Unemployment issue is a real threat to EU, says Santer

WITH finance ministers dealing inform ally with the Stability Pact deadlock elsewhere, Mr Bruton opened the discussion on employment…

WITH finance ministers dealing inform ally with the Stability Pact deadlock elsewhere, Mr Bruton opened the discussion on employment.

The debate was one, he said, which they had had many times, most notably in Turin and Florence under the Italian presidency. Their emphasis must be on producing conclusions reflecting ambitions for practical measures.

Unemployment was a real threat to the construction of Europe, Mr Santer said. Their strategy was in place but still largely declaratory, and the Council itself had failed in some instances to implement European Council decisions - a reference to its inability to find sufficient funds for the priority trans-European networks projects.

That was the background to his proposals for a Confidence Pact for Jobs, outlined in principle in Florence.

READ MORE

The Commission had decided to draw up a score sheet of Union actions on employment and would present it to every summit. This time, it showed broadly encouraging results at macro and micro economic levels and showed the important active participation of the social partners.

He urged immediate action in areas where progress had been slow, by clearing agreements on biotechnology research and the long-stalled European company statute.

And he called for the setting of definite targets for budgetary consolidation and full implementation of the single market, in parallel to those involving the third stage of monetary union. He was pleased to report some 60 local development projects up and running.

Mr Chirac welcomed the scope of the discussion, which he said had moved from the general to the real factors of an employment strategy, growth and structural reform. He supported encouraging local development projects.

He spoke of the importance of developing the European Social Model as part of the identity of the Union. This was linked to the need for cash for trans-European networks, the fight against social dumping, and a commitment to universal public services.

The latter is a reference to liberalisation programmes in electricity, telecommunications and postal services in which the definition of minimum universal public service obligations is key to controversial negotiations. He said that recognition of such obligations should be included in the treaty which should also incorporate fully the Social Protocol, from which Britain currently has an opt-out.

Mr Rasmussen said the work was vital to citizens' understanding of what Europe is about. He emphasised the need to develop training and information technology strategies as well as structural policies. Nationally-based solutions would not be enough, they had to find combined solutions.

Mr Simitis said the Council must send a message of positive action on several fronts - trans-European networks had to be stressed and funded, small and medium sized businesses needed special support, as did training for new entrants to the labour market, particularly young people and women.

Mr Gutteres warned that globalisation of trade can lead to difficulties and that the only way to maintain a comparative advantage was through education.

Mr Major said solutions were not to be found in new treaty language on the issue but in actions in the member-states providing opportunities for business.

Employment rules should not be rigid. Britain had the choice either to protect those at work or find work for those without jobs - its choice was the latter, with the result that unemployment had fallen consistently in the last 4 1/2 years.

The key elements of policy were a strong labour market policy, wage flexibility, and an improvement in workforce skills. The Union's Essen strategy which incorporated these elements was one for the medium-term and would take time to begin to have effect.

He would accept the declaration as long as it stressed the primary responsibility of the member-states, the Essen approach, and that it did not prejudice the British position that an employment chapter should not be included in the treaty.

Mr Bruton confirmed the acceptability of the provisos. Mr Dehaene said there should be references to the social partners, the sharing of work and the role of small business.

Mr Lipponen spoke of the bad memories he had of being unemployed. Although primarily a national responsibility, citizens expected action at EU level. He echoed previous calls for an emphasis on information technology.

Mr Kohl spoke of the problems caused by German unification with two million extra people looking for work. He thought what was needed was not a massive EU-wide programme but an attempt to join all the individual countries' efforts together.

Mr Kok warned of the dangers of an imbalance in their approach if they concentrated on the internal market and economic co-ordination but not labour and social matters. He accepted that they would have to discuss taxation harmonisation in future.

Mr Persson urged the inclusion of an employment chapter in the treaty. The labour market measures should have special objectives for young people who should not be out of work for more than 100 consecutive days.

He urged the presidency to strengthen the declaration on environmental issues.

Mr Prodi said it was important to give citizens a sense that the Union is contributing to their lives through social projects. And he echoed calls for taxation and fiscal policy co-ordination.