Proposal for a Council Decision on guidelines for the employment policies of the Member States
Date: 2009-01-28
Institutions: European Commission
Subjects: EU employment policy, economic and social cohesion, labour flexibility, labour market, occupational safety, productivity, social security, vocational training, wage cost

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.1.2009 
COM(2008) 869 final 

2008/0252 (CNS) 

Proposal for a 

COUNCIL DECISION 

on guidelines for the employment policies of the Member States 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The renewed Lisbon strategy which was launched in 2005 is based on a three-year cycle of 
governance  with  a  package  of  integrated  guidelines  which  encompass  economic,  social  and 
environmental dimensions.  

On the basis of the integrated guidelines which were adopted as part of the second three-year 
cycle of the renewed  Lisbon  Strategy in 20081 and which remain valid until 2010, Member 
States  draw  up  their  National  Reform  Programmes  (NRP)  that  set  out  their  strategies  to 
deliver  growth  and  jobs.  The  Commission  assessment  of  the  implementation  of  the 
employment challenges in the NRPs is set out in the draft Joint Employment Report and in the 
proposal  for  country  specific  recommendations,  which  is  adopted  by  the  Commission  in 
accordance with article 128(1) of the EC Treaty.  

The  assessment  shows  that  structural  reforms  are  ongoing  in  the  Member  States,  and  this 
contributed to a decrease in unemployment and an increase in employment in the EU in 2007. 
However the economic outlook has changed dramatically over the second half of 2008, owing 
to  the  financial,  bank  and  credit  crises.  Forecasts  indicate  decreased  or  even  negative 
employment growth and increased unemployment in the EU for 2009. 

The Employment Guidelines present a framework that provides policy guidance and overall 
objectives for Member States and the EU. Member States can within the guidelines focus on 
their  specific  needs  that  may  differ  between  countries  and  change  with  the  economic  cycle. 
The mid-term priorities in the Guidelines remain thus valid: 

–  attracting  and  retaining  more  people  in  employment  and  increase  labour  supply  and 

modernise social protection systems; 

–  improve adaptability of workers and enterprises;  

–  increase investment in human capital through better education and skills.  
In  line  with  the  European  Economic  Recovery  Plan2,  the  current  economic  and  financial 
crises imply the need for immediate action while continuing with the structural reform agenda 
and  keeping  the  mid-  and  long  term  objectives.  Two  policy  priorities  should  be  highlighted 
for  immediate  action:  improving  employability  through  flexicurity,  including  for  the  most 
vulnerable;  and  improving  the  skills  levels  and  their  match  with  labour  market  needs.  The 
policy responses can be found in the current Employment Guidelines. 

–  Flexicurity is an integrated policy approach that seeks to facilitate adaptability of workers 
and enterprises and to ensure that the EU can exploit the benefits from globalisation. Some 
aspects of flexicurity are even more essential in the short run: reinforce activation schemes 
in  particular  for  the  low-skilled;  enhanced  job  subsidies  and  short  training  courses  for 
vulnerable  groups  and  those  most  at  risk  of  long-term  unemployment;  providing 
(re)training  and  new  skills  needed  in  less  hit  sectors;  adequate  social  protection  that 
provides  income  security,  incentives  to  work  and  preserving  purchasing  power; 
harmonised  labour  contracts  that  reduce  segmentation  while  avoiding  the  temptation  to 
create  'flexible'  contracts.  At  the  same  time,  social  dialogue  –  a  necessary  component  of 
any  successful  flexicurity  policy  -  is  also  crucial  under  the  present  economic 
circumstances. 

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Council  Decision  2008/618/EC  of  15 July  2008  on  guidelines  for  the  employment  policies  of  the 
Member States OJ L 198, 26.7.2008, p. 47–54 
COM(2008) 800 

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–  A  massive  effort  of  skills  upgrading  at  all  levels  of  qualifications  will  be  essential  to 
confront demographic and technological change and to benefit from the transition to a low-
carbon economy, but also to set the EU back on the road to recovery in times of crisis. In 
the  shorter  term,  better  matching  of  peoples'  skills  and  available  jobs  is  also  vital  as  job 
prospects worsen. The unemployed including vulnerable groups need to be equipped with 
the skills  that are being demanded on today's labour market. Anticipation of future skills 
needs  is  crucial  in  this  respect,  not  least  to  prepare  for  the  economic  upturn.  Public 
Employment Services, social partners and universities have an important role to play both 
in anticipating skills needs and in improving matching and ensuring that individuals have 
the right skills. The initiative on New Skills for New Jobs3 will contribute to this. 

–  In this respect, the link between the Employment Guidelines and the European Social Fund 
(ESF) needs to be further strengthened. The ESF can finance immediate actions taken by 
Member  States  in  view  of  flexicurity  and  skills  including  targeted  support  for  the  most 
vulnerable  groups  in  response  to  the  economic  crisis.  The  European  Globalisation  Fund 
will further help Member States to support redundant workers and to keep skilled workers 
in employment needed when the economy starts to recover.  

The overall objectives and priorities expressed in the current Employment Guidelines remain 
valid in view of the current crisis as well as the relevance of policies and the reform agenda. 
By  virtue  of  article  128(2),  their  validity  for  2009  needs  to  be  confirmed  by  a  Council 
decision,  following  consultation  of  the  European  Parliament,  the  European  Economic  and 
Social Committee, the Committee of Regions and the Employment Committee. 

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2008/0252 (CNS) 

Proposal for a 

COUNCIL DECISION 

on guidelines for the employment policies of the Member States 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
128(2) thereof, 
Having regard to the proposal from the Commission4, 
Having regard to the Opinion of the European Parliament5, 
Having regard to the Opinion of the European Economic and Social Committee6, 
Having regard to the Opinion of the Committee of the Regions7, 

Having regard to the Opinion of the Employment Committee, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

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The  renewed  Lisbon  Strategy  in  2005  has  placed  the  emphasis  on  growth  and  jobs. 
The  Employment  Guidelines  of  the  European  Employment  Strategy  and  the  Broad 
Economic Policy Guidelines have been adopted as an integrated package, whereby the 
European  Employment  Strategy  has  the  leading  role  in  the  implementation  of  the 
employment and labour market objectives of the Lisbon Strategy. 

The examination of the Member States' National Reform Programmes contained in the 
draft  Joint  Employment  Report  shows  that  Member  States  should  continue  to  make 
every  effort  to  address  the  priority  areas  of:  attracting  and  retaining  more  people  in 
employment;  increasing  labour  supply  and  modernising  social  protection  systems; 
improving  adaptability  of  workers  and  enterprises;  and  increasing  investment  in 
human capital through better education and skills. 

In view of the current economic crisis, the Guidelines should also serve as a tool for 
meeting  the immediate challenges of increasing  unemployment and social  exclusion. 
Policies  in  the  immediate  term  include  integrated  flexicurity  policies  to  facilitate 
transitions  to  work,  matching  the  unemployed  with  available  jobs,  and  skills 
upgrading.  

In  light  of  the  Commission’s  examination  of  the  National  Reform  Programmes,  the 
focus should be on effective and timely implementation, paying special attention to the 
agreed targets and benchmarks and the involvement of social partners.  

The  Employment  Guidelines  adopted  in  2008  are  valid  for  three  years,  while  in  the 
intermediate years until the end of 2010 their updating should remain strictly limited. 

OJ C …, …, p. 
OJ C …, …, p. 
OJ C …, …, p. 
OJ C …, …, p. 

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(6)  Member  States  should  explore  the  use  of  the  European  Social  Fund  when 

implementing the Employment Guidelines. 

(7) 

In view of the integrated nature of the guideline package, Member States should fully 
implement the Broad Economic Policy Guidelines. 

HAS ADOPTED THIS DECISION: 

Article 1 

The  guidelines  for  Member  States'  employment  policies  as  set  out  in  the  Annex  to  Council 
Decision of 15 July 2008 on guidelines for the employment policies of the Member States8 are 
maintained  for  2009  and  shall  be  taken  into  account  by  the  Member  States  in  their 
employment policies.  

Article 2 

This Decision is addressed to the Member States. 

Done at Brussels,  

For the Council 
The President  

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Council  Decision  2008/618/EC  of  15 July  2008  on  guidelines  for  the  employment  policies  of  the 
Member States OJ L 198, 26.7.2008, p. 47–54 

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