Select Committee on European Scrutiny Twenty-Ninth Report


8 Employment and social solidarity

(a)

(26968)

13691/05

COM(05) 536

(b)

(27475)

8974/06


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


Revised draft Decision establishing a Community Programme for employment and social solidarity — PROGRESS

Legal baseArticles 13(2), 129 and 137(2) EC; co-decision; QMV
Deposited in Parliament(b) 9 May 2006
DepartmentWork and Pensions
Basis of consideration(b) EM of 10 May 2006
Previous Committee Report(a) HC 34-xi (2005-06), para 6 (23 November 2005)

(b) None

To be discussed in Council1 June 2005
Committee's assessmentPolitically important
Committee's decision(Both) Cleared

Background

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

8.2 In October 2004, the previous Committee considered a draft Decision to establish one new programme — PROGRESS — covering broadly the same activities as the present four and running from 2007 to 2013, with a total budget of €628.8 million.[21]

8.3 The PROGRESS programme would have five sections:

  • employment;
  • social protection and inclusion;
  • working conditions;
  • anti-discrimination and diversity; and
  • gender equality.

8.4 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 EC 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.

8.5 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"[22] 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 sections of the programme). He explained why he thought the revised text an improvement. We saw no objection to the changes on which the Council had reached a partial general approach.[23]

Document (a)

8.6 In September 2005, the European Parliament adopted 72 amendments to the original text of the draft Decision. Document (a) contains the Commission's opinion on them and an amended draft of the Decision.[24]

8.7 The Minister told us that the UK Presidency was content with the amended draft and that he hoped that the Council meeting on 8 December would be able to reach a "partial political agreement" on it. The agreement would expressly exclude the budgetary provisions of Article 17; they would be reserved for consideration after the settlement of the total EU budget for 2007-13.

8.8 We saw no reason to differ from the Commission's and the Government's views on the amendments proposed by the European Parliament. We also saw no need to object to the proposed partial political agreement on the understanding that it excluded the budgetary provisions.

Document (b)

8.9 Document (b), a revised draft of the Decision, has been produced in the light of the proposed Inter-Institutional Agreement between the Council and the European Parliament on the EU budget for 2007-13. There is only one difference of substance between document (a) and the revised draft. It concerns Article 17.

8.10 In document (a), Article 17 specifies a total budget of €628.8 million for the PROGRESS programme between 2007 and 2013. Document (b) leaves the amount blank pending the final settlement of the EU budget. Moreover, the allocation of the budget between the sections of the programme differs between the documents (a) and (b). The table below summarises the differences.


SECTION OF PROGRAMME DOCUMENT (a)DOCUMENT (b)
Employment21% 23%
Social protection and inclusion28% 30%
Working conditions8% 10%
Anti-discrimination and diversity23% 23%
Gender equality8% 12%
administration2% 2%
Contingency10%

The Government's view

8.11 The Parliamentary Under-Secretary of State at the Department of Work and Pensions (Mr James Plaskitt) tells us that there is already agreement between the Council and the Commission about the total EU budget for 2007-13 and that it is expected that the European Parliament will endorse the settlement shortly.

8.12 As to the budget for PROGRESS, the Minister reminds us that the Commission originally proposed that it should be €628.8 million and that the European Parliament subsequently proposed that it should be raised to €864.2 million, an increase of 36%. In line with the draft Inter-Institutional Agreement on the EU budget, Member States have reached agreement in the PROGRESS Working Group that the budget should be €658 million. The Minister says that there are informal indications that the European Parliament may be able to accept this at Second Reading of the draft Decision.

8.13 He adds that Member States have also reached agreement on the revised allocation of the budget between the sections of PROGRESS; this, too, is expected to be acceptable to the European Parliament.

8.14 The Austrian Presidency intends to seek a political agreement to the draft Decision, including the size of the budget and its allocation, at the meeting of the Employment and Social Policy Council on 1 June. The Minister asks us to clear document (b) on the express condition that the total EU budget will have been settled by 1 June and that the budget for PROGRESS will be €658 million.

Conclusion

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

8.16 Last November, we saw no objection to the proposed political agreement on the non-budgetary provisions of document (a). There are no differences of substance between those provisions and the corresponding provisions of document (b). There is no "right" figure for the budget for PROGRESS; the amount now proposed does not appear disproportionate. Moreover, there appears to be no need for us to question the revised allocation of the budget between the sections of the programme. For these reasons, we clear document (b) on the condition suggested by the Minister.





21   See (25910) 11949/04: HC 42-xxxii (2003-04), para 12 (13 October 2004). Back

22   "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

23   See HC 34-vi (2005-06), para 10 (19 October 2005). Back

24   See headnote. Back


 
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