Spring Council and tripartite social summit held

The European Council's annual spring meeting on economic and social matters was held in March 2004. A wide-ranging discussion on the employment and social situation in the EU was held, in the context of progress towards achieving the goals of the Lisbon strategy. The Council was preceded by a 'tripartite social summit', at which the EU-level social partners set out their views and presented reports detailing their actions in the areas of employment and competence development over the previous year.

The annual spring European Council meeting to discuss the Lisbon strategy and the economic, social and environmental situation in the European Union was held in Brussels on 25 and 26 March 2004. The Lisbon strategy was devised by the European Council in March 2000 (EU0004241F), setting a number of concrete targets in the area of employment policy, to be achieved by 2010. The Stockholm Council of March 2001 (EU0104208F) complemented this by setting intermediate targets, to be reached by 2005.

A 'tripartite social summit' was held on 25 March 2004, the eve of the spring European Council.

Tripartite social summit

A formal 'tripartite social summit' was held for the first time in 2003 (EU0304201N), institutionalising a previously informal arrangement. Informal social summits had been held on the eve of the annual spring European Council meeting on economic and social issues in Stockholm in March 2001 and in Barcelona in March 2002 (EU0203205F). The decision to formalise the arrangement followed a call made by the social partners in their joint contribution to the Laeken European Council in December 2001 (EU0112262F) for a 'concertation committee on growth and employment' to be established. The tripartite social summit for growth and employment was formally established by a Council Decision of 6 March 2003.

The 2004 tripartite social summit was attended by representatives of the European Trade Union Confederation (ETUC), the Union of Industrial and Employers’ Confederations of Europe/European Association of Craft and Small and Medium-sized Enterprises (UNICE/UEAPME) and the European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest (CEEP). They met the current President of the Council - the Irish Prime Minister, Bertie Ahern - and the President of the European Commission, Romano Prodi, to take stock of the implementation of the Lisbon strategy. They also presented their contributions to the spring Council, in the form of: a second annual report on the implementation of the social partners’ 2002 agreement on a joint framework of actions for the lifelong development of competencies and qualifications (EU0204210F); and a first report on social partner initiatives in Member States that are relevant for implementation of the European employment guidelines.

Second annual report on lifelong development of competences and qualifications

The social partners presented their second annual report on the lifelong development of competences and qualifications. Under their joint framework of actions in this area, they are committed to drawing up each year a report on the national actions that have been undertaken to address four priority action areas:

• to identify and anticipate competences and qualifications needs;

• to recognise and validate competences and qualifications;

• to inform, support and provide guidance; and

• to mobilise resources.

The first annual report was issued in March 2003 (EU0306205F). The second report finds that the social partners in all Member States have intensively debated the four abovementioned issues. In general, it states that the lifelong development of competences and qualifications has featured prominently in debate in all Member States. The form of the debate varies, reflecting the different national practices and traditions of dialogue. Tripartite activities have taken place in several countries, in the form of social partner involvement in the design of public bodies on education and training, their participation in advisory bodies and their inclusion in the drawing up of legislation in this area.

Bipartite activities in Member States in 2003 were less concerned than they were in 2002 with dissemination of the framework of actions and more focused on developing new avenues for competence development at all levels. The means used to effect this included collective agreements, joint projects, the establishment of discussion fora and/or foundations, and the development and promotion of concrete tools to help companies develop their learning activities for their employees and to encourage and enable employees to take part.

The report also gives a detailed overview of specific actions carried out in each of the Member States during 2003, at all levels, and provides examples of good practice.

After three annual reports, the social partners will evaluate the impact on both companies and workers, leading to a possible updating of the joint framework's priorities.

Report on social partner actions to implement employment guidelines

The social partners also presented a report on the actions that were undertaken by the social partners during 2003 to implement the EU’s employment guidelines in individual Member States. It notes that the social partners have contributed actively at EU and national levels to both the definition and the implementation of the European employment strategy (EES). In their joint multiannual work programme for the period 2003-5 (EU0212206F), they agreed to report on social partner actions in Member States which are relevant for implementation of the European employment guidelines. The new report was drawn up in the context of this commitment.

The report briefly describes how the national social partners were [involved](/search/node/eiro OR thematicfeature5?oldIndex) in preparation of the 2003 national action plans (NAPs) for employment in each Member State - these plans are a central element of the EES. It also provides an overview of the main joint and unilateral initiatives

The report notes that the social partners were usually consulted by Member State governments during the preparation of the NAPs. In most countries, employers and trade union organisations submitted separate comments (Italy, Portugal, Spain, Netherlands and the UK), whereas in others (Belgium, Denmark and Sweden) joint social partner contributions were included as an integral part of the NAP. In Germany, Greece and Portugal, the involvement of social partners improved in comparison with previous years, according to the report.

The document goes on to state that, in terms of quality, the consultation was seen as 'too superficial' in many cases. In Austria, the social partners criticised an absence of discussions with government; in Denmark, they perceived a lack of in-depth discussions on policy content; and in Belgium, Finland and the Netherlands, they claimed that there was insufficient time for consultation.

The issue of governance and partnership in implementation of the guidelines was addressed in the reports of four countries - Spain, Denmark, Sweden and Italy. In Spain, this related to management of employment policy at territorial level; in Denmark it related to social partner involvement in regional and local bodies dealing with labour market policy; in Sweden it related to strengthening local partnerships in implementing the European employment guidelines; and in Italy it related to stronger involvement of the regions.

Bipartite and tripartite initiatives aimed at supporting employment and economic development through a comprehensive set of measures were reported at national level or regional level in six countries.

The social partners will issue their next report in 2005, providing an overall picture of social partner actions to implement the European employment guidelines in 2004. Following enlargement of the EU on 1 May 2004, this next report will also include national reports by the social partners in the 10 new Member States. The 2005 report will also seek to give an insight into national social partner initiatives that are relevant for the recommendations specifically addressed to their country.

Spring Council

The annual spring European Council was held in the two days following the tripartite social summit. The general message from the 2004 Council, contained in its conclusions is that the employment targets set at Lisbon are 'ambitious' and that the current picture is mixed. Overall, considerable progress towards achieving these targets has been made, but the pace of reform in the EU needs to be significantly stepped up if the 2010 targets are to be achieved (EU0402204F).

In general, the 2004 Council focused on the issues of sustainable growth and 'more and better jobs'.

Sustainable growth

The Council stated that the main economic challenge facing the EU is how to realise its growth potential. Competitiveness, innovation and the promotion of an entrepreneurial culture were emphasised by the Council as being essential for the whole economy and particularly for small and medium-sized enterprises (SMEs). It also noted that the potential of the internal market is not yet fully realised and that efforts must continue to achieve a smoother functioning of product, services, capital and labour markets. In particular, more competition is required in the services sector to improve efficiency, increase output and employment, and benefit consumers.

Research and development was highlighted as an area of particular focus, with the Council stating that progress must be accelerated towards creating a 'European area of knowledge'. In particular, business investment in research and development should be encouraged. The Council called on Member States to improve the general conditions for research and development investment and to consider targeting support and incentives to encourage greater investment on the part of businesses. It noted further that human resources are critical for research and development and that priority must be given to training, retention and mobility of researchers.

Finally, the Council stated that a high level of social cohesion is central to achieving the Lisbon aims. Therefore, strategies that make a decisive impact on social exclusion and on the eradication of poverty must be reinforced. Modernising social protection systems - in particular pension and healthcare systems - and mainstreaming the social inclusion agenda also play a key role in this. The Council also stated that gender equality policies are instruments of social cohesion as well as of growth.

More and better jobs

Creating more and better jobs was highlighted as the most urgent issue to be addressed over the coming year. In particular, the Council stated that 'it is imperative that the EU reduce its current unacceptably high overall unemployment rate'. The Council highlighted four key structural challenges that EU Member States should work towards meeting. These are:

• adaptability. This includes reducing non-wage labour costs, where appropriate, ensuring that wages better reflect productivity and promoting flexible forms of work while ensuring that workers have adequate security;

• attracting more people into the labour market. This includes ensuring that the interaction between taxes and benefits is such that working brings a clear financial reward. Specific strategies should also be developed to increase the employment rates of women and older workers;

• improving the quality of employment; and

• investing in 'human capital'. This is seen as critical to growth and productivity and to the promotion of social integration and inclusion. Investment in education and training is vital in this regard and the Council underlined a need for reform and investment in key areas. It also recognised that lifelong learning has positive effects on productivity and labour supply and supported the adoption of an integrated EU programme in this area during 2005 and the putting in place of national strategies in all Member States by 2006.

A review of progress in achieving the goal of creating more and better jobs will be made over the coming year. The spring 2005 European Council will undertake this review, paying particular attention to the extent to which national actions have boosted progress towards the Lisbon goals.

The enhancement of the free movement of workers is seen as central to the development of the EU. The Council therefore encouraged progress in areas that will promote mobility. These include the development of a European health insurance card, which will come into force in June 2004. Further, a Directive on the mutual recognition of professional qualifications should be the subject of political agreement in June 2004. Finally, the reform of Regulation 1408/71, which simplifies and modernises the provisions protecting the social security rights of workers moving within the Union, was characterised as a significant step, which is expected to be finalised 'within the lifetime of the current European Parliament', ie by June 2004.

Mid-term review of the Lisbon agenda in 2005

2005 will mark the half-way point of the Lisbon agenda and will be the occasion of an in-depth review of progress towards achieving its goals. This review should also consider how the Lisbon targets can best be met, particularly in the light of EU enlargement.

The European Council invited the Commission to establish a high-level group, headed by the former Dutch Prime Minister, Wim Kok, to carry out an independent review to contribute to this exercise. The group should be made up of a limited number of highly qualified individuals able to reflect the views of all stakeholders. Its report will be submitted to the Commission by 1 November 2004. The Commission and the Member States will then consider its content in preparation for the spring 2005 Council.

Commentary

The 2004 annual spring European Council assessed the performance of the EU’s labour markets in progressing towards achieving the employment targets set by the Lisbon strategy. It is clear, that while much progress has been made in many areas, more remains to be done if the EU is to meet these targets. The 2005 mid-term review of the Lisbon strategy will provide a clearer picture of progress and will also ascertain whether Member States have hit the intermediate targets for 2005.

The contribution of the EU intersectoral social partners to this whole process is now much more formalised than was previously the case. Their participation in a tripartite social summit on the eve of the Council, at which they can put forward their views to the Presidents of the Council and the Commission, is an indicator of the vital role they play in the process of implementing and reviewing the European employment strategy. They are also making concrete contributions to the process in the form of the presentation of reports on their actions in the area of the lifelong development of competences and qualifications and the implementation of the EES in individual Member States. (Andrea Broughton, IRS)