Questions put by the Committee on Employment and Social Affairs

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1 EN EUROPEAN PARLIAMENT HEARINGS REPLIES TO THE COMMISSIONER DESIGNATE S QUESTIONNAIRE Mr. Vladimir SPIDLA (Employment, Social Affairs and Equal Opportunities) Part B Specific questions Questions put by the Committee on Employment and Social Affairs A. Employment and working conditions 1. What measures do you think are appropriate to realise the Lisbon objectives as regards a better-qualified workforce and lifelong learning and how do you intend to safeguard the balance of the Lisbon strategy to promote the often sidelined notion of more and better jobs and social cohesion? We must maintain our commitment to the Lisbon Strategy and to its objectives. The economic and social development of the European Union must be driven by the overriding objective of a dynamic and innovative economy, with more and better jobs and greater social cohesion. This balanced approach depends on input from the players in the European social model, based on a skilled workforce in a society guaranteeing the social cohesion which underpins competitiveness and economic performance. We should therefore avoid any short-term solution which might give precedence to a single element of the Lisbon Strategy to the detriment of the others and which would therefore jeopardise the long-term beneficial balance. As Commissioner responsible for employment and social affairs, I firmly commit myself to maintaining this very important balance. We have a full range of complementary instruments at our disposal for underpinning the implementation of the Lisbon Strategy in the social field: the European employment strategy (EES), the open methods of coordination on social inclusion, the modernisation

2 of pension systems and before long healthcare. These mechanisms for coordination between the Member States must be underpinned by effective legislation, high-quality social dialogue and financial input from the European Social Fund (ESF). We should maintain and strengthen these instruments and link them more closely to the concrete objectives of Lisbon, e.g. the objective of an overall employment rate of 70% (and a 60% objective for women and 50% for older workers ) and moves to tackle poverty. As a result, we have to work closely with the Member States and the social partners to check on and speed up the implementation of the necessary measures for achieving these objectives, within the framework of the open method of coordination, social dialogue and legislation. One of the employment guidelines has specifically to do with this question, and another addresses disadvantaged persons. In this respect, ongoing training and education reforms must be actively promoted by the Member States (and by the social partners), as a factor in the quality of employment and as a means of ensuring access to employment, career advancement and active ageing. ESF funding makes an active contribution to the efforts of the Member States in these fields. The support given to ongoing training by various means, e.g. the modernisation and reform of education and training systems, is at the heart of ESF input, both in the current programming period and in the next one. This is particularly important for Member States which will come under the convergence objective for the next period. The situation is the same for measures promoting social inclusion, where the ESF supports a large number of people in an unfavourable situation. Closer linkage between the European employment strategy and the various elements to do with the inclusion process with the ESF will further strengthen implementation of the Lisbon objectives in the field of employment and social inclusion. 2. How do you propose to improve working conditions and enhance the quality of labour and productivity? The drive to promote better jobs and the quality of work is at the heart of the Lisbon strategy. The Commission is therefore focusing on the development and implementation of this concept by using all the resources at its disposal and by developing key indicators with a view to evaluating and checking on the quality of work in Europe. We must continue with this work and develop the links between the quality of employment, productivity and competitiveness, and job supply (which includes improving the attractiveness of such jobs) and social inclusion. In my opinion, one important achievement in this respect has been the adoption of the employment guidelines for , which defined the quality and productivity of work as one of the three fundamental objectives of the European employment strategy, along with full employment and social inclusion and cohesion. As a result, the Member States are being urged in turn to focus their national action plans on the impact of their employment policies on the quality of work, and not just on progress made towards full

3 employment. This refocusing on the quality of employment has likewise stimulated the European social dialogue in the fields related to quality, e.g. ongoing training. The Commission has taken a look at recent trends concerning the quality of jobs in a report requested by the European Council of spring 2003 (COM(2003) 728). It pinpointed improvements in 15 Member States in terms of teaching and skills, differentials between men and women (except unfortunately for the pay gap) and safety at work. I welcome these developments, but I feel that there are still a number of possible further improvements in a number of other fields. As Commissioner responsible for employment, social affairs and equal opportunities, I shall continue to encourage the Member States to intensify their efforts to improve the quality of work, more particularly in sectors where more determined political action is needed (particularly concerning corporate investment in training; the promotion of active ageing by offering better adapted working conditions and greater financial incentives for staying at work; broader access to childcare and other personal care facilities etc.). Member States efforts in this field are being and will be strengthened by input cofunded by the European Social Fund. 3. How do you intend to address the poor follow-up and implementation of the employment guidelines in some Member States and make the link between the employment guidelines (EGs) and the broad economic policy guidelines (BEPGs)? The joint employment report, which was presented to the European Council in spring 2004, came to the conclusion that the European employment strategy must be implemented more effectively by the Member States. To this end the Commission, espousing the conclusions of the report of the employment Task Force chaired by Mr W. Kok, has formulated specific, more energetic and more targeted recommendations for each country, and these were adopted by the Council in June. This has to be combined with a better exchange of good practices and closer linkage with the utilisation of the EU s financial resources. At any rate, I shall give absolute priority to following up the implementation of the guidelines for the 25-strong European Union, and the specific national recommendations. As a result of the rationalisation of the European Economic Area (EEE) and the broad economic policy guidelines (BEPGs), which was applied for the first time in 2003, the current general policy framework is coherent, appropriate and geared to the employment challenges facing us in a 25-strong European Union. Nonetheless, we must work closely together within the Commission to make sure that the whole thing works in practice so as to enable employment policy and economic policy to work hand in glove towards the objective of creating more and better jobs. As over earlier years, I am counting on your valuable cooperation within the European Parliament, but over and above that I believe that we have to make sure that the national parliaments, the social partners and the other interested parties are all fully associated

4 with the European employment strategy and that we promote new forms of partnership this being a key component of the partnership for change announced by the European social partners. These improvements should help make the European employment strategy more successful and more effective, and that should in turn help advance the Lisbon process with more and better jobs. The European Social Fund should act in the future and more than is the case today as the EU s principal financial instrument for promoting investment in human capital throughout the Union. To this end, it is necessary to ensure that the ESF supports the Member States policies arising directly from the European guidelines and recommendations formulated under the European employment strategy. What holds good for the ESF is just as true for the structural funds in general. The cohesion policy in all its dimensions must be seen as an integral part of the Lisbon strategy. Cohesion policy must incorporate the Lisbon and Göteborg objectives and become a driving force for their implementation by way of national and regional development programmes. 4. Do you intend to propose the revision of the European works council Directive, and to: a) extend and strengthen information and consultation rights in the event of restructuring? b) provide better working facilities for employees representatives in the European works councils? Impressive progress has been made under the European works councils Directive. These European works councils have shown their worth, not just in terms of guaranteeing information and consultation of workers, but also and just as significantly in providing a means whereby real concertation can take place between management and workers at a transnational level with a view to making a significant positive contribution to corporate development, and more especially to managing change. To ensure that the European works councils realise their full potential within a changing economic and social climate, the Commission launched, on 20 April 2004, a first consultation of the European social partners on the possible direction of Community policy concerning the Directive on European works councils. The social partners replied to the consultation by adopting very divergent positions. On the one hand, the employers organisations rejected the need to revise the Directive and recommended exchanges of experience and of good practice and stronger checks on the way the Directive is implemented. On the other hand, the trade union organisations, including the ETUC, EUROCADRES and the European federation of metalworkers, were in favour of revising the existing Directive, more especially to improve the concept of consultation, the role of the trade unions, and the scope and functioning of works councils. Despite their divergent views, the social partners will take part in two seminars to be held in the second half of

5 2004 to examine concrete case studies on transnational information and consultation procedures, including European works councils, with a view to learning lessons from the examples under examination. This should enable them to express their fully developed points of view, having regard to the conclusions drawn from their recent seminars, and the possibility of a negotiated settlement. This question must likewise be considered in the light of the social partners ongoing work on restructuring. As Commissioner responsible for employment, social affairs and equal opportunities, I shall await the results of this exercise before taking a decision on any revision of the Directive on European works councils. 5. What steps are you prepared to take to give new impetus to negotiations in the Council on the Temporary Agency Work Directive, taking into account the European Parliament position at first reading? This is a crucial legislative dossier which aims to achieve a beneficial balance between security and flexibility on a modern labour market. While we should be encouraging new forms of work, we must also make sure that we maintain a quality labour market which can guarantee worker security and a productive workforce. The conclusion of this important and politically sensitive dossier will therefore be a priority for the Commission in general and for myself in particular. I welcome the commitment of the current Council Presidency to reopening discussions within the Council. My staff and I will go to any lengths to encourage and help the co-legislators find a lasting solution. 6. Are you prepared to phase out, as soon as possible, the individual optout provided for in Article 18(1)(b)(i) of the Working Time" Directive? In the meantime, is the Commission going to tackle in a practical way abuses of the opt-out provision and how do you intend to implement the latest judgments of the European Court of Justice concerning on-call duty in the revised Directive? Consultation of the European social partners on the revision of the Working Time Directive concluded in July Unfortunately, the social partners did not respond to repeated invitations from the Commission to negotiate an agreement. As a result, this Commission is committed to presenting, in September, a proposal for revising the current Directive on four key issues: the reference periods for calculating working time; the optout; the way on-call time is dealt with; and the reconciliation of family and work. The amended proposal will pursue a dual objective: firstly to strengthen protection for workers against the adverse effects on their health and safety of working excessively long hours or discontinuous forms of work; secondly, to improve and promote the modernisation of working time organisation. To this end, the proposal will improve the

6 reconciliation between work and family life and will extend the scope of social partner autonomy in the field of the organisation of working time. This is a dossier to which I shall be giving priority, and I very much hope that the co-legislators will reach a quick agreement on this important revision, and on the proposal for a Directive on temporary work. I am committed to supporting this process by all possible means. 7. Do you intend to take action to address the issue of violence at work as foreseen in the Commission 2004 work programme? Does the Commission consider it imperative to legislate against violence and harassment at the workplace at EU level, given that at present a large percentage of directly affected workers are not sufficiently protected at national level? The Commission is currently collating and analysing all available elements concerning violence and harassment at the workplace. The analysis work is taking account in particular of legislative and regulatory initiatives which have been adopted or envisaged in each of the Member States. Against this background, the European Parliament resolution on harassment at work (September 2001) and the resolution on the Commission s Communication on the new Community strategy on health and safety at work are highly relevant and are being carefully considered. As the next step, the Commission intends to initiate a first consultation of the social partners on the possible direction of Community action in this sector, in accordance with Article 138 of the Treaty, in the context of the support to the social partners, which have included this question in their programme of work. I hope then that, in accordance with their undertaking, the social partners will be prepared to initiate negotiations with a view to achieving an agreement on this matter. 8. What measures do you think need to be taken at European level to combat the high unemployment level and also the high level of youth unemployment in some Member States, especially in the new Member States? I firmly believe that Europe must essentially do two things to combat unemployment: we must create new jobs, and we must ensure that the policies advocated by the European employment strategy are applied effectively within the Member States to ensure that a real chance of finding a new job can be given to the jobless. This is also why I firmly believe in the approach which links economic, employment and social policies. The availability of skilled personnel is essential if we are to fill the new vacancies created by the economic upturn. Labour supply helps to sustain economic growth. At the same time, economic growth affects job creation.

7 Secondly, I fully share the idea that the specific question of youth unemployment constitutes a particular concern within the European Union. The rate of youth unemployment is twice the average unemployment rate, both in the former EU of the 15 and in the new Member States. Although there have been some improvements, for example in Spain, the Netherlands and France, following a period of enhanced participation of young people and employment and a fall in unemployment among young people between 1997 and 2001, the situation on the labour market for young people (of years of age) has deteriorated over the past two or three years. Coming as I do from the Czech Republic, I am fully aware that the situation for young jobseekers is much more difficult in some of the new Member States. Despite very different situations in the new Member States in general, we are faced with an average differential of more than 10% for employment and unemployment rates compared with the EU of 15, where the negative change in employment rates has been particularly acute over the past five years. That is why a preventive approach is so essential and why the employment guidelines require the Member States to offer a fresh start for young people within six months (as opposed to the general rule of 12 months). Young people at risk of falling into the longterm unemployment trap are in a weak position in terms of recruitment opportunities. A large number of priorities for the new Member States, as pinpointed in this year s Council recommendations, relate to the very high level of unemployment, particularly among young people, and to the need to reduce the rate of school drop-outs. It is clear that we must give parallel attention to questions concerning entering and leaving the employment market. This means adopting an approach to the policy of active ageing which will ensure that the integration of young people into the labour market is taken fully into account. We must monitor attentively the implementation of this guideline and the follow-up to the recommendations. I sincerely believe that we must invest more in qualifications for young people, given that finding work is particularly difficult for those with the lowest level of skilling. Education and training are thus crucial elements, particularly for those who are starting at a very low level of qualification, and for adapting skills and qualifications to a changing environment. Financial aid from the ESF can play an important role in helping to achieve the employment objectives for young people, particularly in the new Member States. 9. What measures are needed to address the challenge of demographic decline, to help reconcile work and family life, and what new initiatives do you consider could be introduced to enable people to prolong their working lives? We can all agree that demographic ageing of the European population is one of the major challenges in terms of medium and long-term social policy. The impact on the age structure of the labour market calls, for instance, for more investment in human capital

8 for those who are already in work. The way in which we encourage people to stay longer on the labour market will play a crucial part in the viability of pensions systems. I am convinced that the European employment guidelines and the broad economic policy guidelines, as rationalised, give us a stable and appropriate policy framework for meeting this challenge at European level. More particularly, the employment guideline No 5 and the BEPGs No 4 to 8 highlight the key factors for enabling people to prolong their working lives. By the same token, the open method of coordination in the pensions field underlines the need to offer effective incentives to older workers to carry on working and to facilitate the creation of progressive retirement systems. The European Parliament and the Commission have welcomed the report of the Task Force on employment, chaired by Mr Wim Kok, which has laid down clear priorities for future action and which calls on the Member States and the social partners to formulate a general policy on active ageing. These priorities are: Provide incentives for workers to retire later and on a more progressive scale, and to employers to take on and retain older workers by reforming pension systems and ensuring that it is financially worthwhile to remain in work. Promote access for all to training and other active employment policy measures independently of age, and develop continuing training strategies, more especially training at the workplace for older workers. Stimulate working conditions which favour the retention of jobs such as the recognition of the particular importance of health and safety at work, and innovative and flexible forms of work organisation throughout working life, including the possibility of working part-time and taking career breaks. We shall continue to work closely with the Member States to support their political efforts in these crucial fields of active ageing. Reconciling work, the family and private life is one of the key policy areas in which the concept of mainstreaming of gender-related issues must be applied to European employment policy. The important thing is to promote more and better jobs and at the same time ensure equal rights for men and women. Against the background of population ageing and falling fertility rates, I feel that we have good grounds for working in this direction: there are indications that reconciling work, the family and private life can make an important contribution to achieving higher employment rates and higher birth rates. Many women of childbearing age have to choose between their career and bringing up their children. Sound policies for supporting working parents could boost birth rates and employment rates, as couples would then have fewer problems in bringing up their children. I undertake to take up this challenge, which affects each of the three elements of the portfolio for which I am Commissioner designate.

9 10. What will you do to ensure the correct implementation of social and employment policy in the Member States in order to ensure that legislation is not only transposed but also properly implemented? The timely transposition and the correct implementation of European legislation constitute together a precondition for the sound functioning of the European Union and a guarantee of fair treatment for citizens, workers, consumers and business. Having effective checks on correct application is also of decisive importance in guaranteeing that Community rights can be properly exercised. Delivering better application of Community law is a matter for both the Member States and the European institutions, even though the final responsibility for ensuring sound application is clearly borne by the Commission as guardian of the treaties. Correct application of Community law is an essential political priority and a fundamental element of good governance. I firmly believe that prevention and flexibility are the keywords in this respect. Where possible, practical solutions must be found, avoiding long-winded legal action against Member States (in the form of infringement proceedings). Effective use should be made of a whole range of available instruments, which can vary from one sector of social policy to another. The most effective should be used (e.g. package meetings, bilateral discussions and ad hoc missions, to name just a few). As regards the transposition of social policy directives within my field of responsibility, of the 49 directives which were due for transposition by the end of 2003, the average rate of transposition was 91% (and the corresponding rate of non-transposition was 9%). However, if we take as a reference the number of directives for which transposition was due more than two years ago (where zero tolerance is the watchword), the average rate of transposition is 99.18% (and the average rate of non-transposition 0.82%). Eleven of the 15 Member States have achieved this zero-tolerance objective, leaving only four which have failed to do so. You can be sure that I shall take my responsibility very seriously for the portfolio for which I have been nominated, and my staff will continue to monitor closely the deadlines for transposition of directives and take whatever measures are necessary where a Member State does not implement a directive by the required deadline.

10 B. Social policy and social dialogue 11. How would you define the European Social Model? The parallel development of economic and social prosperity is the key characteristic of our European social model, within a context of political democracy and with a view to promoting equal opportunities for all. As a result of the diversity between Member States and the different socio-economic situation in each of them, the European social model can be observed in a variety of forms. Their common aspect is that social policies provide a lasting investment in economic development while, at the same time, economic progress underpins solidarity and social justice. Social policy, as steered at EU level, has a crucial role to play in forming the European social model. The European social model is also based on the active participation of all concerned, including the social partners. This participation is variable and can be adapted to changing circumstances, and can alleviate the harmful effects of change. As to the future, the development of the European social model will be a crucial element in the partnership for prosperity, solidarity and security as espoused by Mr Barroso, the President designate of the Commission, at the July part-session of the European Parliament. The definition agreed by the Barcelona European Council remains fully valid in this context: The European social model is based on sound economic performance, a high level of social protection and education, and social dialogue. 12. Do you intend to promote a horizontal approach for social policy, taking the social dimension into account in all other EU policies, such as public procurement, Single Market measures, services of general interest, competition and merger control policy? How do you intend to promote this in the Commission s and the College s work? Do you believe that such a horizontal approach is respected in the case of the so-called Bolkestein Directive on services? I am in favour of an integrated approach to policy formulation. I am therefore an advocate of pursuing and deepening this integrated approach to policy formulation as developed by the Commission. The impact analysis methodology, in which proposals are formulated on the back of an examination of their possible economic and environmental effects and their effects on employment and the social sphere, is an appropriate approach for achieving this objective and for promoting a horizontal approach to social policy. The proposal for a Directive on services concerns the implementation of the Single Market, which is an explicit objective of the European Union. The acquis communautaire in the social field is respected by this proposal. For example, the proposal is to maintain intact and fully applicable, within the framework of the provision of services throughout

11 the European Union, the specific rules agreed at EU level concerning seconded workers. The Directive does not cast doubt on the responsibility of Member States concerning the management of social and health services. Finally, the principles and rules laid down in Regulation No 1408/71 as amended and updated remain in force to ensure the effective coordination of Member States social security systems. Improvements in the social sphere can of course be made by the co-legislators in the course of negotiations on adoption of the Directive, with a view to providing a better guarantee for the necessary balance between the principles of the internal market and the social dimension. 13. What measures should be taken to guarantee the comparability of social protection in the Member States and to what extent should the platform of concrete minimum standards be developed? I fully share the objectives enshrined in the Treaty on European Union for promoting an appropriate level of social protection and for combating social exclusion. We all know, though, that social protection systems are highly diverse in the European Union, reflecting different traditions and unequal levels of economic and social development. This diversity has increased with the successive waves of enlargement. It remains, nonetheless, a matter for each Member State to organise its own system; the Community has a complementary and supporting role to play vis-à-vis the Member States. The levels of expenditure on social protection (e.g. on pensions, unemployment benefit and family allowances, social assistance and healthcare) are tending to converge. The exchange of information and of good practice which the EU is promoting, within the context of the different open methods of coordination, has helped to boost mutual understanding and to bring closer together the various social protection regimes and policies. I expect the common challenges across the EU, such as demographic ageing and structural change on the labour market, to give a powerful boost to the convergence of social protection systems among the Member States. At the same time, the modernisation of social protection systems is a necessity for all the Member States. This can be achieved on the basis of common objectives, but allow me to emphasise that there is no intention of harmonising national social protection legislation. However, in order to strengthen the links between integration and the employment market, I intend to present a communication to the Commission as early as possible, in accordance with Article 137, on the mechanisms of minimum social protection guarantees. This should provide the basis for a wide-ranging debate on this vital question with all parties concerned.

12 14. The Commission Annual Policy Strategy for 2005 highlights the persistent shortfall in our productivity and employment rates as a cause for concern. One of the key initiatives proposed is the elaboration of a new Social Policy Agenda for the post-2006 period. What are your priorities for this new Social Policy Agenda, do you intend to maintain the quality approach in defining it and do you intend to involve the EP from the very early stage of the new Social Policy Agenda drafting? The preparation of the Social Policy Agenda will be an urgent and very important task. There has already been in-depth reflection on the new agenda, and initial discussions have been launched. A report on the future of social policy drawn up by a high-level independent group, at the Commission s behest, has recently been published. The European Parliament has made an important contribution by pinpointing and formulating the policy guidelines set out in this report, in the wake of the meeting between representatives of the European Parliament and the high-level group. Parliament will of course be a key player in developing the new Social Policy Agenda. I expect to work together with the Employment and Social Affairs Committee and the Committee on Women s Rights and Gender Equality to create and implement a firm Social Policy Agenda for the second half of the decade. I should also like to underline the efforts made by the Dutch Presidency, with the support of the Commission, in organising a variety of debates which will help us the Commission and myself to clarify our options and our approach. I also welcome the fact that the new agenda will be the result of lively debates and discussion with all interested parties and the principal players. I can tell you now that it is my firm resolve to pursue the development of the employment quality and social policy dimension. The quality aspect is an integral part of the Lisbon strategy, as well as being a key element in productivity, and it constitutes a crucial element in formulating our European social model. This whole problem must also be viewed in the context of globalisation and in close conjunction with the ILO s agenda on decent working conditions. I therefore intend to press ahead with the work launched by the Commission s Communication of May 2004 on the social dimension of globalisation.

13 15. How can the Commission better support the efforts of the Member States in reducing the number of people at risk of poverty and social exclusion, what are your priorities in this regard, and do you consider that more can be done at EU level to address the problem of homelessness? I subscribe wholeheartedly to the general objective of the open method of coordination on social inclusion of having a decisive impact on eradicating poverty and social exclusion by We have a range of common objectives for combating poverty and social exclusion, and we can make use of a range of common indicators to measure the progress we make towards these common objectives throughout the European Union. As Commissioner for employment, social affairs and equal opportunities, I shall devote particular attention to fixing clear, transparent and ambitious objectives in the national inclusion action plans, which are intended to translate the common objectives into national policies and objectives. The Joint Inclusion Report for 2004 (based on the national action plans 2003/2005) underlines the diversity of the national inclusion action plans. That is why I endorse the idea of the Member States being invited, over the next two years, to give special attention to the six key political priorities which were highlighted in the joint report. These are concerned with investment in active labour market measures, improving social protection schemes, guaranteeing suitable housing, provision of quality health care and ongoing training, tackling the problem of school drop-outs, eliminating child poverty and reducing poverty and social exclusion among immigrants and ethnic minorities. These policy priorities have also to be viewed in conjunction with follow-up work to the Social Development Summit (Copenhagen + 10). The ESF has a very important role to play in implementing these priorities, and its role is strengthened in the proposals on the structural funds which were presented by the Commission as part of the financial perspectives In addition the Commission is responsible for implementing a Community action programme to encourage cooperation between the Member States on tackling social exclusion over a five-year period ( ), with a budget of 75 million. Finally, another key element in this strategy is the work on the minimum guarantee mechanisms which I referred to earlier. The homelessness problem is an important aspect of the open method of coordination on social inclusion, and is covered by the common objectives, which have set a target of providing access for all to suitable and healthy housing, and preventing people from becoming homeless. I am pleased to note that many of the NAPs/Incl refer to the homeless and are endeavouring to meet their needs and problems, albeit with a variable degree of emphasis. Many countries have proposed solutions which focus on improving the housing stock, increasing the housing supply, reducing the cost of housing etc. The Social Protection Committee has agreed on a common approach, whereby the national action plans should contain quantitative information covering three questions: decent housing; the cost of housing; the phenomenon of homelessness and other precarious housing conditions.

14 I firmly believe that we can only formulate an effective policy if we have access to sound and pertinent data. Although significant progress has been made in accessing data on poverty and social exclusion, more particularly thanks to the new statistics on income and living conditions, very few data exist on the homeless in the EU, either nationally or transnationally. We must fill this gap, by dint of the work of the Eurostat working party on income, poverty and social exclusion. 16. How do you intend to promote the benefits of EU membership in the social field and how do you consider the ESF can best be used to help promote employment? There can be no doubt that membership of the European Union has brought considerable benefits for people throughout Europe. Per capita GDP in the least advanced Member States has increased considerably since they joined the EU, and I believe that we shall see similar improvements in the standard of living in the Member States which joined the EU earlier this year. European legislation has had a significant impact on improving living and working conditions in a number of sectors: it has established norms for guaranteeing high levels of health and safety at work, working conditions, gender equality and social protection. These norms have not only protected workers but have also helped boost the competitiveness of firms preparing for change. The employment strategy and the open methods of coordination have contributed to a collective improvement in performance on the part of all the Member States. Europe has set the framework within which it has been agreed that social and employment policies which are both strong and coordinated at all levels can make a contribution to economic and social success in more general terms. We have to bear in mind, though, that the success of policy coordination can only be assured if national action plans are known and applied at regional and local level. I expect to have active communication with the interested parties on the progress that has been made at European level. Promoting employment is at the heart of economic and social cohesion, which is an objective under Article 158 of the EC Treaty. With an annual budget of some 9 billion, the European Social Fund has played and will continue to play an important role in investing in human capital and promoting cohesion and social inclusion, not just in the regions lagging behind, but in the EU as a whole. The ESF must take up three major challenges here: tackling the employment disparities, which are considerable, taking on social inequalities, gaps in skills and shortages of labour in an enlarged European Union; coping with the quickening pace of economic and social restructuring as a result of globalisation and the development of the knowledgebased society; and managing demographic change, which has resulted in a scarcity of labour and the ageing of the labour force.

15 In its proposals for the future legal framework of the ESF for the period , the Commission has stressed the need to focus the ESF more closely on the Lisbon strategy employment objectives. Thus, the ESF should underpin Member States policies which are closely linked to the guidelines and recommendations set out in the European employment strategy framework and the EU objectives in the field of social inclusion, education and training. 17. In which sectors do you intend to intensify the open method of coordination? How do you intend to safeguard and improve it in the field of social protection in such a way that ambitious social protection and economic dynamism do not exclude each other, but can be mutually reinforcing? The open method of coordination has proved to be an effective tool in the employment sector. It has been supplemented by an open method of coordination in the field of social inclusion and pensions. These three strategies have played and will continue to play an important role in triggering political developments in the Member States and in stimulating an intensive exchange of good practice between the Member States. When we look at the growing number of older people in our societies, we can, I think, make reference for the first time to a four-generation society. We therefore have to focus our attention on health and long-term care systems. In this field, as with pensions, it is essential to guarantee social goals at the same time as financial viability. The Member States must find ways of ensuring access to high-quality health and long-term care for all those in need of it regardless of the ability of the patient to pay for such services from his or her own income or savings. Extending the open method of coordination in the social protection field to include the modernisation of health care and long-term care schemes, as proposed in the Commission Communication of 20 April 2004, will promote an exchange of good practices and underpin policy developments at national level in a way which will help improve the characteristics of healthcare systems in terms of access, quality and financial viability. This will be an important element in a stronger social dimension to the Lisbon strategy. Finally, rationalisation of the various aspects of coordination of social protection within the EU will strengthen their coherence and interaction with economic and employment policy coordination cycles. It will also enable us to strengthen the current valuable cooperation with the European Parliament and its involvement in these important subjects.

16 18. How do you conceive civil dialogue and work with NGOs and how would you select which organisations should be part of it? The Commission s relations with civil society, in the general field of social policy, are conducted primarily via the umbrella non-governmental organisations (NGOs) at European level, such as the European Women s Lobby, the European Forum of Disabled Persons, the European Network against Poverty etc., made up in principle of national organisations from all the Member States. Since 1995, there has been a structured dialogue with civil society at European level in the field of employment and social affairs. The European social NGOs platform is the Commission s principal partner in this regard. It is made up of 37 member organisations (at European level) working in the social sector, and representing a broad sweep of civil society (e.g. women, older people, disabled persons, the jobless, groups at risk of racism, persons affected by poverty, homosexuals and lesbians, young persons, children and families). The Commission organises, in conjunction with the European platform, twice-yearly meetings of the social NGOs, in the course of which the NGOs are invited to examine and express their views on a variety of Community subjects. They are given the chance to put forward their comments on ongoing questions, and the Commission also announces new initiatives. I should like to stress that I intend to continue this fruitful cooperation with civil society. Meetings with the European social NGOs platform have provided and will continue to provide the NGOs with an important opportunity to put forward their views on ongoing questions and new initiatives. We shall continue to give priority to this form of work with the European-level NGOs in the social field, and we shall continue to underpin the key role of the social NGOs platform and other umbrella organisations. Against this background, I should be happy to continue the ongoing dialogue with the European Parliament. 19. In relation to the social dialogue, are you in favour of an Inter- Institutional Agreement on the procedure under Articles 138 and 139 of the EC Treaty? How do you intend to act for the future of social dialogue at EU level in its three key components: tripartite Summit, co-regulation, and self-regulation? The European social dialogue under Articles of the EC Treaty is, to my mind, a cornerstone of the European social model and a major factor in the competitiveness of our economy. I am personally convinced that a strong social dialogue at European level is important in terms of meeting the dual challenge of economic reform and social reform.

17 In addition, it is absolutely essential to make a success of enlargement. The social partners are recognised as being best placed to meet the key challenges in terms of the positive management of change and the need to reconcile flexibility and security. In August 2004, the Commission adopted a Communication on promoting awareness and understanding of the results of European social dialogue, boosting their impact and promoting other developments based on effective interaction between the various levels of industrial relations. It encourages effective and extensive integration of organisations in the new Member States in the European social dialogue structures, both sectoral and cross-industry, and the strengthening of social dialogue at all levels. I can assure you that the Commission will continue to consult the European Parliament before taking any decision on the basis of Article 139(2) of the Treaty implementing an agreement by the social partners by way of a Council decision. This will be the case for implementation of the agreement of the social partners on working conditions for mobile workers on the railways assigned to inter-operable transfrontier services. The European social dialogue has been strengthened by the creation of the tripartite social summit, which acts as a bridge between the various processes of concertation (e.g. broad economic policy guidelines, employment, social protection and training) and enables the social partners to make a direct contribution to the Lisbon objectives. A more autonomous form of bipartite dialogue has developed, as is evident from the adoption of the social partners' common work programme, which focuses on the three issues of employment, mobility and enlargement. The Commission also welcomes the dynamic and rapid development of the European sectoral social dialogue, which now encompasses some 30 committees. Apart from the social dialogue, the Commission is also in favour of developing the social responsibility of companies and, in the wake of the results of the Stakeholders Forum which ended in June, intends to launch a communication which will enable progress to be made in this field.

18 C. Equal opportunities 20. Do you intend to bring forward a comprehensive directive combating discrimination on the grounds of disability under Article 13 of the Treaty, as requested by the European Parliament and the European Parliament for Disabled People? I fully share the objective of promoting equal opportunities and full access to rights for disabled people in the European Union. We have undertaken to develop a full and integrated strategy on disability, based on three main elements: Equality of rights and measures for combating discrimination Elimination of both physical and attitude obstacles Mobilisation of the most important interested parties and integration of the disability element into a large part of EU policies. The Community legislation, which was adopted in 2000, already offers protection against discrimination for reasons of disability in the field of employment, including the provision of reasonable adaptations to enable disabled people to have access to jobs and training. These new rights were to have been implemented by the end of 2003, but some Member States (Denmark, France, Sweden and the United Kingdom) have taken up their option of requesting an additional period of a maximum of three years for transposing the disability provisions into their national law. Transposition of this new Community legislation has been a challenging process, and there is still a lot to be done to ensure that these new rights are fully implemented and applied. This should include fresh efforts in terms of awareness, training, the promotion of good practice etc. For the time being, I believe that the main priority should be to ensure that the current legal framework works effectively and that the full range of Community funding and instruments is put to use to meet the highly diverse challenges which disabled people have to face. But we cannot rely solely on anti-discrimination legislation or on new funding programmes to bring about real change. Our joined-up approach to disability policy is reflected in the action plan adopted in October Taking account of the results of the European Year of Disabled Persons, this action plan sets out a series of practical methods by which the European Union can help to eliminate obstacles and promote equal opportunities for disabled people from now and up to and including Finally, the Commission has launched a broad public consultation on the future development of policy in the field of anti-discrimination, with the publication of a Green Paper on equality and non-discrimination in an enlarged European Union. Following an analysis of whatever remarks we receive in response to the Green Paper, I shall be putting forward, over the coming months, details of the possible ways in which the EU could intensify its efforts in this field.

19 Questions put by the Committee on Women s Rights and Gender Equality 1. Gender mainstreaming: As the promotion of equality between men and women and the mainstreaming of a gender perspective into all areas of policy activities are clear objectives of the EU, what concrete measures do you plan to ensure that the strategy of gender mainstreaming, together with specific measures and positive actions, is properly implemented in all the EU's policies and activities? I am quite sure that, if we are to achieve equality between men and women, we must expand the existing instruments to include a gender mainstreaming policy. For example, we will not solve problems like segregation between men and women on the labour market and the pay gap solely by legislating. In other words, we must integrate the equality between men and women factor into all policy sectors and at all stages of policy formulation. Experience of gender mainstreaming has shown that better results can be obtained by committing oneself to equality between men and women as a fundamental value and as an operational objective. Such equality must be visible in the way policies are formulated and put into effect. Effective gender mainstreaming will require a long-term strategy. It is clear that the approach cannot be purely national nor solely European. So far, the Commission has established a number of implementation mechanisms both in the Member States and at EU level. This dual approach is enshrined in the guide documents for a number of EU processes, e.g. the Structural Funds, research policy, the European employment strategy, the social inclusion process and development cooperation. I shall be working closely with the whole of the Commission with a view to continuing the development of gender mainstreaming in all Commission strategies and processes. As far as internal resources are concerned, I should like to stress that renaming the portfolio for which I have been designated Commissioner to make explicit reference to equal opportunities is clear proof of how serious the future Commission is about this fundamental principle. In addition, the group of Commissioners for equal opportunities, which I shall have the honour of chairing, is a guarantee of high-level support for gender mainstreaming. This is important in terms of implementing the commitment set out in the Treaty to eliminate inequalities and to promote equality between men and women in all Community activities. At the same time, the Commission s inter-departmental group, which is made up of Commission officials responsible for integrating the gender issue in the various Directorates General, will also be making its contribution to gender mainstreaming.

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