Opinion of the Committee of the Regions on ‘The role of local and regional authorities in promoting growth and boosting job creation’
Date: 2013-02-01
Institutions: European Committee of the Regions
Subjects: EU employment policy, change of job, fight against unemployment, job creation, job preservation, labour market, single market, vocational retraining








C_2013062EN.01007001.xml










2.3.2013   


EN


Official Journal of the European Union


C 62/70





Opinion of the Committee of the Regions on ‘The role of local and regional authorities in promoting growth and boosting job creation’
2013/C 62/14
THE COMMITTEE OF THE REGIONS






—


reminds the European Commission that local and regional authorities often are largely responsible for implementing policies relating to employment, education and training. The territorial dimension of these policies is thus of vital importance. The Committee therefore regrets that the Commission's communication does not contain a specific reference to the competences of local and regional authorities;










—


welcomes the measures contained in the Compact for Growth and Jobs. The Committee of the Regions stresses the link between the Compact and the growth-generating programmes contained in the multiannual financial framework (MFF) 2014-2020, especially under heading 1 - sustainable growth;










—


encourages the Member States to take account of the European Commission's guidelines in their National Reform Programmes, with particular regard to the issue of flexicurity, which poses a challenge for the European labour market;










—


considers it important to encourage forms of self-employment and individual enterprise, giving special attention to start-ups by young people. This could be a more efficient way of using resources that would otherwise be spent unproductively (costs of early retirement or unemployment benefits);










—


proposes that regional and local authorities be involved more closely in framing policies to incentivise "green jobs", within national job plans










—


welcomes the proposal to improve EURES, not least by introducing a Match and Map service providing a clear geographical overview of offers. On that subject, the Committee draws attention to the national and regional role of job agency schemes and suggests that these be better integrated with the Enterprise Europe Network (EEN), the regions and Chambers of Commerce;










Rapporteur


Marialuisa COPPOLA (IT/EPP), Regional Councillor, Veneto Region




Reference document


Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the regions – Towards a job-rich recovery

COM(2012) 173 final





Opinion of the Committee of the Regions – The role of Local and Regional authorities in promoting growth and boosting job creation

I.   POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS






1.


welcomes the Commission communication Towards a job-rich recovery and recalls that full employment and social cohesion are objectives enshrined in the TFEU that are to be pursued in accordance with the principles of proportionality and subsidiarity (Articles 3, 4, 5, 6 and 9 of the TFEU); considers that the Commission communication is a political act which should be followed by tangible legislative initiatives by the Member States and local and regional authorities;










2.


notes that the Commission stresses the need for structural reforms at national level, essentially in order to liberalise the labour and services markets, and agrees with the need for such reforms, but would have liked to see more specific proposals for measures to stimulate for employment in the green economy;










3.


reiterates its call on the Commission to mainstream Article 9 TFEU on the promotion of a high level of employment, the guarantee of adequate social protection and the fight against social exclusion in all its proposals, and especially in those implementing its communication Towards a job-rich recovery;










4.


strongly supports the Europe 2020 strategy and the associated instruments (such as National Reform Programmes) and the efforts to achieve its employment objectives, and calls on Member States to pursue the path to growth and innovation set out therein;










5.


nonetheless notes with concern that, in recent years, the economic and social disparities between Member States (and between the various regions) have been getting bigger rather than smaller;










6.


stresses that, to achieve the objectives set out in the European employment strategy, it is desirable to take account of the territorial dimension by giving Member States and local and regional authorities enough room for manoeuvre to set their own priorities and develop appropriate policy responses. Proper use of cohesion policy funds could also make a significant contribution. To that end, a multi-level governance approach that complies with the subsidiarity principle, especially when drawing up the National Reform Programmes, is certainly the best way to respond to local requirements and to achieve the employment objectives as efficiently as possible;










7.


considers that the current and future challenges for employment lie not only in youth unemployment but also in that of the over-55s, people with disabilities, immigrants and women, as well as the rise in long-term unemployment. It therefore asks the European Commission and the Member States to give special attention to those categories, which constitute valuable, experienced human capital;










8.


reminds the European Commission that local and regional authorities often are largely responsible for implementing policies relating to employment, education and training. The territorial dimension of these policies is thus of vital importance. The Committee therefore regrets that the Commission's communication does not contain a specific reference to the competences of local and regional authorities;










9.


calls on the European Commission and the Member States to implement the necessary measures to combat and eradicate the damaging practice of social dumping and illegal work, which also goes hand in hand with certain forms of exploitation of illegal immigration;










10.


urges the European Commission to foster the competitiveness of European industry and services by strengthening the EU's economic governance so as to avoid a return to protectionist policies;





The European Council of 28-29 June 2012: Compact for Growth and Jobs







11.


is pleased that the issues of growth and jobs were the focus of the European Council of 28-29 June 2012 and that, during the summit, the need to activate instruments and policies at every level of government in the European Union to stimulate jobs and growth was recognised;










12.


stresses that the consolidation of Member States' budgets is not an end in itself. Local and regional authorities should be asked to contribute their fair share, keeping in mind the proportionality principle and without compromising their economic growth and territorial and social cohesion;










13.


broadly welcomes the measures addressed to Member States and the measures at European Union level contained in the Compact for Growth and Jobs. The Committee of the Regions stresses the link between the Compact and the growth-generating programmes contained in the multiannual financial framework (MFF) 2014-2020, especially under heading 1 - sustainable growth. The Member States which have signed up to the Compact should now adopt a consistent stance in the negotiations on the MFF. In particular, with regard to the European measures agreed in the Council conclusions, the Committee of the Regions places special emphasis on the need to strengthen the single market, reduce regulatory complexity mobilise EIB and swiftly launch the Project Bond pilot phase to fund fast-acting measures to promote growth. It is vital to avoid distortions of competition during the pilot phase and that projects are not commercially viable. The instrument should not replace capital from member states, regional and local bodies or private capital. A continuation after the pilot phase should be determined only after independent evaluation made. In these evaluations, it is important to see if the selected projects have created value for the Union;










14.


reiterates, on the subject of the introduction of the Project Bond scheme to finance strategic infrastructure, the opinion it already issued on the Connecting Europe Facility
 (1) in which it recommended including local and regional authorities in TEN projects so as to maximise the benefits for citizens;










15.


nonetheless regrets that the Council's conclusions are not being followed up by rapid action by all the Member States and were not more effective in promoting further measures to boost growth;





Supporting job creation







16.


welcomes the European Commission's proposals to support job creation, particularly concerning reduction of the tax burden for businesses without budgetary impact, but instead reducing the tax wedge in favour of other forms of revenue (such as environmental taxes);










17.


recalls the importance, particularly in the light of the economic crisis, of concentrating efforts not only on creating new jobs and promoting structural change but also on preserving existing ones;










18.


proposes better use, coordination and interoperability of the instruments available at European, national, regional and Chamber of Commerce level (in particular calling for the use not only of the ESF but also the ERDF) to support self-employment, social enterprises, work experience schemes and business start-ups. Greater coordination will ensure that the available instruments can be used more effectively;










19.


considers that in order to create high-quality, lasting jobs, a European agenda for growth must be based on the goal of establishing a real strategy for industrial renewal in Europe, with the active involvement of public authorities at all levels, and a strong industrial policy that promotes the competitiveness of SMEs (which form the backbone and the cultural and industrial history of the European economy) and the service sector. Such an industrial renewal strategy requires the European Commission to exploit the full potential of the Lisbon Treaty where industrial policy is concerned, pursuing the option of taking "any useful initiative to promote such coordination [between Member States in the field of industrial policy], in particular initiatives aiming at the establishment of guidelines and indicators, the organisation of exchange of best practice, and the preparation of the necessary elements for periodic monitoring and evaluation" (Article 173 TFEU). This industrial renewal strategy, which should emerge at the end of the mid-term review of the flagship initiative on An industrial policy for the globalisation era, should focus in particular on easing access to credit, cutting red tape and creating a more business-friendly environment; on this last point, the Committee of the Regions offers its own contribution by organising, in cooperation with the European Commission, the European Enterprise Region (EER) competition; would also highlight the importance of having a functional and effective public sector, as a necessity for economic growth;










20.


considers that the key to the competitiveness of Europe's businesses lies in increasing productivity through efficient, sustainable management of resources, and through long-term training, innovation and shared responsibility. For this reason, it deems it important to harness the experience of businesses working towards sustainability, which can also be recognised through the use of European certification;










21.


stresses that, on the subject of promoting the quality of European products, business could also benefit from an additional EU origin label alongside labelling denoting national origin or quality, which would have positive repercussions on employment;










22.


refers to the CoR opinion on the Responsible businesses package (relating to Commission communications COM(2011) 681-685 final) and stresses that an approach based on social and environmental sustainability can have positive effects in terms of business competitiveness, risk management, cost control, long-term customer relationships and innovation capacity;










23.


endorses the measures aimed at creating jobs in activities linked with environmental sustainability, healthcare professions and ITC (as highlighted by the CoR Bureau conclusions of 22 and 23 March 2012), and considers it important, inter alia to recall that the European labour market is still largely made up of workers employed in manufacturing and other industries which have helped shape the history of Europe's development. The CoR asks that greater account be taken of these jobs by proposing instruments for retraining human capital;










24.


points out that the transition to a sustainable, low-emission economy will require the current labour market to be restructured. This will need to be supported in every respect by appropriate promotional measures;










25.


supports the proposal to extend the Progress microfinancing facility, as it makes it possible to provide small sums for socially useful, worthwhile purposes;










26.


supports the Commission's proposal to keep the European Globalisation Adjustment Fund (EGF) going, given that Europe's businesses still face a situation of crisis and uncertainty; expects, however, to have greater clarity about the future of the programme, and hopes that the new procedures for using the fund will be more streamlined, faster and clearer;





Getting labour markets moving again







27.


encourages the Member States to take account of the European Commission's guidelines in their National Reform Programmes, with particular regard to the issue of flexicurity, which poses a real challenge for the European labour market. A policy that takes account of the need for labour flexibility, but at the same time protects citizens, must of necessity be discussed with regional and local authorities. The Committee regrets the fact that, despite the political commitment made at the 2012 Spring European Council and the Commission's guidance in the communication, not all Member States submitted their national employment plan as part of their 2012 National Reform Programme, setting out comprehensive measures for job creation and in particular, for green jobs;










28.


is concerned about the level of inactivity and unemployment among young people in the European Union and calls on the European Commission and the Member States to take all the necessary measures to ensure that young people have skilled jobs that also teach them new skills and give them economic independence and stability;










29.


notes that some countries more than others have critical levels of youth unemployment, and therefore calls on the European Commission to monitor these situations especially closely, not least by providing for greater supervision of ongoing programmes, and to press ahead quickly with its aim of getting a proposal for a Council recommendation on youth guarantee schemes onto the table;










30.


recognises that in some Member States, employers are abusing apprenticeship schemes, and welcomes the proposal to introduce a quality framework for apprenticeship. However, the CoR warns against creating unduly rigid rules that would risk deterring businesses from using apprenticeship schemes at all;










31.


calls on Member States to ensure that, by 2013, all apprentices have an apprenticeship contract providing appropriate protection and the necessary information on their rights and responsibilities and on those of the employer;










32.


thinks that the apprenticeship opportunities offered to students at universities in the European Union should be attractive enough to help bring students closer to the world of work. It is of the utmost importance to create a bridge between academia and the world of work. This could also be done with the help of programmes such as LLP or Erasmus for young entrepreneurs. The latter in particular is proving to be an effective tool for stimulating entrepreneurship, which is important for overcoming the crisis;










33.


hopes that regional authorities can play an important role as a bridge between the world of training and that of industry by promoting agreements whereby universities recognise the activities carried out directly in businesses or in public or third-sector organisations during a course of study. This could happen through agreements between local or regional education authorities, the social partners, business representatives and the university;










34.


notes that, at present, apprenticeships are one of the main entry points for young people into the labour market, but points out that, in practice, young people often find themselves being bounced from one apprenticeship to another without any real prospect of getting a proper employment contract with the requisite guarantees. The CoR therefore regrets that, amongst the European Commission's proposals, there is no guidance for Member States as to how to regulate and overcome this situation by appropriate employment policies, possible tax incentives and other appropriate measures;










35.


points out that young people, by virtue of their inherent ability to innovate and network, are a key resource and should be considered as such by businesses, organisations and public bodies. The added value of an apprenticeship lies in the fact that the apprentice, once trained, can become an active resource for the business, organisation or public body concerned, which therefore has an interest in continuing to work with him;










36.


hopes that in the near future European countries will adapt their education systems in line with the changing realities in the global labour market. The main indicator for assessing education - the schooling rate - does not adequately fulfil its role. The Committee therefore calls for the identification of new, more effective means of assessing education policy. It is recommended that the goals of higher education be redefined and the measurement, monitoring and financing system be adapted to market needs;










37.


agrees that there is a lack of skills to meet the requirements of tomorrow's labour market and therefore welcomes the proposal for an EU skills panorama. This must, as quickly as possible, lead to full recognition of qualifications and skills, which is a necessary step to ensuring a genuine single labour market in the European Union;










38.


stresses that the future European Skills Passport must not constitute "downward" standardisation, but should enable the practical skills (manufacturing, crafts, etc.) in which our different regions excel to be valued and should thus, ultimately, promote meritocracy;










39.


recognises the current lack of interaction between the world of education and the world of work, and therefore proposes making it easier for students to gain work experience by means of the above-mentioned apprenticeships, but also through training programmes in schools and universities carried out directly by professionals;










40.


proposes that specific exchange programmes be created between public officials and businesses so as to bridge the gap between the civil service and the needs of business, facilitating mutual understanding and the learning of best practice;










41.


also suggests facilitating further training (through appropriate programmes co-financed by European funds) of workers;










42.


considers it important to encourage forms of self-employment and individual enterprise, giving special attention to start-ups by young people. This could be a more efficient way of using resources that would otherwise be spent unproductively (costs of early retirement or unemployment benefits);










43.


agrees that it is necessary to promote measures to foster a European labour market by making it easier for EU citizens and workers to move across borders, by removing fiscal barriers, exporting unemployment benefits and making pension rights transferable;










44.


believes that fulfilling obligations towards mobile workers and defending their rights should continue to be priorities for the EU so as to ensure proper mobility within the single market. With this in mind, the SOLVIT assistance service could be integrated among the services of the Enterprise Europe Network (EEN) so as to bring employers and workers closer to a one stop shop for European issues;










45.


welcomes the proposal to improve EURES, not least by introducing a Match and Map service providing a clear geographical overview of offers. On that subject, the Committee draws attention to the national and regional role of job agency schemes and suggests that these be better integrated with the Enterprise Europe Network (EEN), the regions and Chambers of Commerce (which have the advantage of strong links with the business world and of being aware of its needs and problems);










46.


calls on the Commission to avoid duplication by mapping the existing studies that match demand and supply in national labour markets. Exchange and coordination of these data could be key to effective internal mobility within the EU. With this in mind, the Committee draws attention to the Excelsior study, carried out by the Italian system of chambers of commerce;










47.


welcomes the launch of a consultation by the end of 2012 on economic migration and suggests that the issue of circular migration be studied with particular attention and that harmonisation of national rules be encouraged;





Enhancing EU governance







48.


favours greater coordination of European governance and emphasises the key role of regional and local authorities, in accordance with the subsidiarity principle;










49.


supports the proposal that a publication containing employment indicator benchmarks be produced each year: such a system should cover not only national labour markets, but also regional ones down to NUTS 2 level so that solutions can be found that better reflect the different situations;










50.


hopes that the future European System of Accounts (ESA2010) will be able to collect more regional statistics at NUTS 2 level so as to provide concrete indicators with a view to improving the governance of the European Union and making different levels of government accountable;










51.


agrees that it is necessary to introduce measures to track progress made in the implementation of national job plans, provided that these are not accompanied by possible sanctions with a regional or local impact;





Annex - A Set of Key Employment Actions for the Green Economy







52.


considers it essential to arrive at an unambiguous definition of "green jobs", i.e. eco-friendly and sustainable jobs. To achieve this, indicators must be developed that will become the sole European method of measurement;










53.


proposes that regional and local authorities be involved more closely in framing policies to incentivise "green jobs" within national job plans;










54.


suggests that the case be considered for developing the concept of environmental and sustainable development metadistricts (a form of cluster which is not tied to geographical proximity of companies but which, thanks to new technologies, allows for cooperation and, at the same time, the competition that underpins the success of industrial areas) so as to provide an institutional basis and recognition for green economic activities;










55.


considers that all the instruments used (at European, national and regional level) to supply the necessary information on the future green skills required by the market should be coordinated with and complement each other so as to avoid needless waste of resources and duplication;










56.


is appreciative of the information and dissemination activities performed by programmes such as Intelligent Energy Europe;










57.


welcomes the cooperation with the EIB and, in particular, suggests beefing up the ELENA programme so as to help regional and local authorities to mobilise the necessary financial resources for sustainable and renewable energy programmes;










58.


totally agrees that the ESF and ERDF funds should be the main instruments for promoting the development of new skills and professional development;










59.


nonetheless considers that innovative use of these funds should be encouraged, promoting training that also provides for international mobility so that it can be carried out where best practices in environmental sustainability are recognised;










60.


considers that the proposal to promote green investment under the Progress microfinancing facility is interesting, but does not understand the need to promote a "stakeholders' forum";










61.


proposes, instead, that the financial intermediaries operating within the Progress programme be incentivised to favour eco-friendly projects;










62.


recognises the importance of partnerships as a means of putting the principle of multilevel governance into practice, and encourages their use;










63.


considers it important to promote wide strategic coordination between employment services and to try to reduce the differences that exist between Member States. The Committee hopes that the PARES instrument will fulfil this purpose;










64.


welcomes the exchange of good practices, including the issue of an appropriate manual, provided that such exchanges are followed up with concrete action;





Annex - An Action Plan for the EU Health Workforce







65.


fully agrees with the proposal to improve health workforce planning and forecasting in the European Union;










66.


hopes, however, that the European platform of Member States will quickly succeed in aligning courses of study, thus cutting red tape and facilitating the movement of health workers within the EU;










67.


therefore asks that the drafting of guidance on the exchange of education and training capacities in health professions be brought forward to 2013, as mapping of capacities should just precede the drafting of the guidance;










68.


has doubts about the proposal to create a European Skills Council on nursing and care workers and about the establishment of a pilot Sector Skills Alliance, as it does not see the added value of these proposals;










69.


considers that the proposed European platform of Member States could adequately meet the need for a mechanism to map skills in the various Member States and establish the minimum requirements for the training of healthcare workers, including that of nurses and carers;










70.


welcomes the intention to map best practice in recruitment and retention of staff, but considers it essential that this be done at minimum cost. For this reason, it proposes, as a first step, that a consultation on the matter be launched and that an assessment then be made (on the basis of the results of the consultation) of whether other forms of research are needed;










71.


points out that when recruiting healthcare operators, undeclared work must be discouraged, especially as regards those who provide care at home;










72.


considers it necessary that the WHO code of conduct be applied in a uniform manner across the European Union. However, given the non-binding nature of that code, more information is needed on what measures could be taken to ensure that it is applied;





Annex - A Set of Key Actions for ICT Employment







73.


welcomes the proposal to set up stakeholder partnerships involving ICT market operators, chambers of commerce, public bodies and research bodies to organise training initiatives on the skills that the market needs;










74.


considers that, in addition to supporting a campaign to raise awareness of and promote ICT careers amongst young people, it is also necessary to promote investment in this sector more widely (given that the European Commission's analysis shows that this investment boosts productivity), boosting its competitiveness through the use of appropriate methods which respect the differences between Member States (e.g. clustering);










75.


suggests that measures to help start-ups be used to promote employment in the ICT sector. Such measures could include the creation of incubators in science and technology parks (where new high-tech businesses could be concentrated by means of favourable conditions, thus creating a propitious atmosphere and synergies amongst those businesses) and direct investment by regional financial institutions (which, by providing risk capital to a start-up for its first years of activity, could make its funding simpler and more secure and make up for the absence of private venture capital);










76.


suggests, given that the ICT sector is young and is expanding naturally in response to market-led changes, that support activities include training for workers over 55, with particular attention to the public sector where slow turnover has significantly raised the average age of staff, thus slowing the deployment of new information and communications technology in the provision of services;










77.


welcomes the development of the European e-Competences framework, and stresses the need for greater coordination with other similar schemes (such as the ECDL) to avoid duplication;










78.


welcomes the willingness to fund a pilot providing a landscape of certifications, provided that this project is used as a first step towards standardising certifications;










79.


accepts the view that the ESF should be the primary source of funding for the implementation of these policies, but points out that, if tangible results are to be achieved, it is better to target expenditure.





Brussels, 1 February 2013.


The President of the Committee of the Regions

Ramón Luis VALCÁRCEL SISO





(1)  CdR 648/2012, COTER-V-24.