Opinion of the Committee of the Regions on the Communication from the Commission on the Social Agenda
Date: 2005-07-06
Institutions: European Committee of the Regions
Subjects: European social policy, employment policy, labour law, regional and local authorities, social integration, social policy

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Opinion of the Committee of the Regions on the Communication from the Commission on the
Social Agenda

(2006/C 31/08)

THE COMMITTEE OF THE REGIONS,

Having regard to the Communication from the Commission on the Social Agenda (COM(2005) 33 final);

Having regard to the decision of the Commission to consult the CoR on this subject, under the first para-
graph of Article 265 of the Treaty establishing the European Community;

Having regard to the decision of its President of 20 January 2005 to instruct its Commission for
Economic and Social Policy to draw up an opinion on this subject;

Having regard to the draft Constitutional Treaty and in particular Articles III-117 and III-209 to III-219;

Having regard to the White Paper on European governance adopted in 2001 (COM(2001) 428 final);

Having regard to the Report from the High-level Group on The future of social policy in an enlarged European
Union (Employment and Social Affairs DG — May 2004);

Having regard to the report entitled Jobs, jobs, jobs — Creating more employment in Europe (drawn up by the
Employment Taskforce chaired by Wim Kok — November 2003);

Having regard to the publication entitled The Economic Costs of Non-Lisbon. A survey of the literature on the
economic impact of Lisbon-type reforms (European Economy, Occasional Papers no. 16, March 2005);

Having regard to its opinion of 23 February 2005 on the Proposal for a Regulation on the European Social
Fund and the Proposal for a Decision of the European Parliament and of the Council establishing a Community
programme for employment and social solidarity — PROGRESS (CdR 240/2004 fin);

Having regard to its opinion of 23 February 2005 on the Communication from the Commission on The Social
Dimension of Globalisation — the EU's policy contribution on extending the benefits to all (CdR 328/2004 fin);

Having regard to its opinion of 29 September 2004 on the Communication from the Commission on
increasing the employment of older workers and delaying the exit from the labour market (CdR 151/2004 fin) (1);

Having regard to its opinion of 22 April 2004 on the Joint Report on Social Inclusion summarising the results
of the examination of the National Action Plans for Social Inclusion (2003-2005) (CdR 21/2004 fin) (2);

Having regard to its Resolution of 24 February 2005 on Revitalising the Lisbon Strategy (CdR 518/2004
fin);

Having regard to the draft opinion (CdR 80/2005 rev.1) adopted on 3 May 2005 by its Commission for
Economic and Social Policy (Rapporteur: Ms Linetta Serri, Member of Armungia Municipal Council (IT-
PES));

adopted the following opinion at its 60th plenary session, held on 6 and 7 July 2005 (meeting of
6 July).

(1) OJ C 43, 18.2.2005, p. 7.
(2) OJ C 121, 30.4.2004, p. 32.

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1. The Committee of the Regions' views

The Committee of the Regions

1.1
warmly welcomes the commitment to implement a
new Social Agenda for 2005-2010, fully endorses its objectives
and supports the strategies and the range of individual instru-
ments
them, which are succinctly
described in the slogan ‘A social Europe in the global economy:
jobs and opportunities for all’;

to implement

set out

1.2
particularly appreciates the fact that, despite Europe's
slower rate of growth and the unsatisfactory results that the
Lisbon Strategy has produced so far, the same Lisbon objectives
promoting the social dimension of economic growth are again
being put forward in the sphere of social policy and that the
European social model, defined in the 2002 Barcelona Euro-
pean Council as being based on ‘good economic performance,
a high level of social protection and education and social
dialogue’ is being relaunched;

1.3
endorses the principles upon which the Social Agenda
is founded: the integrated approach, the promotion of quality
jobs, the modernisation of social protection systems and, lastly,
an approach based on the ‘cost of the lack of social policy’
principle;

points out, however, that the objectives set out are, at
1.4
times, too general and that the wording with regard to the
implementing instruments and deadlines needs to be more
precise;

1.5
agrees that the ‘cost of the lack of social policy’ prin-
ciple has to be taken into account as social policies can contri-
bute towards the achievement of both social and economic
objectives. They are not only a means of reducing social exclu-
sion but can effectively help to achieve better economic results,
for example, by increasing the economy's potential to adapt to
changes on the global stage. In practice, non-existent or inade-
quate social policies may thus have an adverse impact on
potential economic growth;

1.6
notwithstanding the overall positive opinion expressed
above, deplores the fact that the role and responsibilities of
local and regional authorities are not explicitly mentioned in
the Social Agenda, particularly since in most European coun-
tries, the working definition and implementation of social poli-
cies fall within their remit;

1.7
believes, therefore, that in line with the subsidiarity
principle enshrined in the draft European Constitution and the
recommendations set out in the 2001 White Paper on Euro-
pean governance (Working paper on Ongoing and systematic
policy dialogue with local-government associations), the active invol-
vement and subsequent action of local and regional authorities
will be one of the preconditions for the successful implementa-
tion of the Social Agenda's objectives;

hopes that

1.8
through the involvement of grassroots
authorities, current gaps and disparities between the different
Member States will be reduced and that the best qualities of the

European social model will be promoted. It is hoped however
that, in the case of the latter, best practices are followed, rather
than levelling down to the Member States lagging furthest
behind in the area of social policies.

The strategies, objectives,
Commission

instruments and proposals of the

2. Recommendations of the Committee of the Regions

Increasing confidence

The Committee of the Regions

2.1
is aware that these are times of great disquiet for the
citizens of Europe (factors such as a slower rate of growth,
reduction in purchasing power, an ageing population,
the
current perception that the European Union does not play a
primary role on the global stage, difficulties affecting social
protection systems, persistent poverty belts and economic and
social exclusion, give rise to fear and defensive behaviour, and,
furthermore, fuel long-standing and emerging forms of ‘local
egoism’); thus agrees with the idea that boosting confidence
must be a key element of European social strategy;

2.2
believes that firm action should be taken to disseminate
accurate information so that the fears of both the older and
more recent Member States are allayed;

2.3
stresses the need, however, for substantial objectives
and the immediate delivery of perceptible improvements to
living and working conditions to go hand in hand with the
commitment towards better communication. These objectives
should be adapted to the different circumstances and priorities
of the various Member States, and local and regional authorities
must be strongly involved in them.

3. The instruments

The Committee of the Regions

3.1
believes that the range of instruments set out (legis-
instruments) should be
lation, social dialogue and financial
vigorously deployed in order to counter the widespread loss of
confidence;

notes the step forward taken by adding a general social
3.2
clause (Article III-117) to the draft Constitutional Treaty, under
which the social dimension will have to be taken into consid-
eration in all Community policies;

the instrument

3.3 welcomes the complementarity between the Social
Agenda, the Lisbon strategy and the sustainable development
strategy which must interact with all the Community policies.
for impact assessment developed by the
If
in
Commission were to reflect
accordance with the draft Constitutional Treaty, this integrated
approach could bring about practical progress with regard to
social and employment policies;

the subsidiarity principle,

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calls on the Commission to implement

3.4
the open
method of coordination in conjunction with the current purely
intergovernmental methodology: this should be done by invol-
ving local and regional authorities, who will be the main actors
involved in the management of the Agenda's financial instru-
ments, especially concerning the ‘Convergence’ and ‘Regional
competitiveness and employment’ objectives;

3.5
considers that it is imperative to make decisive progress
towards the application throughout the Union of the Com-
munity acquis, and emphasises that
the
Member States must progressively incorporate European princi-
ples and minimum standards in order to reduce the gaps and
imbalances between them;

the legislation of

believes that, a year after the accession of new Member
3.6
States, it would be appropriate for the Commission to review
the restriction which limits the access of workers from the new
Member States to the labour market in the former EU-15. In
particular, it would be useful to assess the structural impact of
this restriction on the status of labour relations;

believes that

3.7
the restriction limiting the access of
workers from new Member States to the labour market in the
former EU-15 and the current debate on the Commission's
proposal for a Directive on services in the internal market high-
light the need to revise Directive 96/71 concerning the posting
of workers in the framework of the provision of services.

4. Three conditions to succeed in increasing confidence

The Committee of the Regions

4.1
recognises the importance of a new intergenerational
approach which aims to provide greater and better prospects
for young people. An increase in confidence and the relaunch
of the Lisbon strategy objectives would necessarily depend on
the central role of young people; in this context, it draws atten-
tion to its opinion (EDUC 37, 2004) on the Proposal for a
the Council
the European Parliament and of
Decision of
creating the ‘YOUTH IN ACTION’ programme for the period
2007-2013;

calls for a detailed discussion, during 2005, of

4.2
Green Paper on the intergenerational dimension;

the

believes that the intense debate on the ageing popula-
4.3
tion and the reform of pension schemes must be accompanied
by an in-depth assessment and consideration of the currently
deteriorating conditions facing young people with respect to
income security and employment and professional prospects.
Without neglecting the persistent problems of older citizens,
due attention should be given, through an integrated approach,
to groups at risk of social exclusion;

warmly welcomes the idea of an intergenerational part-
4.4
nership that would build on the experience of older people and
ensure that they remain within the economically active popula-
tion, while ensuring that younger people have the opportunity

to join them; therefore calls upon the Commission to introduce
trials, dissemination of good practice and specific initiatives
with a view to encouraging interaction between generations;

4.5
in line with the Commission Communication, attaches
great importance to the idea of a partnership at all
levels,
viewing this as a crucial
instrument for building the social
that seems to have been diminished due to weak
capital
economic growth and compounded by the delay in imple-
menting the Lisbon objectives, first among which is the provi-
sion of decent working conditions for all European citizens;

4.6
emphasises the need for specific action to be taken in
areas where, for historical or socioeconomic reasons, the prac-
tice of partnership is less rooted in tradition or experience;

4.7
fully agrees on the importance of the EU's external
dimension. Europe can and must take an active role on the
international scene, particularly to press for decent working
conditions for all and to ensure fair trade rules, as well as to
protect and uphold the European social model in a globalised
economy and its principles regarding human dignity, social
justice and solidarity;

4.8
believes that there are at least two other preconditions
for increasing citizen confidence: i) a citizenry with a high level
of awareness of the European opportunities available to them;
ii) a citizenry holding the necessary tools to take advantage of
these opportunities, such as language skills; urges the European
Commission to place emphasis on these conditions, as well as
on the others.

5. The two priority areas: moving towards full employ-

ment

The Committee of the Regions

5.1
fully agrees with the strategy to maintain the objectives
of employment and the quantity and quality of employment at
the core of the Social Agenda. In accordance with the four
priorities set out in the Kok Report, employment remains the
key means to combat social exclusion and to foster sustained
and ongoing economic growth;

5.2
supports the drafting of a Green Paper on the develop-
ment of labour law. The widespread increase of new forms of
work dictates that
labour law be
updated;

instruments of

the legal

5.3
believes that action in this area is necessary to ensure
that the flexibility of employment, which is indispensable for
modernising the labour market and for competitiveness, does
not adversely affect workers' safety or result in an increased
risk of social exclusion;

considers therefore that

5.4
fundamental
reinforced in all ways in order to promote,
manage reforms while ensuring that they are socially just;

social dialogue remains a
instrument and should be carried forward and
facilitate and

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5.5
appreciates the Commission's intention to propose a
new strategy on health and safety at work, which, through
prevention initiatives, aims to ensure the health and safety of
workers;

5.6
looks forward to the prospect of a European labour
market; hopes, nevertheless, that it will not be restricted to
pushing ahead with workers' mobility between the Member
States but will rather serve to extend the rules and regulations
governing the dynamics of the labour market, which success-
fully combine maximum guarantees with maximum efficiency
and productivity;

considers, in this context, that trans-national collective

5.7
bargaining can be useful;

similarly, welcomes the promotion of corporate social

5.8
responsibility;

similarly, welcomes the promotion of better and more

5.9
effective coordination of social security schemes.

6. Towards a more cohesive society

The Committee of the Regions

acknowledges

6.1
that modernising social protection,
including its financial sustainability, is a key component of the
mid-term review of the Lisbon strategy; reiterates, however,
that such ‘modernisation’ must ensure a more cohesive society
and equal opportunities for all;

in the light of

the above, believes that

6.2
local and
regional authorities should be called upon to play a central role
in the modernisation process and that the Open Method of
Coordination (OMC) should be extended to subnational regions
and communes;

6.3
agrees with the proposals to rationalise the OMC
through a single list of objectives that are common to the three
areas of social inclusion, pensions and health;

fully welcomes the objective to combat poverty and

6.4
promote social inclusion;

6.5
believes that a Community initiative to provide all citi-
zens with minimum income schemes is highly important and
calls on the Commission to develop specific actions in order to
compare and contrast the various national and regional experi-
ences and thus promote the dissemination of good practice and
the comparative analysis of related regulations;

6.6 welcomes the idea of a European year of combating
poverty and social exclusion (2010); nevertheless, expresses

Brussels, 6 July 2005

concern that similar initiatives (such as the other ‘European
year’ events, outlined in the Commission Communication, to
be held between now and 2010) may become merely celebra-
tory, whereas they should, on the contrary, go hand in hand
with a reinforcement of the specific actions to be promoted;

6.7
fully welcomes the objectives of combating discrimina-
tion and promoting minority rights, not least by means of legis-
lative initiatives;

6.8
supports the proposal for a European gender institute.
Other existing instruments should, however, be improved in
order to contribute more effectively to the evaluation of the
experiences and the implementation of good practices devel-
oped in the various Member States;

6.9
points to the need for the objective of combating discri-
mination to be better articulated by setting out specific actions
and measures to use for different situations: the objective of
equal opportunities for men and women carries historical
connotations and presents
that cannot be
reduced to the more general aspects of minority rights, which,
moreover, affect the various Member States differently;

specific issues

6.10 welcomes the commitment to drawn up a specific
Communication on social services of general
interest (SSIGs)
and, above all, hopes that this initiative will help to overcome
the legal uncertainties of the current framework. It recalls the
prominent role played by local and regional authorities in the
SSIG sector and the need to give them adequate support in
order that they may continue to ensure universal access. To
achieve the desired mobility of people within the EU, all
Member States must make significant, coordinated progress in
this sector. In this connection, it appreciates the Commission's
intention to grant, under certain conditions, an exemption
from notification regarding state aid for some social service
areas such as hospitals and social housing.

7. Conclusions

The Committee of the Regions

urges the Commission to take adequate account of the effective
role and responsibilities of local and regional authorities in the
various areas covered by the Social Agenda, in accordance with
the subsidiarity principle enshrined in the Constitutional
Treaty, and reiterates that this is the best way to create a
people's Europe that is also based on the principles of cohesion
and solidarity, and is engaged in the process of making the EU
the most competitive and dynamic knowledge-based economy
in the world.

The President

of the Committee of the Regions

Peter STRAUB