Transcript Adaptability in the EES

The European Employment Strategy
within the new Lisbon agenda
Boosting Growth and Jobs in Europe
Safeguarding the European social model
Guido Vanderseypen
Employment Strategy Unit, DG Employment, Social
Affairs & Equal Opportunities, European Commission
CICERO FOUNDATION – PARIS – 24 FEBRUARY 2006
Commission européenne
-1-
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
Commission européenne
-2-
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)
Commission européenne
-3-
EU performance 1999-2004 (US=100)
100
80
60
86,3
40
64,2
90,6
80,7
81,5
92,1
87,5
1999
2004
64,6
20
0
GDP per capita
Employment rate (1)
Hours worked per worker (2) (3)
Hourly labour productivity (3)
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 productivity
4) 2004: forecasts
Commission européenne
-4-
R&D expenditure as % of GDP
(US:2.8%; target : 3%)
4,5
Target 2010 (CY, LV 2008; IE 2013; UK 2014) - NL, PL aim at a 'top 5' position
2004 (ES, IT, LU, PT, UK 2003)
4,0
3,5
>3%
3,0
2,5
2,0
1,5
1,0
0,5
0,0
BE
CZ
DK
DE
EE
GR
ES
FR
IE
IT
CY
LV
LT
LU
Source: Eurostat, Structural Indicators, Innovation & Research - OECD
Commission européenne
HU
MT
NL
AT
PL
PT
SI
SK
FI
SE
UK
EU25
-5-
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
Commission européenne
-6-
Lisbon 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
Commission européenne
-7-
The European Employment Strategy
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
 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
Commission européenne
-8-
Overview of employment
performances (1997-2002)
•
Lower structural rates of unemployment, long-term
unemployment and spells of unemployment
•
Growth in employment creation (+6 million jobs 19972002) 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)
Commission européenne
-9-
Over-arching objectives of the EES
since 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
Commission européenne
-10-
Does the EES work ? (recent evidence > 2002)
•
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
Commission européenne
-11-
Employment rates EU
Pace of progress
since 1997
Rates
in 2004 (%)
Low
Close to average
High
DK, SE, UK, NL
> 70
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
Commission européenne
-12-
Weaknesses of original Lisbon
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
Commission européenne
-13-
The renewed Lisbon Strategy
(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
Commission européenne
-14-
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)
Commission européenne
-15-
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
Commission européenne
-16-
The EES and Lisbon II
Lisbon
Macro-economic policy coordination
stability and growth pact, monetary policy
Sustainable
Development
Strategy
Micro-economic reforms
industrial policy, innovation and R&D, reforms
in product, service and financial markets
Employment policy coordination
attracting more people, adaptability of workers
and enterprises, investment in human capital
EES
Coordination on
social protection
& social inclusion
 The Lisbon Strategy initiated a comprehensive set of
structural reforms. The EES is the employment pillar.
Commission européenne
-17-
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
Commission européenne
-18-
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)
Commission européenne
-19-
Follow up actions (1) – « Hampton Court »
• 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
Commission européenne
-20-
Follow up actions (2) – delivering jobs…
• 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)
Commission européenne
-21-