Select Committee on European Legislation Fifth Report


COMMUNITY ACTION ON EMPLOYMENT

3.   We consider that the following raises questions of political importance, but make no recommendation for its further consideration at this stage:--

Department for Education and Employment

(17517)
10136/96
COM(96)449
Amended draft Decision on the Commission's activities of analysis, research, co-operation and action in the field of employment.
Legal base: Article 235; unanimity.

  Introduction

    3.1  We considered this draft Decision on 22 November 1995[8] when we reported that it did not raise questions of legal or political importance. However, agreement on it was blocked by the German Government at the Social Affairs Council in December 1995, on the grounds that Article 235 was not an appropriate legal base. We understand that negotiations in Council bodies on the detail of the proposal have been brought to a halt by the German Government's very clear position.

  The draft Decision

    3.2  The Commission describes the draft Decision as a follow-up to the Essen European Council of December 1994. It proposes a new approach to analysis, research, co-operation and action on employment, creating a platform for the exchange of information and experience. According to Article 2, as amended, this new approach will focus on "measures which take account of the employment strategies developed in the European Union."

    3.3  The Commission would be authorised to promote and/or finance:

      (a)  permanent systems for observing, monitoring and exchanging information policies and systems, labour market trends, and ways in which new jobs could be created;

      (b)  measures to assist certain groups of people particularly hard hit by unemployment;

 

      (c)  projects to identify Best Practices and initiatives to disseminate the results.

    3.4  The proposed budget is for 57 million ECU (£44.5 million), spread over five years. An indicative breakdown of the estimates provided in the Financial Statement attached to the original proposal is reproduced below. No new Statement has been produced since then.

  The amended draft Decision

    3.5  Following the Opinion of the European Parliament, the Commission has amended the draft Decision. Article 3 has been expanded to provide for greater focus on projects to assist particular groups such as young job-seekers, the long-term unemployed, unemployed women and other unemployed workers.

  The Government's view

    3.6  In his Explanatory Memorandum (dated 19 October), the Minister of State at the Department for Education and Employment (Lord Henley) says:

      "The Government believes that the Community has a useful role in helping Member States tackle unemployment by promoting exchanges of information and disseminating good practice. The Commission's decision to review how this is done in the area of analysis and research is, therefore, welcome, as is the desire to bring about greater coherence in Commission/Community activities.

      "The amendments add a little more precision to the Commission's proposals, indicating for example that projects to identify good practice should focus on certain groups hard hit by unemployment. There are no major changes of policy. The Government remains concerned therefore that any proposals should take account of research and evaluation work already undertaken by other organisations, such as ILO and OECD, and Member States' views on suitable topics for research or analysis."

  Timetable

    3.7  The Commission originally intended that the programme should run from 1 January 1996 to 31 December 2000. According to the Government there are no indications that the German position has changed and no move has been made to change the legal base. The Commission has not given any indication of how it will handle the timetabling.

  Conclusion

    3.8  This proposal has stalled. It seems unlikely that any Presidency will attempt to re-launch it in the immediate future in the face of firm German opposition to it. The costs at £9 million per annum split between 15 Member States are not insignificant and it is important that the estimates are well supported by a clear Business Plan from the Commission.

    3.9  If this proposal is revived, we ask the Government to inform us and to press for the Commission, in putting it forward, to make a detailed case for the estimated expenditure, with an explanation of the value which it expects to be added by the actions proposed.

    3.10  Meanwhile we are not clearing the document.

Figures in millions of ECU
Subject19961997199819992000Total
A. Analysis of the labour market and of employment policies
A.1 Observation and monitoring1.01.11.31.41.66.4
A.2 Analysis and evaluation1.01.11.31.41.66.4
A.3 New problems1.01.11.31.41.66.4
B. Identifying and transferring best practices (projects)3.455.66.57.127.6
C. Active dissemination policy1.61.72.02.22.610.2
Total8.01011.51314.557


8.(16356) 8433/95; see HC 51-i (1995-96), paragraph 31. Back

 


© Parliamentary copyright 1996
Prepared 10th December 1996