social  dialogue  covering 
the  period  2003-2005  to  which  the  social  partners  signed  up  at  the  end  of  2002  is  a  crucial 
contribution to the social policy agenda.  

In  the  framework  of  this  joint  work  programme,  the  social  partners  have  started  work  on  a 
number of issues including annual reporting on social partners' initiatives in Member States to 
implement  the  employment  guidelines,  annual  reporting  on  the  implementation  of  their 
framework  of  actions  on  the  lifelong  development  of  competencies  and  qualifications, 
negotiations with a view to drafting a framework for action on gender equality, negotiations 
with  the  aim  of  concluding  a  voluntary  framework  agreement  on  stress  at  work,  and 
orientations  for  reference  in  managing  the  social  consequences  of  change,  as  well  as  the 
organisation  of  national  seminars  to  promote  the  development  of  social  dialogue  in  the 
acceding countries. 

The  social  partners  also  completed  the  second  phase  consultation  on  processing  of  personal 
data  and  the  protection  of  privacy  in  the  employment  context.  Also  the  second  stage 
consultation  on  measures  to  improve  the  portability  of  occupation  pension  rights  was 
completed.  Within  the  context  of  the  European  Year  on  People  with  Disabilities,  the  social 
partners  adopted  a  declaration  on  promoting  equal  opportunities  and  access  to  employment 
for people with disabilities.  

At sectoral level, the following achievements should be noted: a code of conduct on corporate 
social  responsibility  in  the  sugar  industry,  a  joint  statement  on  life-long  learning  in  the 
electricity  sector,  and  in  the  railway  sector  an  agreement  on  certain  aspects  of  the  working 
conditions of railway mobile workers assigned to interoperable cross-border services and an 
agreement  on  the  European  licence  for  drivers  carrying  out  a  cross-border  interoperability 
service.  

41 
42 
43 
44 

COM(2003)127 of 20/03/2003; EP resolution A5/2003/255 of 02/09/2003 
OJ L 2003/53/45 of 28/02/2003 following COM(2002)166 of 03/04/2002  
OJ C/2003/218/1 of 13/09/2003 
COM(2003)515 of 25/08/2003 

12 

 
 
  
 
                                                                                                                                                         
Key measures: 
–  Adoption  of  a  Council  Decision  on  the  establishment  of  a  Tripartite  Social  Summit  for 

Growth and Employment45 

–  Social dialogue at interprofessional level: 
–  Completion of 2nd stage consultation of social partners on processing of personal data and 

the protection of privacy in the employment context 

–  Completion  of  2nd  stage  consultation  on  measures  to  improve  the  portability  of 

occupational pension rights  

–  Declaration  of  the  social  partners  on  promoting  equal  opportunities  and  access  to 

employment for people with disabilities 

–  Social dialogue at sectoral level: 
–  a code of conduct on corporate social responsibility in the sugar industry  
–  joint statement on life-long learning in the electricity sector  
–  joint statement on corporate social responsibility in the commerce sector 
–  joint statement on telework in local government 
–  agreements in the railway sector concerning working conditions and a European licence 

The emphasis on correct transposition and application of existing legislation is being stepped 
up.  Also  great  attention  is  being  given  to  the  monitoring  and  evaluation  reports  of  existing 
legislation.  

The  legislation  to  be  singled  out  for  2003  on  which  reports  were  published  concerns  the 
following issues: Council Directive 96/34/EC on the framework agreement on parental leave 
concluded by UNICE,CEEP and ETUC; the review of the Directive 96/71/EC concerning the 
posting of workers in the framework of the provision of services; and the review of Directive 
93/104/EC on the organisation of working time; report on the practical implementation of the 
Framework Directive 89/391/CEE and of the five first particular Directives. 

On the European Works Council, the European Economic and Social Committee submitted an 
exploratory opinion with a view to examine what aspects might need to be revised. 

As  to  new  draft  legislation,  the  Brussels  European  Council  of  March  2003  urged  for 
agreement by December 2003 on temporary agency work. However, the Council failed to find 
political agreement on a temporary agency workers' directive in the first semester of the year 
and no progress was reached since then. This failure hampers striking a new balance between 
flexibility and security better adapted to the needs of both businesses and workers. A directive 
on  this  issue,  which  is  strongly  called  for  by  the  European  Parliament,  would  provide  EU 
wide minimum protection to temporary agency workers and would open up the sector in those 
countries with restrictions on the use of temporary agency workers, impeding job creation and 
extending flexibility.  

With  regards  to  the  follow  up  of  the  Commission  Communication  on  a  framework  for  the 
promotion of employee financial participation, the European Parliament adopted a resolution 
in June46.  

45 
46 

OJ L 2003/70/31 of 14/03/2003 
A5/2003/150 of 05/06/2003 

13 

 
 
  
 
                                                 
Key measures: 
–  Commission  Communication  on  the  review  of  the  Directive  96/71/EC  concerning  the 

posting of workers in the framework of the provision of services47 

–  Communication  from  the  Commission  on  the  review  of  Directive  93/104/EC  on  the 

organisation of working time48 

–  Commission's  report  on  the  practical  implementation  of  the  Framework  Directive 
89/391/EEC  concerning  the  implementation  of  measures  to  promote  the  improvement  of 
Health  and  Safety  of  workers  and  of  five  first  particular  Directives  (89/654/EEC, 
89/655/EEC, 89/656/EEC, 90/269/EEC and 90/270/EEC) 

–  Exploratory  Opinion  by  the  EESC  on  the  Practical  applications  of  the  European  Works 

Council directive (94/45/EC) 49 

Corporate social responsibility 

Following  the  Commission's  initiative  to  promote  widely  Corporate  Social  Responsibility, 
both  the  Council  and  the  EP  adopted  a  resolution  to  express  their  political  support50.  The 
objective of CSR is to encourage enterprises to integrate social and environmental concerns in 
their  business  operations  on  a  voluntary  basis,  with  a  view  to  contribute  to  sustainable 
development.  

The  work  within  the  Multi-Stakeholder  Forum  on  CSR  was  pursued  in  2003,  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.  In  order  to  promote  CSR  by  highlighting  best  practice, 
European Prices for excellence in the fields of lifelong learning, diversity and gender equality 
have been awarded. The announcement of the winners of the Awards was accompanied by a 
presentation of the top 100 workplaces in the European Union.  

Furthermore  a  project  looking  at  responsible  entrepreneurship  for  SMEs  terminated  in  mid-
2003 and a resulting brochure containing best practices in the field of CSR was published at 
the end of that same year. 

3.3. 

Promoting social inclusion and fighting discrimination 

Social inclusion strategy – the open method of co-ordination 

Now  that  the  open  method  of  co-ordination  has  gone  through  a  first  cycle  since  the  Nice 
European Council, a consolidation is taking place in the approach to make a decisive impact 
on the eradication of poverty by 2010. At the end of 2002, the Council agreed the objectives 
and working methods for the second generation of National Action Plans. 

These  Plans  were  submitted  in  2003  and  the  Commission  presented  its  analysis  in  the  draft 
Joint  Report  on  social  inclusion  in  December.  The  report  reiterated  the  urgency  to  fight 
poverty and social exclusion and underlined the immediate link with economic development. 

47 
48 
49 
50 

COM(2003)458fin of 25/07/2003 
COM(2003)843 of 30/12/2003 
EESC/552/2003 of 24/09/2003 
OJ C/2003/39/3 of 18/02/2003 and EP Resolution A5/2003/133 of 13/05/2003  

14 

 
 
  
 
                                                 
It highlighted some positive strategic developments. Overall, civil society and key actors such 
as social partners have been better involved in the design of the new National Action Plans51. 
It  is  crucial  now  that  such  participation  is  extended  to  the  implementation  and  monitoring 
phase of the Plans. The multi-dimensional nature of poverty is better catered for than in the 
previous National Action Plans. However, there is significant scope for further progress and 
in  particular  more  attention  needs  to  be  given  to  lifelong  learning,  housing,  e-inclusion  and 
transport. 

There  is  also  a  trend  that  more  Member  States  set  quantitative  targets  and  that  the 
mainstreaming of fighting poverty has been stepped up. Nevertheless, not all Member States 
have identified clear national targets. More precision, including by quantifying more targets, 
will be essential to focus the national measures better. These targets also need to be backed up 
by effective implementation of reforms.  

Also a better articulation between economic, employment and social policies is essential, in 
particular  to  ensure  that  the  modernisation  of  the  economy  goes  hand  in  hand  with  the 
strategies to fight poverty and the other way round. In addition, social inclusion goals need to 
be considered when setting overall expenditure priorities. 

In  the  draft  Joint  Report  on  social  inclusion,  the  Commission  highlighted  the  following  six 
priorities: 

–  Increasing investment in and tailoring of active labour market measures to meet the needs 

of those who have the greatest difficulties in accessing employment; 

–  Ensuring  that  social  protection  schemes  are  adequate  and  accessible  for  those  unable  to 

work while providing effective work incentives for those who can work; 

–  Increasing the access of the most vulnerable and those most at risk of social exclusion to 

decent housing, quality health and lifelong learning opportunities; 

–  Implementing  a  concerted  effort  to  prevent  early  school  leaving  and  to  promote  smooth 

transition from school to work; 

–  Developing a focus on ending child poverty; 
–  Making a drive to reduce poverty and social exclusion of immigrants and ethnic minorities 

From  2004  onwards,  the  social  inclusion  strategy  will  have  to  reflect  in  it  entirety  the 
participation  of  ten  new  Member  States.  Finally,  on  the  basis  of  the  in  2003  endorsed 
approach on the future for  EU–level  co-ordination on social protection, the open method of 
co-ordination in the social field will be streamlined by 2006.  

Key measures 
–  Presentation of new National Action Plans Inclusion  
–  Draft Joint Report on social inclusion52 
–  Streamlining the open method of co-ordination in the field of social protection53 

The digital divide 

To  prevent  a  digital  divide,  the  EU  and  its  Member  States,  notably  through  structural  and 
R&D  funds,  are  investing  significantly  to  make  sure  that  everyone  has  the  opportunity  to 

51 

52 
53 

The Council also adopted a Resolution on social inclusion through social dialogue and partnership – see 
OJ C 39/1 of 18/02/2003 
COM(2003)773fin of 12/12/2003 
COM(2003)261 of 27/05/2003 and endorsed by the Council in October 2003 

15 

 
 
  
 
                                                 
benefit  from  the  new  possibilities  offered  by  new  information  and  communication 
technologies. The final report on eEurope 2002 was adopted54. 

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 adopted by the Council in early 2003.  

Key measure: 
–  Adoption by Council of the extension of regulation 1408/71 to third country nationals55  

Combating discrimination 

The  two  European  Directives  prohibiting  discrimination  on  the  grounds  of  race  or  ethnic 
origin, religion or belief, disability, age and sexual orientation that were agreed by Member 
States unanimously in 2000, should have been transposed into national law in 200356.  

However, to date, there have been mixed results concerning transposition with some Member 
States  failing  to  integrate  these  directives  into  national  law.  The  Commission  has 
consequently launched infringement proceedings against the relevant Member States. In order 
to  raise  awareness  of  the  directives  and  the  rights  and  obligations  they  confer,  the 
Commission launched a multi-annual EU-wide campaign to combat discrimination under the 
heading  'For  diversity  –  Against  Discrimination'.  This  information  campaign  was  funded 
under the Community Programme to combat discrimination 2001-2006. 

The benefits to businesses of diversity policies were illustrated in a report57 which combined a 
survey with case studies and in-depth interviews with companies.  

Some 69% of companies interviewed for the report said that diversity policies had enhanced 
their corporate reputation; 62% said that these policies had played a part in helping to attract 
and retain highly talented personnel; just under 60% said that diversity in action had improved 
motivation  and  efficiency,  increased  innovation,  enhanced  service  levels  and  customer 
satisfaction, and helped overcome labour shortages.  

In 2003, the Commission also adopted proposals to recast Regulation 1035/97 establishing the 
European Monitoring Centre on Racism and Xenophobia, to ensure the Centre's sustainability 
and proper functioning58. Furthermore, the European Council of December 2003, stressing the 
importance of human rights data collection and analysis with a view to defining Union policy 
in this field, called for extending the Centre's mandate to become a Human Rights Agency.  

Integration of disabled people 

The year 2003 was the European Year of People with Disabilities. Building on the momentum 
and the increased awareness, the Commission presented an action plan on equal opportunities 

54 
55 
56 

57 
58 

COM(2003)66 of 11/02/2003 
OJ L/2003/124/1 of 20/05/2003 
Racial  Equality  directive  2000/43/EC  –  with  transposition  deadline  19  July  2003  –  prohibiting 
discrimination  against  people  on  the  grounds  of  their  racial  or  ethnic  origin  and  the  Employment 
Equality  Directive  2000/78/EC  –  with  transposition  deadline  2  December  2003  –  prohibiting 
discrimination in employment and training on grounds of a person's religion or belief, disability, age or 
sexual orientation. 
http://europa.eu.int/comm/employment_social/fundamental_rights/prog/studies_en.htm 
COM(2003)483 of 05/08/2003 

16 

 
 
  
 
                                                 
for people with disabilities. The Council adopted also a Resolution on promoting employment 
and social integration of people with disabilities.  

Key measure: 
–  European Action Plan on equal opportunities for people with disabilities59 

Civil dialogue 

The Commission took steps in 2003 to ensure that a long term and stable solution was found 
to  support  civil  dialogue  in  the  social  policy  field  and  in  particular  to  contribute  funding 
towards the running costs of the Platform of European Social NGO's (Social Platform). On 27 
May  2003,  the  Commission  adopted  a  proposal60  for  a  Council  Decision  establishing  a 
Community Programme to promote active European citizenship (civic participation) for 2004-
2008, which provides, inter alia, for the funding of the running costs of the Social Platform. 
This proposal is due to be adopted by the Council in January 2004. 

3.4.  Modernising social protection 

A  crucial  step  forward  was  made  in  making  the  co-ordination  in  the  social  field  more 
operational.  The  Commission  proposed  to  gradually  streamline  the  co-ordination  processes 
into a single entity by the year 2006. This approach was endorsed by the Council, so that in 
time,  the  strategic  importance  of  co-ordination  in  the  social  domain  will  be  strengthened, 
bringing social inclusion, pensions, health care and making work pay within one open method 
of co-ordination. This should simplify the reporting requirements, allowing more attention to 
be  given  to  implementing  the  policies  in  a  framework  in  which  the  internal  interaction 
between  the  social  policy  strands  and  the  external  interaction  with  the  employment  and 
economic co-ordination processes will be facilitated.  

Adequate and sustainable pensions 

To  address  the  challenge  of  an  ageing  population  to  pension  systems,  steps  have  been 
undertaken since the Lisbon European Council to gradually introduce an open method of co-
ordination  on  adequate  and  sustainable  pensions.  At  the  Laeken  European  Council,  eleven 
common  objectives  were  defined,  to  be  covered  under  three  headings:  safeguarding  the 
capacity of systems to meet their social objectives,  maintaining  their  financial  sustainability 
and meeting changing societal needs.  

A Joint Report on adequate and sustainable pensions was adopted by the Commission and the 
Council.  It  assessed  and  highlighted  the  main  findings  on  the  national  strategy  reports 
submitted  in  the  second  semester  of  2002.  It  provided  evidence  of  the  commitment  to 
maintain  the  adequacy  of  pensions  systems,  but  also  stressed  the  need  for  further  action  to 
secure financial sustainability. Member States should take advantage of the limited window of 
opportunity  for  action  before  the  demographic  ageing  alters  the  age  composition  of  the 
population in an important way.  

The  Joint  Report  was  welcomed  by  the  European  Council  which  called  for  further  reforms 
focusing in particular on the employment of older people. The open method of co-ordination 
is to be continued and developed leading to a review of progress in 2006. This requires the 
submission  of  national  strategy  reports  by  the  acceding  countries  and  the  up-dating  of  the 

59 
60 

COM(2003)650 of 30/10/2003 
COM(2003)276 of 27/05/2003 

17 

 
 
  
 
                                                 
reports of the current Member States by mid-2005. In order to prepare the acceding countries 
for the open method of coordination, bilateral seminars were held during 2003. 

Key measure 
–  Adoption of the joint Commission/Council report on adequate and sustainable pensions61 

High quality and sustainable health care  

A  joint  Commission  and  Council  report  on  supporting  national  strategies  for  the  future  of 
health  care  and  care  for  the  elderly  was  adopted  in  early  2003.  The  report  was  based  on 
national replies to a questionnaire.  

The European Council of March 2003 called for a next Commission Communication setting 
out further proposals for the intensification of the co-operative exchange in the field of health 
care and care for the elderly. 

The  Commission  also  brought  Health  Ministers  together  with  health  sector  stakeholders, 
acceding States and the European Parliament in a high level process of reflection on patient 
mobility  and  healthcare  developments  in  the  European  Union.  This  aimed  to  provide  an 
informal  forum  to  start  developing  a  common  vision  for  European  health  systems  whilst 
respecting  national  responsibilities  in  this  area.  At  its  concluding  meeting  on  8  December 
2003, the reflection process agreed a report including 19 recommendations for further action. 

Key measure: 
–  Adoption of a Joint Commission/Council report on health care and care for the elderly62 

Making work pay 

Finally, the Commission also presented a Communication on the fourth element of its social 
protection  policy  launched  in  1999.  It  presented  a  Communication  on  making  work  pay,  to 
pave the way for further work on this issue, connecting social inclusion, social protection and 
employment policy. This Communication responded at the same time to the specific request 
formulated  by  the  2003  Spring  European  Council  for  a  report  on  how  to  improve  social 
protection policies through a greater emphasis on incentives for work. 

Key measure: 
–  Communication  on  modernising  social  protection  for  more  and  better  jobs  through  a 

comprehensive approach contributing to making work pay63  

Modernisation of the co-ordination of social security systems 

The Nice European Council encouraged the adaptation and extension of the rules with regards 
to social security rights in cross-border situations. Progress on amending Regulation 1408/71 
has been gradual over the previous years.  

In  2003,  the  Council  formally  adopted  the  proposal  to  extend  the  regulation  to  nationals  of 
third countries who were not already covered by these provisions solely on the ground of their 
nationality. 

61 
62 
63 

OJ C/2003/260/3 of 29/10/2003 
COM(2002)774fin of 03/01/2003 
COM(2003)842fin of 30/12/2003 

18 

 
 
  
 
                                                 
With regards to the co-ordination of social security systems, an agreement was reached by the 
Council in June on the simplification of three specific areas: invalidity benefits, old age and 
survivors' benefits, special non-contributory cash benefits. In October, the Council also agreed 
the  three  last  material  chapters:  pre-retirement,  family  benefits  and  unemployment.  This 
allowed  the  Council  to  reach  a  political  agreement64  in  December  on  the  overall  text  of  the 
proposal  excluding  the  annexes.  After  the  adoption  by  the  Parliament  of  its  report  on  3 
September, the Commission adopted a modified proposal65 on 9 October. The final adoption 
of the new Regulation is expected in Spring 2004. Despite the requirements for unanimity in 
Council,  the  modernisation  of  Regulation  1408/71  is  an  excellent  example  of  simplification 
and better regulation.  

In addition, based on a Commission proposal, the EU-Swiss Agreement on the free movement 
of  persons  was  updated  regarding  the  provisions  of  social  security  co-ordination66.  The 
Commission presented also a proposal intending to update Regulations 1408/71 and 574/72 to 
take account of changes in national legislation, and to clarify the legal situation with regards 
to certain articles of the Regulations. It also seeks to take account of recent developments in 
the case law of the Court of Justice of the European Communities67. 

The Commission also presented a Communication on the introduction of the European Health 
Insurance Card presenting a roadmap for the gradual introduction of the Card to replace the 
current forms needed for health treatment during a temporary stay in another Member State. 
Following the mandate given by the Spring European Council of 2003, the relevant decisions 
were adopted on 18 June 200368. At the same time, the Commission tabled a proposal for an 
amendment  to  Regulation  1408/71  which  would  give  the  same  entitlements  to  'medically 
necessary care' to all categories of insured persons. The Council reached rapid agreement on 
20 October on this issue. The European Parliament adopted its report on 4 December 2003. 
The formal adoption is expected in Spring 2004.  

Key measures: 
–  Adoption by the Council of the proposal to extend Regulation 1408/71 to nationals of third 
countries  who  are  not  already  covered  by  these  provisions  solely  on  the  ground  of  their 
nationality69 

–  Agreement by the Council on modernising and simplifying Regulation 1408/71  
–  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 1408/7170 

–  Communication on the introduction of the European Health Insurance Card71 and adoption 

of the relevant decisions72 

64 
65 
66 
67 
68 
69 

70 
71 
72 

Three annexes will be completed before the entry into force of the Regulation 
COM(2003)596 of 09/10/2003 
OJ L 187/55 of 26/07/2003 – Decision of the EU-Swiss Joint Committee of 15/07/2003 
COM(2003)468 of 31/07/2003 
OJ L 2003/276/1, /4, /19 of 27/10/2003 
OJ L 2003/124/1 of 20/05/2003 – Council Regulation (EC) No 859/2003 of 14 May 2003 extending the 
provisions  of  Regulation  (EEC)  No  1408/71  and  Regulation  (EEC)  No  574/72  to  nationals  of  third 
countries who are not already covered by those provisions solely on the ground of their nationality 
COM(2003)468 of 31/07/2003 
COM(2003)73fin of 17/02/2003 
OJ L 276/1, /4, /19 of 27/10/2003 

19 

 
 
  
 
                                                 
–  Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending 
Council Regulations (EEC) 1408/71 and 574/72 in respect of the alignments of rights and 
the simplification of procedures73 

3.5. 

Promoting gender equality 

The Social Policy agenda defines two major approaches to promote gender equality: specific 
initiatives and mainstreaming. The 2003 Spring European Council invited the Commission to 
prepare  in  collaboration  with  the  Member  States  an  annual  report  on  developments  towards 
gender  equality  and  orientations  for  gender  mainstreaming.  The  first  annual  report  will  be 
submitted to the 2004 Spring European Council.  

Mainstreaming gender equality 

Integrating gender equality into all relevant policy areas is known as mainstreaming. This is 
encompassed  in  the  European  Framework  Strategy  on  gender  equality.  Every  year,  the 
Commission reports on progress made in the Community policies and practices and presents a 
workprogramme with initiatives for the following year.  

Within  the  areas  of  employment  and  social  policy,  the  gender  dimension  continues  to  be 
developed  in  the  European  Employment  Strategy  and  has  been  strengthened  in  the  second 
round  of  National  Action  Plans  on  social  inclusion.  Gender  issues  are  also  starting  to  be 
considered in the wider scope of social protection, such as pensions and making work pay. 

Specific measures 

From  the  legislative  point  of  view,  the  Commission  presented  a  proposal  for  a  directive 
implementing  the  principle  of  equal  treatment  between  men  and  women  with  regards  to 
access to and supply of goods and services. This draft directive, based on Article 13 of the EC 
Treaty, provides for the prohibition of sex discrimination outside the workplace. In order to 
ensure  that  the  legislation  is  effective  for  citizens,  it  also  sets  out  requirements  for  legal 
recourse  when  individuals'  rights  are  considered  to  have  been  infringed.  The  draft  directive 
addresses in particular the issue of premiums and benefits in the insurance sector.  

Within  the  context  of  better  regulation,  also  the  recasting  of  gender  equality  directives  was 
initiated with a view to simplifying the existing legislation. In a first phase, the Commission 
carried out a public consultation on options for recasting the gender equality directives. 

The  Commission  also  proposed  a  new  action  programme  to  continue  to  financially  support 
organisations active in the field of equal opportunities between men and women.  

Key measures 
–  Annual report on equal opportunities for women and men (2002)74 
–  Framework strategy on gender equality work programme for 200375 
–  Proposal  for  a  Council  Directive  implementing  the  principle  of  equal  treatment  between 

women and men in the access to and supply of goods and services76 

–  Proposal  for  a  European  Parliament  and  Council  Decision  establishing  a  Community 
action programme to promote organisations active at European level in the field of equality 
between men and women77 

73 
74 
75 
76 

COM(2003)378 of 27/06/2003 
COM(2003)98 of 05/03/2003 
COM(2003)47 of 03/02/2003 
COM(2003)657 of 05/11/2003 

20 

 
 
  
 
                                                 
3.6. 

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

Enlargement 

The  top  priority  for  enlargement  is  ensuring  compliance  with  the  acquis  communautaire. 
However, in order to facilitate the participation of the accession countries immediately in all 
policy  domains  at  the  day  of  enlargement,  specific  attention  is  given  to  preparing  the 
participation  in  the  open  method  of  co-operation  in  the  employment  and  social  inclusion 
fields. Enlargement also requires investment in capacity building, in particular with regards to 
the social partners and the preparation for the future intervention of the European Social Fund.  

The exchange of information and networking, including for actors at local and regional level, 
whether public or private78, was supported through the participation of accession countries in 
the action programmes on equal opportunities between women and men, anti-discrimination, 
the fight against social exclusion, and the incentive measures for employment.  

Key measures: 
–  Facilitating and monitoring implementation of acquis communautaire 
–  Participation by accession countries in the opening up of the four action programmes in the 

field of employment and social affairs to Candidate Countries79 

–  Joint Assessment Papers on employment80 
–  Progress  report  on  the  implementation  of  the  Joint  assessment  papers  on  employment 

policies in the candidate countries81 

–  Progress  report  in  implementing  the  Joint  Assessment  Papers  on  employment  policies  in 

acceding countries82 

–  Joint Inclusion Memoranda83  
–  Launching of co-operation on pension reforms 
–  Preparation for participation in the European Social Fund 

International co-operation and external relations 

The Commission pursued its co-operation with international organisations such as the OECD 
and  the  ILO  on  employment  and  social  issues.  Specific  reference  should  be  made  to  the 
European  Commission's  contribution  to  the  work  of  the  World  Commission  on  the  social 
dimension of globalisation established by ILO, in particular through the organisation of a high 
level seminar early 2003. Moreover the Commission is strengthening its cooperation with the 
ILO  in  relation  to  the  worldwide  promotion  of  core  labour  standards,  social  dialogue  and 
poverty  eradication  and  of  the  decent  work  agenda  as  covered  by  the  exchange  of  letters 
signed on 14 may 2001 between the European Commission and the ILO. In that context it has 
also  launched  the  preparation  of  a  Strategic  Partnership  with  the  ILO  in  the  field  of 
development co-operation. The Partnership is based on the follow-up to the Communication 

77 
78 
79 

80 
81 

82 
83 

COM(2003)279 of 27/05/2003 
Including social partners and NGOs 
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). 
in 2003, a JAP was signed with Latvia on 06/02/2003 
COM(2003)37  of  30/01/2003  and  supporting  document  SEC(2003)200  of  18/02/2003;  EP  resolution 
A5/2003/282 of 23/09/2003  
COM(2003)663 of 06/11/2003 and supporting document SEC/2003/1361 of 24/11/2003 
JIMs were signed with the ten accession countries on 18/12/2003 

21 

 
 
  
 
                                                                                                                                                         
on  “Building  an  effective  partnership  with  the United  Nations  in  the  fields  of  Development 
and Humanitarian Affairs”84. 

As to the promotion of core labour standards, the General Affairs Council agreed conclusions 
in July 2003, following the Commission's Communication85 on this issue in 2001. 

Within  the  context  of  the  G-8,  the  Labour  and  Employment  Ministers  met  in  December  in 
Stuttgart to discuss structural change in the context of globalisation, underlining the need for 
human capital investment and increasing employability. 

Furthermore, the Commission presented a Communication on the UN Convention on Human 
rights of people with disabilities. 

The  Commission  also  pursued  its  bilateral  cooperation  on  employment  with  Japan  and  the 
United States. 

In the context of gender equality the Commission presented a Proposal for a Regulation of the 
European  Parliament  and  of  the  Council  on  promoting  gender  equality  in  development 
cooperation. The draft Regulation provides for community financial assistance and expertise 
aimed at promoting gender equality in all development co-operation policies and intervention 
in developing countries. 

Key measure 
–  Communication on the UN Convention on Human rights of people with disabilities86 
–  Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  promoting 

gender equality in development cooperation87 

4. 

MAJOR INITIATIVES FOR 2004 

The mid-term review of the social policy agenda updated the planning of policy action for the 
years 2004 and 2005, building on the assessment of the first years of implementation of the 
social  policy  agenda  and  the  assessment  of  the  main  challenges  to  be  addressed.  It  also 
developed  further  the  guiding  principle  of  the  Social  Policy  Agenda.  Starting  from  the 
approach that social policy is a productive factor and that the promotion of quality is a driving 
force  for  a  thriving  economy,  more  and  better  jobs  and  greater  social  cohesion,  the 
Commission has now taken this rationale a step further by examining 'the costs of non-social 
policy',  embedding  the  approach  entirely  into  the  'better  regulation'  exercise  and  the 
accompanying impact assessments.  
In essence, the mid-term review identifies two key priorities:  

–  Consolidating social standards throughout the EU by ensuring the correct transposition and 
application  of  the  acquis  communautaire:  The  acquis  ensures  a  level-playing  field  for 
businesses,  facilitates  the  workings  of  the  internal  market,  and  addresses  social  needs  of 
workers in an economically integrated Europe. The Commission will make of compliance 
with the social acquis as well as the monitoring of its application a top priority. Close co-
operation between the Commission and the Member States will be crucial for the effective 
monitoring of the application of Community law.  

84 
85 

86 
87 

COM(2001)231 
COM(2001)416 of 18/07/2001 
'Promoting core labour standards and improving social governance in the context of globalisation' 
COM(2003)16 of 24/01/2003 
COM(2003)465 of 30/07/2003 

22 

 
 
  
 
                                                 
 
–  Implementing  the  agenda  launched  at  the  Lisbon  Summit  and  the  Social  Policy  Agenda 
endorsed by the Nice European Council to carry out the necessary reforms and adaptations.  

As to the year 2004, the following initiatives will be launched by the Commission.88 

(cid:198) On the employment front, key initiatives will concern: 
–  Draft joint employment report 2004/2005 
–  Employment guidelines 
–  Employment recommendations 
–  Proposal for a Regulation on the European Social Fund for the next programming period 
–  Portability of occupational pension rights - Follow-up of the 2nd stage consultation of the 

social partners 

–  Communication on the implementation of the Action Plan for skills and mobility 
–  Communication on strategies for raising the effective labour market age 
–  Mainstreaming employment in other EU policies 
–  EURES activity report 2002-2003 
–  Interim report on the results of the programme on incentive measures for employment 

(cid:198) On change and the working environment 
–  Second stage consultation of social partners on corporate restructuring   
–  Review  of  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 – First stage consultation of social 
partners 

–  Follow-up to the Commission Communication on working time  
–  Extension  of  the  scope  of  the  directive  on  carcinogenic  substances  -Consultation  of  the 

social partners 

–  Psychosocial risks harassment and violence at work – Consultation of the social partners 
–  Stress and its effect on health and safety at work – Follow-up of the first stage Consultation 

of social partners 

–  Communication  on  the  transparency  and  impact  of  the  European  social  dialogue  in  an 

enlarged European Union   

–  First  report  assessing  the  implementation  of  the  EU  Strategy  on  Corporate  Social 

Responsibility 

–  Report on the practical implementation of Directive 91/383/EC supplementing measures to 
encourage improvements in the safety and health at work of workers with a fixed-duration 
or a temporary employment relationship 

–  Report on the social and environmental performance of the Commission 
–  Prevention of musculo-skeletal disorders at work  
–  Guidelines for the application of Directive 1998/24 "Chemical agents"   

(cid:198) On promoting social inclusion and fighting discrimination 
–  Communication on social inclusion in the accession countries – A synthesis report based 

on the 2003 Joint Inclusion Memoranda 

–  Consultation  on  the  feasibility  of  minimum  income  and  other  measures  to  promote  the 

integration of persons excluded from the labour market  
–  Future strategy to combat discrimination (Green Paper)   
–  Report on the Evaluation of the European Year of People with Disabilities 
(cid:198) On social protection 

88 

See also the Commission's legislative and work programme for 2004 COM(2003)645fin of 29/10/2003, 
where employment and social policy is presented within the framework of the Commission's strategic 
priorities. 

23 

 
 
  
 
 
 
 
                                                 
–  Communication on further co-operation in the field of health care and care for the elderly 
–  Proposal for a Regulation for implementing the provisions of the simplified Regulation on 

the co-ordination of social security scheme 

–  Commission  Regulation  amending  the  annexes  of  Regulation  574/72  (laying  down 

procedure for implementing Regulation 1408/71 ) 

–  Regulation updating Regulation 1408/71   

(cid:198) On equal opportunities 
–  Communication on gender equality – Report to the Spring European Council  
–  Recasting of gender equality directives 
–  Interim report on the gender Equality Programme 
–  2004 Annual Work programme on gender equality  

(cid:198) On enlargement and external relations 
–  Communication on the social dimension of globalisation and of EU International relations 
–  Proposal  for  a  Council  Decision  for  implementing  social  security  provisions  of  the 

Association Agreements with Third Countries. 

24