The European Parliament adopted a legislative resolution on the proposal for a Council decision on guidelines for the employment policies of the Member States.

The proposal provides that the guidelines for the employment policies of the Member States, which are annexed to Council Decision (EU) 2020/1512 , are maintained for 2021 and must be taken into account by the Member States in their employment policies and reform programmes.

Parliament approved the Commission's proposal subject to amendments highlighting the following points:

- the definition and implementation of EU policies and actions should take into account the requirements of promoting inclusive labour markets, a high level of employment, collective bargaining, decent wages, ensuring adequate social protection, combating poverty and social exclusion, with a particular focus on vulnerable groups, namely children, people with disabilities, lone parents, ethnic minorities, such as the Roma, LGBTQIA+ people, people living in remote areas and older people;

- the European Child Guarantee should be mainstreamed across all policy sectors and funding for children’s rights should be prioritised, while making full use of existing EU policies and funds;

- the European Semester should combine the different instruments in an overarching framework for integrated multilateral coordination and surveillance of economic, employment, social and environmental policies. It should contribute to the achievement of the Sustainable Development Goals, in particular gender equality;

- the EU’s and Member States’ employment and economic policies should go hand in hand with Europe’s transition to a climate neutral, socially inclusive, investing in youth and reducing poverty;

- there is an urgent need for sustainable and quality jobs, including initiatives on decent working conditions on teleworking, the right to disconnect, parental and care related leave, the rights of platform workers, a general legal framework on subcontracting, as well as health and safety and strengthening the role of collective bargaining;

- Member States should make full use of the potential of the general derogation clause in the Stability and Growth Pact to support businesses that are in difficulty or lacking liquidity, in particular micro, small and medium-sized enterprises;

- Member States should ensure fair mobility and the portability of rights and entitlements through better protection of mobile workers including cross-border and seasonal workers, more effective labour inspectorates and the introduction of effective digital solutions;

- with a view to ending homelessness by 2030, Members recalled the commitment to implement the housing first principle, promote homelessness prevention and provide homeless people with access to adequate, safe and affordable housing and support services, while putting in place the necessary policy measures, with adequate funding at national and EU level;

- Member States should strengthen the role of the social partners and promote the extension of the coverage of collective agreements to ensure an inclusive and socially just recovery;

- lastly, a thorough evaluation of national policies and support schemes that have been deployed to mitigate the effects of the COVID-19 pandemic is needed in order to draw the necessary lessons and identify instruments for future use.

PURPOSE: to adopt guidelines for Member States' employment policies for 2021.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

BACKGROUND: the Broad Economic Policy Guidelines and the Employment Policy Guidelines were adopted jointly for the first time in 2010 to support the Europe 2020 strategy.

The integrated guidelines remained stable until 2014. Revised guidelines were adopted in 2015. In 2018, they were aligned with the principles of the European Pillar of Social Rights proclaimed in November 2017 by the European Parliament, the Council and the Commission, with the aim of driving reforms at national level and serving as a compass for a renewed process of convergence across Europe. The Guidelines remained unchanged in 2019.

In 2020, they were aligned to incorporate elements related to the consequences of the COVID-19 crisis, the green and digital transitions and the UN Sustainable Development Goals.

Alongside the Broad Economic Policy Guidelines, the Employment Guidelines are presented annually in the form of a Council Decision and serve as the basis for country-specific recommendations in the different policy areas.

CONTENT: the proposal provides that the guidelines for the employment policies of the Member States , which are annexed to Council Decision (EU) 2020/1512 , are maintained for 2021 and must be taken into account by the Member States in their employment policies and reform programmes.

The ‘Employment Guidelines’ are the following:

- Guideline 5 : Boosting the demand for labour.

- Guideline 6 : Enhancing labour supply and improving access to employment, skills and competences.

- Guideline 7 : Enhancing the functioning of labour markets and the effectiveness of social dialogue.

- Guideline 8 : Promoting equal opportunities for all, fostering social inclusion and fighting poverty.

The proposal stresses that the EU and its Member States should:

- combat social exclusion and discrimination and promote social justice and protection, as well as gender equality, solidarity between generations and the protection of children's rights;

- ensure that economic and employment policies go hand in hand with Europe's transition to a climate neutral, environmentally sustainable and digital economy, improving competitiveness, ensuring adequate working conditions, fostering innovation, promoting social justice and equal opportunities, as well as tackling inequalities and regional disparities;

- work together to effectively address structural factors such as climate change and environmental challenges, globalisation, digitalisation, artificial intelligence, teleworking, the platform economy and demographic change, and adapt existing systems as necessary;

- adopt appropriately sequenced reforms to enhance economic growth, quality job creation and productivity, provide adequate working conditions, increase social and territorial cohesion, foster upward convergence and resilience and promote fiscal responsibility;

- ensure that labour market reforms, including national wage-setting mechanisms, respect national social dialogue practices, with a view to ensuring fair wages for a decent standard of living and sustainable growth;

- ensure that the social, employment and economic impact of the COVID-19 crisis is mitigated.