Proposal for a Council Decision on guidelines for the employment policies of the Member States - Part II of the Europe 2020 Integrated Guidelines {SEC(2010) 488 final}
Date: 2010-04-27
Institutions: European Commission
Subjects: EU Member State, EU policy, economic analysis, economic growth, employment policy, macroeconomics, structural adjustment

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EUROPEAN COMMISSION 

Brussels, 27.4.2010 
COM(2010) 193 final 

2010/0115 (NLE) 

Proposal for a  

COUNCIL DECISION 

on guidelines for the employment policies of the Member States 

Part II of the Europe 2020 Integrated Guidelines 

{SEC(2010) 488 final} 

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EXPLANATORY MEMORANDUM 

On 26 March 2010, the European Council agreed to the European Commission's proposal to 
launch a new strategy for jobs and growth, Europe 20201, based on enhanced coordination of 
economic  policies,  which  will  focus  on  the  key  areas  where  action  is  needed  to  boost 
Europe’s  potential  for  sustainable  growth  and  competitiveness.  To  that  end,  the  European 
Council agreed to set EU headline targets, which constitute shared objectives guiding action 
of the Member states and of the Union. In the light of these targets, Member States [have set] 
their national targets.  For its part, at EU  level,  the  Commission  will  work  to  implement  the 
strategy,  notably  through  its  seven  ‘flagship  initiatives’,  which  have  been  announced  in  the 
Europe 2020 Communication. 

The  Treaty  on  the  functioning  of  the  EU  provides  that  Member  States  are  to  regard  their 
economic policies and promoting employment as matters of common concern and coordinate 
them within the Council. In two distinct articles, it provides that the Council is to adopt broad 
economic  policy  guidelines  (Article  121)  and  employment  guidelines  (Article  148), 
specifying  that  the  latter  must  be  consistent  with  the  former.  Given  this  legal  basis,  the 
guidelines  for  employment  and  economic  policies  are  presented  as  two  distinct  —  but 
intrinsically interconnected — legal instruments:  

•  A Council Recommendation on broad guidelines for the economic policies of the Member 

States and of the Union -Part I of the Europe 2020 Integrated Guidelines; 

•  A Council Decision on guidelines for the employment policies of the Member States -Part 

II of the Europe 2020 Integrated Guidelines.  

These  guidelines  implemented  by  the  above  mentioned  legal  instruments  form  together  the 
integrated guidelines for implementing the Europe 2020 strategy. 

The  "Europe  2020  Integrated  Guidelines"  set  out  the  framework  for  the  Europe  2020 
strategy  and  reforms  at  Member  State  level.  To  ensure  coherence  and  clarity,  the 
guidelines  are  limited  in  number  and  reflect  the  European  Council  conclusions.  The 
guidelines  are  integrated  to  ensure  that  national  and  EU-level  policies  contribute  fully  to 
achieving  the  objectives  of  the  Europe  2020  strategy.  Following  them  in  a  synchronised 
manner will help Member States reap the positive spill-over effects of coordinated structural 
reforms, particularly within the euro area.  

On this basis, Member States will draw up National Reform Programmes setting out in detail 
the actions they will take under the new strategy, with a particular emphasis on efforts to meet 
the  national  targets.  Building  on  monitoring  by  the  Commission  and  work  done  in  the 
Council,  the  European  Council  will  assess  every  year  the  overall  progress  achieved  both  at 
EU  and  at  national  level  in  implementing  the  strategy.  Macroeconomic,  structural,  and 
competitiveness  developments  and  overall 
stability  will  be  examined 
simultaneously. 

financial 

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COM(2010) 2020, 3.3.2010 

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The "Europe 2020 Integrated Guidelines" are the following:  

Guideline 1:  Ensuring the quality and the sustainability of public finances 

Guideline 2:  Addressing macroeconomic imbalances 

Guideline 3:  Reducing imbalances in the euro area 

Guideline 4:  Optimising  support  for  R&D  and  innovation,  strengthening  the  knowledge 
triangle and unleashing the potential of the digital economy  

Guideline 5: 

Improving resource efficiency and reducing greenhouse gases emissions 

Guideline 6: 
industrial base 

Improving  the  business  and  consumer  environment  and  modernising  the 

Guideline 7: 

Increasing labour market participation and reducing structural unemployment  

Guideline 8:  Developing a skilled workforce responding to labour market needs, promoting 
job quality and lifelong learning 

Guideline 9: 
increasing participation in tertiary education 

Improving the performance of education and training systems at all levels and 

Guideline 10:  Promoting social inclusion and combating poverty 

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2010/0115 (NLE) 

Proposal for a  

COUNCIL DECISION 

on guidelines for the employment policies of the Member States 

Part II of the Europe 2020 Integrated Guidelines 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 148(2) thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the opinion of the European Parliament2, 

Having regard to the opinion of the European Economic and Social Committee3, 

Having regard to the opinion of the Committee of the Regions4, 

Having regard to the opinion of the Employment Committee,  

Whereas: 

(1) 

(2) 

The  Treaty  on  the  Functioning  of  the  European  Union  stipulates  in  Article  145  that 
Member States and the EU shall work towards developing a coordinated strategy for 
employment and particularly for promoting a skilled, trained and adaptable workforce 
and labour markets responsive to economic change and with a view to achieving the 
objectives  set  out  in  Article  3  of  the  Treaty  on  European  Union.  Member  States, 
having  regard  to  national practices related to the  responsibilities of management  and 
labour, shall regard promoting employment as a matter of common concern and shall 
coordinate  their  action  in  this  respect  within  the  Council,  in  accordance  with  the 
provisions of Article 148 of the Treaty on the Functioning of the European Union.  

The  Treaty  on  European  Union  stipulates  in  Article  3.3  that  the  Union  shall  combat 
social  exclusion  and  discrimination,  and  shall  promote  social  justice  and  protection 
and  provides  for  the  Union’s  initiatives  to  ensure  coordination  of  Member  States' 
social  policies.  Article  9  of  the  Treaty  on  the  Functioning  of  the  European  Union 
provides that in defining and implementing its policies and activities, the Union shall 
take  into  account  requirements  linked  to  the  guarantee  of  adequate  social  protection 
and the fight against social exclusion.  

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

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

The  Treaty  on  the  Functioning  of  the  European  Union  provides  that  employment 
guidelines and broad economic policy guidelines are to be adopted by the Council to 
guide Member States’ policies. 

The  Lisbon  Strategy,  launched  in  2000,  was  based  on  an  acknowledgement  of  the 
EU’s  need  to  increase  its  productivity  and  competitiveness,  while  enhancing  social 
cohesion,  in  the  face  of  global  competition,  technological  change  and  an  ageing 
population.  The  Lisbon  Strategy  was  re-launched  in  2005,  after  a  mid-term  review 
which led to greater focus on growth, more and better jobs.  

The  Lisbon  strategy  for  growth  and  jobs  helped  forge  consensus  around  the  broad 
direction  of  the  EU’s  economic  and  employment  policies.  Under  the  strategy,  both 
broad  economic  policy  guidelines  and  employment  guidelines  were  adopted  by  the 
Council in 20055 and revised in 20086. The 24 guidelines laid the foundations for the 
national reform programmes, outlining the key macro-economic, micro-economic and 
labour market reform priorities for the EU as a whole. However, experience shows that 
the  guidelines  did  not  set  clear  enough  priorities  and  that  links  between  them  could 
have been stronger. This limited their impact on national policy-making. 

The financial and economic crisis that started in 2008 resulted in a significant loss in 
jobs  and  potential  output  and  has  led  to  a  dramatic  deterioration  in  public  finances. 
The  European  Economic  Recovery  Plan7  has  nevertheless  helped  Member  States  to 
deal  with  the  crisis,  partly  through  a  coordinated  fiscal  stimulus,  with  the  euro 
providing  an  anchor  for  macroeconomic  stability.  The  crisis  therefore  showed  that 
coordination of Union's policies can deliver significant results if it is strengthened and 
rendered  effective.  The  crisis  also  underscored  the  close  interdependence  of  the 
Member States’ economies and labour markets.  

The  Commission  proposed  to  set  up  a  new  strategy  for  the  next  decade,  the  Europe 
2020  Strategy8,  to  enable  the  EU  to  emerge  stronger  from  the  crisis,  and  to  turn  its 
economy towards smart, sustainable and inclusive growth. Five headline targets, listed 
under  the  relevant  guidelines,  constitute  shared  objectives  guiding  the  action  of  the 
Member States and of the Union. Member States should make every effort to meet the 
national targets and to remove the bottlenecks that constrain growth. 

As  part  of  comprehensive  ‘exit  strategies’  for  the  economic  crisis,  Member  States 
should  carry  out  ambitious  reforms  to  ensure  macroeconomic  stability  and  the 
sustainability  of  public  finance,  improve  competitiveness,  reduce  macroeconomic 
imbalances  and  enhance  labour  market  performance.  The  withdrawal  of  the  fiscal 
stimulus should be implemented and coordinated within the framework of the Stability 
and Growth Pact.  

(9)  Within the Europe 2020 strategy, Member States should implement reforms aimed at 
‘smart growth’, i.e. growth driven by knowledge and innovation. Reforms should aim 
at  improving  the  quality  of  education,  ensuring  access  for  all,  and  strengthening 
research  and  business  performance  in  order  to  promote  innovation  and  knowledge 

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COM(2005)141 
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COM(2009)615, 19.11.2009 
COM(2010) 2020, 3.3.2010 

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transfer throughout the EU. They should encourage entrepreneurship and help to turn 
creative ideas into innovative products, services and processes that can create growth, 
quality  jobs,  territorial,  economic  and  social  cohesion,  and  address  more  efficiently 
European  and  global  societal  challenges.  Making  the  most  of  information  and 
communication technologies is essential in this context.  

(10)  Member  States  should  also,  through  their  reform  programmes,  aim  at  ‘sustainable 
growth’.  Sustainable  growth  means  building  a  resource-efficient,  sustainable  and 
competitive  economy,  a  fair  distribution  of  the  cost  and  benefits  and  exploiting 
Europe’s leadership in the race to develop new processes and technologies, including 
green technologies. Member States should implement the necessary reforms to reduce 
greenhouse  gases  emissions  and  use  resources  efficiently.  They  should  also  improve 
the  business  environment,  stimulate  creation  of  green  jobs  and  modernise  their 
industrial base.  

(11)  Member  States’ reform programmes  should also aim at ‘inclusive growth’. Inclusive 
growth  means  building  a  cohesive  society  in  which  people  are  empowered  to 
anticipate  and  manage  change,  thus  to  actively  participate  in  society  and  economy. 
Member  States’  reforms  should  therefore  ensure  access  and  opportunities  for  all 
throughout the lifecycle, thus reducing poverty and social exclusion, through removing 
barriers  to  labour  market  participation  especially  for  women,  older  workers,  young 
people,  disabled and  legal  migrants.  They should  also  make  sure  that  the  benefits  of 
economic growth reach all citizens and all regions. Ensuring effective functioning of 
the  labour  markets  through  investing  in  successful  transitions,  appropriate  skills 
development,  rising  job  quality  and  fighting  segmentation,  structural  unemployment 
and  inactivity  while  ensuring  adequate,  sustainable  social  protection  and  active 
inclusion to reduce poverty should therefore be at the heart of Member States’ reform 
programmes. 

(12)  The EU's and Member States' structural reforms can effectively contribute to growth 
and jobs if they enhance the EU's competitiveness in the global economy, open up new 
opportunities  for  Europe's  exporters  and  provide  competitive  access  to  vital  imports. 
Reforms should therefore take into account their external competitiveness implications 
to foster European growth and participation in open and fair markets worldwide. 

(13)  The  Europe  2020  strategy  has  to  be  underpinned  by  an  integrated  set  of  policies, 
which Member States should implement fully and at the same pace, in order to achieve 
the positive spill-over effects of coordinated structural reforms. 

(14)  While  these  guidelines  are  addressed  to  Member  States,  the  Europe  2020  strategy 
should be implemented in partnership with all national, regional and local authorities, 
closely associating parliaments, as well as social partners and representatives of civil 
society,  who  shall  contribute  to  the  elaboration  of  national  reform  programmes,  to 
their implementation and to the overall communication on the strategy.  

(15)  The Europe 2020 strategy is underpinned by a smaller set of guidelines, replacing the 
previous set of 24 and addressing employment and broad economic policy issues in a 
coherent  manner.  The  guidelines  for  the  employment  policies  of  the  Member  States, 
annexed to this Decision, are intrinsically linked with the guidelines for the economic 
policies of the Member States and of the Union, annexed to Council Recommendation 
[…] of […]. Together, they form the ‘Europe 2020 integrated guidelines’.  

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(16)  These new integrated guidelines reflect the conclusions of the European Council. They 
give  precise  guidance  to  the  Member  States  on  defining  their  national  reform 
programmes  and  implementing  reforms,  reflecting  interdependence  and  in  line  with 
the Stability and Growth  Pact. These  guidelines will form the basis  for any country-
specific  recommendations  that  the  Council  may  address  to  the  Member  States.  They 
will  also  form  the  basis  for  the  establishment  of  the  Joint  Employment  Report  sent 
annually by the Council and Commission to the European Council.  

(17)  Even though they must be drawn up each year, these guidelines should remain largely 

stable until 2014 to ensure a focus on implementation, 

HAS ADOPTED THIS DECISION:  

The guidelines for Member States’ employment policies, as set out in the Annex, are hereby 
adopted. These guidelines shall form part of the ‘Europe 2020 integrated guidelines’. 

Article 1 

Article 2 

The  guidelines  in  the  Annex  shall  be  taken  into  account  in  the  employment  policies  of  the 
Member States, which shall be reported upon in national reform programmes. Member States 
should design reform programmes consistent with the objectives set out in the ‘Europe 2020 
integrated guidelines’. 

Article 3 

This Decision is addressed to the Member States. 

Done at Brussels,  

For the Council 
The President 

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Annex:  
Guidelines for the employment policies of the Member States  

Guideline  7: 
unemployment  

Increasing 

labour  market  participation  and 

reducing 

structural 

Member States should integrate the flexicurity principles endorsed by the European Council 
into  their  labour  market  policies  and  apply  them,  making  full  use  of  European  Social  Fund 
support  with  a  view  to  increasing  labour  market  participation  and  combating  segmentation 
and  inactivity,  gender  inequality,  whilst  reducing  structural  unemployment.  Measures  to 
enhance  flexibility  and  security  should  be  both  balanced  and  mutually  reinforcing.  Member 
States  should  therefore  introduce  a  combination  of  flexible  and  reliable  employment 
contracts, active labour market policies, effective lifelong learning, policies to promote labour 
mobility, and adequate social security systems to secure professional transitions accompanied 
by clear rights and responsibilities for the unemployed to actively seek work.  

Member  States  should  step  up  social  dialogue  and  tackle  labour  market  segmentation  with 
measures  addressing 
temporary  and  precarious  employment,  underemployment  and 
undeclared  work.  Professional  mobility  should  be  rewarded.  The  quality  of  jobs  and 
employment conditions should be addressed by fighting low-wages and by ensuring adequate 
social security also for those on fixed contracts and the self-employed. Employment services 
should  be  strengthened  and  open  to  all,  including  young  people  and  those  threatened  by 
unemployment  with  personalised  services  targeting  those  furthest  away  from  the  labour 
market.  

In  order  to  increase  competitiveness  and  raise  participation  levels,  particularly  for  the  low-
skilled, and in line with economic policy guideline 2, Member States should review tax and 
benefit systems and the capacity of public services to provide the necessary support. Member 
States  should  increase  labour  force  participation  through  policies  to  promote  active  ageing, 
gender equality and equal pay and labour market integration of young people, disabled, legal 
migrants  and  other  vulnerable  groups.  Work-life  balance  policies  with  the  provision  of 
affordable care and innovation in work organisation should be geared to raising employment 
rates,  particularly  among  youth,  older  workers  and  women,  in  particular  to  retain  highly-
skilled women in scientific and technical fields. Member States should also remove barriers to 
labour  market  entry  for  newcomers,  support  self-employment  and  job  creation  in  areas 
including green employment and care and promote social innovation. 

The EU headline target, on the basis of which Member States will set their national targets, is 
of  aiming  to  bring  by  2020  to  75%  the  employment  rate  for  women  and  men  aged  20-64 
including through the greater participation of youth, older workers and low skilled workers 
and the better integration of legal migrants.  

Guideline 8: Developing a skilled workforce responding to labour market needs, promoting 
job quality and lifelong learning 

Member States should promote productivity and employability through an adequate supply of 
knowledge and skills to match current and future demand in the labour market. Quality initial 
education and attractive vocational training must be complemented with effective incentives 
for  lifelong  learning,  second-chance  opportunities,  ensuring  every  adult  the  chance  to  move 
one step up in their qualification, and by targeted migration and integration policies. Member 

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States  should  develop  systems  for  recognising  acquired  competencies,  remove  barriers  to 
occupational  and  geographical  mobility  of  workers,  promote  the  acquisition  of  transversal 
competences and creativity, and focus their efforts particularly on supporting those with low 
skills and increasing the employability of older workers, while at the same time enhance the 
training, skills and experience of highly skilled workers, including researchers. 

In  cooperation  with  social  partners  and  business,  Member  States  should  improve  access  to 
training, strengthen education and career guidance combined with systematic information on 
new job openings and opportunities, promotion of entrepreneurship and enhanced anticipation 
of  skill  needs.  Investment  in  human  resource  development,  up-skilling  and  participation  in 
lifelong  learning  schemes  should  be  promoted  through  joint  financial  contributions  from 
governments, individuals and employers. To support young people and in particular those not 
in employment, education or training, Member States in cooperation with the social partners, 
should  enact  schemes  to  help  recent  graduates  find  initial  employment  or  further  education 
and  training  opportunities,  including  apprenticeships,  and  intervene  rapidly  when  young 
people  become  unemployed.  Regular  monitoring  of  the  performance  of  up-skilling  and 
anticipation  policies  should  help  identify  areas  for  improvement  and  increase  the 
responsiveness of education and training systems to labour market needs. EU funds should be 
fully mobilised by Member States to support these objectives. 

Guideline 9: Improving the performance of education and training systems at all levels and 
increasing participation in tertiary education 

In order to ensure access to quality education and training for all and to improve educational 
outcomes, Member States should invest efficiently in education and training systems notably 
to raise the skill level of the EU's workforce, allowing it to meet the rapidly changing needs of 
modern labour markets. Action should cover all sectors (from early childhood education and 
schools  through  to  higher  education,  vocational  education  and  training,  as  well  as  adult 
training)  taking  also  into  account  learning  in  informal  and  non-formal  contexts.  Reforms 
should aim to ensure the acquisition of the key competencies that every individual needs for 
success in a knowledge-based economy, notably in terms of employability, further learning, 
or ICT skills. Steps should be taken to ensure learning mobility of young people and teachers 
becomes the norm. Member States should improve the openness and relevance of education 
and  training  systems,  particularly  by  implementing  national  qualification  frameworks 
enabling  flexible  learning  pathways  and  by  developing  partnerships  between  the  worlds  of 
education/training and work. The teaching profession should be made more attractive. Higher 
education should become more open to non-traditional learners and participation in tertiary or 
equivalent  education  should  be  increased.  With  a  view  to  reducing  the  number  of  young 
people  not  in  employment,  education,  or  training,  Member  States  should  take  all  necessary 
steps to prevent early school leaving.  

The EU headline target, on the basis of which Member States will set their national targets, is 
to reduce the drop out rate to 10%, whilst increasing the share of the population aged 30-34 
having completed tertiary or equivalent education to at least 40% in 2020. 

Guideline 10: Promoting social inclusion and combating poverty 

Member States’ efforts to reduce poverty should be aimed at promoting full participation in 
society  and  economy  and  extending  employment  opportunities,  making  full  use  of  the 
European  Social  Fund.  Efforts  should  also  concentrate  on  ensuring  equal  opportunities, 
including  through  access  to  affordable,  sustainable  and  high  quality  services  and  public 

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services  (including  online  services,  in  line  with  guideline  4)  and  in  particular  health  care. 
Member  States  should  put  in  place  effective  anti-discrimination  measures.  Equally,  to  fight 
social exclusion, empower people and promote labour market participation, social protection 
systems,  lifelong  learning  and  active  inclusion  policies  should  be  enhanced  to  create 
opportunities at different stages of people’s lives and shield them from the risk of exclusion. 
Social  security  and  pension  systems  must  be  modernised  to  ensure  that  they  can  be  fully 
deployed to ensure adequate income support and access to healthcare — thus providing social 
cohesion — whilst at the same time remaining financially sustainable. Benefit systems should 
focus  on  ensuring  income  security  during  transitions  and  reducing  poverty,  in  particular 
among  groups  most  at  risk  from  social  exclusion,  such  as  one-parent  families,  minorities, 
people with disabilities, children and young people, elderly women and men, legal migrants 
and the homeless. Member States should also actively promote the social economy and social 
innovation in support of the most vulnerable.  

The EU headline target, on the basis of which Member States will set their national targets, is 
to  reduce  by  25%  the  number  of  Europeans  living  below  the  national  poverty  lines,  lifting 
over 20 million people out of poverty.  

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