Employment pact likely to be agreed

THE EUROPEAN Heads of State are expected to sign off an employment pact today

THE EUROPEAN Heads of State are expected to sign off an employment pact today. In an early session yesterday the prime ministers set down the broad outline of the text, which is likely to be agreed after a few minor changes later today.

However, the declaration is not seen as leading to a full scale employment pact in Amsterdam next June. Sources said the Taoiseach, Mr Bruton, had reassured the British Prime Minister, Mr Major, that the deal did not herald a full employment pact. Britain has steadfastly refused to sign up to any form of EU wide employment deal.

The ministers will reaffirm that employment continues to be the first priority of the EU, although they are "deeply concerned" at the slow pace of progress in getting people jobs.

The resolution is expected to rest on three basic premises. Overall jobs policy is to be the primary responsibility of member states - something which Mr Major was adamant should be included. There will also be a commitment - to further macroeconomic and structural reform.

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The ministers will also attempt to stress that, above all, monetary union is good for jobs - the stability pact has even been changed, to the Stability and Growth Pact to emphasise this point.

There are six primary areas which the member states will agree to target. Labour markets must become more efficient this will be achieved through continuing education as well as an attempt to "combine worker protection with greater flexibility".

So called vulnerable groups such as the young, women and long term unemployed will be specifically targeted. There will also be a commitment to make taxation and social welfare systems' more worker friendly.

Internal market legislation will also be speeded up. A particular emphasis will be placed on local initiatives. There is also a new commitment to promote competitiveness. This is one issue for which the Irish delegation pushed hard.

Pilot projects and training systems will be picked and measured against a benchmark of the best world practice.