Opinion of the Committee of the Regions on the‘Proposal for a Decision of the European Parliament and of the Council establishing a Community Programme for Employment and Social Solidarity — PROGRESS’
Date: 2005-02-23
Institutions: European Committee of the Regions
Subjects: EU employment policy, European Social Fund, European social policy, action programme, economic and social cohesion, gender equality

C 164/48

EN

Official Journal of the European Union

5.7.2005

Opinion of the Committee of the Regions on the

— ‘Proposal for a Regulation of the European Parliament and of the Council on the European

Social Fund’ and on the

— ‘Proposal for a Decision of the European Parliament and of the Council establishing a Com-

munity Programme for Employment and Social Solidarity — PROGRESS’

(2005/C 164/05)

THE COMMITTEE OF THE REGIONS,

Having regard to the Proposal for a Regulation of the European Parliament and of the Council on the
European Social Fund (COM(2004) 493 final — 2004/0165 (COD));

Having regard to the Proposal for a Decision of the European Parliament and of the Council Establishing
a Community Programme for Employment and Social Solidarity — PROGRESS (COM(2004) 488 final —
2004/0158 (COD));

Having regard to the decision of the Commission of 15 July 2004 to consult it on this subject, under the
first paragraph of Article 265 and Article 148 of the Treaty establishing the European Community;

Having regard to the decision of its President of 5 April to instruct its Commission for Economic and
Social Policy to draw up an opinion on this subject;

Having regard to the Commission Communication — Third report on economic and social cohesion
(COM(2004) 107 final);

Having regard to its opinion on the Third report on economic and social cohesion (CdR 120/2004 fin);

Having regard to the Commission White Paper: European Governance: a White Paper (COM(2001) 428
final);

Having regard to its opinion on the Commission White Paper: European Governance: a White Paper (CdR
103/2001 fin);

Having regard to the proposal for a Council Regulation on the European Structural Fund (COM(98) 131
final);

Having regard to its opinion on the Proposal for a Council Regulation on the European Structural Fund (CdR
155/98) (1);

Having regard to the opinion of the Committee of the Regions on New Forms of Governance: Europe, a
framework for citizens' initiative (CdR 182/2000 fin);

Having regard to the Commission Communication: Dialogue with associations of regional and local authorities
on the formulation of European Union policy (COM(2003) 811 final);

Having regard to its draft opinion (CdR 240/2004 rev. 2) adopted on 8 December 2004 by its Commis-
sion for Economic and Social Policy (rapporteur: Mrs Paz Fernandez Felgueroso, Leader of Gijón Muni-
cipal Council (ES — PES)),

adopted the following opinion unanimously at its 58th plenary session, held on 23 and 24 February
2005 (meeting of 23 February).

1. General comments

THE COMMITTEE OF THE REGIONS

sets out other provisions of a cross-sectoral nature that will
affect the actions set in motion by the Fund;

1.1
points out that this proposed Regulation forms part of
a set of regulations on the Structural Funds presented together
with other legislative proposals by the European Commission
on 14 July 2004. The Regulation sets out the general provi-
sions governing the European Social Fund, hereinafter ‘the
Fund’ or ‘the ESF’, as a whole and defines the nature of the
activities that the Fund can finance under the ‘convergence’ and
‘regional competitiveness and employment’ objectives. It also

(1) OJ C 51 of 22.02.1999, p. 48

emphasises that the Fund has to date played a signifi-
1.2
cant financial role in employment policy, initiating a process of
sustainable growth in jobs. Furthermore,
the Fund has
prompted a significant number of active policies in the field of
employment at national, regional and local level. Its links with
in the current
the European Employment Strategy (EES)
programming period have yielded some extremely valuable
results in this field. The Committee of the Regions trusts that
its links with the Lisbon Strategy will be equally positive;

5.7.2005

EN

Official Journal of the European Union

C 164/49

emphasises that the main task of the European Social
1.3
Fund is
to strengthen economic and social cohesion by
supporting Member State policies with the aim of achieving
full employment, improving quality and productivity at work,
promoting social inclusion and reducing disparities in employ-
ment at regional level, in accordance with the guidelines and
recommendations
in the European Employment
Strategy. This strategy was revised in 2003 in order to adapt it
to the Lisbon Strategy and bring it more closely into line with
economic and social cohesion policies;

set out

notes a lack of detail and precision in the current
1.4
wording of the proposed Regulation. At times,
in order to
understand its true scope, the Regulation would need to be
seen in relation to other legal instruments not considered in
this opinion (for instance, to the financing of actions under the
Fund or those connected with the partnerships to be set up),
which would enhance the Regulation's impact;

expresses its particular concern at the role assigned to
1.5
Member States and to the managing authorities in ensuring
that the Fund's objectives are achieved, without a single refer-
ence being made to regional and local authorities in these part-
nerships; wishes to point out the need for greater and better
involvement of the regions and local authorities in framing,
programming and implementing the Fund's measures,
in
accordance with the principle of subsidiarity, whilst respecting
the institutional set-up in each Member State;

has considered the statements made in the Third
1.6
Report on Economic and Social Cohesion, which addresses the
issue of the ageing of the population in Europe and the reper-
cussions that this has on the world of work. As stated in that
document, and according to the latest projections, the number
of persons aged between 15 and 64 is expected to fall by 10 %
in the EU by 2025. This will result in a greater number of
people over the age of 65. The ageing of the population will,
in short, lead to a gradual reduction in the EU's active popula-
tion. This prospect demonstrates the need to maintain the EU's
economic growth and increase employment rates, whilst at the
same time curbing early retirement. The Committee would here
refer to its opinion (adopted at its 56th plenary session on 29
September 2004) on the Commission Communication entitled
Increasing the employment of older workers and delaying the exit
from the labour market;

considers that the future Fund Regulation must recon-
1.7
cile policies
for maintaining life-long employability and
retraining employees over the age of 40 — both male and
female — and for encouraging young people to enter the
labour market; this is not reflected in the proposed Regulation.
Active ageing and gradual retirement must be promoted in a
way that fulfils the criteria of sustainability;

1.8
regards it as appropriate that the Regulation should
take account of the specific economic and social problems
currently facing remote urban areas in relation to other, more
highly developed areas in Europe. This situation could make it
even harder
services;
considers that social problems must be viewed from all angles,
in order to meet the great diversity of needs in European cities;

employment

for people

to access

of

the

the

1.9 welcomes
PROGRESS
publication
Programme, a Community programme for employment and
social solidarity, especially since the proposal for a Regulation
contains no reference to the Community Initiative. The
Committee of the Regions recommends considering the inclu-
sion of a reference to this Programme in the draft ESF Regu-
lation;

is pleased to note the provision on coherence and
1.10
complementarity in the proposal
for a Decision on the
PROGRESS Programme. All action supported by the Structural
Funds, particularly by the European Social Fund, must be
governed by the principles of coherence, complementarity and
concentration;

1.11
recalls that in July 2001 the Commission adopted the
White Paper on European Governance, which was aimed at
opening up the EU policy-making process; also recalls that this
process was to involve more people and organisations in
shaping and delivering EU policy, which would lead to greater
openness and responsibility for all
those involved. Greater
involvement by regional and local authorities in drawing up EU
policies also demonstrates, in some Member States, the impor-
tant role that these actors play in policy-making, reflecting
their increasing responsibilities and the greater commitment of
citizens and grassroots organisations
to local democracy.
Considers that this should be taken into account when fina-
lising the Regulation on the Structural Funds, and in particular
the ESF Regulation;

1.12
is pleased to note, in the proposal for a Regulation,
the express reference to innovation, because this dovetails
neatly with the philosophy of
the Lisbon Strategy, which
recommends establishing a European area of research and inno-
vation;

the

that

believes

1.13
established between the
links
proposed Regulation, the EES and the Lisbon Strategy are prai-
seworthy and will make the European Union's legal and finan-
cial instruments more effective; expresses its concern at the
lack of clarity it has noted throughout this opinion in some of
the proposal's articles, as regards issues of content as well as of
funding; considers,
lastly, that more precise provisions will
only benefit the future regulation.

C 164/50

EN

Official Journal of the European Union

5.7.2005

2. Recommendations

THE COMMITTEE OF THE REGIONS

2.1 would like to see Article 2(1) on the ESF's mission
include a specific reference to support for Member State poli-
cies regarding compliance with the principle of gender equality,
given the importance assigned to this principle in Article 2 of
the EC Treaty and Articles I-2 and I-3 of the Treaty establishing
a Constitution for Europe; also for policies in the field of non-
discrimination, as set out in Article 21 of the Charter of Funda-
mental Rights of the European Union, because no such refer-
the proposed Regulation. The
ence appears in the text of
Committee of
future
that
the Regions points out
PROGRESS programme is to implement the principle of non-
discrimination, and therefore recommends that this be included
in the regulation;

the

recommends that, together with the reference to the
2.2
the proposed Regulation
European Employment Strategy,
should also include a reference to the Lisbon Strategy in the
main body of the text, because it is on the basis of this Strategy
that the European Union set itself the goal of becoming the
most competitive and dynamic knowledge-based economy in
the world, capable of sustainable economic growth, creating
social cohesion. The
more and better
Committee of
actions
the
supported by the Fund must help to achieve this goal;

jobs and greater

the Regions

considers

that

2.3
considers that local and regional authorities must be
involved in developing and implementing the annual employ-
ment guidelines. Because these guidelines provide an ideal
framework for the use of the Fund by setting priorities for the
way it is to be used,
local and regional authorities must be
consulted and fully involved in setting these priorities. This
aspect, which is discussed in the Opinion of the Committee of
the Regions on the Proposal for a Council Regulation on the
European Social Fund — adopted at its 26th plenary session on
18 and 19 November 1998 — is a goal that the Committee of
the Regions cannot relinquish in the new programming period
2007-2013;

that

recommends

2.4
training and education actions,
which appear mainly under the ‘convergence’ objective, be
extended to the ‘regional competitiveness and employment’
objective and that this be clarified; recommends, furthermore,
that lifelong learning be included as a specific activity in the
field of training;

2.5
recommends that a specific reference to young people
be added to Article 3, stipulating that all measures adopted
under this article should be geared to offering equal opportu-
nities to women, men and young people, given that the rate of
unemployment amongst young people in the euro zone is

almost double the general rate of unemployment, together with
a reference to the group comprising unemployed men and
women over the age of 40 who, because of their particular
situation, risk being excluded from employment, in addition to
the groups referred to in the proposal: older and low-skilled
workers; job seekers and inactive people; migrants and people
with disabilities; welcomes the preventive approach in the
field of access to employment as a means of combating unem-
ployment;

that

regards
in Article 3,

the priorities
for
2.6 wishes to highlight, as
the measures for
receiving support set out
ongoing training,
lifelong learning and training in the new
information and communication technologies; welcomes the
fact
in human
increasing and promoting investment
resources is treated as a priority, because of the effects that this
action has on the labour market. Each of these priorities ties in
with the Lisbon Strategy; also highlights the measures for the
modernisation of employment services, language training and
the reference to the social economy. Where employment
services are concerned, the Committee recommends that coor-
dination with local authorities be included in the article. The
Committee of the Regions also proposes that specific measures
be adopted to encourage women to take on positions of
responsibility in their working lives;

2.7
recommends that the increase in the ceiling on ESF
funding for social inclusion (priority c) measures to 10 % of the
priority axis, specified in Article 3(4) of the draft ESF Regu-
lation, also apply to priority b) measures — enhancing access to
employment;

2.8
suggests, in general, that the terminology and wording
of Article 3 of the proposal for a Regulation be improved as
they could cause problems of linguistic interpretation, particu-
larly in the current context, now that ten new States have
joined the Union and that new languages will consequently
become part of the Community acquis. This consideration could
be extended to all articles in the proposed Regulation;

2.9
notes that the draft Fund Regulation emphasises that it
is the role of the Member States and the managing authorities
to ensure that action supported by the Fund is consistent with
the implementation of the European Employment Strategy, and
therefore considers that it would be useful to further clarify
the role of local and regional authorities as they too have to
ensure consistency in the activities financed by the Fund, parti-
cularly when such actions are implemented by regional and
local government; considers that this need for consistency and
concentration, which is acknowledged in Article 4 of
the
proposed Regulation, must take account of the consequences
for social cohesion;

5.7.2005

EN

Official Journal of the European Union

C 164/51

serious problems

2.10 welcomes the listing of areas in which the Fund's
actions must concentrate their activities and the reference to
the most
facing regions and localities,
including deprived urban areas and declining rural and fish-
eries-dependent areas; suggests that a specific reference also be
made in Article 4 to ‘industrial areas in crisis’, because it is in
this field that actions financed by the Fund can help to achieve
greater social cohesion at particularly difficult times for the
people, especially women;

2.11 welcomes the reference to regional and local authori-
ties in connection with good governance and partnership;
nevertheless considers that, when measures to be financed
under the Fund are being planned, regional and local authori-
ties should be taken into account, in line with the specific insti-
tutional characteristics of each Member State; as the Committee
of the Regions itself stated at its 36th plenary session, held on
14 December 2000, on the initiative New Forms of Governance:
Europe, a framework for citizens, some issues (such as job creation,
inclusion and social cohesion) cannot be successfully solved at
one level alone — they need help from all sides, in accordance
with
and proportionality.
of proximity
the
Considers that
measures adopted under the Fund to be managed by regional
and local players, which would help to achieve the aims of this
article;

it would be appropriate for some of

the principles

that

2.12 welcomes the reference to the need to ensure the
involvement of the social partners and adequate consultation of
non-governmental stakeholders, at the appropriate territorial
level, in the programming, implementation and monitoring of
the proposed regulation
ESF support; notes, however,
suffers from a lack of detail, and therefore calls for this para-
graph of Article 5 to be improved; recommends specifying
both the type of association to be considered in this area, for
example workers' and employers' associations, and the ideal
level and scope for this consultation. The Committee of the
Regions thus wishes to voice its concern that in practice the
lack of detail could render
this article unworkable. The
Committee of the Regions would refer to the Communication
Commission: Dialogue with associations of
regional and local
authorities on the formulation of European Union policy, of 19
December 2003, the main aim of which was to inform terri-
torial partners, through their associations, of the possibility of
expressing their views and helping to implement European
policies;

2.13 welcomes the inclusion of cross-sectoral aspects in the
draft Regulation, particularly gender equality. The Member
States and the managing authorities must ensure that the oper-
ating programmes include a description of how gender equality
will be promoted in programming, implementation, monitoring
and evaluation. The Committee of the Regions considers that
regional and local authorities could bring their experience to

bear in light of the lessons learned in the 2000-2006 program-
ming period, and thus recommends that a reference be
included to these authorities in Article 6;

considers that action funded by the ESF should play
2.14
an active role in implementing Directive 2002/73 of the Euro-
pean Parliament and of the Council of 23 September 2002 on
the implementation of the principle of equal treatment for men
and women as regards access to employment, vocational
training and promotion, and working conditions; welcomes
the fact that gender equality is one of the spheres of activity to
be included in the future PROGRESS Programme;

2.15
recommends that the meaning of the word description
contained in Article 6 of the draft Regulation be clarified; it
would be appropriate for the Regulation to include not only a
description of how gender equality is to be promoted, but also
guidelines for the principle's proper implementation. For all of
these reasons, the Committee of the Regions recommends that
the content of this provision be redrafted in greater detail;

2.16 wishes to express its concern at the total absence of
any reference to the regional and local dimension in Article 7,
because this is the level at which it is easiest to determine the
needs for innovation. Specific knowledge of the local situation
helps research and innovation activities. Because of their proxi-
mity,
local authorities can spot innovative activities and can
thus
promote them with all
making it possible to develop more efficient research and inno-
vation activities at regional and national level;

the means available to them,

is concerned to note the deletion of

2.17
‘innovative
actions’ because these have helped to implement extremely
valuable pilot projects with considerable effects on the labour
and vocational training markets; considers it appropriate that
there should still be an instrument for innovation that is not
subsumed into the general run of activities supported by the
Fund and that its actions should continue to be coordinated
with Community support; this will make it possible to continue
experimenting with new ways of doing things in the spheres of
employment, male and female workers, social
inclusion and
territorial disparities;

2.18 welcomes the fact that the proposed ESF Regulation
contains a specific paragraph devoted to transnational coopera-
tion — Article 8 — which shows greater recognition of the
role of the regions; recommends that the various territorial
cooperation instruments promote
and
strengthening of networks of towns and the extension of initia-
tives establishing decentralised cooperation between local
authorities, as stated in the Opinion of the Committee of the
Regions on the Third Report on Economic and Social Cohe-
sion, adopted at its 55th plenary session on 16 June 2004;

establishment

the

C 164/52

EN

Official Journal of the European Union

5.7.2005

2.19 wishes to express its concern at the absence of any
reference to the regional and local dimension in Article 8,
which is devoted to transnational cooperation, especially
bearing in mind the experience gained in the course of the
current programming period under the INTERREG Community
initiative; which has been managed within the regions them-
selves by independent managing authorities distinct from the
national authorities; recommends that this article be made
the
more specific, as regards the arrangements for action,
funding of these activities and the specific role of the regions
and local authorities;

is pleased to note the inclusion in the proposed Regu-
2.20
lation of the provision stipulating that the Commission must
promote exchanges of experiences, awareness-raising activities,
seminars and networking to identify and disseminate good
learning, with the aim of
practices and encourage mutual
enhancing the Fund's contribution to the Community's objec-
tives in relation to employment and social inclusion; regrets
the fact that the Regulation is not more precise as regards
funding for technical assistance and coordination between this
programme and all the programmes to be implemented in the

next programming period; and thus calls for greater detail to
be provided in this article;

2.21 welcomes the inclusion of an article devoted to the
annual reports and the final report summarising the content of
these; considers that these reports should also mention the
forms of participation and consultation of both sides of
the public
industry, non-governmental
interest and NGOs;

representatives of

2.22 wishes to express its concern at the lack of detail in
some indents in the article on the eligibility of expenditure; this
article introduces the concept of ‘indirect costs’ of an operation,
fixed on a flat-rate basis, up to 20 % of the direct costs declared
for this operation, according to factors that are not explained;
recommends greater precision in the final wording of this
provision as a whole, because the lack of detail in these matters
complicates management and makes spending less efficient,
which contravenes the principle of sound financial manage-
ment, a requirement constantly brought up by the European
Commission.

Brussels, 23 February 2005.

The President

of the Committee of the Regions

Peter STRAUB