PURPOSE: to maintain, in 2012, the employment guidelines adopted under Council Decision 2010/707/EU on guidelines for the employment policies of the Member States.

NON-LEGISLATIVE ACT: Council Decision 2012/238/EU on guidelines for the employment policies of the Member States.

BACKGROUND: on 26 March 2010, the European Council agreed to the European Commission's proposal to launch a new strategy for jobs and growth, Europe 20201, based on enhanced coordination of

economic policies, which will focus on the key areas where action is needed to boost Europe’s potential for sustainable growth and competitiveness. To that end, the European Council agreed to set EU headline targets, which constitute shared objectives guiding action of the Member States and of the Union.

The Treaty on the Functioning of the European Union (TFEU) stipulates in Article 145 that Member States and the Union shall work towards developing a coordinated strategy for employment and particularly for promoting a skilled, trained and adaptable workforce as well as labour markets that are responsive to economic change and with a view to achieving the objectives defined in Article 3 of the Treaty on European Union (TEU).

The "Europe 2020 Strategy" proposed by the Commission enables the Union to turn its economy towards smart, sustainable and inclusive growth, accompanied by high level employment, productivity and social cohesion.

Guidelines : on 13 July 2010, the Council adopted its Recommendation on broad guidelines for the economic policies of the Member States and of the Union. Furthermore, on 21 October 2010, the Council adopted its Decision 2010/707/EU on guidelines for the employment policies of the Member States. Those sets of guidelines form the integrated guidelines for implementing the Europe 2020 Strategy . Five headline targets, listed under the relevant integrated guidelines, constitute shared objectives which guide the action of the Member States, taking into account their relative starting positions and national circumstances as well as the positions and circumstances of the Union. They give precise guidance to the Member States on defining their national reform programmes and on implementing reforms, reflecting interdependence and being in line with the Stability and Growth Pact.

The employment guidelines should form the basis for any country- specific recommendations that the Council may address to the Member States under Article 148(4) of the TFEU, in parallel with the country-specific recommendations addressed to the Member States under Article 121(2) of the TFEU. The employment guidelines should also form the basis for the establishment of the Joint Employment Report sent annually by the Council and the Commission to the European Council.

The guidelines for the employment policies of the Member States, as set out in the Annex to Decision 2010/707/EU, should hereby be maintained for 2012 and shall be taken into account by the Member States in their employment policies.

CONTENT: the examination of the Member States’ draft national reform programmes, contained in the Joint Employment Report adopted by the Council on 17 February 2012, shows that Member States should continue to make every effort to address the following priorities:

increasing labour market participation and reducing structural unemployment; developing a skilled workforce responding to labour market needs and promoting job quality and lifelong learning; improving the performance of education and training systems at all levels and increasing participation in tertiary education; promoting social inclusion and combating poverty.

The employment guidelines adopted in 2010 should remain stable until 2014 to ensure a focus on their implementation. In the intermediate years, until the end of 2014, their updating should remain strictly limited.

Member States should explore the use of the European Social Fund when implementing the employment guidelines.

ENTRY INTO FORCE: 24/05/2012.

Decision 2012/238
OJ L 119 04.05.2012, p. 0047

CES0479/2012

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In line with the requirements of the European Semester, the Council discussed contributions to the Spring European Council of 1-2 March 2012, on the basis of the Annual Growth Survey (AGS) and other elements related to employment and social policies.

In particular, ministers pointed out that fiscal consolidation efforts should be accompanied by enhanced employment and social policies . Fiscal consolidation should not increase poverty or hamper efforts to tackle unemployment, and in particular youth unemployment. The great majority of ministers expressed concerns about the sharp rise in youth unemployment ; youth employment must therefore be a top priority.

Measures such as apprenticeships and vocational training are necessary in order to improve young people's skills and their work experience. Employers should be given incentives to recruit more young people through tax reliefs. In that context, ministers referred to the " youth guarantee scheme " to secure the right of every young person to be offered a job, an apprenticeship or training after a certain period of unemployment.

Regarding employment , the Council adopted the joint employment report (JER) which will be forwarded to the European Council. The JER analysis suggests that, while the 2011 priorities and measures remain broadly valid and further implementation of reform is essential, further efforts are required, in conjunction with national social partners, in certain priority areas.

In addition, the Council adopted conclusions setting out the main messages from the EPSCO Council to the European Council. It calls on the Member States to increase efforts, through a flexicurity based approach, to build the sustainable conditions for more, better and new jobs by:

Making it easier and more attractive for employers to hire people and for people to take up those opportunities , by exploring ways, in accordance with national practices of social dialogue, to shift taxation away from labour towards areas less detrimental to employment growth whilst carefully considering the implications for the adequacy and sustainability of social protection systems, reducing employment costs by addressing the tax wedge and reforming excessively rigid employment protection legislation to ease access for those left outside the labour market, encouraging the move from undeclared into regular employment, and where necessary revising wage setting mechanisms to better reflect productivity developments; Removing barriers and creating conditions for entrepreneurs to create new jobs , especially in sectors with growth potential (“green” and “white” jobs and those in the digital economy) and supporting geographical and occupational mobility; Tackling unacceptably high youth unemployment through comprehensive actions to secure the transition from education to work, encompassing skills-building, quality apprenticeships and work experience, and targeted job-search assistance and careerguidance. This should be done with special regard to the measures put forward in the new Youth Opportunities Initiative; Reducing long-term and low-skilled unemployment , and strengthening the participation of women and older people, through more effective active labour market policies, by ensuring efficient and effective employment services, through policies to support active ageing and continue efforts to increase the effective retirement age, and by ensuring equal conditions for women and men to participate in the labour markets; Tackling increasing poverty and social exclusion through active inclusion strategies combining adequate income, inclusive labour markets and access to quality services; Building productivity and income potential through a focus on skills and investment in efficient and effective education and training systems that forge a stronger partnership between education and the world of work, providing opportunities for those who lack necessary skills to acquire suitable qualifications and increasing tertiary or equivalent education levels, recognising all skills and competences acquired, and intervening early with policies targeted towards those at risk of dropping-out of school; Reforming social protection systems to ensure their financial sustainability and adequacy, to preserve the role of automatic stabilisers, and to encourage participation in the labour market.

The Council reached a general approach on a decision on the employment guidelines ( 6068/1/12 REV 1 ).

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Results of vote in Parliament

Debate in Parliament

The European Parliament adopted by 591 votes to 60, with 11 abstentions, in the context of a special legislative procedure (consultation of the European Parliament), a legislative resolution on the proposal for a Council decision on guidelines for the employment policies of the Member States.

The European Parliament approved the proposal without amendment.

T7-0041/2012

The Committee on Employment and Social Affairs adopted the report by Pervenche BERÈS (S&D, FR) approving, unamended, the proposal for a Council decision on guidelines for the employment policies of the Member States.

A7-0011/2012

PE478.669

PURPOSE: to maintain, in 2012, the employment guidelines adopted under Council Decision 2010/707/EU on guidelines for the employment policies of the Member States.

PROPOSED ACT: Council Decision.

BACKGROUND: on 26 March 2010, the European Council agreed to the European Commission's proposal to launch a new strategy for jobs and growth, Europe 2020, based on enhanced coordination of economic policies, which will focus on the key areas where action is needed to boost Europe’s potential for sustainable growth and competitiveness. To that end, the European Council agreed to set EU headline targets, which constitute shared objectives guiding action of the Member States and of the Union.

The Treaty on the functioning of the EU provides that Member States are to regard their economic policies and promoting employment as matters of common concern and coordinate them within the Council. In two distinct articles, it provides that the Council is to adopt broad economic policy guidelines (Article 121) and employment guidelines (Article 148), specifying that the latter must be consistent with the former. Given this legal basis, the guidelines for employment and economic policies are presented as two distinct — but intrinsically interconnected — legal instruments:

A Council Recommendation on broad guidelines for the economic policies of the Member States and of the Union -Part I of the Europe 2020 Integrated Guidelines; A Council Decision on guidelines for the employment policies of the Member States –Part II of the Europe 2020 Integrated Guidelines.

These guidelines implemented by the above mentioned legal instruments form together the integrated guidelines for implementing the Europe 2020 strategy .

The employment guidelines were adopted on 21 October 2010, and as provided by the adoption decision should remain stable until 2014 to ensure a focus on implementation.

Consequently, with this proposal, the Commission maintains the guidelines adopted in 2010.

IMPACT ASSESSMENT: no impact assessment was carried out.

LEGAL BASIS: Article 148(2) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: with this proposal, the guidelines for Member States' employment policies as set out in the Annex to Council Decision of 21 October 2010 on guidelines for the employment policies of the Member

States are maintained for 2012 and shall be taken into account by the Member States in their employment policies.

BUDGETARY IMPLICATIONS: this proposal has no implications for the EU budget.

COM(2011)0813
EUR-Lex