EU COMMISSION PROPOSES "NEW SOCIAL AGENDA"

UNCLAS SECTION 01 OF 03 BRUSSELS 000666

SIPDIS

DOL FOR BLS AND ILAB BRUMFIELD
STATE FOR DRL/IL

E.O. 12958: N/A
TAGS: ELAB EUN USEU BRUSSELS
SUBJECT: EU COMMISSION PROPOSES "NEW SOCIAL AGENDA"

REF: STATE 26878 (notal)

SUMMARY
--------------


1. The EU Commission on February 10 adopted the
"New Social Agenda," designed as a framework for EU
policy in the area of employment and social issues
for the next five years. Further to reftel request,
the blueprint outlines the priority concerns of
Commissioner Spidla, who holds responsibility for
Employment, Social Policy and Equal Opportunities.
Among other initiatives under the New Social Agenda,
which remains subject to approval by the EU
governments, the Commission will table a proposal to
enable workers to switch occupational pension
schemes when moving to another Member State. The
transition periods imposed for the free movement
into the former EU-15 of workers from the Central
and Eastern European countries that joined the EU
last year may also be reviewed. Commissioner Spidla
also addressed the challenge of EU demographic
changes, arguing that Europe needs more, not fewer,
economic migrants despite public fears and high
unemployment in major EU economies (para 7 below).
END SUMMARY.


2. EU Commission President Barroso and Commissioner
Spidla, who holds responsibility for Employment,
Social Policy and Equal Opportunities, on February 9
announced Commission proposals for a New Social
Agenda of the EU as "the social policy dimension of
the refocused Lisbon Growth and Security Strategy."
Responding to accusations from trade unions and
members of the European Parliament that the
Commission's plan for revitalizing the EU economy
(announced a week earlier) was too focused on
business-friendly policies, Spidla said the New
Social Agenda would "help to provide what citizens
most want: decent jobs and social justice." The
Commission wanted the revised Lisbon Strategy to
maintain "a balance between three areas: economic
growth, social cohesion and sustainable
development." Stressing that the New Social Agenda
"does not present anything that would undermine
business activities," Spidla said the draft was
"designed to preserve and modernize" the EU's
"valued social model as the essential tool
underpinning Europe's drive to boost growth and
jobs."


3. The current Social Policy Agenda was launched at
the end of 2000 (during the French Presidency) as a
first catalogue of EU measures for a five-year
period. Spidla presented the new draft, which will
be submitted for endorsement by EU leaders, as "a
work plan for the EU in the area of employment and
social issues for the next five years." According
to a Commission statement, "By modernizing labor
markets and social protection systems, it will help
people seize the opportunities created by
international competition, technological advances
and changing population patterns while protecting
the most vulnerable in society." As outlined by the
Commission in a press release, the New Social Agenda
has two key priorities: a) employment ("more and
better jobs") and b) combating poverty and extending
equal opportunities to everyone in society ("social
inclusion"). The paper underlines the role of
partnerships involving public authorities at local,
regional and national levels, as well as employer
and worker representatives and NGOs, in securing
results and promoting support for reforms. A brief
"external dimension" section sets the goal of
promoting "decent work for all" as "a global
objective at all levels."

EUROPEAN LABOR MARKET
--------------


4. The Commission recognizes that the 2010 target
for achieving full employment (as set under the 2000
Lisbon strategy) is not realistic but maintains that
6 million new jobs can be created by then. A key
instrument for implementing the Social Agenda is the
European Employment Strategy, based on the four
priorities also set out in a 2004 report by a high-
level panel (Kok report):

-- Increase the adaptability of workers and
enterprises;
-- Attract more people to enter, and remain in,
the labor force;
-- Invest more, and more effectively, in workers;

-- Ensure real implementation of reforms through
better governance.


5. Under the stated goal of "Creating a European
labor market," and improving worker mobility in the
EU, the Commission proposes to:

-- Make proposals to remove obstacles to labor
mobility, in particular those arising from
occupational pension schemes;

-- Set up a high-level panel this year to assess
the impact of enlargement on labor mobility
across Europe. This could lead to a review of
the limitations to the free movement of workers
from eight Central and Eastern European
countries that joined the EU in May 2004. In
an interview with Reuters, Spidla said he
expected that some of the EU-15 would not
extend curbs allowed under the Accession Treaty
when the first two-year period expires next
year;

-- Look at the issue of an optional framework for
collective bargaining across frontiers at
either enterprise or sectoral level;

-- Analyze in a Green Paper the new work patterns
and look at the role of labor legislation in a
changing economy. The Commission announces "an
initiative concerning the protection of the
personal data of workers." The Commission will
propose to update existing Directives on the
transfer of undertakings (maintaining workers'
contracts following a change of company
ownership),and collective redundancies, as
well as the consolidation of EU provisions on
worker information and consultation;

-- Propose a new EU strategy for health and safety
at work to run from 2007 to 2012: this will
emphasize that prevention pays off (fewer
accidents means more productivity);

-- Steer the coordination of Member States'
national pension policies under the Open Method
of Coordination (a framework under which the
Commission monitors progress with national
action plans that set objectives and timetables
for meeting them). Spidla advocated a more
flexible retirement system to encourage
Europeans who were able to work later in life
while providing pensions for those who needed
to retire.

FIGHTING POVERTY AND PROMOTING GENDER EQUALITY
-------------- -


6. Under the second major heading, the Commission
will:

-- Engage in consultations on the national minimum
income schemes;

-- Assess the need for and feasibility of
supplementing existing legislation to tackle
discrimination in an enlarged Europe. This
will address the question of minorities,
especially Roma, who will make up a 10 million-
strong minority once Bulgaria and Romania join
the EU in 2007;

-- Update its Action Plan on people with
disabilities;

-- Tackle issues such as the gender pay gap
(Spidla noted that the average difference is
still 15 percent),getting more women onto the
labor market, training, balancing work and
family life;

-- Propose the establishment of a European Gender
Institute to support implementation of
Community objectives for promoting equal
treatment of men and women. This will "provide
a clearing-house for information and exchanges
of good practices";
-- Clarify the role of social services of general
interest and draw up a list of Community
policies that relate to them. While
supporting the Commission's aim to liberalize
the EU market for services (the purpose of the
draft "Bolkestein Directive" tabled by the
Prodi Commission),Spidla conceded there were
"well founded fears that cannot be swept aside"
about preserving social services of public
interest such as in healthcare.

THE CHALLENGE OF DEMOGRAPHIC CHANGE
--------------


7. The New Social Agenda advocates a policy
approach that "takes account of the needs of the
different generations as Europe's populations age."
A "European initiative for Youth" will mark this
commitment. The Commission will issue a Green Paper
analyzing the demographic changes in Europe and
suggesting ways of coping with the problems caused
by the aging of Europe's populations. "Over the
next 20 years, there will be 20 million fewer
workers in Europe, even including migrants," he
said. Dismissing EU citizens' fears that Europe is
already "full-up," Spidla suggested people should
take a longer-term view instead: "Naturally, if you
only look at the next two weeks, things look
different. But in the EU we have to work on the
long term and we definitely need immigration."
Spidla acknowledged that calling for an increase in
labor migration was politically difficult at a time
when unemployment in Germany has topped five
million, reaching the highest level since the 1930s.
However, it would be wrong to blame immigrants for
the problem: "Would the post-WW II German economic
miracle have been possible without 'guest workers'?
Certainly not."


8. While accepting that labor market policy
essentially remains a national responsibility,
Spidla publicly stated that barriers to free
movement have an economic cost as preventing the
enlarged EU market from working efficiently. "If
you don't achieve free movement of people as well as
capital and goods, you don't get a proper allocation
of labor, one of Europe's key resources -- qualified
workers," he said.

REACTIONS
--------------


9. The European Trade Unions Confederation (ETUC)
praised the "positive" framework of social measures
while hoping that it will not remain a list of pious
aspirations. Secretary-General John Monks welcomed
the fact that the plan "places again on the agenda,
managing restructuring and promoting European Works
Councils as tools to cope the challenges of
globalization." The European employers'
organization UNICE was concerned that some of the
proposals announced "could undermine the Lisbon
goals of enhancing growth and employment," calling
on the Commission to be "consistent" in its
approach. According to UNICE, there was no need for
an additional layer of EU collective bargaining over
and above the national, sectoral, regional or
company level. The idea of codifying existing
legislation on information and consultation was seen
as disregarding "the fact that information and
consultation vary depending on the issue and level
at which it is best organized." UNICE Secretary
General Philippe de Buck said the Barroso Commission
was "walking a very thin line."


10. The full text of the Commission Communication
on the Social Agenda is available from:
http://europa.eu.int/comm/employment_social/s ocial_p
olicy_agenda/social_pol_ag_en.html

SCHNABEL