Select Committee on European Scrutiny Eleventh Report


6 Employment and social solidarity

(a)

(25910)

11949/04

COM(04) 488

+ ADD 1

(b)

(26968)

13691/05

COM(05) 536


Draft Decision to establish a Community programme for employment and social solidarity — PROGRESS

Commission staff working document — evaluation of the proposed programme

Amended draft Decision establishing a Community programme for employment and social solidarity — PROGRESS

Legal baseArticles 13(2), 129 and 137(2) EC; co-decision; QMV
Document originated(b) 21 October 2005
Deposited in Parliament(b) 3 November 2005
DepartmentWork and Pensions
Basis of consideration(b) EM of 16 November 2005
Previous Committee Report(a) HC 34-vi (2005-06), para 10 (19 October 2005)

(b) None

To be discussed in Council8 December 2005
Committee's assessmentPolitically important
Committee's decision(a) Cleared

(b) Budgetary provisions not cleared; further information requested

The draft Decision to establish a Community programme for employment and social solidarity

6.1 There are four current EC programmes that support activities to counter social exclusion and unfair discrimination and to promote cooperation in employment matters. All four will expire at the end of 2006.

6.2 In October 2004, the previous Committee considered this draft Decision (document (a)).[11] It provides for the existing programmes to be succeeded by one new programme — PROGRESS — covering broadly the same activities and running from 2007 to 2013, with a total budget of €628.8 million. The present 28 separate budget lines would be replaced by two, and the new legislation would be simpler.

6.3 The PROGRESS programme would have five sections:

  • employment (to receive at least 21% of the budget);
  • social protection and inclusion (to receive at least 28%);
  • working conditions (to receive at least 8%);
  • anti-discrimination and diversity (to receive at least 23%); and
  • gender equality (to receive at least 8%).

6.4 The activities to be supported by the programme would include the collection, analysis and dissemination of information about employment and social conditions in the Member States; monitoring the implementation of relevant EU legislation; and supporting bodies and networks which promote the Community's policies on equality, skills for employment and countering social exclusion and poverty. Member States, regional and local authorities, employers' and employees' organisations, EU-level non-governmental organisations and universities would be eligible for grants.

6.5 The PROGRESS programme is part of the Commission's package of spending proposals for the 2007-13 Financial Perspective. The governments of the United Kingdom and five other Member States consider that the Community's priorities in the next Financial Perspective could be funded from a budget equivalent to 1% of the European Union's Gross National Income, not 1.24% as proposed by the Commission. The amount of money available for the PROGRESS programme would have to be consistent with the outcome of the negotiations on the budget as a whole, and this might affect the scale and priorities of the programme.

6.6 The previous Committee recognised the benefits of simplifying and consolidating the legislation on the Community's support for its employment and social policies. Because the negotiations on the document were only just beginning and the outcome of the discussions on the total budget for the next Financial Perspective could have a significant impact on the PROGRESS proposal, our predecessors decided to keep document (a) under scrutiny and asked the Government to keep them informed of the discussions of it.

6.7 In September 2005, the Parliamentary Under-Secretary of State at the Department of Work and Pensions (Mr James Plaskitt) told us that, in March 2005, the Council had agreed "a partial general approach"[12] on a revised text of the draft Decision (excluding Article 17 which specifies the size of the budget for PROGRESS and the allocation of the budget between the five sections of the programme). Consideration of the text could be re-opened in the light of the European Parliament's opinion, the outcome of the negotiations on the EU's total budget for 2007-13 or the emergence of a new fact. The Minister explained why he thought the revised text an improvement.

6.8 We saw no objection to the changes on which the Council reached a partial general approach in March. We asked the Minister to tell us whether he considers that the Commission has provided a satisfactory justification for the full range of activities included in the proposal. Meanwhile, we kept document (a) under scrutiny.

The amended draft Decision

6.9 On 6 September, the European Parliament adopted 72 amendments to document (a). The Commission's opinion on the amendments, together with an amended draft of the Decision, is set out in document (b).

6.10 The Commission considers that many of the European Parliament's amendments are acceptable in whole or part. But it rejects some because, for example, they would: require that EU anti-discrimination networks must always include specialised and impairment-specific disability NGOs; make 90% the cap for EU contributions to projects rather than the normal 80% maximum; and duplicate provision elsewhere in the text. The Commission reserves comment on the European Parliament amendments that would affect the programme's budget.

The Government's view on the amended draft Decision

6.11 The Minister tells us that the UK Presidency is content with the amendments included in the Commission's new draft of the Decision. He says that most of them are "drafting or technical improvements". It will be necessary to consider the European Parliament's amendments to the budgetary provisions when the total EU budget has been decided.

6.12 In reply to our question about the justification for the activities covered by the proposed programme, the Minister tells us that the programme would provide:

"a framework to support EU-level actions, to help deliver agreed EU-level social and employment objectives under the 5 fields of activity. Such actions include developing statistical tools, sharing of best practice, awareness-raising campaigns and support for organisations operating in the relevant fields."

6.13 He gives illustrations of such cross-border work which is currently in progress: for example, development of EU indicators of social exclusion; trans-national research on ways to improve links between central and local government on social inclusion; exchanges of good practice on health and safety at work; and funding for voluntary bodies to help employers understand and implement the EU legislation on equality. Similar work would be supported by the PROGRESS programme. The Minister explains why he is satisfied that the proposed programme would add value across all five of its sections.

6.14 He tells us that Member States are keen to make progress on the draft Decision. He hopes that the Council meeting on 8 December will be able to reach a "partial political agreement" on it. The agreement would expressly exclude the draft Decision's budgetary provisions; they would be reserved for consideration after the total EU budget for 2007-13 has been settled.

Conclusion

6.15 Document (a) has been superseded by document (b) and so we clear it from scrutiny.

6.16 We see no reason to differ from the Commission's and the Government's views on the amendments proposed by the European Parliament.

6.17 We also see no need to object to the proposed partial political agreement on the new draft of the Decision on the understanding that it excludes the budgetary provisions.

6.18 We ask the Minister to continue to send us progress reports on the negotiations. Meanwhile, we shall keep the budgetary provisions of document (b) under scrutiny.


11   See HC 42-xxxii (2003-04), para 12 (13 October 2004). Back

12   "A general approach" is a non-binding agreement on a text before its presentation to the European Parliament. The House's Scrutiny Reserve Resolution of 17 November 1998 makes no reference to general approaches.  Back


 
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