Opinion of the European Economic and Social Committee on the Communication from the Commission on the Social Agenda (COM(2005) 33 final)
Date: 2005-07-13
Institutions: European Economic and Social Committee
Subjects: European Employment Strategy, European social policy, equal treatment, labour market, poverty, social dialogue, social integration, working poor

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Opinion of the European Economic and Social Committee on the Communication from the
Commission on the Social Agenda

(COM(2005) 33 final)

(2005/C 294/04)

On 9 February 2005, the European Commission decided to consult the European Economic and Social
Committee, under Article 262 of the Treaty establishing the European Community, on the ‘Communication
from the Commission on the Social Agenda’.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the
Committee's work on the subject, adopted its opinion on 21 June 2005. The rapporteur was Mrs Engelen-
Kefer.

At its 419th plenary session, held on 13 and 14 July 2005 (meeting of 13 July 2005), the European
Economic and Social Committee adopted the following opinion by 60 votes to one, with three abstentions.

1. Introduction

model based on the quest for full employment and greater
social cohesion’ (3).

1.1
Special expectations are bound up with the new Social
Agenda for the period 2006-2010. At a time when the Lisbon
Strategy is the subject of a mid-term review, there is a need to
give greater prominence to the importance of social policy as a
means of achieving the objectives set out in Lisbon. There is a
need to honour the claim set out in the Lisbon Strategy that
the improvement of competitiveness and increased economic
growth can go hand-in-hand with the establishment of more
and better jobs and greater social cohesion. To this end, there
is a need to introduce a European policy which places these
objectives on an equal
the
Lisbon strategy is a balanced strategy. There needs to be a
balanced relationship between economic policy, employment
policy, social policy and environmental policy in order to safe-
guard the European social model on an ongoing basis.

thereby ensuring that

footing,

1.3
‘The European social model is based on good economic
performance, a high level of social protection and education
and social dialogue’ (4). It is also based on the fundamental
justice, which are
values of democracy, freedom and social
common to all of the EU Member States. This declaration of
belief in a social market economy and its underlying values is
set out, for the first time in respect of the whole of the EU, in
the future EU Constitution, in particular in the EU's Charter of
Fundamental Rights. Despite differences of form with regard to
individual provisions, all EU Member States display common
features of social
form the
components of the European social model. These common
features include:

taken together,

justice which,

At its summit meeting held on 22/23 March 2005 to
1.2
give fresh impetus to the Lisbon Strategy,
the European
Council noted that priority should be given to promoting
growth and employment and drew attention to the decisive
importance of macro policy in that context (1). This priority-
setting appears to be urgently necessary, given the ongoing
weak economic situation and the persistently high level of
unemployment. The Council
takes as its starting point an
approach based on a mutually reinforcing blend of economic
policy, employment policy and social policy when it points out
that: ‘To achieve these objectives, the Union must mobilise all
appropriate national and Community resources … in the strate-
gy's three dimensions (economic, social and environmental) so
as to better tap into their synergies in a general context of
sustainable development’ (2). The EESC does, however, take the
view that giving priority to focusing on growth and employ-
ment does not automatically bring about an improvement in
the social situation, even though more growth is a key prere-
quisite for tackling unemployment and improving the social
situation. Social policy should rather be regarded as a produc-
tive factor which has a beneficial
impact on growth and
employment. The Social Agenda ‘will help to achieve the
Lisbon Strategy objectives by reinforcing the European social

— sustainable social security systems, based on the principle
of solidarity, designed to afford protection against
the
major risks encountered in the life of the individual;

— working conditions, set out in law or collective agreements,

for protecting workers and promoting employment;

— the granting of

involvement and participation rights to

workers and organisations representing their interests;

— industrial relations systems and arrangements for autono-

mous social dialogue between the social partners;

— general public interest services.

The task of European social policy is to safeguard and develop
this European social model though the use of effective instru-
ments at EU level. The special contribution made by social
policy comprises: the European Employment Strategy (EES);
coordination measures taken with a view to promoting social
integration and reforming social security schemes; and the
upward alignment of living and working conditions through
the establishment of social standards of an adequate minimum
level.

(1) ‘Sound macroeconomic conditions are essential to underpin the
efforts in favour of growth and employment’. (Presidency conclu-
sions – Brussels 22/23 March 2005, point 7 page 4).

(2) Ibid, point 6, page 4

(3) Presidency conclusions, point 29, page 9
(4) Presidency conclusions – Barcelona European Council, 15 and 16

March 2002

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1.4 With a view to achieving the Lisbon objectives, the role
of social policy, as a special field of action at EU level, needs to
be strengthened by pursuing a proactive policy designed to:

— modernising systems of social protection by bringing them
into line with current requirements of our societies on the
basis of solidarity and by strengthening their role as a
productive factor;

— avoid unemployment and promote the reinsertion into the

labour market of particularly disadvantaged groups;

— taking account of the cost of the lack of social policy (6).

— combat poverty and social exclusion, paying particular
attention to new risks of poverty, involving, for example,
the ‘working poor’;

— combat all

forms of discrimination and to bring about

equal opportunities for women;

— step up the exchange of experience on social security
reform strategies with the aim of squaring the maintenance
of the social function of these measures with the provision
of lasting safeguards in respect of basic funding;

— enforce social standards of an adequate minimum level for
protecting workers and safeguarding their rights in respect
of involvement and participation and rights in respect of
worker representation in enterprises.

The EESC strongly supports the new procedure adopted by the
Commission whereby all proposed legislation is to be scruti-
nised to assess its impact on growth and employment and to
determine whether it is compatible with the EU's Charter of
Fundamental Rights.

The High Level Group on the Future of Social Policy in
1.5
the Enlarged EU has made an important contribution to the
preparation of the new Social Agenda. The High Level Group
submitted its report in May 2004. The new Social Agenda
should, in the EESC's view, take greater account of the findings
and proposals of the High Level Group (5).

2. Summary of the Commission's proposal

In its communication, the Commission first of all draws
2.1
attention to the fact that it is committed to the modernisation
and development of the European social model as well as to
the promotion of social cohesion, as part of
the Lisbon
strategy. The Social Agenda sets out the priorities which should
the
Implementation of
guide the European Union's action.
Social Agenda should be based on the following principles:

— positive interplay between economic, social and employ-

ment policies;

— promoting equality as regards employment, social policy
and industrial relations in order to improve human and
social capital;

On the basis of

the
2.2
Commission proposes that a strategic approach be pursued,
geared to two elements:

the abovementioned principles,

— strengthening citizens' confidence in social change by
adopting an intergenerational approach and partnerships
for change and by exploiting the opportunities provided by
globalisation;

— setting priorities, on the basis of the Commission's strategic
in the following
objectives for the period 2005-2009,
policy fields: promoting employment,
tackling structural
change, creating a more cohesive society and promoting
equal opportunities.

3. Building confidence — conditions for success

3.1
Three specific measures are announced with a view to
bolstering confidence in social change. These measures are as
follows:

— a Green Paper on demographic change and a contribution

to the European Initiative for Youth;

— the partnership for change; the Commission proposes the
organisation of an annual meeting of all players concerned
in a forum to evaluate the implementation of the Social
Agenda;

— the incorporation of the European social model into the
international labour context and support for the concept of
promoting decent work.

3.2
The EESC, too, considers that there is a need to bring
about a higher level of public confidence in European unifica-
tion and social development overall. The only way that this can
is if EU policy brings about a real
be achieved, however,
improvement in the social situation of individual people. The
EESC, also, recognises the need for a well-founded analysis of
the social consequences of demographic change and welcomes
the presentation of
the Green Paper announced by the
Commission (7); this document will facilitate the organisation of
a wide-ranging debate in the EU. With a view to promoting an
intergenerational approach, special attention should be paid to
the impact of demographic change on the young generation. It
is, however, not clear what is meant by the Commission when
it refers to ‘a contribution to the European Initiative for Youth’,
nor is it clear what role the Commission plans to play in this
context. The governments of Germany, Spain, France and
Sweden have recently presented to the European Council a
joint document on the subject of a ‘European Pact for Youth’.

(5) Report of the High Level Group on the Future of Social Policy in

the Enlarged EU, May 2004

(6) COM(2005) 33 final of 9.2.2005, page 2
(7) COM(2005) 94 final of 16.3.2005

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This pact, which was adopted at the Spring Summit (8), includes
proposals for measures in the following fields: employment,
social
integration, general education and vocational training,
mobility and youth exchanges.

The joint document also makes explicit
reference to the
planned Green Paper on demographic change. The EESC
deplores the fact that, in its communication, the Commission
fails to address in greater detail the proposals put forward by
the abovementioned governments (9).

3.3
The EESC regards the proposed establishment of an
annual forum to evaluate the implementation of the Social
Agenda as a fundamentally good idea. Such a forum should, in
the EESC's view, address the outlook for the European social
model and involve all the social groups concerned in its work.
The proceedings of the forum should be planned in such a way
as to enable discussions to be held between participants.

The EESC strongly supports the Commission's intention
3.4
actively to draw attention to the benefits of the European social
model in the international labour context and to support the
establishment of decent working conditions throughout the
world, in accordance with ILO standards. The credibility of the
EU in this context will only be assured if it maintains and
develops the European social model, even when underlying
economic conditions have changed, and also on condition that
it defends, in a convincing way, the linkage between economic
and social progress. With these aims in view, the EU should
also make explicit reference to the revised European Social
Charter and the European Charter of Fundamental Rights.

4. Employment, the quality of work and tackling struc-

tural change

4.1 European Employment Strategy (EES)

In the context of the European Employment Strategy
4.1.1
(EES), the Commission announces a reorientation for 2005,
geared to the priorities set out in the 2003 Report of the
Kok Task Force on Employment. These priorities are as
follows: to promote adaptability; to attract more people into
the labour market; to increase investment in human resources;
and to implement reforms more effectively. These measures are
to be carried out in conjunction with the broad economic
policy guidelines. The EESC points out that the High-Level
Group on the Future of Social Policy has put forward concrete
proposals in respect of the setting of priorities in the new
employment guidelines. Under these proposals, the employ-
ment guidelines should be concentrated on integrating young
people at an earlier stage and more effectively into the labour
market, the establishment of ‘bridges’ between education and
employment and the integration of women and older workers
into the labour market. According to the proposal put forward

(8) Presidency conclusions – Brussels European Summit, 22 and 23

March 2005

(9) Opinion of the EESC on the Proposal for a Decision of the European
Parliament and of the Council creating the Youth in Action programme for
the period 2007-2013 (CESE 253/2005 of 10.3.2005 – Rapporteur;
Mr Rodriguez Garcia Caro)

by the High-Level Group, a further priority should be the
promotion of high-quality jobs by taking action with regard to
the organisation of employment and in the field of health and
safety; such measures would also facilitate the employment of
older workers. In the field of lifelong learning, the High-Level
Group also proposes that various measures be incorporated
into the employment guidelines. Greater priority should also be
given, in the EU's employment guidelines, to measures to tackle
the social consequences of structural change and to provide
assistance in this regard, particularly in the new EU Member
States. These proposals have been taken up only to a partial
extent in the Integrated Guidelines for Growth and Jobs (10),
which have in the meantime been presented.

With regard to the reorientation of the employment guidelines,
the EESC underlines the need to give greater priority to the
quality of employment and the need, in this context, to avoid
giving rise to ‘working poor’.

The only role for the European Social Fund (ESF) in
4.1.2
the EES mentioned by the Commission in its
support of
communication is in connection with the improved implemen-
tation of reforms, on the one hand, and a planned communica-
tion strategy, on the other hand. The EESC expresses criticism
over the fact that the Commission does not even refer to the
role of the ESF as an important instrument for promoting
human resources and a key tool for labour-market training and
further training measures. In the EESC's view, this important
role played by the ESF in support of lifelong learning has not
been demonstrated clearly enough. In this context it should be
pointed out that competence and skills are surely factors which
give the EU a key competitive edge (11).

The EESC does, in principle, endorse the observations
4.1.3
set out in the Social Agenda as regards back-up measures in
the context of structural change in the economy; these observa-
tions are clearly based on the views set out by the High Level
Group on the Future of Social Policy. One striking omission,
however, is the fact that the Commission does not address the
social consequences of the restructuring of enterprises. Plans
for tackling social consequences are, however, the very issue at
stake and one which should be addressed in such a way as to
make it possible to achieve a fair balance between economic
interests and the interests of employees. The Commission puts
forward basic proposals with regard to procedures and instru-
ments, such as the establishment of ‘a high-level forum of all
players and stakeholders’ to accompany the restructuring of
enterprises. The Commission does, however,
fail to provide
more precise information as to the membership of such a
forum or even its objectives and the issues involved. Nor does
the Commission highlight
the rights of
employees, on the one hand, and EU social legislation, on the
in the context of measures to tackle the social
other hand,
consequences of structural change. The EESC does, however,
take the view that the Directive on protecting workers in the
event of collective redundancies and transfers of undertakings,
the Directive on worker information and consultation and the
Directive on European Works Councils are key instruments for
tackling the social consequences of structural change, with the
participation of workers and the organisations representing
their interests.

the importance of

(10) COM(2005) 141 final of 12.4.2005
(11) EESC opinion on the Proposal for a European Parliament and Council
Regulation on the European Social Fund (CESE 250/2005 of 9.3.2005
– Rapporteur: Mrs Engelen-Kefer

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the consultation of

The EESC welcomes the initiation of the second phase
4.1.4
of
the social partners on the issue of
restructuring and on the revision of the Directive on European
Works Councils. The EESC does, however, believe that these
two issues should be tackled separately. European Works Coun-
cils do, indeed, play an important role in the issue of restruc-
turing. Quite apart from this fact, however, the improvement
of the European Works Council Directive is long overdue. The
EESC has already addressed this issue and pointed out that:
‘[This] instrument has made a very important contribution to
developing the European dimension of industrial relations’ (12).

4.1.5
The EESC also expresses its support for the plan to
achieve greater synergy between policies and their financial
levers,
in particular the ESF. What the Commission exactly
means by this proposal is not, however, clear. It is also unclear
what the Commission means by ‘a stronger link between the
EES and the development of the legal frameworks and social
partners' agreements’ (page 7 of the communication).

4.2 A new dynamic for industrial relations

relations by developing social

4.2.1
The Commission is seeking to instil a new dynamism
legislation,
into industrial
strengthening the social dialogue and promoting corporate
social responsibility (CSR).
In this context, the Commission
plans to submit a Green Paper on the development of labour
law in which it will analyse current trends as regards work
patterns and the role of labour law in (a) providing a more
secure environment and (b) ensuring transition in the light of
recent developments. In the Commission's view, the subsequent
debate on this Green Paper could lead to the modernisation
and simplification of the current legal provisions. The EESC
regards the presentation of such a Green Paper as a useful step.
It does, however, take the view that it is too early to anticipate,
however sketchily, the possible upshot of such a debate. The
EESC believes, as a matter of principle, that, in the case of the
review of labour law, in which the social partners are to be
involved, the requirements of the Treaty have to be the decisive
element in determining what action has to be taken. Under the
Treaty, the setting of minimum provisions is to lead to the
harmonisation of
living and working conditions, while the
improvement is being maintained (c.f. Article 136 of the Treaty
establishing the European Community).

the

The Commission also announces

4.2.2
following
planned measures: to propose, in 2005, an initiative to protect
the personal data of workers; to review the Directives on the
transfer of undertakings and collective redundancies; and to
consolidate the various provisions on worker information and
consultation. The EESC would point out that it is time that
these initiatives were implemented. In line with the provisions
of the Treaty, the aim of the review of the Directives should be
to ‘promote improved working conditions and an improved

standard of living for workers, so as to make possible their
harmonisation while the improvement
is being maintained’
(Article 136 of the TEC).

Turning to the consolidation of the provisions on worker infor-
mation and consultation, the EESC takes the view that the level
of participation rights set out in the Directive on the European
company should serve as a benchmark.

4.2.3
The EESC is in agreement with the proposals put
forward by the Commission in the field of health and safety at
work, in particularly the emphasis placed on prevention in the
planned initiatives. The planned new strategy on health and
safety at work covering the period 2007 to 2012 should,
above all: analyse new health risks too; include measures to
protect groups of workers hitherto not taken into account; and
tackle the question of how implementation of the existing
provisions on health and safety at work could be improved and
supported, particularly in the new Member States.

4.2.4
The EESC also welcomes the intention expressed by
the Commission to promote and support the social dialogue at
both inter-sectoral and sectoral
levels and to provide more
logistical and technical support for the social partners in the
EU. The EESC believes that these measures are particularly
necessary, especially in the new EU Member States as, in these
states, social dialogue structures are, in many cases, still poorly
developed or in the process of being established. The bilateral
social dialogue between the social partners in the EU is a key
component of the European social model. This social dialogue
has a special role to play in view of its legitimising function,
the representativeness of the process and the fact that, as part
of the social dialogue, binding agreements may be concluded at
EU level, as was pointed out by the social partners in the joint
declaration which they issued on the occasion of the Laeken
Summit (13).
Just as important as this social dialogue is the
dialogue with civil society, which takes the form, above all, of
consultation with the EESC, in its role as the forum for orga-
nised civil society (14). In the new EU Member States, in particu-
lar, both the civil dialogue and the development of stable indus-
trial relations between the social partners need to be supported
by the European Commission.

4.2.5
The Commission intends to launch further initiatives
in the field of CSR, with the aim of promoting the development
of CSR principles. In the EESC's view, the many good examples
of assuming social responsibility by means of codes of conduct
and other voluntary measures on the part of enterprises, as
highlighted in the European Multi-Stakeholder Forum on CSR
(EMS Forum), will provide a sound basis for the proposed
measures. These measures should include initiatives on lifelong
learning. The EESC therefore supports the efforts of the Euro-
pean Commission to put forward initiatives to promote the
development and transparency of CSR principles at EU level.

(12) EESC opinion of the Practical application of the Works Council Direc-
tive (94/45/EC) and on any aspects of the Directive that might need to be
revised (OJ C 10 of 14.1.2004 – Rapporteur: Mr Piette)

(13) ETUC/UNICE/CEEP Joint declaration of 7.12.2001
(14) EESC opinion on European Governance – a White Paper (OJ C 125 of
27.5.2003 page 61 – Rapporteur: Ms Engelen-Kefer, Co-rapporteur:
Ms Pari

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4.3 European labour market

5. A more cohesive society: equal opportunities for all

the

4.3.1
The Commission intends to take various measures
with a view to removing existing barriers to cross-border mobi-
lity and promoting the development of a genuine European
initiatives which has been
labour market. One of
announced is the proposal for a Directive on the transferability
of rights acquired under occupational pension schemes. The
EESC believes that
to be
presented without delay, bearing in mind that negotiations
between the social partners on this subject have not yet been
taken up because of differing views on the scope of such a
proposal.

for this proposal

is essential

it

4.3.2
A further proposal announced by the Commission
concerns the provision of an optional framework for transna-
tional collective bargaining at either enterprise level or sectoral
level. The Commission takes the view that such a framework
could be used to address, on a cross-border basis, issues relating
to work organisation, employment, working conditions and
further training, along the lines of the ‘partnership for change’.
The proposed framework would be ‘optional’ in that it would
be up to the social partners to decide whether they wanted to
make use of such a legal framework or not.

It has been demonstrated in practice that European works
councils have, in many cases, not only made use of their right
to be informed and consulted but have also entered into agree-
ments on a voluntary basis in respect of a number of the issues
being tackled. Similar examples of agreements can also be
found in the social dialogue at sectoral
level. The EESC
supports the objective set out by the Commission of promoting
the social dialogue at enterprise and sectoral level, whilst taking
greater account than has hitherto been the case of the fact that
enterprises operate on a cross-frontier basis, with the result
that voluntary agreements accordingly assume a cross-border
importance.

The EESC urges the Commission to discuss its proposed frame-
work provisions, at the earliest possible stage, with the Euro-
pean social partners, to ascertain their views on the matter and
to take account of these views.

its priority areas,

In this second of

5.1
the Commission
addresses the issues of: stepping-up the exchange of experience
on the
for
combating poverty and social exclusion and promoting non-
discrimination; and the role of social services.

security schemes; policies

reform of

social

5.2
The Commission reiterates its proposal that coordina-
tion be rationalised and simplified in the fields of social inclu-
sion, pensions and health. The EESC has already tackled this
issue in an earlier opinion (15). The EESC draws attention to the
fact that, in its view, the use of the Open Method of Coordina-
tion (OMC) needs to take account of the specific characteristics
of the respective fields. In particular, the EESC takes the view
that the application of the OMC in the field of social inclusion,
which has already reached a very advanced stage, should be
pursued in the form of national action plans and biennial
reports. This is, in the EESC's opinion, also particularly neces-
sary in view of the fact that, despite the joint efforts which
have been made, it has not been possible to bring about any
significant reduction in the degree of poverty. Approximately
15 % of the overall population of the EU can be classified as
‘poor’; in several Member States this proportion is over 20 %.
One of the decisive causes of poverty is the high level of unem-
ployment, which affects large families and single parents,
in
particular (16). The fact that people are in employment also does
not afford protection against poverty, as demonstrated by the
increasing number of ‘working poor’ (17). It is therefore essential
to step up efforts to combat poverty and social exclusion.

In this context, the Commission intends to pursue the
5.3
debate on national minimum income schemes and introduce
consultations on this matter in 2005. The EESC wonders where
this debate has taken place and who was involved in it. The
EESC takes the view that it is the responsibility of the Member
States to provide all citizens who are in need with social assis-
tance in the form of a minimum income which enables them
to have a decent standard of living. It is not clear from the
details provided by the Commission what is to be the aim of
the debate to be pursued at EU level on national minimum
income schemes. In view of the urgent nature of the problems
involved, the EESC would also pose the question as to whether
it would not be better to bring forward the proposed European
Year of Combating Poverty and Social Exclusion, scheduled for
2010.

4.3.3
As the Commission points out, freedom of movement
for persons is one of the basic freedoms in the EU. The EESC
therefore believes that the existing instruments, such as the
network of European employment services and the coordina-
tion of social security schemes for migrant workers, require
the
ongoing improvement. The EESC therefore approves
proposal to set up a high-level group, in 2005, to address the
impact of EU enlargement on mobility and the operation of the
transitional periods and to report on these issues in 2006. The
EESC would point out that the social partners and NGOs have
extensive experience in this field. The EESC therefore calls
upon the Commission to bear in mind representatives of the
social partners and NGOs when appointing members of the
high-level group.

5.4
The EESC supports the Commission's policies for tack-
ling the issue of equal treatment for men and women and non-
discrimination in general. The Commission announces that it
will put forward a new communication in 2005 in which it
will set out its policy approach and examine initiatives for
supplementing the existing legal framework.

(15) EESC opinion on the Communication from the Commission to the
Council, the European Parliament, the European Economic and
Social Committee and the Committee of the Regions on strength-
ening the social dimension of the Lisbon strategy: Streamlining
open coordination in the field of social protection (OJ C 32 of
5.2.2004 – Rapporteur: Mr Beirnaert)
(16) Joint report on social inclusion, May 2004
(17) Report of the High Level Group on the future of social policy in an

enlarged European Union, May 2004

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The EESC points out that in many EU Member States the Direc-
tives on non-discrimination have only recently been transposed
into national law or they are currently in the process of being
transposed. The EESC therefore takes the view that it would be
helpful to submit a report on progress made with the transposi-
tion of
law and to propose
these Directives into national
further policy measures on the basis of this report.

The EESC expresses its support for the planned measures in
respect of equal treatment for men and women and, in particu-
lar, the establishment of a European Gender Institute and the
new edition of the Commission's Action Plan on equal oppor-
tunity for people with disabilities.

5.5
Also in 2005, the Commission intends to put forward a
communication defining social services of general interest. The
EESC welcomes the proposed communication, particularly in
view of the fact that it expects that this communication will
have an active impact on the controversial debate on the Direc-
tive on services in the internal market and will help to clarify
the situation. In its White Paper on services of general interest,
the Commission already drew attention to the special features
of social services of general
in particular,
public service obligations and the fact these services are geared
to the needs of the individual. Social services, be they provided
by private or public bodies, differ in a fundamental way from
other services in the internal market by virtue of the fact that
they are founded on the principle of subsidiarity, tailored to the
needs of the individual and help to promote social cohesion by
fulfilling the fundamental right to benefit from social protec-
tion. The EESC therefore believes that social services and, in
particular, health services, have to be treated in a fundamentally
different way than services which are purely market services.

interest including,

implications

The EESC deplores the fact that the European Commis-
5.6
sion fails to address the importance for employment and social
cohesion of non-profit social services. In its earlier opinion on
the mid-term review of the social policy agenda, the EESC
already tackled this issue and pointed out that: ‘The contribu-
tion of non-profit-making social services to employment and
impact is increasingly recognised and exploited,
their social
with significant
in terms of promoting and
protecting the rights of disadvantaged people, responding to
needs in education, social assistance and health assistance, and
support for policies to promote inclusion and reduce social
inequality. Non-profit-making organisations help to identify
and articulate emerging social needs, especially those of less-
advantaged sectors of the population; they invest in repairing a
fabric where healthy structures must be
damaged social
restored; they mobilise social fellow-feeling and participation,
as the necessary condition for flourishing democratic structures,
even in the most disadvantaged areas’ (18).

6. Conclusions

The EESC welcomes

6.1
the European Commission's
Communication on the Social Agenda; this Communication

(18) EESC opinion on the Communication from the Commission to the
Council, the European Parliament, the European Economic and Social
Committee and the Committee of the Regions on the Mid-term review of
the social policy agenda (OJ C 80 of 30.3.2004 (Points 3.3.6 and
3.3.7) – rapporteur: Mr Jahier).

does, in the EESC's point of view, help to underline the impor-
tance of social policy to the achievement of the Lisbon objec-
tives. The EESC does, however, believe that, despite the stra-
tegic approach which it pursues, the communication does not
meet, in all respects, the special expectations bound up with
the mid-term review of the Lisbon Strategy. Whilst,
in the
previous Social Agenda, the European Commission was still
guided by a belief in the role of social policy as a productive
factor, this is no longer explicitly the case in the new proposal.
The EESC, for its part, believes that social policy must not be
subordinated to economic policy; these two policies are, in its
view, of equal importance. The promotion of social cohesion
and the establishment of a dynamic welfare state are just as
much part of the objectives of the Lisbon Strategy, as adopted
at the European summit in March 2000, as are the goals of
increasing the EU's competitiveness and achieving sustained
economic growth. The establishment of a high level of protec-
tion is one of the key components of the European social
model and a factor which makes a decisive contribution
towards the achievement of social cohesion.

6.2
Contrary to the frequently held view that a high level of
social expenditure is at variance with economic policy objec-
tives, empirical data from a number of European states proves
the opposite point of view. The High Level Group on the
Future of Social Policy drew attention to this point
in its
report. According to the findings of a study carried out by the
European Policy Centre in 2004, Sweden, Denmark, Austria,
Luxembourg and the Netherlands have achieved both a rela-
tively high level of economic performance and a high level of
social protection. In its report the High Level Group on the
Future of Social Policy points out that: ‘The European countries
which score top positions in the competitiveness ranking
drawn up by the World Economic Forum all have a high level
of investment in social policy and social protection and show
high employment rates and low poverty rates after social trans-
fers (19)’.

6.3
The EESC expresses criticism over the fact that the new
Social Agenda sets out fewer concrete measures than did its
predecessor. This makes it more difficult
to carry out an
appraisal of the Agenda as the political direction in which the
proposals set out in the Agenda are heading is not always
recognisable. This applies in particular in the case of social
legislation;
in this field the European Commission confines
itself to calling for the revision of existing Directives and scar-
cely presents any new proposals. The EESC therefore expects
the strategic framework to be complemented by concrete
measures. In the EESC's view, the new Social Agenda should go
hand-in-hand with an action programme covering the next five
years. The fundamental social rights set out in the future EU
Constitution should provide guidelines in this respect. The
social policy action programme should, accordingly, (a) set out
proposals for
the revision of existing Directives and put
forward proposals for new Directives and (b) embrace the
planned debates and coordination measures designed to
promote the further development of European social policy.
The EESC takes the view that the mid-term review of the
Lisbon Strategy, in particular, should highlight European social
policy and the productive role which it plays in promoting
growth and employment.

(19) Report of the High Level Group on the Future of Social Policy in

an enlarged European Union, May 2004

C 294/20

EN

Official Journal of the European Union

25.11.2005

6.4
In this context, the EESC would also like to address the
issue of the financing of social policy. Although the Commis-
sion already pointed out, in presenting the Financial Perspec-
tives, that the structure and resources of the future EU budget
would have to reflect and promote the Lisbon strategy, there
are grounds for fearing that the budget proposal is likely to fail
to match up to this demand.

The relevant sub-heading of the Financial Perspectives,
6.5
entitled ‘Competitiveness for Growth and Employment’ (20),
does indeed show an increase in funding but this increase
applies, above all, to measures to promote competitiveness and
entrepreneurial
initiatives. A comparison with the existing
expenditure on social and employment measures demonstrates

Brussels, 13 July 2005.

(20) COM(2004) 101 final/2 of 26.2.2004

that no provision is made for a real
increase in funding in
respect of future social policy. The Commission is essentially
proposing an unchanged budget in this context.

for

and

Employment

The EESC has already clearly expressed the view,

in,
6.6
its opinion on the Community
amongst other documents,
Programme
Solidarity
Social
(PROGRESS) (21), that, particularly in the light of the sobering
mid-term review of the Lisbon strategy, it is unable to compre-
hend the objective of seeking ‘budget neutrality’ with regard to
employment and social policy. The EESC therefore calls for a
corresponding increase in the budgetary estimates for social
policy, along the lines of those in respect of the remaining
measures set out under the heading ‘Growth and Employment’.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

(21) EESC opinion on the Proposal for a Decision of the European
Parliament
establishing a Community
Programme for Employment and Social Solidarity – PROGRESS
COM(2004) 488 final of 6.4.2005, CESE 386/2005

the Council

and of