Introduction

The UK assumes the EU Presidency at a critical time in the evolution of the EU. The rejection of the EU Constitutional Treaty by France and the Netherlands and the collapse of the recent summit to set the new EU Budget, added to slow growth and high unemployment in many countries are all fostering a rise in disillusion and scepticism in parts of the EU. Business as usual will not be possible.

A majority in France and the Netherlands voted not just against the EU Constitutional Treaty, but against the way the current European project is being managed.

They voted ‘no’ for many reasons, both European and national, but fear of lower social standards and neo-liberal policies, of insecurity and precarious work, and of high unemployment played key parts. People were rightly expecting urgent action from Europe’s leaders. Not to act encourages the opponents of the European project who are already seeking to weaken it.

Unfortunately the European Council of 16-17 June did not act. It has plunged Europe into an even deeper crisis, adding a budgetary crisis to the social and economic crisis around the Lisbon strategy and to the constitutional crisis. A copy of the ETUC statement submitted to the Council is attached.

The UK Presidency will therefore be difficult and the ETUC hopes that real energy and creativity will be deployed to help Europe face the future with more confidence and in a better atmosphere than has prevailed recently.

WHAT CAN BE DONE?

An early sign of intent would clearly be to settle the Budget for 2007-2010. The argument at the summit was a display of the weaknesses of Europe at precisely the time when impressive leadership was necessary.

It will be important for the UK Government to dispel the impression, which is widespread in Europe that its primary interest is in cutting back EU expenditure and renationalising swathes of that expenditure, as well as keeping the UK rebate. That way lies great risks for the whole EU project. We understand the need for fairness in the contribution/receipt regime. But the present regime provides favours to some countries.

SOCIAL EUROPE

Frankly, the UK Government has been seen by the ETUC now for many years as the main opponent of social Europe with social Europe being sometimes caricatured as a brake on economic progress. A few years ago, there was even a DTI exercise to demonstrate that there was no social Europe, only a collection of different social models. More importantly, the Government has consistently been intent on blocking certain measures in the social sphere.

The Prime Minister has presented his view to the EP on June 23. He introduced himself as a passionate European, recognised the importance of social Europe and attacked those who criticise him as people who want to stifle debate, or to prevent change and modernisation. ETUC welcomes this change of tone, and hope that it offers scope for the future.

As the Prime Minister also pointed out in his address to the EU Parliament, the UK model has some good features with high participation rates in employment and high public spending levels being perhaps the most impressive. It is not the neo-liberal zone that many other Europeans think. But the UK government contributes to this image by, for example,

blocking new social measures (eg; the opt out on working time directive and the proposed directive on temporary agency workers);
giving apparently uncritical support to the proposed services directive;
appearing to discard social dialogue in favour of ‘business led’ initiatives.

The ETUC therefore calls for the UK Presidency to initiate a major debate about Europe’s social model. But we have to get the terms right. It is not correct to set ‘regulation’ and ‘jobs’ in opposition, as if regulation is made only for the purpose of ‘job protection’. It is not right to set ‘regulation’ against ‘improving the lives of people’ as if all regulation were invented to make the ‘lives of people’ more complicated. It is not right to base the debate just on what business believes it needs because public opinion will not warm to that - as was shown in the French referendum in particular. In challenging stereotypes, it is important to avoid inventing new ones at the same time and so such a debate must reflect the sense of balance between a dynamic economy and social protection which has driven Europe’s success in the past and can do so in the future.

The UK Presidency is right with regard to the Lisbon Strategy in making the fight against unemployment a top priority. ETUC supports this objective. The Nordic countries have successfully combined economic and technological innovation with social solidarity and environmental sustainability, showing the positive results of the integrated approach advanced by the Lisbon Strategy. The Prime Minister is right in saying that we have to get the policies right - but let us then reassess all the issues, including working time, REACH, services, and others. Pushing forward only a free market zone, without solidarity, without the framework of a social market economy and social rights would destroy the idea of a more unified Europe, an idea strongly supported by the ETUC.

So the ETUC can support the search for a modern social model. But Europe’s leaders should not rule out as a matter of principle new measures of a legislative character. Otherwise employers will not take the social dialogue seriously and play their part in building a consensus behind the new social model.

Issues which the ETUC wants to see included in the social dialogue are:

restructuring with a need to anticipate change in a strategic and pro-active approach as well as through effective reactions to problems which occur; this requires the active participation of all relevant actors, consideration of the role of European Works Councils, and clear synergies between political, legislative, contractual and financial instruments at all relevant levels.

the demographic challenge with not just the length of working time addressed - both by the week and the working lifetime - or the social protection aspects, but the quality of working life, its relation to the work/life balance and the promotion of equal opportunities and lifelong learning together with a true intergenerational approach also included.

Specifically the ETUC hopes for early action from the UK Presidency on:

moving forward the revision of the Working Time Directive, putting an end to the individual opt-out and safeguarding the basic principles of the Directive, i.e. the fundamental right to limit working hours and the protection of health and safety, offering both companies and workers a combination of flexibility and security, which allows for modern working time arrangements.

introducing new momentum to the proposed directive on temporary agency workers in order to arrive at a compromise proposal that as a minimum should recognise temporary agency workers as normal workers, respect the fundamental principle of equal pay for work of equal value, while providing only for derogations of the provisions of the Directive as far as compensatory legal or collectively agreed measures or mechanisms are put in place, that provide temporary agency workers with adequate protection. It also should also recognize the need of Member States to take measures against potential abuses, by introducing or maintaining systems of licensing, registration or other forms of monitoring and enforcement of minimum rules and standards.

  pursuing in the proposed Services Directive, the following three principles:

exclusion of collective agreements and the labour standards
exclusion of services of general interest and a separate framework directive in this area
enforcement rights: the country of destination and no undue reliance on the country of origin principle

On the Chemicals Policy (REACH), to continue action developed by previous Presidencies in order to work out a political agreement with the European Parliament after its first-reading in October; this reform is urgently needed in order to boost the industry’s ability to devise modern solutions for its future by developing criteria which are environmentally friendly and socially responsible.

Implement gender mainstreaming to all policy fields, and start a genuine process of gender proofing in all stages of policy making.

An early sign of progress on these points could improve the atmosphere significantly.

The challenge for the British Presidency is to take greater account of the social acquis and the social dimension of European integration, more than ever necessary in the context of an enlarged EU.

To regain credibility, the EU must be more attentive to the current and future economic and social concerns and aspirations of workers and citizens alike.

No single EU institution by itself can steer today’s EU forward, but each institution has to strive to set this ambitious process on the right track.

ETUC asks for urgent action to respond concretely to the demands of working people, with the aim of continued support for the European project and enlargement.

BETTER REGULATION AGENDA

ETUC supports the initiatives aimed at improving European regulation in a bid to better meet the objectives associated with sustainable development and job quality. However, it opposes attempts at social deregulation and increasing precariousness in employment .

ETUC reiterates the core role played by the social partners in adopting and revising European regulation in areas governed by Article 137 of the Treaty. These provisions highlight the extent to which the involvement of the players concerned should constitute the cornerstone of a regulatory approach in the social field.

In the other areas covered by the Treaty, especially the internal market, the environment and industrial policies, ETUC supports constructive attempts being made to improve the quality of European regulation. Accordingly, asks the Commission and the Council to initiate an approach aimed at identifying the advantages of regulatory and other instruments.

ETUC believes that, if certain conditions are met, this process could increase the involvement of the social partners in consultations. A priori and a posteriori impact assessments could represent tools for achieving this. However, such measures are no substitute for the political decision-making process and it should be remembered that any such assessment must cover economic, social and environmental impact. This approach must clearly be the responsibility of the Commission, which has the job of drafting the relevant proposals. Moreover, the social partners must be involved throughout the entire process and in any methodological decisions.

Involving the social partners throughout the process will also help them to decide whether or not they wish to act as co-legislators.

SUSTAINABLE DEVELOPMENT

ETUC expects the EU Presidency to ensure that a new European strategy for sustainable development is adopted before the end of 2005 and to make sure that it is in line with the principles and objectives of sustainable development adopted by the Council in June 2005. This strategy will have to include more specific objectives as well as processes for monitoring implementation, and must also enable the social partners to become more closely involved. Finally, links with the Lisbon Strategy will need to be clarified so that potential synergies can be exploited more effectively.

In the negotiations on climate change that are being conducted in the framework of UNFCCC, ETUC expects the Presidency to adopt ambitious objectives designed to reduce greenhouse gas emissions for the Union during the post-Kyoto period, in line with the conclusions of the European Council and the Environment Council of March 2005. At the same time, the Presidency should also urge the Council to adopt the directive on energy end-use efficiency and energy services, which will open up significant new opportunities in terms of both jobs and the environment.

TRADE AND EXTERNAL RELATIONS

We support the UK’s Presidency priorities aimed at meeting the Millennium Development Goals as part of advancing the Doha Development Agenda.

We support the development of relations with Russia and other European countries outside the EEA, based on common European values as set down in the Charter of Fundamental rights. These values should also form the basis of our neighbourhood policies in the Euro Mediterranean area, and more widely. Trans-Atlantic relations, be they with the US or with other countries and sub-regions in the American continent, should incorporate a social dimension and the full participation of all stakeholders rather concentrate on business concerns alone.