Communication from the Commission - Community policies in support of employment
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 12. 11. 1997 COM(97) 611 final COMMUNICATION FROM THE COMMISSION COMMUNITY POLICIES IN SUPPORT OF EMPLOYMENT AM OVERALL STRATEGY for most years. This problem has been at the core of individual European, national and The concerns Commission's recent projections anticipate thaï even with appreciably higher growth between now and 1999, the unemployment rate in the European Union will still be 9. 7% in 1999 if its policies remain unchanged. What should we do? There is no magic solution. Only an overall strategy can produce a job-creating dynamic. of this We have already progressed towards this overall strategy: the White Paper on growth, competitiveness and coordination employment, the the strategy defined at Essen, an incorporation into through integrated approach the for Employment Confidence Pact approved in Florence, and finally, the consolidation of this strategy in the new Treaty. Step by step, the European Union has thus gradually- acquired a common framework of reference, the coherence of which rests on three factors: i. It is an integrated strategy. Employment policy cannot be divided up into isolated components. It must incorporate side by side the three elements necessary for success: a framework, sound macroeconornic the the effective realisation of potential of the single market, ambitious reforms of labour markets. on the Of these three elements, the labour market aspect has until now been the least developed at European level. Agreement guidelines proposed by the Commission and the implementation of national action plans should give it renewed vigour. What this document does is look at how Community policies contribute to It is thus a the overall strategy. response Amsterdam the European Council's wish to receive a report on Community action, noting the already calling, where undertaken necessary, for new impetus. initiatives principal and to 2, The strategy covers the short, medium and long term. fact in the strategic The usefulness of a approach it that lies enables action on the part of all participants to extend over the long term. The accelerating pace of change that we can all see today requires that we do more to reconcile urgent needs in the short term with preparation for the medium term. for This demographic change: by promoting an rates today, we are preparing the ground for contending with ageing society tomorrow the thoroughgoing social protection. in employment reform of facilitating increase clearly case and the is The level of unemployment remains worrylngjy high, at 10,8% m rnid-1997, in 1996. more than $% of the Union's labour force had been out of work for at least a year, Some 600 000 new jobs were created m 1998, The service sector has created 1 to 15 million jobs annually (except the more in 1993), while traditional sectors (agriculture and industry) have been In constant decline. Over the last ten years» job losses have been concentrated in sectors employing less than a quarter of the entire labour force of the Union. Since 1993, micro-enterprises with less than 10 employees have been recruiting twice as fast as major firms* Virtually the entire net increase m employment since 1990 Is accounted for by the growth in part-time working. The average unemployment rate among young people in the Union is still over 20%. However, there has been ai slight drop recently, in line with demographic trends and as a result of more young people staying on m education. Unemployment among women remains about $ percentage points higher than among men (12. 7% as compared with 9. 4%). tmiàl nil liBïiilÉliiH lirtrtiWiHMIWH It is also true for the increasing speed of technological change, intensified by globalisation: this change is the source of new wealth, but it is not distributed evenly. The faster pace entails change of a also reorganisation of structures and social costs that can only be reduced employment by far-sighted facilitate management which will geographical occupational mobility. This for true enlargement of the Union, which is seen by many as a constraint, whereas it already today and even more so in the medium term actually renewed offers opportunities growth. and is also for We must react to the unemployment problem quickiy, and actually do something rather than just talk. We must also anticipate tomorrow's challenges by finding solutions to them today. Otherwise, the problem of unemployment will remain one of necessary adaptation rather than one of forward-looking dynamism. We are all aware of the major trends we are living through. But the responses we need to make are often postponed to a distant future. The European way is to allow initiative to create new jobs and also to provide benchmarks and references to help everybody plan for the future in so far as it is foreseeable. 3. Success depends parties. the of on mobilising strategy all to all of Because this strategy embraces the it must whole range of policies, appeal the parties concerned. More than ever before, modernising initiatives come today from every quarter. The challenge is to break down dividing barriers and integrate the different initiatives in a common framework of reference. The actors field operate at very different levels. There are institutional actors at European, national and local level. Then of the employment in -2 measures, as in the case of the Structural Funds. I Bumne as an economic entity The European economy m an inoreasittgly integrated economic entity. As the single market moves towards completion, cross-border movements of goods and services to domestic become no different movements. Corporate investment strategies and, hence, employment and growth policies must be increasingly conceived in terms of Europe as a whole. The volume of j the Union's external trade with the! rest of the world remains at a steady i level of 8% of Its Q'AF, au* 'his xmcu? < inoraaslr^iy active > constitutes an sttalani Th3 J io comp&fïEsn. dynamism o; Europe tfs^nds on i bl ability* to face global cotr^etîiion and ] ,j develop its competitive strs-itniha. The lorag*V&rm increase In tte growth ti jrste of ins Ewop®-^ ocofiowy &\\u ifS^uire u sîgnfôcar;; înc*e$3$ in ins* >ate of crpftai inveafcnont, ^u'rontfy tending at around 13% (compared with 24% at the begtehg of the 1970s). O v a r ii long run, n<arj5$a i n f r ^ A ' o U i ^, ' investmt^; technote^c&f &)&hcbt innov&îioa, &r*d human resource "he iinves&noté ~ o p t i ng the &atw$en •jli «$*&«$ i r ^ r o ^ o n o my the and jr\!:#>«c&rt&my * %f® Hey &l®msmv$ m| aiid at course there are the social partners, who are in the front line when it comes to maintaining and creating jobs. there are associations and individuals. finally And applies This mobilisation to Community policies themselves. The purpose of this document is to show how Community serve employment in the context of this overall strategy. policies Action by the Union is not parallel to ti^ai of the Member States simply because it is external to it. On the contrary, the two are interwoven in two respects: compatibility - EU action creates the frame of reference which can guarantee the of Member States' action and thus rsieass its full potential. The creation of a sound macroeconomic framework, the single the completion of market, tax provisions, the state aids code, measures to simplify the business market environment, of reforms, sustainable development are all important factors here; scrutiny of prospect labour the the by the Member - Union action complements and the action supports Member States. The instruments specific to the Union dovetail with the measures already undertaken by States, complementing them and thereby demonstrating the value added by the Community. This is true of research and the funding of small businesses, the and information trans-European networks. Union action may also support steps by the Member States by following directly in the wake of national innovation, society -3 COMMUNITY POLICES IN SUPPORT OF EMPLOYMENT: ENABLING, COMPLEMENTING AND SUPPORTING I. Union action creating an essential framework THE MACROECONOMIC FRAMEWORK by the The coherence of the employment first and is guaranteed strategy foremost European macroeconomic framework. A sound macroeconomic approach geared is a necessary towards stability condition but in itself it does not guarantee a high level of growth and and If employment. monetary union function smoothly, it will be even more essential for macroeconomic stability to complement structural reforms. But economic and monetary union will itself the growth and support employment dynamic. economic to is This convergence strategy, backed by structural actions, is already fruit. The Commission's bearing macroeconomic forecasts have been revised upwards and latest projections suggest a return to a growth in employment of about 1% per year for the two years ahead. the term, the medium In the arrangements for the changeover to the single currency are going to remove some of the macroeconomic obstacles that have to growth regularly had a debilitating effect on European performance. There will no longer be any risk of exchange rate the crises currencies countries participating. At the same time, the tension between monetary policy and policies will national budgetary diminish as a consequence of the occurring between the of discipline demanded by the Treaty provisions and by the Stability and Growth Pact. This framework of stability will make it easier for the to negotiate pay social partners agreements. There will be more chance of striking the balance of is most economic policies favourable and employment. The transformation of the current economic upswing into lasting growth in the medium term is the the challenge macroeconomic framework bolstered by EMU and the euro. that growth real for to + With the expected introduction of the euro on 1 January 1999 and the growth prospects which are confirmed by the convergence process, the European Council in Luxembourg could restate the to importance economic coordination and in this context underline the importance of the joint declaration by the in European social partners the medium-term support of macroeconomic convergence and growth strategy. attaches it THE $INQLE MARKEI to 1987 The Commission's initial assessment of the impact and effectiveness of the single market showed that the closer integration of markets and keener additional competition generated growth of 1 to 1. 5% in the period from creating considerably more jobs than would have been the case had the single market not existed. The assessment also showed, however, that there large number of were still a shortcomings which prevented the single market functioning perfectly. 1993, from Buoyed the its Commission presented an Action findings, by. 4. Plan that adopts a clear and strategic approach to the action needing to be taken to improve the workings of the single market in the years ahead. the This plan was endorsed by Amsterdam European Council. It is now incumbent on all those involved to demonstrate a strong political will rapid towards to work implementation of the priority actions listed in the plan. The Commission will keep a watchful eye on the achievement of these priorities, in particular by regularly publishing the "Single Market Scoreboard. " the Council + The impetus provided by the European on employment will focus attention the strict and effective on implementation of the single market rules. For example, the provisions governing the opening the telecommunications up of market, where there is great potential for job creation, will have to be applied within the deadlines set. Restoring an employment-friendly tax system effects far-reaching There can be no doubt that the taxation system is one of the areas where structural action can have the most on employment. In this connection the Amsterdam European Council and the latest broad policy guidelines call for an overall reduction of the general level of taxation. However, European it economic increasingly difficult to embark at national level on tax reforms that are inspired about employment. integration makes concern by This is why the Commission regards it as essential that agreement be reached on guidelines aimed at fiscal guaranteeing greater coherence three areas: throughout Europe in • the Implementation of a balanced tax package along lines the the Commission proposed by following up the work of the Tax Policy Group, including a code of field of in good conduct company tax, common principles regarding the taxation of savings and the elimination of withholding royalty taxes on payments between companies. The Ecofin Council will shortly be called on to give its opinion on to this package. The aim combat harmful competition with regard to taxation, with a view to reversing current tendencies that lead statutory increased charges on labour, especially on the low-skilled and least mobile. interest and to is • The adoption of a Community framework for the taxation of energy products (excise duties, broadening the tax base to cover all energy products) leaving room for manoeuvre to reduce indirect labour costs. • Targeted reduction in VAT rates for labour-intensive services, so as to boost demand for such services and reduce moonlighting. The Commission recently adopted a communication on this subject, temporary that a suggesting experiment could be tried with services by competition. cross-border Member States which so wished would be authorised to apply the reduced the standard rate. This could play a supporting the measures stipulated in the first two points, which would be most role alongside affected rather than rate not 5- for decisive labour costs. reducing indirect + The special European Council on employment could call on the Council of Ministers to reach agreement by the end of 1997 on proposed the Commission's overall package for combating harmful tax competition and to take a positive line on taxation of targeted energy reduction in VAT. and the Redirecting and reducing state aid Strict control over state aid to ensure compatibility with Community rules is the only way fair competition and to avoid jobs in one place being created at the cost of job losses elsewhere. to establish Here the Member States have a shared interest in coordinating their systems of state aid to reduce the overall sums involved which come to around ECU 100 billion a year. Much national aid still gives rise to mutual outbidding of a distortion the cohesion competition affecting countries. The Commission plans to hold consultations with the Member States on this issue. or + The Commission also intends in due course to review the criteria for approving aid in order to foster schemes that genuinely promote economic efficiency and employment, including continuing training, the creation of lasting jobs and the smooth operation of the labour market In conjunction with the Member States it will devise a system of benchmarking to evaluate the effectiveness of the different national schemes in terms of employment. Simplifying environment, smaller businesses the especially business for The BEST Task Force on small businesses was set up following the Amsterdam European Council. It is made up of 15 leading figures with experience of the problems faced by small and medium-sized businesses. Its job is to provide an independent that assessment of the measures the should be to simplify taken administrative and regulations that apply to businesses. requirements In addition to legislation proper, the Task Force is also to examine other that could help encourage areas entrepreneurship, for example: - the basic the availability of services needed run a to financial business, such as management, bookkeeping and personnel management; - easier access to services provided by the often unduly complicated public authorities responsible for job centres and training social schemes, security regulations and iocai and national rules concerning standards and the environment; - businesses, and qualifications training opportunities for people running their co-workers, spouses including in traditional occupations (crafts, tourism, trading) where there is good employment potential. -6 p. European and national legislation will be required to give effect to these recommendations. # 7"/7e BE SIT Task Force is to produce an interim report for the European on employment finalisation ahead of the Cardiff European Council. Council for & Before the Luxembourg illifclllliiii % ll|lll!liililllllllPiil|if!ilill|y lllliiiiillllllllllilllliiiiiiliii^:! p i H i l l ^ H H ^ l i i l i i i i i i Si BBB^^PBlililiÉliiilisliliil Hli^BÏBlilBSHI^HiliÉlIll European Council in December the Commission will be reporting on all simplification measures under way or planned: "Better lawmaking". STRUCTURAL REFORMS OF THE LABOUR MARKET acopted ' Ooîube* OIL. ' Medium and long-term structura! reforms form the core of the draft 'eport and guidelines on '•ml by *he -rr'loymeni ro»f Co nisï. 'or o^ 'don1 M*. t. -»» -*rofiC L t i s „. ! i î/ e ' U i p f t< Ct. iv! tp adaptability and ?qua« jpponunf. es Focusing on these pncn*:e? should hitherto help expand on underdeveloped aspect of the integrated approach. Only if these structural reforms are a success will a genuine increase in the volume of job-creation be possible. this !t is clear that this is primarily an area for national action. However, the Community framework is needed for exchanging good practices and setting shared objectives through guidelines. It will then be for ïne Member States to act en these guidelines in sine with the particular features of their own labour market. have agreements Two been negotiated under Articles 3 and 4 of the Soefo! Policy Protocol. The first concern parental leave and the second pgrMime work. These agreements have been submitted to tN? Council to be implemented in the! | form of a direstive. Oocrpation-specific discussions aref twenty or so different held with I sectors and the social partners have' j issued more I declarations* recent initiatives ?nctude: nm ''is most importer 140 r< * a for framework agreament cr. y nationakevei j apiculture negotiations reconcile { to reductions in working time with8 working time flexibility; « several charters and codes of good practice concerning, for example, child the commercial, footwear, textiles ^6 clothing sectors; labour in | * memorandums on expanding! in the cleaning employment industry and in the distrib-jtivj j trades, I play The social partners have a vital role to negotiated here. A understanding on the need to strike a fundamental balance between labour market flexibility and job security for is at the heart of the workers European model. The agreement reached on part-time working is an important step along that path. The on dialogue social further 13 November should bring progress, stronger commitment from the social partners to play their full role and to assume the^r responsibilities in this process. summit with a in Similarly social dialogue should be stepped up individual sectors,, endeavouring to emulate the success achieved in the agricultural sector. Across-the-board progress involving all sectors should be built on with agreements which supplement them to particular and/or are specific sectors. *& By way of advance application of the Treaty of Amsterdam, the European Council will call on the first Council to adopt guidelines national to be employment policies applied by the Member States through their national action plans. the on + By laying the foundations for an outline agreement the negotiating partners at multi-sector level in Europe should give a European lead on resolving the problems of non-standard work and informing and consulting workers. EMPLOYMENT AND SUSTAINABLE The Member States have already started taking steps to encourage environmental activities which have a positive impact on employment, such as conservation, waste coiiection and processing and urban renewal. If this is to go further, there must be better safeguards for the nature sustainability of actual production and consumption. Oreen technology which creates or maJriMojmks 1} In 1994, added value in the sector producing environmental technology and services came to ECU 90 bilfêerL providing work for more than 15 TfiKtcn people. These figures tV; not inertia technologies îo promote ener^y-sav'ng and the production of renewable. arms of energy. 2) by introducing (n the United Kingdom a survey was done of 11 firms in various I branches of industry which hadf reducing applied a strategy of waste green technology* These firms saw their profits rise by some £4 million within four y*are In 70% of ca?es, the investment in energy-saving measures showed a positive return in Jess than a y<sar. launched programme ?3)The management of a tannery m t the Netherlands of target-oriented investment tntroductr/j clean In technology. Vhi$ fed to t& rise in reduced profit* environmental cf turnover) and sales of naw f/pes of by-products. to costs thanks (2% This is a long-term exercise which will eventually lead to new jobs being created, and dictate whether existing jobs will continue to be viable into the future. But it calls for an overall the whole sustained strategy European Union, if we are to cope with the costs of the switchover, which for certain types of firms (small businesses) and certain regions may be high. for + Before the employment summit the Commission will be adopting a the communication on environment and employment which defines such a strategy and suggests the first steps to be taken it: in embarking on identifying promising areas for investment in sustainable forms of technology, coherent use of the various awareness-raising instruments, and regulatory and fiscal incentives. Proposals for five key measures will be put forward. II. Action by complements action by the Member States Union supports and the RESEARCH AND INNOVATION new findings research The Union currently devotes a much smaller proportion of its gross domestic product to R&D than the United States or Japan. It is also some way behind in its capacity to to good turn account quickly, with a view to and launching services. Extra efforts will have to be in, both as regards steering put right directions, research particularly towards making the best use of human resources, and in terms new developments through exchanges of know-how linking together companies and regions. disseminating networks products the via of in These are the concerns which are at the heart of the scientific guidelines proposed by the Fifth framework Community for programme research, of which the six main subject-specific or across-the-board lines develop out of Member States' own endeavours in a multidisciplinary approach, the European effort around nine basic criteria, one targeting The of them being employment. same concerns are to be seen at work the action plan on innovation presented in November 1996. in + The new framework programme be adopted in Its specific In the same first network of should February 1998. programmes should be approved by summer 1998. the year, Innovation Training Centres and Educational Resource Centres is to be set up (based on an idea put forward in the Ciampi Group report), the object being to make technology transfer to small businesses easier. + In response to the brief given to it by the Amsterdam European Council, the Commission has tabled a proposal for using the interest (some 40 MECUs per year) yielded by the ECSC assets to continue financing research in sectors associated with the coal and steel industries after 2002. INCREASED FINANCIAL RESOURCES FOR SMALL BUSINESSES action The Board of Governors of the EIB has approved the broad lines of a special programme determined at Amsterdam in support of employment policies. A start has been made on extending the Bank's activities to education, health, the urban environment and protection of the environment; many projects have already been presented for approval the the Board. To build by trans-European networks, the Bank is the possibility of granting very long-term loans and raising the ceiling on financing to 75% of the project cost. The Bank is looking into 9- proposing that up to a billion ecus be allocated to support instruments for small businesses, especially in the field of technological innovation. Sustainable job creation by small businesses could also be promoted by Parliament's plan to devote up to ECU 450 million in the budget over to employment and three years innovation. of Three complementary instruments covering the development phases of small businesses, from launch to maturity, would be introduced: types - a risk capital window, focusing on certain stages in the life of a small business, to back up the European technological facility financed by the EIB and managed by the EIF; - a Community instrument offering assistance for the creation of Joint European Ventures; - a special guarantee mechanism for small businesses set up with the EIF to increase the risk-taking capacity of institutions financing small businesses. in Ths, SMQnd, ntaffcftt M the United States; NASRAQ 5 600 companies are quoted, the small including 1341 business section. The volume of NASDAQ^ transactions exceeds that of the New York stock exchange, NASDAQ market capitalisation: the quoted value is greater than ;*~ France W 1 8DD billion). NASDAQ was behind 18% of the new jofos (600 000) created in the United States between 1890 and V3S4. H is also estimated that '? rt. iliicr» j^bs are associated with r-u; fisnfe quoted on NASDAQ, GDP of 'j-jtfvreJ. a-WiSJesMr American The establishment of a specialised capital market at European ievel by 2000 is a priority for the Commission. The experience demonstrates that such a market, with its panoply of additional private instruments, has multiple beneficial spin-off effects for the development of small businesses with great growth potential, especially in high-tech sectors. Two initiatives along these lines were launched in Europe in 1996: EASDAQ and Euro-NM. A specialised market integrated at European level will supplement and reinforce national existing experiments, providing them with the necessary critical mass. It will operate via an electronic network between national stock exchanges, which will require harmonisation at rules of European business management (bookkeeping, European Company Statute), and the development of a reserve of skills needed to instruct and support new firms. level of the + The launching of on the special EIB action programme and the the agreement complementary instruments the Community financed by budget will be a major highlight of the European Council on employment. PROMOTION OF A „ SOCIETY WHERE has a technology communications The industries and services represent a fast-growing sector (about 10% per year). Europe twofold opportunity in this area, first, it can use of make optimum these technologies become more to competitive in every sector of the economy, and second, it can reinforce European supply in. the fast- 10 the the to the market growing segments of information society, linked to By Internet. especially the dynamics of responding demand, and by anticipating the future needs of users in Europe and worldwide, Europe can build up the reputation and competitiveness of its producers. the Electronic commerce illustrates this intensity and situation where diversity of demand offer Europe tremendous opportunities to make the most of its know-how. The European dimension lends itself to innovation and new forms of commerce between businesses and A between sellers and buyers. Community initiative was launched in April this year to stimulate electronic commerce. in It was initiative 1997 by an October designed to develop digital signature and cryptographic services, which are an essential condition for the development of electronic commerce. followed factor is enormous potential The expansion of open networks is for growth and a new for all businesses and innovation involved. Here again, individuals there for activities and jobs created indirectly by services and software, which could meet new needs created by communication information technologies, hence crucial importance of the liberalisation of telecommunications infrastructures and services in the single market. and the Th» Internet: a potential source of &&& is to The internet shouid have a major it impact on employment as develops, In 1B98 It was estimated that the Internet was responsible, directly or indirectly, tor the creation of a million new jobs worldwide. At the start of 1097, around 70 million people were using the Net. This reach expected figure 200 million by the year 2000, The range of services available on the Internet continues to expand ~ from 200 Web sites in 1992 to 260 000 commercial sites today, Revenue from electronic commerce on the Internet looks set to reach around ECU 200 billion by the year 2000. If the potential of the Internet Is to be used to the full, certain obstacles to the creation m^S expansion of innovative to be removed> firms still have to The growth in demand is also closely linked the general public's increasing familiarity with new on-line technologies. and multimedia In addition awareness-raising campaigns, education and training fundamental also play a role of importance. to + The Commission will report by the end of 1998 on electronic commerce, the development of open networks and the use of multimedia tools for educational purposes. report will The examine how these things are being used and to what effect. i l- PARTNERSHirs FOR FINANCING THE TRANS-EUROPEAN NETWORK of boosting Setting up an integrated and well transport network at thought-out European level continues to be, in the first instance, one of the best Europe's ways hence competitiveness is also an employment too. essential adjunct single market. What is more, the networks the will also have an labour market by generating new temporary jobs while they are being built. Progress will be ali the quicker if steps are taken to: and It to impact on the - develop innovatory approaches as soon as possible, with partnerships between public and private bodies, to speed up implementation priority projects; of - extend the scope of the EIB instruments in accordance with the provisions agreed on at Amsterdam, in order to meet long-term project requirements at the same time as reducing the degree of dependence on guarantees with regard to third parties; - and identified timetable to ensure that, for each of the priority projects in Essen, the Member States concerned, in cooperation with the Commission, produce a clear a financing plan as a sign of their political commitment, as commitment will certainly be required the momentum required for decisive to make people action, and aware of to be gained from the networks. the benefits build up to 4- The Luxembourg European Council on employment should see the launching of the special EIB action plan for adapting the for instruments financing long-term TEN projects. 4> The financing timetables and for priority projects could the Cardiff plans be discussed at European Council. EROMOTINQ EMPLOYMENT AND DEVELOPMENT^. THROUGH THE STRUCTURAL FUNDS the The Union's structural policies are an expression of solidarity with the countries or regions engaged in the most difficult modernisation efforts and with groups experiencing the greatest difficulties in finding work. The Structural Funds are therefore an essential instrument both for the Union's economic and social cohesion and for the promotion of development and employment. social competitiveness With the promotion of an overall strategy, from the White Paper on and growth, employment to the Confidence Pact for Employment, more and more has been done to focus the Structural Funds on the shared priorities of competitiveness and employment. The structural policies contribute through two complementary channels to attaining these priority aims: - By improving infrastructures and boosting productive investment in regions suffering from structural handicaps, increase they demand in these regions and in them more particular make attractive, sustaining employment. thereby 12 - By applying a wide variety of instruments adapted to the needs of all categories of the working population in order to ensure that human resources are used to maximum effect, the structural policies provide direct support for national or regional employment and social inclusion policies. of new provisions The the Amsterdam Treaty, in particular those in the employment chapter, ought to gear the structural policies more closely to the priorities of fighting unemployment and creating iobs. This was the thinking behind the Commission's in Agenda 2000 for a new generation of programmes covering: proposal and regionalised taken of by two objectives: helping less developed regions to (1) and promoting catch up economic sociai conversion (2), with due account the difficulties being structurai caused the underdevelopment and of by problems industrial areas in decline, rural areas, derelict inner-city areas and coastal regions affected by the fishing of modernisation industry; encountered the - one general objective (3) concerned with the development of human resources, which will thus become a major component of Structurai Fund operations throughout the European Union, capable of providing significant the action plans support introduced in each country to give effect employment the guidelines agreed at European level. for to in for up There particular for n»w requirements r*ew j g f t sI Demographic shifts and changing lifestyles, equal opportunities and the increase in the number of women in employment, bring with them new requirements: satisfying these requirements can generate a large increase in new employment especially in the areas of personal services such as childcare and aid for the elderly, quality of the environment and living conditions. is leisure and culture. enormous potential for employment in the arts in the years to come; the audiovisual market, instance, should grow by 70% in Europe by 2005. Throughout the European Union, in the areas where there is a wealth of and development local smpioymant tc initiatives, 19 areas of high employment growth potential have been identified which could represent the equivalent of zn annual average of 0. 25 percentage points of net job creation. Freeing rhis potential is often the result of $ local move, of which the mml :^wtopmerii boom of the 1380s wg$ a forerunner. This move urban to now réhabilitation job-creation and strategic?» which involve the resources of associations, cooperatives and the like closely; interwovfcr. Into the economic fabric. The removal of obstacles to the1 creation of these new jobs requires an framework based on approbate administrative decentralisation, openness of the public authorities to partnership with the private sector, clear references on the environment, energy, and the récognition of new qualificatrons and skills. transport and ths many sxtends new 13- the those Union's promoting reinforced. Mirroring overall employment strategy, integration of the Structural Funds in the areas together where they are applied should be Greater areas, on concentration simplified procedures for paying over funds accompanied by tighter control and evaluation should enhance the effectiveness of the structural policies in and business. Targeting Community resources on practices and measures with a large job-creating potential can In this connection the also help. the Territorial implementation of Pacts for Employment is a perfect opportunity for the Structural Funds to demonstrate coordinated support innovative approach of for partnership, local development and decentralisation employment policies. employment the of + The Commission will be presenting the draft regulations the new generation of for structural policies in spring 1998. CONCLUSION fight against the Employment, unemployment and the creation of new business should continue to be the Union's priority. Neither the Union nor the Member States can ignore the structural reforms that this priority will require. Joint action will be needed if the reforms are to be truly successful. thinking Sceptics will be that statements like this proclaiming good intentions have been made before, to no avail. The first response must be to point to the window of opportunity the now more macroeconomic climate, thanks open to favourable now than at any time in the last six years. They must also be made aware of the advantages and opportunities that exist in European : changing demographic societies structures and the related new values and new needs; the considerable, underestimated, and the euro and spin-off effects of enlargement. Lastly, is a comprehensive European strategy, the coherence of which can be seen and the way Community from national measures complement each other. probably there force Council European the Treaty on The employment will be the opportunity to transform intentions into action, by demonstrating the Member States' resolve to work together to promote employment. This will take the form of the application, ahead of the entry of of into Amsterdam, of jointly agreed the guidelines for national policies. The unqualified support of each country for the overall strategy will rule out any risk of breaking of ranks and acting the European dimension is fully realised will the necessary confidence be built up: confidence of Europeans m each determination, Member confidence in themselves. isolation. Only State's of Europeans in if 14- ISSN 0254-1475 COM(97)611 final DOCUMENTS EN 04 05 06 Catalogue number : CB-CO-97-622-EN-C ISBN 92-78-27638-3 Office for Official Publications of the European Communities L-2985 Luxembourg