European Employment Stategy

Table of contents

Introduction

1. The European employment strategy (EES)
1.1. The development of the EES
1.1.1. The history of European Employment Strategy
1.1.2. Reasons for the establishment of the EES
1.2. The main features of the EES
1.2.1. The course of action
1.2.2. The reforms of EES in 2003
1.3. The theoretical background
1.3.1. Integration theories
1.3.2. The Open Method of Co-ordination (OMC)
1.3.3. The principles of the EES process
1.4. Assessment of the value of EES and OMC for the European Integration process

Literature

Appendix

Introduction

The following essay is designed to give an overview over the development and the main features of the European Employment Strategy (EES). Furthermore it explains in brief the theoretical background of EES, mainly the open method of co-ordination (OMC).

Finally there will be an short assessment of the value of EES and OMC for the European Integration process in social matters and in general.

1. The European employment strategy (EES)

1.1. The development of the EES

1.1.1. The history of European Employment Strategy

As a base for the development of European strategies on employment is considered the “Delors´ White Book” on Growth, Competitiveness and Employment from 1993, which for the first time drew the same attention to employment issues as to economic growth. In Maastricht in 1993 there had already been established a macro-economic co-operation, but which did not focus on the structural problems of labour markets. (European Commission, 2003a, p.1) Until the European Council of Essen the co-operation between the Member States on labour market issues was purely intergovernmental with the Commission promoting and giving technical support. (European Commission: 2003a, p.1/2)

In Essen in 1994 the European Council agreed on five key objectives to be pursued by the Member States, such as the development of human resources through vocational training. These objectives were accompanied by a number of recommendations and conclusions. Although the political commitment to the issues of employment became definitively stronger, still an clear legal base, a permanent structure and a long-term vision was missing. (European Commission: 2003a, p. 2)

This changed with the Treaty of Amsterdam in 1997. Here, a new title for employment was introduced into the Treaty. The responsibility of the Member States for employment policy remains untouched, but the role of the European institutions especially of the Council and the Commission is much stronger now. Furthermore the goal of high level of employment gains through its introduction into Art. 2 of the Treaty of the EU (TEU) the same importance as the macro-economic objectives of growth and stability. Moreover employment is emphasised as an issues of common concern. The Luxembourg Jobs Summit in the end of 1997 launched on the basis of Art. 128 EC the EES in its current form, also called Luxembourg-process. (European Commission: 2003a, p. 2)

It established a new method a European policy, the open method of co-ordination (OMC), which is now used in about ten policy fields for instance in health policy. Employment policy is the field where it is most developed at the moment. (Goetschy: 2003, p. 282)

The Lisbon Council of March 2002 set full employment as an overreaching long-term goal for in the form of ambitious targets for employment rates for 2010. (European Commission: 2002)

Two reports on the functioning and impact of the EES were carried out by the Commission, in 2000 and 2002. Both proved the worth of the EES, but also showed some shortcomings. The Barcelona Council in March 2002 therefore called for a reinforced EES. In January 2003 the Commission issued an outline for a revised strategy, which in summer 2003 lead to a revision of EES. (European Commission: 2003a, p. 2)

1.1.2. Reasons for the establishment of the EES

The EES can be seen as an answer to the rapid economic integration of the EU. Through a common economic and monetary policy (EMU) on the one hand some important employment tools, such as adjusting national interest rates became obsolete. On the other hand the tools at EU-level proved to be insufficient.

Moreover unemployment was and still is a problem and phenomenon which relates to all Member States. Phenomenon, because it is to a large extent not economic, but structural, which cannot be decreased by an upward economic trend.

But shifting the issue of employment to the EU-level appeared to be difficult, due to the lacking will of some Member States to confer powers to the EU level and the great diversity of national labour market systems. Due to this great diversity it seemed to be unlikely that the problems could be solved by an overall European employment policy. (Lesch: 2000, p. 11)

The method of the EES seemed to be the last resort in this situation.

It was also meant as a political response to the euro-scepticism, which emerged in the mid-90ies. The EMU needed to include more than just economic measures to gain support from the people. At the same time countries outside the EMU as Sweden and Denmark, which are traditionally strong in their national social policy, needed progress on employment issues to convince there citizens of the Amsterdam Treaty. (Goetschy: 2003, p. 283/284, 294)

Before the European Community only had competence in particular areas for instance under the title XI on Social Policy, such as the improvement of working conditions and equal treatment of men and women at workplace. But all the measures were just focused on particular cases or groups of persons, particular projects or regions. (Maurer: 2000, p. 88)

1.2. The main features of the EES

1.2.1. The course of action

The EES is regulated in the title VIII on employment of the Treaty establishing the European Community (EC).

The core element of the title is the so-called Luxembourg process laid down in Art. 128:

The Council and the Commission annually issue a joint report on the employment situation in the Community, which is forwarded to the European Council.

The European Council then adopts conclusions thereon.

As next step the Council draws up employment guidelines after consultation of the European Parliament (EP), the Economic and Social Committee, the Committee of Regions and the Employment Committee.

The Employment Committee is a under Art. 130 newly founded Committee, which is supposed to monitor employment and employment policies in the Community. Each member state and the Commission appoint two members.

The employment guidelines of 2003 contain one general and ten specific guidelines.

The general guideline aims at “A European Strategy for full employment and better jobs for all”. It sets clear objectives to be reached until 2010 in employment rate, in particular of women and older workers over 55 years. Further objectives are “improving quality and productivity at work” and “strengthening social cohesion and inclusion”. (Council: 2003)

There are 10 specific guidelines: active and preventative measures for the unemployed and inactive, job creation and entrepreneurship, address change and promote adaptability and mobility in the labour market, promote development of human capital and lifelong learning, increase labour supply and promote active ageing, gender equality, promote integration of and combat the discrimination against people at a disadvantage in the labour market, make work pay through incentives to enhance work attractiveness, transform undeclared work into regular employment, address regional employment disparities. (Council: 2003)

The guidelines also state the important role of social partners, parliaments and local levels for the implementation process. (Council: 2003)

On the basis of these guidelines the Member States shall work our National Action Plans (NAP).

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