Opinion of the Committee of the Regions on the ‘Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the Social Dimension of Globalisation — the EU's policy contribution on extending the benefits to all’
Date: 2005-02-23
Institutions: European Committee of the Regions
Subjects: EU policy, economic and social cohesion, gender equality, globalisation, social impact

C 164/82

EN

Official Journal of the European Union

5.7.2005

Opinion of the Committee of the Regions on the ‘Communication from the Commission to the
European Parliament,
the European Economic and Social Committee and the
Committee of the Regions on the Social Dimension of Globalisation — the EU's policy contribu-
tion on extending the benefits to all’

the Council,

(2005/C 164/11)

THE COMMITTEE OF THE REGIONS,

Having regard to the Communication from the Commission to the European Parliament, the Council, the
European Economic and Social Committee and the Committee of the Regions on the Social Dimension of
Globalisation — the EU's policy contribution on extending the benefits of all (COM(2004) 383 final,

Having regard to the decision of the European Commission of 18 May 2004 to consult the Committee
on this text under Article 265(1) of the Treaty establishing the European Community,

Having regard to the decision taken by the CoR Bureau on 15 June 2004 to instruct the Commission for
Economic and Social Policy to draw up an opinion on the subject,

Having regard to the Report of the World Commission on the Social Dimension of Globalization
published on 24 February 2004,

Having regard to its Opinion on the impact on local and regional authorities of the negotiations on the General
Agreement on Trade in Services (GATS) at the WTO (CdR 103/2003 fin) (1),

Having regard to its Opinion on the Communication from the Commission on immigration, integration and
employment (CdR 223/2003 fin) (2),

Having regard to its Opinion on the conditions of entry and residence of third-country nationals for the purposes
of studies, vocational training or voluntary service (CdR 2/2003 fin) (3),

Having regard to its Opinion on a proposal for a Council Decision establishing the European Refugee Fund for
the period 2005-2010 (CdR 80/2004 fin) (4),

Having regard to its Opinion on the Mid-term review of the Lisbon Strategy (CdR 152/2004 fin),

Having regard to its Opinion on the proposal
240/2004 fin),

for a new Regulation on the European Social Fund (CdR

Having regard to its Opinion on the strategy of the Internal Market 2003-2006 (CdR 341/2002 fin) (5),

Having regard to its draft opinion (CdR 328/2004 rev. 1) adopted on 8 December 2004 by the Commis-
sion for Economic and Social Policy (rapporteur: Ms Ulrike Rodust, Mitglied des Schleswig-Holsteinischen
Landtages (DE-PES)),

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

(1) OJ C 256 of 24.10.2003, p. 83
(2) OJ C 109 of 30.4.2004, p. 46
(3) OJ C 244 of 10.10.2003, p. 5
(4) OJ C 318 of 22.12.2004, p. 30
(5) OJ C 128 of 29.5.2003, p. 48

5.7.2005

EN

Official Journal of the European Union

C 164/83

Views and recommendation of the Committee of the
Regions

report and the initial proposals made in the Commission
Communication;

1. General comments

THE COMMITTEE OF THE REGIONS

1.1 welcomes the Communication on social dimension
adopted by the European Commission in May 2004 setting out
its initial views on the issues raised in the report of the World
Commission on the Social Dimension of Globalisation
(WCSDG) and its conclusions;

shares the view of the Commission that the WCSDG
1.2
report delivers balanced, critical but positive messages that can
be the basis for future action;

far-reaching change that

points out in this regard that globalization has set in
1.3
motion a process of
is affecting
everyone. Wisely managed, it can deliver unprecedented mate-
rial progress, generate more productive and better jobs for all,
and contribute significantly to reducing world poverty. But the
world is far short from realizing this potential. The current
process of globalization is generating unbalanced outcomes,
both between and within entities;

1.4
notes with concern that the influence of globalization
results in the following developments at the regional and local
level:

— an increasing number of communities in the world have
been directly affected by globalization. Communities have
been hit by a loss of jobs as a result of the decline of local
industries due to changing patterns in the international divi-
sion of labour and trade liberalization leading in some cases
to the relocation of companies in labour-intensive sectors
to lower-wage countries. This might create problems for
local and regional adjustment and for the social systems;

— certain aspects of globalisation can erode the apparent resi-
lience and vitality of local communities even when they are
not directly affected. The increasing impact of the global
media, entertainment, and tourism industry often influences
and undercuts traditional cultures and values and the sense
of solidarity and identity at the regional and local level. A
global community needs to accommodate the multitude of
local cultures and capabilities instead of brushing away its
diversity by a tidal wave of homogenization;

1.6
is of the opinion that the inclusion of a social dimen-
sion of globalization requires more balanced and integrated
In this context,
economic and social policies at all
special attention must be paid to the regional and local level as
the area most directly affected by the globalization and regional
and local bodies must be guaranteed at least some involvement,
in the
in particular through the Committee of the Regions,
process of solving the problems caused by this phenomenon;

levels.

notes a difference in the use of the term ‘regional level’.
1.7
‘Regional’
in the context of the WCSDG report means the
continent whereas the use of ‘regional’ in the Communication
with regard to ESF refers to the subnational level.

2. Involvement of
governance

local and regional

level

in global

THE COMMITTEE OF THE REGIONS

level upwards to multinational companies.

2.1
is of the view that the present problems produced by
economic actions at a global scale are not the result of globali-
zation as such but of deficiencies in its governance. Global
governance is the apex of a web of governance, stretching from
the local
‘Good
governance’ of globalization can only be the result of a positive
interlink between supra-national, national as well as regional
and local actors in the private and the public sector. The frame-
work of global governance is no longer be determined alone by
the behaviour and rules of nation states. Besides the national
level the interaction between global actors, such as the Euro-
pean Union, corporate governance and regional and local
authorities is indispensable at
this level playing field. The
degree of their commitment to multilateralism, to universal
values and common goals on one hand, the extent of their
sensitivity to the cross-border impact of their policies, and the
weight they attach to the social consequences of their actions
at a global scale on the other are all vital determinants of the
quality of global governance. All these actors,
in managing
their internal affairs, decide and influence to which extent
people will benefit of globalization and be protected from its
negative effects;

considers the need of progress towards a fair globaliza-
1.5
tion and expresses
to taking action to
its commitment
strengthen the social dimension in the light of the WSDG's

2.2
underlines that only the involvement of the regional
and local level in the formation of all these ‘determinants’ will
lead to an acceptable policy of global governance in Europe;

C 164/84

EN

Official Journal of the European Union

5.7.2005

2.3
stresses that global and national developments depend
on both the local and regional level. This is prerequisite and a
key-issue to a fairer, more generous globalization. Decentra-
lized approaches to policy formation and implementation are
more effective at the end, because they are based on better
knowledge of the real situations and constraints, are more
participatory, are closer to the needs and demands of people,
and they are easier to monitor. In order to strengthen this
linkage between the local/regional and the global dimension,
there is a need for a proactive and positive agenda focusing on
local and regional government, the local and regional economic
base, values and cultural heritages;

2.4
point to the fact that in the European Union especially
the further development of the Lisbon process, the formation
of the migration and gender policy, the cross-border and inter-
regional policy as well as the trade policy add significantly to
the European answer towards the challenges of the globaliza-
tion.

3. The Lisbon Strategy in a global context

THE COMMITTEE OF THE REGIONS

adjusting these systems to the challenges of globalization is
indispensable. While this task remains in the responsibility of
the European
the member-states and the subnational
to
Union should concentrate its
upgrade the educational and training systems in Europe;

level,
supportive competencies

3.5
underlines that, even today, full advantage is not being
taken of opportunities to develop human potential. Unequal
access to education,
illiteracy and low skills as well as the
discrimination affecting ethnic and religious minorities need
careful attention, in both high- and low-income countries;

reiterates its positive view of the admission of third-
3.6
country nationals for the purpose of training and education,
which will make Europe more competitive in this area;

3.7
strongly underlines the interlink between the reform
of the European Cohesion Policy for the next financial frame-
work, the implementation of the Lisbon strategy and the unan-
swered challenges of globalization in Europe. The EU Cohesion
Policy and the three different objectives of this policy should
enable the regional and local level in the Union to combine the
pursue of the Lisbon strategy with a better ability to cope with
effects of globalization at the same time;

3.1
shares the view of the Commission that the Lisbon
Strategy is the basis for the EU's response to the impact of
globalisation on competition, economy and labour-force in
Europe;

3.8
strongly demand from the Member-States to agree in
time on the outline and the financial framework for the new
EU Cohesion Policy to waste no time for
the necessary
programming at the regional and local level;

3.2
notes the growing interdependence between economic
decisions of global dimension, affecting the local as well as the
regional
in
acting global;

level and underlines the necessity to think local

3.3
points to the fact that global economic actions have to
safeguard a certain standard of living at the local and regional
level in all countries. People can only participate in and benefit
from globalization if they are in adequate health have access to
training and can benefit from this, and have real opportunities
to find employment which will provide them with a basic
living. Employment, an income, and a healthy environment are
the essential conditions to guarantee a self-determined, human
life, and to participate fully as citizens in their local, regional,
national and global communities;

explicitly welcomes the proposal

3.9
in the draft Regu-
lation laying down general provisions on the European
Regional Development Fund, the European Social Fund and the
Cohesion Fund (COM(2004) 492) that if companies benefiting
from the funds cease a productive activity, with possible loss of
jobs, within seven years of the financing decision, they must
repay the sums received (cf. Article 56 of the draft Regulation);

3.10
asks the EU Commission to make sure that the reform
of the EU state-aid regulations (Article 83 EC Treaty) will give
regional and local authorities the possibility to foster economic
development by well-targeted financial incentives;

3.4
stresses the importance of education and training to
balance the effects of globalization. As good practice demon-
strates, all countries which have benefited from globalization
have invested significantly in their education and training
systems. Since the regional and local level play a major role in
the educational and training system in the European countries,

3.11
agrees with the European Commission that the multi-
annual internal market strategy should be more closely linked
to the various economic processes. Considering the specific
recommendations of the Wim Kok report, the strategy should
also be geared to the single objective of making the Union the
most competitive and dynamic knowledge-based economy in
the world by 2010;

5.7.2005

EN

Official Journal of the European Union

C 164/85

the

therefore

efforts of

the European
3.12
supports
Commission mentioned in the summary report
to simplify
realisation of the internal market strategy in parallel with the
other processes on the basis of a single, global strategy. This
joint objective for 2010 should be part of
the European
response to globalisation;

Committee of the Regions would also point out that without
internal border controls, regularisation will affect the situation
of other Member States in the Schengen area. A cautious
regularisation
adopted
approach
programmes;

towards

should

be

also sees the need to enlarge the concept of

3.13
the
internal market. Over the next few years an internal market
strategy must develop solutions to this end, geared to the
requirements of the global market and compatible with the
economic policy responsibilities and initiatives of the Member
States and regional and local authorities, as well as the quality
of the European social model.

4. Migration

THE COMMITTEE OF THE REGIONS

points out that a major gap in the current institutional
4.8
structure for the global economy is the absence of a multilateral
framework for governing the cross-border movement of
people;

4.9
considers that from the perspective of developing coun-
tries the absence of a multilateral framework for the cross-
border movement of people reflects yet another gap in the
rules governing the global economy. Many of them maintain
that a more free migration to the industrialized world would be
a swift and powerful means of increasing the benefits they
receive from globalization.

supports the Commission in view of further develop-

4.1
ment of bi- and multi-lateral dialogues on migration;

5. Gender equality

4.2
recalls the importance of labour migration, significant
for the regional and local level in Europe and underlines the
necessity to continue urgently to develop a set of rules that will
govern the EU's approach towards migration;

THE COMMITTEE OF THE REGIONS

stresses the necessity to set up specific assistance

4.3
programmes for migrants' countries of origin;

calls on the Council and the Member States to take
4.4
account, in drafting EU and national immigration policies, of
the need to integrate legal migrants, through non-discrimina-
tion and equal access to public services;

4.5
considers that the EU could contribute added value to
the action taken at national level to achieve integration, predo-
minantly through incentives and support measures rather than
through harmonizing legislation;

4.6
is of the view that local and regional authorities should
be invited to take part in the preparation of national action
plans and that this would facilitate comparing and identifying
best practice and analyzing the real impact and the results of
strategies adopted by Member States;

4.7
urges the recognition of the existence of a large number
of illegal migrant workers and the need to establish mechan-
isms to enable migrants who are in breach of immigration law
to have their status legalized where appropriate without undue
delay, with cases being dealt with on an individual basis,
provided this is done in a way compatible with the capacity for
those who have
appropriate
the
committed offences

serious. However,

reception and

classified as

excluding

5.1
points out that there is a growing body of evidence
illustrating that especially women are affected by globalization.
Globalization has a negative influence on a growing number of
women both absolutely as well as in relation to men. For
example, women producers face formidable barriers to enter
into new economic activities generated by globalization. This is
often because of biased attitudes against women directly or in
the micro and small enterprise sector in which they predomi-
nate, in the policy and regulatory environment. At the same
time, for many other women, globalization has resulted in an
improvement in their economic and social status. They include
the millions of women workers absorbed into the global
production system. This wage-employment gave them higher
incomes than in their previous situations — either intra-family
servitude or a penurious and precarious existence in the
informal economy. Wage employment also gave these women
greater potential economic independence and often raised their
social status even within the most oppressively patriarchal
societies;

5.2
calls upon the Member-States to give special attention
to the social and legal framework governing the employment
of women and support all activities at the regional and local
level to improve gender policies;

shares the view of

the Commission that gender
5.3
equality is a fundamental objective of EU internal and external
policies and an essential element of the internationally agreed
core labour standards.

C 164/86

EN

Official Journal of the European Union

5.7.2005

6. Crossborder, transnational and interregional coopera-

7. EU trade policies

tion, e.g. neighbourhood policy

THE COMMITTEE OF THE REGIONS

underlines that

6.1
the future ‘Territorial Cooperation’-
instrument of the EU must be drafted in a way to assist the
regional and local authorities in their struggle with the negative
effects of globalization;

6.2
supports the ‘European Neighbourhood Policy’ as activ-
ities aiming at enhancing relations with the Eastern and
Southern neighbouring countries of the Union following enlar-
gement;

6.3
shares the view of the Commission that the ultimate
aim of this initiative is to create an area of stability and pros-
perity based on shared values and common interests;

6.4 will contribute in assisting the partner countries in
carrying out political and economic reforms while strength-
ening dialogue and cooperation with them in the social field;

6.5
recalls the need for proper adjustment assistance for
those sectors and regions in the EU affected by greater integra-
tion between the EU and the Eastern and Southern neigh-
bouring countries.

Brussels, 23 February 2005.

THE COMMITTEE OF THE REGIONS

urges the Commission, as a partner in the WTO nego-

7.1
tiations, to consider the following issues:

— to bear in mind that liberalisation is not a goal in itself but
a means to increased prosperity. Accordingly, liberalisation
is not one-dimensional, but is to be developed with due
regard to the whole social, economic and environmental
consequences, especially for the regional and local level, the
area directly affected;

— to consider the principles of regional and local self-govern-
ment in the WTO negotiations,
in accordance with the
provisions of Article 6 of the EU Treaty and the Constitu-
tional Treaty;

7.2 welcomes the Commission's efforts to improve trans-
parency of international trade negotiations and include interest
groups from all relevant service sectors. However, it considers
that regional and local authorities are to be distinguished from
civil society, as they are democratically legitimated and as they
regulate the public service sector as part of their remit within
the democratic process.

The President

of the Committee of the Regions

Peter STRAUB