Proposal for a Decision of the European Parliament and of the Council amending Decision No 1672/2006/EC of the European Parliament and of the Council establishing a Community Programme for Employment and Social Solidarity - Progress
Date: 2009-07-02
Institutions: European Commission
Subjects: EU programme, European Employment Strategy, anti-discriminatory measure, gender equality, social integration, social security, working conditions

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.7.2009 
COM(2009) 340 final 

2009/0091 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Decision No 1672/2006/EC of the European Parliament and of the Council 
establishing a Community Programme for Employment and Social Solidarity - Progress 

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EXPLANATORY MEMORANDUM 

The main impact of the recession is on people: the top challenge for the EU today must be to 
prevent high levels of unemployment, to boost job creation and to pave the way for economic 
renewal,  sustainable  recovery  and  growth.  The  EU  reacted  rapidly  to  the  crisis  through  the 
European Economic Recovery Plan which highlighted the need to counter the effects of the 
crisis on jobs. The initial impact of the Plan is already promising, and social safety nets play a 
stabilising  role.  However,  with  labour  markets  continuing  to  deteriorate  as  they  react  to  the 
economic downturn, additional action is needed. 

Europe  must  not  just  tackle  the  recession  but  turn  it  into  an  opportunity  to  create  a  more 
productive, more innovative, higher skilled and low carbon economy; with open and inclusive 
labour  markets,  offering  a  more  cohesive  and  equal  society  and  jobs  that  respond  to  age, 
gender  equality  and  work/life  balance  concerns.  The  measures  needed  to  combat  the  social 
and employment impact of the current crisis must go hand-in-hand with the structural reforms 
needed  to  address  the  long-term  challenges  of  globalisation  and  demographic  and  climate 
change. 

Europe's labour markets will be changed by the crisis. Workers and companies must be given 
the necessary means to adjust to these changing realities: to retain jobs, enhance skills at all 
levels, get people back to work and create the conditions for new jobs. 

The Commission Communication "Driving European recovery"1 outlined a number of points 
to help Member States design and implement effective employment policies. Working on this 
basis,  the  Spring  European  Council  and  the  three  employment  workshops  held  in  Madrid, 
Stockholm  and  Prague  in  April  2009  set  three  key  priorities:  maintaining  employment, 
creating  jobs  and  promoting  mobility;  upgrading  skills  and  matching  labour  market  needs; 
and increasing access to employment. Finally, the Employment Summit of 7 May featured an 
exchange of views on these priorities, and found common ground on 10 actions2.  

Building on this common effort, the Commission adopted a Communication on 3 June on "A 
shared  commitment  for  employment"3,  the  aim  being  to  step  up  cooperation  between  the 
European Union and the Member States as well as between EU social partners on these three 
key  priorities,  focussing  on  concrete  initiatives  and  supported  by  all  available  Community 
instruments, in particular the European Social Fund (ESF) and the Globalisation Adjustment 
Fund. 

In  order  to  alleviate  the  social  impact  of  the  crisis,  it  is  essential  to  retain  and  bring  more 
people  into  the  labour  market,  especially  women,  older  workers  and  other  groups  facing 
discrimination, and to prevent long-term unemployment and inactivity. The best way out of 
exclusion is employment: social Europe starts with jobs – yet even before the crisis, far too 
many EU citizens who were willing and able to join the labour market did not have access to 
jobs.  

1 
2 
3 

COM(2009) 114, 4.3.2009 
See: http://ec.europa.eu/social/main.jsp?catId=103&langId=en&eventsId=173&furtherEvents=yes 
COM(2009) 257, 4.6.2009 

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To give the unemployed the chance of a new start and to open the way to entrepreneurship for 
some  of  Europe’s  most  disadvantaged  groups,  including  the  young,  the  Commission  has 
proposed  a  new  European  microfinance  facility  for  employment  and  social  inclusion  - 
Progress4,  designed  to  help  develop  micro-enterprises  and  the  social  economy.  This  new 
facility will extend the range of targeted financial support to new entrepreneurs in the current 
context of reduced credit supply. Founders of microenterprises will also be assisted by way of 
mentoring, training, coaching and capacity building, in addition to interest-rate support from 
the ESF. 

In  line  with  the  Inter-institutional  Agreement  of  17  May  20065  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management,  the  Commission  proposes  to  reallocate  EUR  100  million  from  the  existing 
budget  which  could  leverage  more  than  EUR  500  million,  in  a  joint  initiative  with 
international financial institutions, in particular the EIB Group.  

The Community Programme for  Employment and Social Solidarity - Progress (2007-2013)6 
provides financial support for the implementation of the European Union’s objectives in the 
areas of employment, social affairs and equal opportunities, as set out in the Social Agenda7 
and in the renewed Social Agenda8. 

The mission of the Progress Programme is to assist Member States in their efforts to create 
more  and  better  jobs  and  to  build  a  more  cohesive  society.  In  concrete  terms,  Progress  is 
instrumental in: 

(1) 

providing analysis and policy advice; 

(2)  monitoring  and  reporting  on  the  implementation  of  EU  legislation  and 

policies; 

(3) 

promoting policy transfer; 

(4) 

(5) 

creating a platform for the exchange of experience between Member States; 

relaying the views of stakeholders and society at large. 

Under the terms of the 2006 Inter-institutional agreement, an additional amount of EUR 114 
million (current prices)9 was allocated to the Progress programme. The total budget for 2007-
2013  was  therefore  increased  from  EUR  628  800  000  (current  prices)  in  the  Commission's 
initial proposal to EUR 743 250 000 (current prices). After examining all possible options, the 
Commission  proposes  to  reallocate  EUR  100  million  from  the  Progress  Programme  to  the 
new European microfinance facility for employment and social inclusion – Progress.  

4 
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7 
8 
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COM(2009) xxx, xx.xx.2009 
(2008/818/EC) 
Decision  No  1672/2006/EC  of  the  European  Parliament  and  of  the  Council  of  24 October  2006 
establishing  a  Community  Programme  for  Employment  and  Social  Solidarity  —  Progress  OJ  L  315, 
15.11.2006, p. 1–8 
COM(2005) 33, 9.2.2005 
COM(2008) 412, 2.7.2008 
EUR 100 million in 2004 prices. 

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The  proposal  to  reallocate  part  of  the  budget  will  not  compromise  the  objectives  of  the 
Progress programme. It will, however, require Progress to be more effective in its operations, 
more strategic in its planning and more focused in its activities. This will also require further 
promoting cross-cutting across policy sections and linkages with other EU instruments, such 
as transnational cooperation under the European Social Fund or support for social dialogue. 
Finally,  it  will  increase  the  efficiency  and  consistency  of  EU  action  in  support  of  EU 
objectives and priorities in the areas of employment and social solidarity. 

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2009/0091 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Decision No 1672/2006/EC of the European Parliament and of the Council 
establishing a Community Programme for Employment and Social Solidarity - Progress 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
13(2), 129, 137(2) (a) thereof, 

Having regard to the proposal from the Commission10, 

Having regard to the opinion of the European Economic and Social Committee11, 

Having regard to the opinion of the Committee of the Regions12, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty13, 

Whereas: 

(1) 

(2) 

On  3  June  2009,  the  Commission  adopted  a  Communication  on  "A  shared 
commitment  for  employment"14,  the  aim  being  to  step  up  cooperation  between  the 
European  Union  and  the  Member  States  as  well  as  between  EU  social  partners,  on 
three  key  priorities:  maintaining  employment,  creating  jobs  and  promoting  mobility; 
upgrading  skills  and  matching  labour  market  needs;  and  increasing  access  to 
employment. 

To  give  the  unemployed  the  chance  of  a  new  start  and  to  open  the  way  to 
entrepreneurship for some of Europe’s most disadvantaged groups, including women 
and  the  young,  the  Commission  has  proposed  a  new  European  microfinance  facility 
for employment and social inclusion15 in a joint initiative with international financial 
institutions,  in  particular  the  EIB  Group,  to  develop  micro-enterprises  and  the  social 
economy.  

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12 
13 
14 
15 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
COM(2009) 257, 3.6.2009 
COM(2009) xxx, xx.xx.2009 

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(3) 

(4) 

In line with the Inter-institutional Agreement of 17 May 2006 between the European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound 
financial  management16,  EUR  100  million  needs  to  be  reallocated  from  the  existing 
budget to finance the new European microfinance facility for employment and social 
inclusion – Progress.  

After  examining  all  possible  options,  the  amount  of  EUR  100  million  should  be 
reallocated from the Progress Programme, set up by Decision No 1672/2006/EC of the 
European  Parliament  and  of  the  Council  of  24 October  2006  establishing  a 
Community Programme for Employment and Social Solidarity –Progress, to the new 
European microfinance facility for employment and social inclusion – Progress. 

(5) 

Decision No 1672/2006/EC should be amended accordingly.  

HAVE DECIDED AS FOLLOWS: 

Article 1 

In Article 17 of Decision No 1672/2006/EC paragraph 1 is replaced by the following: 

"1.  The  financial  envelope  for  implementing  the  Community  activities  referred  to  in  this 
Decision  for  the  period  from  1  January  2007  to  31  December  2013  is  hereby  set  at 
EUR 643 250 000." 

Article 2 

Entry into force 

This  Decision  shall  enter  into  force  on  the  […]  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

16 

(2006/C 139/01) 

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UPDATED LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL: 

Community Programme for Employment and Social Solidarity - Progress (2007-
2013) 

2. 

ABM / ABB FRAMEWORK 

Policy Area concerned and associated Activity 

EMPLOYMENT,  SOCIAL  AFFAIRS  and  EQUAL  OPPORTUNITIES 
ABB 04 04 Employment, Social solidarity and Gender Equality 

3. 

BUDGET LINES 

3.1. 

Budget lines 

04 04 01 PROGRESS  

04 01 04 10 PROGRESS – Administrative expenditure 

3.2. 

Duration of the action and of the financial impact 

01/01/2007 – 31/12/2013 

3.3. 

Budgetary characteristics  

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

Budget 
line 

04 04 01 

Non-
comp 

Diff17 

YES 

YES 

YES 

1a 

17 

Differentiated appropriations 

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4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 2 decimal places) 

> 2013 

2007 to 
2009 

2010 

2011 

2012 

2013 

Total 

Expenditure type 

Operational expenditure18 

Commitment 
Appropriations (CA) 

Initial profile 

a 

268.05 

105.44 

109.00 

112.33 

117.76 

adjustment 

- 

-24.37 

-24.37 

-24.37 

-24.37 

New profile 

268.05 

81.07 

84.63 

87.96 

93.39 

712.58 

-97.48 

615.10 

Payment 
Appropriations (PA) 

b 

154.30 

82.00 

87.00 

87.00 

87.00 

117.70 

615.10 

Administrative expenditure within reference amount19 

Technical 
administrative 
assistance (NDA) 

& 

Initial profile 

c 

12.15 

4.63 

4.63 

4.63 

4.63 

30.67 

adjustment 

New profile 

- 

-0.63 

-0.63 

-0.63 

-0.63 

12.15 

4.00 

4.00 

4.00 

4.00 

-2.52 

28.15 

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

Initial profile 

adjustment 

new profile 

a
+
c 

b
+
c 

280.20 

110.07 

113.63 

116.96 

122.39 

743.25 

- 

-25.00 

-25.00 

-25.00 

-25.00 

280.20 

85.07 

88.63 

91.96 

97.39 

-100.00 

643.25 

166.45 

86.00 

91.00 

91.00 

91.00 

117.70 

643.25 

Administrative expenditure not included in reference amount20 

18 
19 
20 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within article xx 01 04 of Title xx. 
Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

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-0.122 

-0.122 

-0.122 

-0.122 

-0.488 

Human resources and 
associated 
expenditure (NDA) 

than 

costs, 
Administrative 
human 
other 
resources 
and 
associated  costs,  not 
included 
in  reference 
amount (NDA) 

8.2.5 

d 

8.2.6 

e 

Total indicative financial cost of intervention 

TOTAL  CA  including 
Human 
cost 
Resources 

of 

TOTAL  PA 
cost 
Resources 

of 

including 
Human 

a+c+
d+e 

b+c+
d+e 

280.200 

84.948 

88.508 

91.838 

97.268 

642.762 

166.450 

85.878 

90.878 

90.878 

90.878 

117.80 

642.762 

4.1.2.  Compatibility with Financial Programming 

X 

Proposal is compatible with existing financial programming. The proposal 
is  linked  with  the  proposal  of  a  new  programme  Progress  microfinance 
facility for which an amount of EUR 100 Million is allocated. 

Proposal will entail reprogramming of the relevant heading in the financial 

(cid:133) 
perspective. 

(cid:133) 

Proposal may require application of the provisions of the Interinstitutional 
Agreement21  (i.e.  flexibility  instrument  or  revision  of  the  financial 
perspective). 

4.1.3.  Financial impact on Revenue 

X 

Proposal has no financial implications on revenue 

(cid:133) 

Proposal has financial impact – the effect on revenue is as follows: 

NB:  All  details  and  observations  relating  to  the  method  of  calculating  the 
effect on revenue should be shown in a separate annex. 

21 

See points 19 and 24 of the Interinstitutional agreement. 

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4.2. 

Human Resources FTE (including officials, temporary and external staff) – 
see detail under point 8.2.1. 

Annual requirements 

2010 

2011 

2012 

2013 

number 
Total 
human resources 

of 

-1 

-1 

-1 

-1 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

No change to initial decision. 

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal 
with other financial instruments and possible synergy 

No change to initial decision. 

5.3. 

Objectives,  expected  results  and  related  indicators  of  the  proposal  in  the 
context of the ABM framework 

No change to initial decision. 

5.4.  Method of Implementation (indicative) 

X 

X 

ٱ 

Centralised Management 

Directly by the Commission 

Indirectly by delegation to: 

ٱ 

ٱ 

Executive Agencies 

Bodies  set  up  by  the  Communities  as  referred  to  in  art.  185  of  the 

Financial Regulation 

ٱ 

National public-sector bodies/bodies with public-service mission 

6. 

MONITORING AND EVALUATION  

6.1.  Monitoring system 

No change to initial decision. 

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6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

No change to initial decision. 

6.2.2.  Measures  taken  following  an  intermediate/ex-post  evaluation  (lessons  learned 

from similar experiences in the past) 

No change to initial decision. 

6.2.3.  Terms and frequency of future evaluation 

No change to initial decision.  

7. 

ANTI-FRAUD MEASURES  

No change to initial decision.  

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8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 2 decimal places) 

2007 to 2009 

2010 

2011 

2012 

2013 

TOTAL 

MEUR 

% 

MEUR 

% 

MEUR 

% 

MEUR 

% 

MEUR 

% 

MEUR 

% 

- section 1 

Employment 

63.89 

22.8 

19.54 

23.0 

20.48 

23.1 

21.25 

23.1 

22.79 

23.4 

147.95 

23.0 

- section 2 

Social protection and inclusion 

83.19 

29.7 

25.75 

30.3 

26.98 

30.4 

27.71 

30.1 

29.34 

30.1 

192.97 

30.0 

- section 3 

Working conditions 

31.26 

11.1 

8.12 

9.5 

8.20 

9.3 

8.30 

9.0 

8.44 

8.7 

64.32 

10.0 

- section 4 

Antidiscrimination and diversity 

65.26 

23.3 

19.44 

22.8 

20.09 

22.7 

21.08 

22.9 

22.10 

22.7 

147.97 

23.0 

- section 5 

Gender equality 

30.74 

11.0 

10.50 

12.4 

11.18 

12.6 

11.93 

13.0 

12.84 

13.2 

77.19 

12.0 

- section 6 

TOTAL  

Support  to  the  implementation  of  the 
programme 

5.86 

2.1 

1.70 

2.0 

1.70 

1.9 

1.71 

1.9 

1.88 

1.9 

12.85 

2.0 

280.20  100.0 

85.07 

100.0 

88.63 

100.0 

91.96 

100.0 

97.39 

100.0  643.25  100.0 

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8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources 

Types of 
post 

Staff to be assigned to management of the action using existing and/or additional 
resources (number of posts/FTEs) 

2010 

2011 

2012 

2013 

A*/AD 

-1 

-1 

-1 

-1 

B*, 
C*/AST 

Officials 
or 
temporary 
staff22 
(XX 01 
01) 

Staff  financed23  by 
art. XX 01 02 

staff24 
Other 
financed  by  art.  XX 
01 04/05 

TOTAL 

-1 

-1 

-1 

-1 

The post will be reallocated to the PROGRESS Microfinance Facility. 

8.2.2.  Description of tasks deriving from the action 

8.2.3. 

Sources of human resources (statutory) 

Posts currently allocated to the management of the programme to be replaced 

(cid:133) 
or extended 

(cid:133) 

(cid:133) 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 

X 
(internal redeployment)  

Posts required for year 2010 although not foreseen in the APS/PDB exercise of 

(cid:133) 
the year in question  

22 
23 
24 

Cost of which is NOT covered by the reference amount 
Cost of which is NOT covered by the reference amount 
Cost of which is included within the reference amount 

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8.2.4.  Financial cost of human resources and associated costs not included in the reference 

amount 

EUR million (to 3 decimal places) 

Type of human resources 

Total 

2010 

2011 

2012 

2013 

-0.122 

-0.122 

-0.122 

-0.122 

-0.488 

Officials and temporary staff (XX 01 
01) 

Staff  financed  by  Art  XX  01  02 
(auxiliary, END, contract staff, etc.) 

(specify budget line) 

Total cost of Human Resources 
and associated costs (NOT in 
reference amount) 

Calculation – Officials and Temporary agents 

Reference should be made to Point 8.2.1, if applicable 

-1*122.000 = -122.000 per year 

8.2.5.  Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places) 

2010 

2011 

2012 

2013 

TOTAL 

XX 01 02 11 01 – Missions 

XX 01 02 11 02 – Meetings & Conferences 

XX 01 02 11 03 – Committees25  

XX 01 02 11 04 – Studies & consultations 

XX 01 02 11 05 - Information systems 

 2 

Total 

Other  Management 

Expenditure (XX 01 02 11) 

3 

Other 

expenditure 

administrative 
including reference to budget line) 

nature 

of 

an 
(specify 

Total Administrative expenditure, other 
than human resources and associated 

25 

Specify the type of committee and the group to which it belongs. 

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costs (NOT included in reference 
amount) 

Calculation - Other administrative expenditure not included in reference amount 

EN 

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