Commission européenne 1 -1- The European Employment Strategy within the new Lisbon agenda Boosting...

Commission européenne--11--

The European Employment Strategy The European Employment Strategy within the new Lisbon agendawithin the new Lisbon agenda

Boosting Growth and Jobs in EuropeBoosting Growth and Jobs in EuropeSafeguarding the European social modelSafeguarding the European social model

Guido Vanderseypen

Employment Strategy Unit, DG Employment, Social Affairs & Equal Opportunities, European Commission

CICERO FOUNDATION – PARIS – 24 FEBRUARY 2006


European social model under debate

• EU provides a platform of fundamental rights and common values

• Key features of European Social Model(s) : solidarity principle => high public expenditure

national diversity => legislation, social dialogue, OMC

• Financial sustainability threatened by demographic trends, global competitive pressure => need for stronger financial basis (growth and jobs)

Need for labour market reforms


The need for reform increasingly recognised

• Unemployment at a socially unacceptable level

• EU lagging behind in terms of GDP per capita, employment and productivity

• Industrial restructuring gathering pace

• Low innovation record and job creation

• Workforce will decline (~ 2015)


EU performance 1999-2004 (US=100)

64,2

86,3 80,792,1

64,6

90,681,5 87,5

0

20

40

60

80

100

GDP per capita Employment rate (1) Hours worked per worker (2) (3) Hourly labour productivity (3)

1999

2004

1) Calculated - Employment rate = 100 * (GDP per capita / Labour productivity per person employed)2) Calculated - Hours worked per worker =100 * (Labour productivity per person employed / Hourly labour productivity)3) EU15 values for Hours worked per worker and Hourly labour productivity4) 2004: forecasts


R&D expenditure as % of GDP (US:2.8%; target : 3%)

>3%

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

BE CZ DK DE EE GR ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK EU-25

Target 2010 (CY, LV 2008; IE 2013; UK 2014) - NL, PL aim at a 'top 5' position 2004 (ES, IT, LU, PT, UK 2003)

Source: Eurostat, Structural Indicators, Innovation & Research - OECD


The case for EU policy coordination

• Single market / EMU• synergy between growth and employment (GSP)• EU financing (ESF 2000-2006 €6.3 bln)

However :• Treaty limitations (limited regulatory power)• Subsidiarity and diversity of social systems

=> Europe is only part of the solution


Lisbon AgendaLisbon Agenda

Lisbon objective (2000) : “to become the most

competitive and dynamic knowledge-based conomy in

the world capable of sustainable economic growth with

more and better jobs and greater social cohesion”

=> Several new OMC’s since 2000


The European Employment Strategy (EES) has coordinated

Member States' employment policies since 1997 through:

• common European guidelines and recommendations

• annual national action plans for employment

• monitoring, evaluation at EU level

• mutual learning / peer review

The European Employment Strategy The European Employment Strategy

A policy coordination ramework which complements EU

action in the field of employment (cf. legislation, social

dialogue and the European Social Fund) see http://europa.eu.int/comm/employment_social/index_en.htm


Overview of employment Overview of employment performances (1997-2002)performances (1997-2002)

• Lower structural rates of unemployment, long-term unemployment and spells of unemployment

• Growth in employment creation (+6 million jobs 1997-2002) and employment rates (esp. women)

• increased «resilience» of employment (even after 2001)

• Clear shifts in taxation on labour, gender equality

• New paradigms (quality in work, lifelong learning, segmentation)


Over-arching objectives of the EESsince 2003

• increasing employment rates by 2010

overall employment rate : 70%

female employment rate : 60%

employment rate 55+ : 50%

• increasing productivity and quality of jobs

• social inclusion and territorial cohesion


Does the EES work ? (Does the EES work ? (recent evidence recent evidence > > 20022002))

• Continued improvement in female employment

• Decline in employment of 55+ curbed

• Proved effectiveness of ALMPs under conditions

• Reversal of unemployment and inactivity traps

• Visible improvement in LLL performance

• Widening of productivity gap halted


Employment rates EU

Pace of progress since 1997

Rates in 2004 (%)

Low Close to average High

> 70

DK, SE, UK, NL

65-70

AT CY, DE, PT, FI, SI IE

< 65 CZ, EE, LT, MT, PL, SK

BE, EL, HU, FR, LU,

LV

ES, IT

Explanation: Pace of progress is defined as the percentage point change in the employment rate between 1997 and 2004: a) Low progress: the employment rate increased below the EU25 average minus half of the (un-weighted) standard deviation b) Close to average: the employment rate increased inside a band of one standard deviation centred on the EU25 average c) High progress: the employment rate increased above the EU25 average plus half of the (un-weighted) standard deviation


Weaknesses of original Lisbon Weaknesses of original Lisbon Strategy (LISBON I)Strategy (LISBON I)

• ca. 10 parallel OMC's with parallel reporting ("burocracy")

• Too many priorities and targets, sometimes conflicting or

overlapping

• Lack of national ownership (EU level targets) and

communication about the benefits of reforms

Need to establish a new partnership with MS based on a

simpler reporting system and greater ownership


The renewed Lisbon Strategy The renewed Lisbon Strategy (LISBON II)(LISBON II)

• aimed at better implementation (national and EU partnership)

• focus on growth and jobs => integration of Treaty based

processes (BEPGs and EGs)

• 3 year stability

• single reporting (National Reform Programmes) reviewed annually

• Community Lisbon Programme (20 July 2005), setting out action

at EU level (Financial Framework 2007-'013, Innovation Action Plan,

better regulation – e.g. state aid -, Services directive)

http://europa.eu.int/growthandjobs/index_fr.htm


Broad Economic Policy Guidelines (2005-'08)Broad Economic Policy Guidelines (2005-'08)

16 Guidelines covering inter alia• sound public finances (Growth Stab. Pact)• sustainable pension and public health services• public finances reoriented to employment • wages in line with macro economic stability• increase R&D investment to 3% of GDP• facilitate innovation, and use of ICT• reduced administrative burden• promotion of entrepreneurship• European infrastructure (Internal Market)


The new Employment Guidelines (2005-2008)The new Employment Guidelines (2005-2008)(17) To implement employment policies aimed at achieving full employment, improving

quality and productivity at work, and strengthening social and territorial cohesion

ATTRACT AND RETAIN MORE PEOPLE IN EMPLOYMENT, INCREASE LABOUR SUPPLY AND MODERNISE SOCIAL PROTECTION SYSTEMS

(18) To promote a lifecycle approach to work(19) To ensure inclusive labour markets for job-seekers and disadvantaged people(20) To improve matching of labour market needs

IMPROVE ADAPTABILITY OF WORKERS AND ENTERPRISES

(21) To promote flexibility combined with employment security and reduce labour market segmentation

(22) To ensure employment-friendly wage and other labour cost developments

INCREASE INVESTMENT IN HUMAN CAPITAL THROUGH BETTER EDUCATION AND SKILLS

(23) To expand and improve investment in human capital(24) To adapt education and training systems in response to new competence requirements


The EES and Lisbon IIThe EES and Lisbon II

The Lisbon Strategy initiated a comprehensive set of

structural reforms. The EES is the employment pillar.

Macro-economic policy coordinationstability and growth pact, monetary policy

Micro-economic reformsindustrial policy, innovation and R&D, reforms

in product, service and financial markets

Employment policy coordinationattracting more people, adaptability of workersand enterprises, investment in human capital

Sustainable

Development

Strategy

Coordination on

social protection

& social inclusion

Lisbon

EES


Lisbon Strategy governance• National Reform Programmes (NRP) – first

presented in Autumn 2005• Annual Progress Report to Spring European

Council (23 March 2006)• ongoing Open Methods of Coordination

feeding in (social protection, education)• European Structural Funds programming

(2006)• NRP updates in Autumn 2006


Results of the first Lisbon "round"• Member States have drawn up NRPs with

clear priorities and synergies

• Focus on employment participation and LLL

• Weaknesses: lack of interest for adaptability

• Mixed : partnership and budget provision

• Significant progress on the Community Lisbon programme (financial perspectives, services directive, REACH)


• increased investment in higher education (from 1.28% of GDP to 2% in 2010)

• all MS to set up "one-stop shops" to assist entrepreneurs and efforts to cut red tape by 2007

• new energy initiative• delivering jobs in the face of globalisation

and ageing

Follow up actions (1) – Follow up actions (1) – « Hampton Court »« Hampton Court »


• every young person to be offered a job, apprenticeship or training within 100 days by 2010

• greater effort to meet childcare targets

• concentrate on training for people over 45

• a new agenda on flexicurity (extraordinary social summit)

Follow up actions (2) – Follow up actions (2) – delivering jobs…delivering jobs…

Commission européenne 1 -1- The European Employment Strategy within the new Lisbon agenda Boosting...

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