EU Social & Employment Policy: Foundations to Modern Strategy
EU Social, Employment, and Economic Growth Policies
Foundations in the EEC Treaty
The EEC Treaty provided for the development of a Community social policy in two key ways:
- Articles 117-122 stated that there should be closer cooperation between member states in the social field, specifically requiring (in Article 119) that member states apply the principle of equal pay for equal work for men and women.
- Articles 123-128 laid the foundation for the European Social Fund (ESF).
Evolution of EU Social Policy: The Social Charter
Although the ESF was quickly established, little was done for many years to give effect to Articles 117-122, apart from some developments—via legislation and ECJ judgments—in areas linked to employment matters such as working conditions, entitlement to benefits, and equal opportunities. However, in 1989, a major boost was given to Community social policy when the Commission, believing that the Single European Market (SEM) program should have a social dimension, produced the Community Charter of Fundamental Social Rights for Workers.
The Charter was inevitably somewhat general in character and terminology, but it contained fundamental principles applicable to twelve main themes. Among these themes were:
- Free movement of workers based on equal treatment in access to employment and social protection.
- Employment based on fair remuneration.
- Improvement of living and working conditions.
- Freedom of association and collective bargaining.
- Protection of children and adolescents.
The Social Charter was adopted by eleven of the EU’s twelve member states—the UK was the exception—at the 1989 Strasbourg Summit. It formed the basis for the subsequent Social Charter that the same eleven states attached to the Maastricht Treaty in the form of a Protocol and Agreement on Social Policy.
Amsterdam Treaty’s Impact on Social Policy
The Amsterdam Treaty strengthened the treaty base of social policy in two significant ways:
- First, the UK, now with a Labour government, removed its objections to the Maastricht Agreement on Social Policy, leading to its incorporation into the Treaty Establishing the European Community (TEC).
- Second, a new Employment Title was created in the TEC, focusing on encouraging and exhorting member states to regard the promotion of employment as a matter of high priority and common concern.
The Luxembourg Summit and Employment Strategy
To determine how to give effect to the new TEC Employment Title, a special jobs summit was held in Luxembourg in November 1997. At the summit, a procedure for giving employment promotion a higher priority and more focused approach was agreed upon. The main stages of this procedure were, and still are:
- Employment guidelines, subject to annual review, are adopted by the Council based on a proposal from the Commission.
- These guidelines are incorporated into national employment action plans, which are then analyzed by the Commission.
- The Commission draws up an annual employment report for Council approval. This report, among other things, reviews progress and makes suggestions for modifications to the guidelines.
A consistent focus of the Commission’s reports has been the need to reform labor markets. This includes, for example, the need for active policies to combat youth and long-term unemployment, to increase labor supply and participation, and to have in place a comprehensive lifelong learning strategy.