Tag Archives: Financial crisis

2009 Employment in Europe Report

2009 Employment in Europe Report

Outline of the Community (European Union) legislation about 2009 Employment in Europe Report

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

2009 “Employment in Europe” Report

Document or Iniciative

Commission Report “Employment in Europe 2009” [Not published in the Official Journal].

Summary

The year 2009 has been marked by the international financial crisis, which hugely affected the labour markets, after many years of growth in employment in Europe.

Although European Union (EU) countries may have been affected in different ways, they have all experienced a decrease in job offers. The Commission observes that certain population groups are more affected by the job losses: lower-skilled young people, temporary workers and older workers.

Through the internal flexibility of companies (shorter working hours, temporary partial unemployment, etc.) and wage concessions by workers, certain countries were able to limit the job losses. However, in 2010, the unemployment rate was expected to reach 11% in the EU.

In this context, European policies have a particular role to play. They must help to preserve jobs, help people into employment and support the most vulnerable. In addition, the Lisbon Strategy cycle comes to an end in 2010, and the EU must also develop new policy priorities in order to prepare for the transition to a low-carbon “green” economy.

Analysis of labour markets

European labour markets are relatively dynamic, which indicates that job offers correspond to demand. In fact in all the EU countries, workers can change job (22% per year), return to work or leave unemployment with relative ease.

However, long-term unemployment persists for certain population groups; it continues for more than a year for 45% of people affected. The most vulnerable people are women, older and low-skilled workers. To tackle this type of unemployment, the Commission recommends recourse to appropriate employment policies, based on the principles of flexicurity.

Climate change and the development of labour markets

The EU must adopt policies aimed at developing a competitive low-carbon economy. This transition towards a green economy must have a positive impact on the labour market, specifically through:

  • the construction of new infrastructures;
  • the development of new technologies;
  • direct employment in the renewable energy sector (production, installation and maintenance);
  • the development of new service sectors.

Forecasts indicate that the sustainable development sector could create between 2.3 and 2.8 million jobs between now and 2020.

Initially, high-skilled workers will benefit from the jobs created. Education and training actions should then help to increase the general skills level in the labour markets.

The Commission also recommends the introduction of policies based on the principles of flexicurity, a respect for workers’ rights and an increase in social spending.

Finally, the Commission highlights the need to reinforce social dialogue and the assessment of labour markets.

Framework for crisis management in the financial sector

Framework for crisis management in the financial sector

Outline of the Community (European Union) legislation about Framework for crisis management in the financial sector

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: general framework

Framework for crisis management in the financial sector

Document or Iniciative

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Central Bank of 20 October 2010 – An EU Framework for Crisis Management in the Financial Sector [COM(2010) 579 final – Not published in the Official Journal].

Summary

This Communication describes the results of considerations led by the European Commission on avenues to be pursued in order to equip the European Union (EU) with a framework for crisis management in the financial sector.

Enterprises concerned and objectives of the crisis management framework

The framework for crisis management in the financial sector concerns:

  • all credit institutions;
  • certain investment firms, more particularly those whose failure might place the financial system in peril.

The aim of this framework is to ensure that the financial system is stable, even in the event of a business failure, and thus to:

  • favour prevention and preparation over risk reduction as regards the financial system;
  • prepare credible resolution tools;
  • implement fast and effective means to act;
  • reduce moral hazard;
  • contribute to a smooth resolution of cross-border groups and preserve the internal market;
  • ensure legal certainty;
  • limit competitive distortions.

Features of the crisis management framework

The framework proposed by the Commission sets out measures in the following areas of action:

  • Authorities responsible for crisis management: pursuant to the Directive on capital adequacy and the Directive on the taking up of the business of credit institutions, prudential supervisors are granted powers of early intervention. However, each Member State shall designate a resolution authority that is independent from the supervisor.
  • Preparatory and preventative measures: these measures include in particular the implementation of a supervisory programme for each supervised institution, on-site supervisory examinations, and a more detailed supervisory assessment. Intra-group liquidity management is also to be facilitated in order to preserve the financial stability of the Member States where transferring entities are established, in order to protect the rights of creditors and shareholders.
  • Triggers: a trigger for early intervention should be put in place in case a bank or investment firm cannot satisfy the requirements of the Capital Requirements Directive or requirements relating to the take up of the business of credit institutions.
  • Early intervention: this type of measure provides for the widening and clarifying of supervisors’ powers. Banks and businesses would be obliged to present a plan enabling the institution to recover in the event of financial difficulties.
  • Resolution: the Commission insists on the need to reform legislation on bank insolvency in order that failing banks may benefit from liquidation proceedings.
  • Debt write-down: this involves allowing an institution in difficulty to continue its activities or to cease some of them in order to limit risks of ‘contagion’ to other institutions.

Cross-border crisis management

The Commission considers that cross-border crisis management should take place by means of a coordination framework based on harmonised resolution tools. Supervisors would be bound to consult and cooperate through resolution colleges and group resolution schemes in particular.

Financing resolution

The Commission intends to apply the Communication on the creation of national bank resolution funds. It wishes to establish a strong link between the new resolution framework and financing arrangements. In certain Member States, deposit-guarantee schemes may finance some resolution funds.

Resolution funds should benefit from a harmonised basis for the calculation of contributions. Banks covered by the crisis management framework will contribute to such funds, in the form of shared responsibilities.

New skills for new jobs

New skills for new jobs

Outline of the Community (European Union) legislation about New skills for new jobs

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Job creation measures

New skills for new jobs

Document or Iniciative

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 16 December 2008 – ‘New skills for New Jobs: Anticipating and matching labour market and skills needs’ [
COM(2008) 868

final – Not published in the Official Journal].

Summary

As part of the renewed Lisbon Strategy for growth and jobs, the Commission proposes an initiative aimed at improving workers’ qualifications in accordance with the needs of European employers. It is based on a prospective analysis of labour market trends up to 2020.

There is great potential for the creation of jobs in Europe in the medium and long term, particularly replacement jobs due to the ageing population. In addition, the market for ecological services and products should bring new types of job.


Skills and qualification requirements will increase for all types and levels of occupation. Employers are looking in particular for transversal competencies such as communication skills or analytical and problem-solving skills.

The level of qualifications of the European workforce should meet the new needs of the labour market. This objective can be achieved by introducing active policies and by improving the effectiveness of education and training systems. The modernisation of labour markets also implies the implementation of the integrated strategies in the area of flexicurity.

The Commission encourages Member States to improve the assessment and anticipation of trends in the labour market and skills requirements.It proposes four strands of action:

  • the dissemination of information on the trends and new opportunities in the labour market, primarily by the setting up of a “European Labour Market Monitor” but also via the Commission’s employment, training and mobility services (EURES, PLOTEUS and EURAXESS);
  • the development of forecasting tools in order to produce accurate and regular data for each sector of activity. New joint methodologies should be developed via the PROGRESS programme and the Lifelong Learning Programme. Employers will be involved in anticipating needs and developing partnerships with a view to meeting those needs;
  • deepening international cooperation, developing policy dialogue and the exchange of experience;
  • mobilising the Community’s political and financial instruments.

Context

This initiative is part of the European Economic Recovery Plan adopted in December 2008. It should help to reduce the consequences of the financial crisis on the labour markets.


The Commission will present a first report on the results of this initiative in 2010.

Related Acts

Presidency Conclusions (pdf ) of the Brussels Spring European Council on 13 and 14 March 2008 [Not published in the Official Journal].

Council Resolution (pdf ) of 15 November 2007 on the new skills for new jobs [OJ C 290 of 4.12.2007].