Tag Archives: Partnership for growth and jobs

Implementation of the partnership for growth and jobs

Outline of the Community (European Union) legislation about Implementation of the partnership for growth and jobs

Topics

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

Regional policy > Review and the future of regional policy

Implementation of the partnership for growth and jobs (first report)

Document or Iniciative

Communication from the Commission of 25 January 2006 to the Spring European Council – Time to move up a gear – Part 1: The new partnership for growth and jobs [COM(2006) 30 final – Not published in the Official Journal].

Summary

The partnership for growth and jobs needs to be converted into a genuine reform with the help of the Community Lisbon Programme and the national reform programmes (NRPs). The Commission reviews their progress here.

Community Lisbon Programme

The Commission has already adopted two-thirds of the planned measures. However, certain measures have yet to be adopted by the European Parliament and the Council or rely for funding on an agreement on the financial framework (2007-2013). Some noteworthy measures have been added to those already planned:

a communication on research and innovation;
the development of an integrated industrial policy;
initiatives to improve the tax and customs environment;
investigations into more competitive markets in energy and financial services;
a proposal to create a single payment area in Europe;
new Community funding available for SMEs to improve energy supply and demand.

National reform programmes

All Member States have drawn up NRPs and appointed national Lisbon coordinators. Some have streamlined internal coordination in order to improve policy coherence. The Commission does not consider it necessary at this stage to adapt the integrated guidelines and feels it is too early to propose formal, country-specific recommendations. The emphasis at this stage must be on implementing the partnership and the specific measures proposed at Community and national levels. The Commission draws the Member States’ attention to the individual evaluations of each NRP, drawing conclusions on the macroeconomic, microeconomic and employment aspects, and on specific points which will require particular attention (weaknesses).

Macroeconomic aspects

Analysis of the NRPs from a macroeconomic point of view shows that:

many factors complicate short-term and long-term budgetary discipline, making the macroeconomic problem more serious for Member States;
Member States are trying to cut spending rather than increase taxes. However, it has yet to be clearly defined where and how savings can be made;
the measures proposed in the “euro zone” are geared mainly towards future public finances but do not aim to support labour market adjustments or to create more competitive internal markets;
despite recognition of the problem of ageing populations in Europe, NRP measures appear to be piecemeal or insufficient;
only some Member States have taken an integrated approach in planning their NRP.

Microeconomic aspects

The following conclusions may be drawn with regard to microeconomic issues:

the NRPs reflect the need to increase investment in research and promote innovation;
18 of the 25 Member States have set investment targets relative to GDP which at EU level will equate to 2.6% by 2010, falling short of the overall target of 3%. This figure is currently 1.9% for the EU;
initiatives relating to transport infrastructure and communication technologies could receive support from the cohesion and rural development funds;
access to internal markets (energy and services) deserve greater attention. The application of Community Directives in this area is a beginning;
initiatives to foster a more positive attitude towards entrepreneurship do not go far enough. Education can help to reduce the stigma of failure;
Member States need to adopt a more integrated approach in order to improve the rule-making which affects business and at the same time supplement action at Community level;
comprehensive and coordinated implementation of the different microeconomic policies may achieve much greater benefits than the sum of the individual policies put together.

Employment

The Commission draws the following conclusions with regard to employment:

the proposed employment objectives are inspired by Community objectives but are often piecemeal and do not take the life cycle approach;
greater attention should be given to “flexicurity”, facilitating the transition from one job to another with adequate social protection and a reliable lifelong learning system;
the reform of education systems concentrates mainly on the quality and transparency of qualifications, as well as access to them. Investment needs to be stepped up.

Overall conclusions

The NRPs are a good basis for implementing the partnership for growth and jobs, but not all are of equal quality:

some have set clear targets and timetables, with specific measures and budget details. Others lack such information;
the three dimensions (macroeconomic, microeconomic and employment) could be more closely integrated so that one measure would benefit several sectors;
only some Member States provide for measures to remove obstacles to market access;
the cohesion and rural development funds will be needed to achieve the Lisbon objectives, although the macroeconomic repercussions of using these funds will need to be taken into account. Coordination mechanisms need to be put in place for planning the use of these funds and drafting the NRPs.

Key areas

The Commission calls on the Member States to implement their national reform programmes fully and on time. To correct the shortcomings which emerged from the evaluations, it proposes four integrated actions which it intends to implement by the end of 2007:

Action 1: Investing more in knowledge and innovation

The Lisbon objective was to boost R&D spending to 3% of GDP by 2010 (1% from the public sector, 2% from the private sector). Member States must increase public spending and make it more effective through wider use of fiscal incentives and closer coordination with the other Member States with regard to spending. Public procurement has a part to play in transforming the results of research into innovation. At the same time, more competitive markets encourage businesses to be more innovative.

The private sector must be able to make a greater contribution to funding for higher education, and the link between universities and business must be strengthened. The objective should be to increase investment in higher education to 2% of GDP.

Action 2: Unlocking the business potential of SMEs

By 2007, every Member State should have set up a one-stop shop to assist would-be entrepreneurs to fulfil administrative requirements all in one place – electronically, where possible. They must set up similar one-stop shops for VAT and for the recruitment of a first employee. The time taken to set up a business should be cut in half, and start-up fees should be as low as possible.

By that date they must also adopt a methodology for measuring administrative costs for national rules and regulations. This exercise should facilitate initiatives to reduce these administrative costs. The Commission will propose similar initiatives at Community level.

Action 3: Responding to globalisation and ageing

Member States must help people to work longer, and they need to reform pension schemes, for example by changing the statutory retirement age, enhancing financial incentives for older workers to remain in work, offering more training opportunities to workers over the age of 45 or allowing gradual retirement. Disability schemes, together with health care and long-term care systems, should also be reviewed to make them more effective.

The entry of young people into the labour market, in line with the Youth Pact, is another important factor. By 2007, young people who have left school should be offered a job or additional training within 6 months, or within 100 days by 2010.

The Commission wishes to consult the social partners on better ways to reconcile family and professional life. It also plans to present a report in order to seek agreement on ‘flexicurity’ by the end of 2007, comprising the following elements:

reduction of labour market segmentation and undeclared work;
Member States to establish lifelong learning strategies to prepare people for change, supported by the European Social Fund and the Globalisation Adjustment Fund;
removal of obstacles to worker mobility by reaching a political agreement on the portability of supplementary pension rights.

Action 4: Moving towards an efficient EU energy policy

The Commission is proposing an energy policy designed to ensure that energy is secure, competitive and sustainable. The security of supply will be improved by:

strengthening and deepening the internal energy market (in particular completing the energy market by 1 July 2007), by promoting more competition in the electricity and gas markets, and by more integration between the gas pipeline systems of the Member States);
exploiting the potential of renewable energy sources and promoting more efficient use of energy;
developing a more focused, coherent and integrated approach to ensuring the security of energy.

A Green Paper has been published on ways to achieve these objectives.

Implementation

The Commission intends to involve national (and regional) parliaments, local authorities and other stakeholders in the implementation of the NRPs, particularly where there has not been sufficient time to do so during the preparation of the programmes. It proposes to involve the social partners by holding an extraordinary Social Summit. The NRPs must be further developed and strengthened by mutual learning among Member States. Those Member States which have not yet set targets with regard to future R&D spending and the employment rate should do so. The Commission and Member States will ensure that the open method of coordination, in the areas of education and training, social protection and social inclusion, also makes a strong contribution to the objectives.

With regard to the implementation of the Community Lisbon Programme, the Commission has proposed a roadmap setting out the major steps required for measures supplementing the NRPs.

The European Union institutions and the Member States need to define a communication strategy to improve understanding of the challenges and opportunities of the new partnership for growth and jobs at local, regional and national levels. This is essential in order to develop a sense of ownership on the part of all involved.

Background

As provided for at the Spring European Council in 2005, the Commission has drawn up the first report on the implementation of the new partnership for growth and jobs. With this report, the 2006 Spring European Council will be able to review progress made and comment on any adjustments to the integrated guidelines, which serve as a basis for the national reform programmes and the Community Lisbon Programme.

Growth and jobs

Outline of the Community (European Union) legislation about Growth and 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 > European Strategy for Growth > Growth and jobs

Growth and jobs

“Employment and social policy” >

The aim of the Lisbon Strategy, launched in 2000, was to make Europe “the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion”. According to the mid-term review of the Lisbon Strategy, the results are, at best, mixed. The gap in terms of productivity and growth between Europe and its economic partners has continued to widen, and the ageing population represents a further challenge.

The European Council has therefore decided to relaunch the Lisbon Strategy through a partnership for growth and jobs. The objective of this partnership will remain firmly anchored in sustainable development. However, in order to achieve it, Europe needs to focus on a more restricted number of priorities. Indeed, the achievement of stronger, lasting growth and the creation of more and better jobs would unblock the resources needed to realise our more general economic, social and environmental ambitions.

A new start for the Lisbon Strategy (2005)
The Community Lisbon Programme
The Community Lisbon Programme: proposal for 2008–2010
Strategic report on the renewed Lisbon strategy for growth and jobs: new cycle 2008-2010
Participation of young people with fewer opportunities

MAKING EUROPE A MORE ATTRACTIVE PLACE IN WHICH TO INVEST
In order to boost growth and employment, Europe needs to become more attractive as a place in which to invest. Given the significant contribution made by small and medium-sized enterprises (SMEs) to creating jobs and growth, Europe must first combat the obstacles to the creation of SMEs and stimulate entrepreneurship. Furthermore, in spite of the progress achieved since the launch of the Lisbon Strategy, there is still not enough available risk capital to launch young businesses, and the current tax provisions discourage the retention of profits to build up equity.

Financing SME Growth
The contribution of taxation and customs policies to the Lisbon Strategy

Ensuring open and competitive markets inside and outside Europe
Competition on the internal market stimulates productivity and innovation. European competition policy plays a key role in shaping competitive markets. It must be continued within an enlarged Europe and in certain markets which have not revealed all their potential. This involves the elimination of barriers to competition and the rechannelling of State aid into innovation, research and development, and risk capital. Outside the EU, commercial policy must ensure that European businesses have access to the markets of third countries and comply with the rules guaranteeing fair competition.

A proactive competition policy for a competitive Europe
State Aid Action Plan
A stronger partnership to deliver market access

Improving European and national legislation
Simplifying legislation helps business and in particular small and medium-sized enterprises (SMEs) by eliminating unnecessary administrative formalities. The European Commission and the Member States have already launched initiatives to reduce administrative costs. This would benefit European businesses in terms of the productivity and competitiveness, and increase their ability to adapt, innovate and create jobs. It would also make it easier to set up new businesses.

Fewer administrative formalities for more growth
Simplifying the regulatory environment

Expanding and improving European infrastructure
Investment in transport must respond to the economic, social and environmental needs of society. A modern infrastructure is an important factor in competitiveness when it comes to attracting businesses in that it facilitates exchanges and mobility. In addition, climate change highlights the need for more sustainable mobility. The aim of intermodality is to channel traffic into more environmentally-friendly means of transport which are safer and more energy-efficient. Alongside this, new technologies make for a more efficient transport system.

Keep Europe moving – Sustainable mobility for our continent. Mid-term review of the 2001 White Paper

KNOWLEDGE AND INNOVATION FOR GROWTH
Knowledge and innovation are essential for the growth of productivity. Productivity growth is a critical factor for Europe, because in the context of global competition it must contend with competitors benefiting from cheap labour and natural resources.
Increasing and improving investment in research and development

The European Research Area (ERA): new perspectives
An innovation-friendly, modern Europe
A broad-based innovation strategy for the EU
Placing taxation at the service of research and development

Facilitating innovation and the adoption of information and communication technologies (ICT)
In order for research to lead to growth, research results must be used for the purpose of innovation. More cooperation between universities and businesses makes for a better transfer of ideas in return for increased participation on the part of businesses in the financing of universities. The result is higher quality, more profitable research. The Competitiveness and Innovation Framework Programme supports actions which promote the use of information technologies, environmental technologies and renewable energy sources.

Challenges for the European Information Society beyond 2005

Innovation serving sustainable development
Innovation and technological development are key factors for environmentally friendly economic growth and for ensuring the sustainability of resources (particularly energy resources). The development of environmental technologies can also open up new markets, which will boost the competitiveness of businesses and create jobs.

Strategy for sustainable development
Action plan in favour of environmental technologies
Life sciences and biotechnology
Green Paper: A European strategy for sustainable, competitive and secure energy

Contributing to the creation of a strong European industrial base
The technological potential of European industry is still not being fully exploited. A common European approach to challenges in the field of research, regulation and financing can create synergies which make it possible to achieve large-scale progress and provide a more appropriate response to the needs of society. Furthermore, a financial contribution from the public sector can foster the sustainable development of specific products and services while improving European competitiveness on an international level. The Galileo project and mobile telephony are good examples of partnerships.

European industrial policy

CREATING MORE AND BETTER JOBS
Europe needs more and better jobs. Demographic change, which is exerting increased pressure in terms of employment needs, makes this an absolute necessity from an economic and social viewpoint.

Promoting solidarity between the generations
The demographic future of Europe – from challenge to opportunity
Green Paper “Confronting demographic change: a new solidarity between the generations”
Promoting young people’s full participation in education, employment and society

Attracting more people to the labour market and modernising social protection systems
The Member States are being called upon to set employment rates for 2008 and 2010 and adopt the measures to be implemented in their national reform programmes. The integrated guidelines for employment help them to select the most effective instruments. The challenge lies in attracting more people to the labour market and in keeping them there: particular attention is focused on the unemployed, young people and older workers. In this context, there is also a need to reform the pension and healthcare systems in order to ensure their viability and provide reliable social protection.

European values in a globalised world

Increasing the adaptability of workers and businesses and the flexibility of the labour markets
Rapidly changing economies need highly adaptable workers who must be capable of developing their skills to meet the needs of high-growth sectors. However, such flexibility must be accompanied by social security provision which also covers periods of change. Social security systems must be modernised in order to cope with these new challenges. In order to meet market needs more effectively, it is essential that obstacles to labour mobility be removed.

Green Paper on Modernising Labour Law
Workers’ mobility: facilitating the acquisition and preservation of supplementary pension rights

Investing more in human capital through better education and skills
Education and training play an essential role in a knowledge-based economy in that they support growth and employment by providing highly qualified and adaptable labour. They also strengthen social cohesion and active citizenship. Access for everyone to education and training should be ensured through the European area of lifelong learning, which should become a world reference by 2010.

European Job Mobility Action Plan (2007-2010)

The EU Cohesion policy for 2007-2013 and the role of the Structural Funds and the Cohesion Fund
The Community strategic guidelines lay down priorities for cohesion policy. These guidelines identify the fields in which cohesion policy can help to achieve the objectives of the Lisbon Strategy and of the integrated guidelines for growth and jobs. The programmes and national projects under the Structural Funds and the Cohesion Fund therefore target growth, employment, innovation and the knowledge-based economy, as well as the creation of physical infrastructure.

Research and innovation in support of the competitiveness of the European regions

Promoting corporate social responsibility

Outline of the Community (European Union) legislation about Promoting corporate social responsibility

Topics

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

Research and innovation > Research in support of other policies

Promoting corporate social responsibility

Document or Iniciative

Communication from the Commission of 22 March 2006 to the European Parliament, the Council and the European Economic and Social Committee – Implementing the partnership for growth and jobs: making Europe a pole of excellence on corporate social responsibility [COM(2006) 136 final – Not published in the Official Journal].

Summary

Corporate social responsibility (CSR) refers to the voluntary integration of social and environmental objectives into the commercial activities of enterprises and into their relationships with their partners.

CSR meets the objectives of the European Union’s (EU) social policy and the Strategy for Sustainable Development. This practice can also be of benefit to innovation, competitiveness and job creation.

Contributing to sustainable growth and employment

In the context of increased global competition and an ageing population, the EU must stimulate the production of enterprises which respect their social responsibilities. CSR may contribute to:

the inclusion of disadvantaged groups in the labour market;
an increase in investment in skills development, lifelong learning and the employability of employees;
improvements in public health, for example by means of voluntary labeling of foodstuffs and non-toxic chemicals;
innovation on social and environmental matters;
reduced levels of pollution and a more rational use of natural resources (obtaining the European Ecolabel scheme and investments in eco-innovation, etc.);
the respect for European values and standards on human rights, environmental protection and employment;
the Millennium Development Goals (MDGs).

European alliance for CSR

The Commission supports the establishment of an alliance to act as an umbrella for CSR initiatives. The Commission encourages the sharing of experience and good practice between enterprises, communicating the results to the public and the development of resources dedicated to CSR.

The new instrument is open to European enterprises of all sizes, on a voluntary basis. Their level of participation is flexible as no formal requirements are imposed.

Actions for promoting CSR

The development of CSR practice must involve a wide range of actors, including trade unions, investors, consumers and non-governmental organisations (NGOs). In this context, the Commission focuses on the following aspects in particular:

establishing a strengthened partnership that is broader than the alliance, including not only businesses but also all relevant stakeholders and national and regional authorities (particularly in Member States where CSR is a less well-known concept, as well as in acceding and candidate countries);
supporting multi-stakeholder initiatives, involving social partners and NGOs at sectoral level;
cooperating with Member States within the Group of High-Level National Representatives on CSR in order to mobilise the national and regional instruments;
raising consumer awareness of the impact of their choices;
incorporating CSR in the curricula of business schools and other education institutions;
promoting CSR among small and medium-sized enterprises (SMEs);
respecting international benchmarks, such as the MDGs and the Global Compact for businesses.

Another Normative about Promoting corporate social responsibility

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 > Employment rights and work organisation

Promoting corporate social responsibility

Document or Iniciative

Summary

Contributing to sustainable growth and employment

In the context of increased global competition and an ageing population, the EU must stimulate the production of enterprises which respect their social responsibilities. CSR may contribute to:

the inclusion of disadvantaged groups in the labour market;
an increase in investment in skills development, lifelong learning and the employability of employees;
improvements in public health, for example by means of voluntary labeling of foodstuffs and non-toxic chemicals;
innovation on social and environmental matters;
reduced levels of pollution and a more rational use of natural resources (obtaining the European Ecolabel scheme and investments in eco-innovation, etc.);
the respect for European values and standards on human rights, environmental protection and employment;
the Millennium Development Goals (MDGs).

European alliance for CSR

The new instrument is open to European enterprises of all sizes, on a voluntary basis. Their level of participation is flexible as no formal requirements are imposed.

Actions for promoting CSR

establishing a strengthened partnership that is broader than the alliance, including not only businesses but also all relevant stakeholders and national and regional authorities (particularly in Member States where CSR is a less well-known concept, as well as in acceding and candidate countries);
supporting multi-stakeholder initiatives, involving social partners and NGOs at sectoral level;
cooperating with Member States within the Group of High-Level National Representatives on CSR in order to mobilise the national and regional instruments;
raising consumer awareness of the impact of their choices;
incorporating CSR in the curricula of business schools and other education institutions;
promoting CSR among small and medium-sized enterprises (SMEs);
respecting international benchmarks, such as the MDGs and the Global Compact for businesses.