First, I have no business or financial holdings or other commitments that might clash with my duties as a Commissioner.

EUROPEAN COMMISSION Stavros DIMAS Member of the Commission Brussels, 24.03.2004 Dear Mr Bouwman; I would like to take this opportunity, in advance of my meeting with the Employment and Social Affairs Committee on 30 March 2004, to provide you with assurances regarding my independence and accountability and my view on future European integration and the future role of the Commission in an enlarged Europe. I should also like to inform you of my views on the Social Policy Agenda and its further implementation during my term of office as Commissioner for Employment and Social Affairs. First, I have no business or financial holdings or other commitments that might clash with my duties as a Commissioner. Second, I fully accept the obligation to be independent in the performance of my duties. In concrete terms, I will not take instructions from government or from any other body, nor will I engage in any activity which is incompatible with my duties. In this connection, I will take all the necessary precautions to avoid any possible conflict of interest in the performance of my duties. I no longer hold any active position or function in a political party. Third, concerning democratic legitimacy, I fully understand the fundamental importance for Commissioners and the college as a whole of being accountable to the European Parliament. I will actively encourage and develop co-operation with the Parliament, starting today with this letter and the exchange of views scheduled for next week. Indeed, I will follow an open-door policy for MEPs throughout my term of office, be regular in my attendance at the House and seek the highest degree of transparency and information flow. During the legislative process, I intend to take account of amendments from the Parliament, duly justify any cases where the Commission cannot accept them and properly defend in the Council those positions which the Commission has agreed with the Parliament. Mr Theodorus J.J. BOUWMAN, Chairman of the Committee on Employment and Social Affairs European Parliament 08G301 Rue Wiertz, 60 B-1047 BRUSSELS Commission européenne, B-1049 Bruxelles / Europese Commissie, B-1049 Brussel - Belgium. Telephone: (32-2) 299 11 11. Office: J27-8/28. http://europa.eu.int/

Fourth, I undertake to keep the Parliament regularly informed of any problems regarding proper implementation of existing legislation in the Member States, in particular by prompt transmission to the House of key Commission decisions regarding infringement proceedings in respect of a Member State. I am open to consider other appropriate means of ensuring that the Parliament is kept informed in this area. Fifth, I would like to highlight key issues for future European integration and the role of the Commission. Given the legitimate expectations of the European public with regard to economic and social development, security, freedom and justice and Europe's external face, it is clear that the Union must strengthen its role in all three of these areas. In doing this, however, we must hold on to what the Union has achieved and we must adapt the method which has allowed us to progress in a democratic and properly managed way : the Community method. Flexible and open integration may be helpful in a Union of 25, in particular as a confidence-building measure, but we must be careful to ensure that the existing acquis is protected and that any flexible arrangements are open to all Member States. The role of the Commission is and will remain the guarantor of the general European interest. In an enlarged Union, the role of the Commission will be more vital than ever. Differences in socio-economic circumstances between Member States will increase, implying a higher degree of solidarity to bridge the gap. The Commission will be confronted with the need to take account of a broader range of interests and sensitivities than before. The Commission will need to respond to expectations among European citizens of more transparency and better explanation of European policy. The Commission's independence, collegiality and credibility will be tested to the hilt and the Commission must meet the challenge. Sixth, I would like to inform you of my views on the parts of the Social Policy Agenda which I will address during the remainder of this term of office of the Commission. I will be honoured to work closely with the European Parliament to move forward on the Social Policy Agenda. I am well aware of the commitments which the Commission has made with respect to employment and social policy and to transposing the Lisbon goals into concrete results. I would like to confirm that my ambition is to honour these commitments to the best of my ability in the coming months. It is crucial that we remain committed to the Lisbon strategy and its objectives and continue to focus on the overriding goal of a dynamic and innovative economy, with more and better jobs and greater social cohesion. This will only be possible by fully exploiting the positive interaction between economic, employment, social and environmental policies. For instance, more and better jobs and greater social cohesion are clearly elements which can underpin competitiveness and economic performance. I believe that the main instruments needed to work towards the concrete Lisbon targets have already been introduced. The European Employment Strategy, the open methods of co-ordination on social inclusion, on the modernisation of pensions and soon on health care play a crucial role. I also believe that these co-ordination mechanisms between the Member States, backed up by effective legislation, a quality social dialogue and the provision of adequate resources through the European Social Fund, should bring us a long way towards meeting the Lisbon goals. DV\530204EN.doc 2

It is true that sluggish economic growth over the past years has set us back. It will be our joint responsibility to further pursue concrete actions which will help to release and develop Europe's economic and employment potential. The modernisation of our European Social Model is a major task, which we try to tackle through the Social Policy Agenda. The European Social Model stands for the parallel development of economic and social prosperity and rests on the consistency between economic efficiency and social progress. Despite the diversity between our national systems, there is indeed a distinct European social model, in which European social policies also contribute to building Europe's economic strength. I fully agree with the Barcelona European Council conclusions, which describe the European Social Model as a model based on good economic performance, a high level of social protection, education and social dialogue. As the European Union is confronted with demographic ageing, economic globalisation and the political responsibility of integrating ten new Member States efficiently into the functioning of the Union, our work will cover many areas and will involve action from many stakeholders, both at European and national levels. I believe that public policy can have a major impact on turning these challenges into real opportunities, bringing us closer to the goals of a dynamic and sustainable economy, with more and better jobs and greater social cohesion. Employment and social policy is not a simple complement to economic policy. It is at the core of the modernisation agenda aimed at economic and social renewal. I fully acknowledge that globalisation, as well as the internal market, has an impact on the employment situation in Europe. Jobs are destroyed and new jobs are created. A free market system should be dynamic in nature. This dynamism also applies to the labour market. There is no such thing as a static number of jobs. The total employment volume and the ensuing number of jobs are the results of market mechanisms and are obviously also affected by government policy. Change, and the management of change and restructuring, should be geared towards new net employment creation, while catering for the needs of those adversely affected by economic change. We must have a horizontal approach to social policy. This already starts from the moment of development of possible new Commission policy proposals. The impact assessments which the Commission recently introduced, aimed at reflecting both the sustainable development dimension as well as better regulation requirements for shaping new policies, are a crucial element in this respect. In practice, this implies that the impact on the employment and social situation should be assessed for all new major Commission proposals. I am personally committed to promoting the horizontal approach within the Commission and the College, through a proactive involvement in the policy decisions which impact on the employment and social situation. Turning to employment policy, the Commission and the European Parliament have a joint interest in ensuring that the European Employment Strategy (EES) maintains its leading role in the implementation of the employment and labour market objectives of the Lisbon Strategy. Important progress has been achieved, with 6 million jobs created since 1999 and more resilient labour markets. At the same time, efforts have been made to streamline the Broad Economic Policy Guidelines and the EES and to increase the policy coherence between the economic and employment policy coordination cycles. The existing overall policy framework is therefore adequate and appropriate to confront today's employment challenges in an EU of 25 Member States. DV\530204EN.doc 3

However, in line with the conclusions of the Employment Task Force headed by Mr Kok and the Joint Employment Report, more emphasis needs to be put on the effective implementation of the EES by the Member States. To this end, the Commission pleads this year for stability of the Employment Guidelines, combined with more forceful and succinct country-specific Employment Recommendations. Coupled with a reinforced exchange of good practices and mutual learning, and a better link with the use of EU financial resources, the stronger EU recommendations can give a new boost to the European Employment Strategy. In addition to a strong involvement of the European Parliament, we have to ensure that the EES fully involves national parliaments, the social partners and other stakeholders. Obviously, national authorities have a key responsibility in ensuring that all levels are involved and that the regional or local dimension is fully catered for. Such improvements should bring about a more hard-hitting and effective European Employment Strategy, that can contribute to taking the Lisbon process forward with more and better jobs. One of the main objectives of the EES is to promote more and better jobs and we must continue this positive approach. This entails combating unemployment and tackling the problem of youth unemployment, which is an issue of particular concern. This requires the creation of new jobs and an effective implementation of active labour market policies, called for within the EES, to ensure that those who are unemployed are given a real chance to find a new job again. At the same time, is it important that we invest in human capital, since particularly those with low skills have considerable difficulties finding a job. The financial support of the European Social Fund can play an important role to help implement the employment objectives. Particularly in those areas which are hard hit by unemployment, the structural funds play a crucial role in investing in real opportunities for everyone. That is also why I firmly believe in the approach that links employment, social and economic policy. The availability of qualified persons is essential to fill new jobs as the economy picks up. The supply of workers helps to underpin economic growth. At the same time, economic growth matters for employment creation. The open method of coordination has proven itself an effective tool in the employment area. It has more recently been complemented with open methods of coordination in the social inclusion field and in the area of pensions. The two strategies have played and continue to play an important role in triggering policy developments in the Member States and stimulating intensive exchange of good practice between them. As such, they are instrumental in modernising social protection systems, whilst respecting the principle of subsidiarity. DV\530204EN.doc 4

The demographic ageing of the European population is an important challenge. The impact on the age composition of the labour market calls, for instance, for more investment in human capital in relation to those already in the work force. Encouraging people to stay longer in the labour market will play a crucial role in making pensions sustainable. Due to demographic ageing, health care will become one of the main, if not the main challenge of Member States' social protection systems over the coming years. All Member States will be confronted with the common challenges of guaranteeing high quality health care and long term systems accessible to all, whilst ensuring financial sustainability. Extending the open method of coordination in the social protection field to the modernisation of health care and long term care, as announced in the 2004 Spring Report, will support policy developments, promote the exchange of good practice and improve the performance of health care systems in terms of access, quality and financial viability. As such, it will strengthen the social dimension of the Lisbon Strategy. One of my key aims during my term of office will be to make progress in the area of legislation. The coming months should see important advances on the following dossiers: the revision of the Working Time Directive; the consultation of the social partners on the review of the European Works Council Directive; and the implementation of the Health and Safety at Work Strategy. The European Parliament's report on the Commission's Communication is an important and timely contribution to the debate on the revision of the Working Time Directive. In relation to timing, the Commission is awaiting the replies of the social partners to the first stage consultation on the re-examination of the Working Time Directive. The consultation period will end on 31 March. The Commission will then, in accordance with the Treaty, consult them on the content of any proposal it envisages. If the social partners choose not to negotiate, we will then present a legislative proposal as soon as possible. Whatever the future holds, we must not lose sight of the Directive's main aim: to protect workers from the adverse effects on their health and safety caused by working excessively long hours, inadequate rest or disruptive working patterns. This must remain our goal. The Commission is, as required by the Directive, not only looking at how the opt-out has been applied, it is also re-assessing the reference periods provided for in the Directive and looking at the implications of the judgements of the Court of Justice in the SIMAP and Jaeger cases. In the meantime, the Commission is of course examining the application of the Directive in the Member States and there are several ongoing infringement proceedings. We will continue this process. In relation to European Works Councils (EWCs), the Commission intends to launch a consultation of the social partners on the revision of the Directive in April/May. Impressive progress has been made so far. EWCs have demonstrated their value, not only in securing information and consultation for employees, but, equally significantly, in providing a mechanism through which effective engagement between management and employees at the transnational level can make a significant positive contribution to company development, particularly to the successful management of change. It is my view that companies can best face the challenges ahead if employees are fully involved in the life of the enterprises in which they work. The proven value of European Works Councils as a vehicle for ensuring such involvement must be developed and built upon. DV\530204EN.doc 5

It will now be up to social partners to express their views on a possible revision. The fact that the social partners jointly submitted a text on the social consequences of corporate restructuring to the Commission in October 2003 could well have implications for their consideration of the European Works Council issue. Turning to improving the health and safety of workers, this is one of the key elements of the Social Policy Agenda. Much progress has been made over the past years; particularly in relation to the Physical Agents Directives (Noise, Vibrations, and Electromagnetic Fields). Work is now beginning on the last part of this proposal Optical Radiation. Several important new initiatives are also under way. The Commission launched the first stage of consultation of social partners on stress at work at the end of 2002. The social partners decided to open negotiations in view of a potential European agreement. It is expected that the result of this negotiation will be notified to the Commission by the end of the first semester of 2004. As regards violence and harassment at work, the Commission services are at present collecting and analysing the relevant elements available in this field. This analysis takes into account, inter alia, the legislative and regulatory initiatives adopted or envisaged in each Member State. In this context, the Resolution of the European Parliament on harassment at work (September 2001) is very relevant and is being carefully considered. As a next step, during 2004, the Commission intends to launch the consultation of the social partners on the possible orientation of Community action in this area, in accordance with Article 138 of the Treaty. I hope for a positive response from the social partners, as this issue is included in their work programme. It is also included in the Commission's work programme for 2004. In relation to the increasingly problematic issue of prevention of work-related musculoskeletal problems, the Commission is evaluating whether the existing legal framework, namely the Framework Directive as well as the individual Directives on Manual Handling of Loads, Display Screen Equipment and Vibrations, needs to be completed. The Commission plans to launch a first stage consultation of the social partners on this issue during 2004. We will then consider what types of measures could be appropriate, both from an ergonomic and organisational point of view, in order to ensuring prevention of these types of problems. The Community Strategy for Health and Safety at Work 2002-2006 is not purely a Commission strategy. It requires not only a permanent combination of all social policy instruments legislation, social dialogue, corporate social responsibility, as well as practical guidance but also that all relevant actors play their role. The Commission assumes its responsibility as a driving force for the implementation of the strategy. It will propose legislation, provide for funding, and develop practical guidance. Social partners are consulted with regard to legislation, but they have also committed themselves in the framework of their autonomous social dialogue to treat important matters, such as stress or harassment at work with the possible perspective to conclude agreements. I would like to make one final point on legislation. Despite our combined efforts, the proposed directive on temporary agency work is still blocked in Council. The Commission will continue to do its utmost to convince the Presidency and other Member State delegations to pursue negotiations on temporary work and move forward on this difficult file. DV\530204EN.doc 6

Moving on to equal opportunities, a considerable body of European legislation provides a strong regulatory environment on equal treatment between men and women. While a solid line of case law of the European Court of Justice has helped to develop and clarify the concept of equality, various Communications and other financial programmes promote equality between men and women in broader policy areas. But I think we all agree that further progress is necessary. The adoption of the Commission's proposal for a Directive on equal treatment between men and women in the provision of goods and services, which is currently under discussion within the European Parliament and the Council, would be an important step towards further improving equal treatment between men and women. In addition, the Commission will table a new proposal on re-casting existing gender equality legislation in the near future. In terms of mainstreaming, the Commission adopted its first annual Report on Equality between Women and Men, 2004 on 19 th February 2004. The report confirms the existence of significant gender gaps in most policy fields, although it also shows slow progress towards narrowing gaps in certain areas. It is clear that we must all work together to further reduce the gender gaps in all spheres of life and to fully utilise the productive potential of the European labour force in order to achieve the Lisbon strategy goals by 2010. The reconciliation of work, family and private life is a key concern for the European Union. Through the European Employment Strategy and the promotion of gender equality, it affects all EU policies. The issue at stake is both to promote more and better jobs and to ensure equal rights for women and men. Data on reconciliation display substantial gender gaps. Women still do most of the work in the home and for the family. This has an impact on their work patterns and limits their opportunities to take up occupations and decision-making posts comparable to men. A major challenge is to change traditional attitudes, especially among employers and to encourage men to take up family responsibilities. The European Union tackles reconciliation from many different angles, using several instruments such as legislation, the open method of coordination between Member States and financing tools. The Commission's Communication on "Equal Opportunities for People with Disabilities: a European Action Plan" adopted on 30 October 2003 sets out how we plan to follow up to the European Year of People with Disabilities. The Action Plan focuses on actions in four key areas: Access to, and retention in, employment, including the fight against discrimination on the basis of Directive 2000/78/EC of 27 November 2000, which established a general framework for equal treatment in employment and occupation; DV\530204EN.doc 7

Lifelong learning to increase employability and adaptability of people with disabilities as well as to allow their personal development and active citizenship. New technologies to empower people with disabilities and enhance their abilities so as to facilitate access to employment; Accessibility to the public built environment to improve participation, notably in the workplace, as well as further integration into the economy and society as a whole. Mainstreaming issues of concern to people with disabilities in all policy areas and at all stages of policy development is one of the core goals of the Communication. This will be an important challenge in the years to come. This should make a real difference to the lives of people with disabilities. In addition to the Action Plan, a biennial Commission report on the overall situation of people with disabilities in the enlarged Europe will support mainstreaming of disability issues at EU level and will provide political visibility for the Commission's actions vis à vis EU citizens with disabilities. I know that a number of Members of the European Parliament have called for a separate Article 13 Directive to combat discrimination on the grounds of disability. I do understand your concerns. However, as you know, Member States should have transposed the Employment Directive in 2003 - this Directive will involve major changes to existing rules in certain Member States and, when correctly transposed, will provide people with disabilities with a very clear legal framework to protect them from unfair treatment. It is clear that some Member States are having difficulties transposing this Directive and our priority must be to focus on ensuring proper implementation. Rather than adding on more legislation, on the basis of Article 13, we should first seek to maximise the benefits of the existing instruments. I would also like to point out that the Commission will adopt a Green Paper in the coming months on the future strategy on anti-discrimination. The European social dialogue is a cornerstone of the European social model and one of the key vehicles for the EU to respond to the dual challenges of the Lisbon agenda of economic and social reform, and of enlargement. The social partners are recognised as the actors best placed to take up the key challenges linked to positive management of change and reconciliation of flexibility and security. There is a trend towards a strengthened social dialogue, illustrated in particular by the adoption of joint work programmes, both by cross-industry and sectoral social partners. Through the work programmes, the social partners confirm their commitments to the objectives of the Lisbon strategy and their capacity and responsibility to contribute to these goals. The Tripartite Social Summit is an important tool for the social partner's contribution to the Lisbon strategy. It acts as a bridge between the different processes of concertation (on macro-economics, employment, social protection and education and training). The next Summit will take place on March 25 2004, on the eve of the European Council meeting, with the overarching theme "Towards a European Partnership for Change". DV\530204EN.doc 8

The Commission closely follows developments in the area of representativity, and the composition of the social dialogue committees is updated when necessary and justified. In this context, the Commission encourages an efficient and wide integration of organisations from the acceding countries into the structures of European social dialogue, both cross-industry and sectoral. It also pays attention to the representativeness of the organisations from the new countries. It is important that the Commission and the European Parliament work closely together in this area and I welcome the strong support the European Parliament has consistently given to the development of the European social dialogue. Within the framework of the implementation of social partners' agreements by means of a Council Decision under Article 139 of the Treaty, the Commission consults the Parliament before a decision is taken. Later this Spring, the Commission will report on the developments of the European social dialogue in particular in its planned Communication on the transparency and impact of the European social dialogue in an enlarged European Union, as provided for in the 2004 scoreboard on the implementation of the Social Policy Agenda. The Parliament will be informed on the developments in this area. In addition to the key role played by the social dialogue in the employment and social affairs area, I would like to underline that I intend to continue the fruitful co-operation with the civil dialogue. In the context of the "structured dialogue" with civil society at European level in this area, with the Platform of European Social NGO as the main partner. Meetings with the Platform have provided and should continue to provide NGOs with an important opportunity to comment on ongoing issues and new initiatives. Yours sincerely, Stavros DIMAS DV\530204EN.doc 9