Transcript 1. Easing labour market transitions and supporting vulnerable

EU policy response to the
crisis
ILO Thematic Dialogues
Geneva, 4 June 2009
Robert Strauss, DG EMPL. D2
European Employment Strategy, CSR, Local Development
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
European Economic Recovery Plan Nov. 2008
Boost demand, coordinated fiscal stimulus ,1.5%
GDP (€200B)
Accelerate structural reforms (as set out in Lisbon
Strategy) to create an innovative, highly skilled, low
carbon economy to ensure emerging stronger from
crisis
Current forecasts: GDP decline 4% 2009, stabilising
2010; unemployment rising 2009-10 reaching 11%.
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
2
Outcomes so far
 Coordinated fiscal stimulus 1.8 % of GDP (0.3% at
EU level, structural funds, EIB…). Automatic
stabilisers add further demand boost.
 Member States are stepping up labour market
measures, supporting vulnerable groups, often with
European Social Fund support.
 Infrastructure investments figure prominently.
 Some measures to make business easier, especially
for SMEs.
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
3
Fiscal stimulus
 40% (€ 80 B) spent on short term measures to
save or create jobs.
 35% (€70 B) increased payments for unemployed
and vulnerable groups.
 25% (€50 B) long term: innovation, greening the
economy.
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
4
1. Easing labour market transitions and
supporting vulnerable groups
 Temporary short time working arrangements






Upgrading skills and new training opportunities
Modernisation of public employment services
Increased funding for ALMPs
Lowering taxation and social security contributions
Tax relief for specific groups of workers or industries
Support for vulnerable groups including integrated
social welfare packages.
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
5
2. Strengthening infrastructure and the
business environment
 Smart (only in part) investments in infrastructure.
 Specific support for construction sector and housing
market functioning
 Cutting red tape
 Easing access to finance
 Other measures to support firms
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
6
3. Investing in a greener and more knowledge
based economy
 Tax breaks or scrapping premiums for environmentally-
friendly cars
 Financial incentives for investment in energy saving
materials or green technologies.
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
7
4. The European dimension
Frontloading of Structural Funds
Expanded European Globalisation Fund
Enhanced European Investment Bank activity
Increased trans-European energy inter-connections and
broadband infrastructure projects
Temporary framework for State aid measures to support
access to finance
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
8
Conclusions
European Council 18 June 2009
Communication “A Shared Commitment for Employment”
between the European Union, its Member States and EU
social partners
Specific actions for
Maintaining employment, creating jobs, promoting mobility
Upgrading skills and matching labour market needs
Increasing access to employment
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
9
“The main impact of the recession is on people: the top
challenge for the EU today must be to prevent high levels of
unemployment, to boost job creation and pave the way for
economic renewal, sustainable recovery and growth. This will
only be achieved with stronger cooperation between all
stakeholders, better policy coordination and mutual learning,
i.e. with a shared commitment to develop and implement the
right policies and actions: to preserve sustainable jobs in
sound economic activities and help people into productive
employment; to support the most vulnerable; and to prepare
for the jobs and skills of the future. “
Directorate-General Employment, Social Affairs and Equal Opportunities
European Commission
10