Brussels, 26/06/2006
1. INTRODUCTION
The ETUC recognises fully that Europe faces many complex challenges. We look to the Finnish Presidency to make progress on at least some of them.
The Finnish virtues of high technology, strong vocational and higher education, successful research and development and social dialogue and collective bargaining are among the most impressive of the world's economies. Most other European countries have much to learn from the Nordic countries and we hope that the Finnish Presidency will “showcase” the most impressive features of its recent success bringing together economic and social developments, innovation and an inclusive society.
Successful investment in R&D and in high technology has been a major factor behind Finland's success and could usefully be adopted as a central theme of the Presidency. What lessons are to be learned from Finland concerning managing R&D, raising the necessary capital for long-term projects, the training needs of workers, the smooth handling of change etc in companies like Nokia?
Europe needs to concentrate on a positive agenda, to answer the most pressing concerns of European citizens and workers, to restore their confidence and their support for Europe, proving that the answer lies in a more integrated, more social and stronger Europe. Finland's experience is very important to get a positive message across Europe and to contribute to the definition of Europe's model of economic and social development in an enlarged EU and a globalised world.
2. WHAT CAN BE DONE
The ETUC would particularly like to ask the Finnish Presidency to initiate an exercise to look at promoting R&D and high technology with particular reference to the supply of capital. We know that capital is plentiful through venture capitalists, hedge funds and the like but is it available for projects which may, say, take a decade to be profitable? Is not the increasingly powerful financial community demanding quicker and quicker payback periods thereby putting pressure on companies to abandon long-term investments? Are the capital markets therefore hostile to R&D and high technology? Do we need other sources of capital which are less vulnerable to the inexorable pressures of shareholder value? Do we understand the growing power of hedge funds? Deepening understanding of these forces is important for Europe's future and the Presidency might consider the potential value of a high level group to carry this process forward.
Another important action relates to the need to start exploring options regarding the Constitutional Treaty. The process must be relaunched and simply extending the period of reflection is not enough. A period of propositions has to follow and the ETUC expects the Finnish Presidency to outline the next steps and to explore the possible options, even if the big step forward can probably only be done by the following German and Portuguese Presidencies.
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3. SOCIAL EUROPE}}
The ETUC is engaged in the construction of a better Europe. This implies the establishment and the enforcement of a social level playing field through cooperation, strong social dialogue and the anticipation of challenges posed by globalisation, new technologies, demographics and restructuring. The ETUC cannot accept a race to the bottom or unfair competition at the expense of wages, working conditions and social benefits, which still seems to be the route favoured by certain sectors in our societies.
In order to meet the challenges Europe is confronted with, Finland will put high on the agenda the debate on flexicurity, its links with productivity, work organisation and work-life balance as part of the wider discussions on the European Social Model. The ETUC welcomes this debate and agrees with the establishment at the European level of general principles for flexicurity. The social partners must be closely associated to this exercise and agree on their specific contribution and responsibilities on the matter.
The ETUC considers that the Presidency should take an open, consistent and balanced approach to the flexicurity discussion. It should not be narrowed from the start to one specific model and its specificities; instead it should take into consideration other European practices and experiences. Flexi-security should certainly not mean getting workers in any kind of job but should be seen as an instrument for productive change, not any change at any cost. The Finish Presidency should pay attention to the role of social justice, labour market standards and the European social acquis in promoting quality jobs and constituting a level playing field in order to put a stop to excessive flexibility of workers in the European internal market.
The ETUC expects that the Finnish Presidency will contribute to the concrete implementation and/or to decisions being taken in relation to the policy areas mentioned hereunder as a means of strengthening the European Union, its social dimension and its role on the global scene.
Lisbon Strategy
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Economic and Monetary Policy}
Confronted with prospects for continuing modest growth in the euro area, the Finish Presidency needs to undertake urgent efforts to improve the macro-economic policy mix and to strengthen economic governance. This can be done by strengthening the macro economic dialogue. In addition special meetings between euro area finance ministers and the ECB should be organised in order to avoid policy misunderstandings such as monetary policy hiking interest rates to fight tax push inflation and to rule out policy mistakes such as combining overambitious fiscal tightening with overambitious monetary tightening. To improve coordination with wage formation, European social partners should be heard at these euro area level meetings of finance ministers and the ECB, as proposed recently by Claude Juncker. The ETUC also urges the Finish presidency and finance ministers to be aware of negative consequences a further fall in the dollar and rise in the euro's exchange rate will have on competitiveness, growth and jobs in the euro area. Finally, leeway offered by the reform of the Stability Pact should be used to draw up national ‘investment for recovery' plans which are modulated in function of the situation in each economy.
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European Globalisation Fund}
The ETUC welcomes the proposal from the Commission and the efforts of the Finnish Presidency regarding the setting up of the European Globalisation Adjustment Fund (EGF) intended to help workers who have lost their jobs after major industrial upheavals.
The ETUC demands the genuine involvement of the social partners in this process of helping workers to find new jobs as well as in the permanent monitoring systems which will be put into place in the framework of the Structural Funds in order to review economic and social changes at national, regional and local level and to anticipate future developments in the economy and the labour market.
Likewise the ETUC is critical of the Commission's approach which restricts the support offered under the EGF to workers affected by relocations/restructuring operations occurring outside the EU and not within the EU.
Pact for Gender Equality
The Pact for Gender Equality, which was endorsed by EU Heads of State and Government during the Spring Summit, renews the EU's commitment to gender equality. ETUC calls on the Presidency, as one of the proponents of this Pact, to ensure that Member States shoulder their responsibility in this regard, and make certain that relevant measures are taken to ensure that gender gaps are closed, a better work-life balance for all is found and that mainstreaming and better monitoring become a reality.
Sustainable Development
Energy
Europe needs a coherent approach to energy policy, as well as a long-term vision - essential in a sector that requires high capitalisation. This coherence is also needed to support the sizeable investments that must be made in order to protect the environment, and to achieve real price stability both for consumers and industry. The ETUC counts on the engagement of the Finnish Presidency with a view to the establishment of a clear European energy policy.
Transport
On transport and likewise on energy, the ETUC is concerned by the Commission's lack of ambition and by the Council's lack of progress. For example, considering the dangers for human health of the continuous deterioration of air quality in urban areas, a quick approval of the air directive is necessary. On transport, the upcoming mid-term review of the transport white paper gives us reasons to be concerned. The ETUC considers that the objective of modal shift from road to rail and sea should be maintained. In urban areas, some urgent investments are needed to develop public transportation and to fight against the overwhelming presence of cars. The ETUC expects from the Finnish Presidency progress on these areas as well as the development of incentives through greener procedures of public procurement.
Climate change
The ETUC considers that fighting climate change should be given the highest priority. In the COP12/MOP2 meetings in Nairobi, the European Union must prove its coherence and its capacity to move forward the international agenda to address climate change. The ETUC favours a staged approach, allowing differentiated but ambitious commitments for industrialized, emerging and developing countries. On the internal side, the two green papers announced by the Commission on the post 2012 options and on adaptation to climate change are of particular importance: Member States should soon give clear signals on their will to implement these orientations.
Working Time Directive
ETUC welcomes the intention of the Finnish Presidency to reach agreement on this directive by the end of its Presidency. The ETUC considers that such an agreement cannot be made at the expenses of workers' rights to limit working hours, to protect their health and safety and to combine flexibility and security. We will pursue our campaign for a Working Time Directive that puts an end to the individual opt-out and includes ‘on call' periods in working time
Future of labour law
The European Commission has announced a Green Paper on the Future of Labour Law to be published during the summer of 2006. ETUC considers that it should address inter alia the need for Community action concerning the protection of all forms of non-standard employment; the need to extend the coverage by labour law and social security to precarious and new forms of work, with a view to ensuring adequate protection for these categories of workers; the clarification, and where necessary, the adjustment and extension of the scope of labour law.
The ETUC urges the Finnish presidency to support this initiative.
Gender Equality
A Roadmap for equality between women and men.
ETUC welcomed the Communication from the Commission on a roadmap for equality between women and men, which was launched on 8/3/2006 as a sign of its commitment to ensure gender equality remains high on the political agenda. For that reason, ETUC looks forward to being involved in its implementation and in particular to playing an active role in the development of two proposed communications - on Demography, addressing the issue of reconciling work and family life, due later this year, and on the gender pay gap, due in 2007.
European Institute for Gender Equality
The European Institute for Gender Equality is due to come into force in 2007. ETUC welcomes this move, as its creation will not only raise the profile and visibility of the issue of gender equality and its importance, but will provide one single place to turn to for information, gender sensitive data, research, best practice examples etc. on gender equality.
Once again, ETUC underlines its demands for a clear and explicit role for the European social partners in such an institute as members of the board.
Knowledge and Innovation
Improving the quality of working life in order to increase the employment rate, the productivity levels and innovation depends on the way work is organised but also on the skill-levels of the workforce. Europe still has unacceptably high numbers of non-qualified workers, early school leavers and very low levels of participation rates in initial and further training. This contributes to high levels of unemployment and social exclusion as well as to low levels of innovation compared with other parts of the developed world. Europe needs to invest more and better on skills and competences, on research, development and innovation.
The Finnish Presidency is particularly well placed to develop an agenda based on knowledge and innovation. Its own experience of linking economic and social development with innovation and high levels of productivity allows the Finnish Presidency to lead the way towards the promotion of increased and better coordinated coherent lifelong learning strategies in all Member States based on quality, effectiveness and equality of access as well as on an effective innovation policy, including social innovation.
ETUC considers that coordinated action needs to be taken in order to promote access to high quality vocational training, both for young people and for adults with or without qualifications accompanied with the necessary funding that allows for this to become a reality. Breaking down the barriers between higher education and continuing vocational training and the agreement on a European Qualifications Framework will be essential if the promotion of mobility in the context of a European labour market is to be pursued.
Mobility and migration
During the 2006 Year of Mobility, the Finnish Presidency, representing a country that has recently dealt with the issue in a forward-looking manner, should pressurize all stakeholders, and especially the European Commission, to acknowledge that there are serious problems with regard to cross border mobility of services and workers that demand that urgent action be taken at EU level, and to work together to create a positive framework to support the coming about of a European labour market, based on the principle of equal treatment and the harmonisation upwards of working conditions and social systems.
As a matter of high priority, the Finnish Presidency should put pressure on the Commission and the Council:
a) to put adoption of a strong Temporary Agency Directive high up on the agenda;
b) on the occasion of the evaluation of the Posting Directive stress the need to a better monitoring and enforcement of this Directive, as well as the need to develop more effective mechanisms and instruments to address potential abuses;
c) support demands to introduce at EU level the obligation to establish systems of so called ‘chain responsibility' or ‘client liability' for the payment of taxes, social premiums and wages.
With regard to economic migration of third country nationals, ETUC is convinced that it is time to adopt a more pro-active EU policy on migration and integration based on the recognition of fundamental social rights of current citizens and newcomers, and embedded in strong employment and development policies. Such a policy is necessary on the one hand to contribute to the demographic challenges facing the EU and on the other hand to tackle the challenges of integration and cohesion in increasingly diverse and mobile societies.
As a matter of urgency, such policies should also develop ‘bridges' out of ‘irregular situations' for undocumented migrant workers and their families, and thereby reduce exploitative situations and undeclared labour.
The ETUC asks the Finnish Presidency to work closely with the Commission to develop a general framework directive, to guarantee a common framework of rights to all third-country nationals in employment in a Member State, as announced in the Policy Plan on legal migration adopted in December 2005 by the Commission.
REACH
On the Chemicals Policy ETUC expects the Finnish Presidency to continue action developed by previous Presidencies in order to work out a political agreement with the European Parliament and close the debate with the second reading. This should allow an entry into force of REACH in April 2007. As regards the substitution principle in the authorisation procedure, considerable effort should be made by the Finnish Presidency to close the existing gap between Council and Parliament. 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.
4. THE SOCIAL DIMENSION OF THE INTERNAL MARKET
The Presidency attaches great importance to the development of the internal market as a contributor to the reinforcement of Europe's competitiveness. The ETUC emphasises that the social dimension of the internal market needs to be taken into consideration when defining all its policies. This is even more relevant in relation to the realisation of the internal market in energy and services, which will produce inevitable tensions at the labour market level. The Council should put on the same footing the development of a legal framework to support the free movement of both workers and services.
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Services directive}}
The ETUC is monitoring closely the second reading in the EP and will ask for the reintroduction of a few first reading amendments which were much clearer on the exclusion of individual and collective labour law as well as on social services. The ETUC demands that the Finnish Presidency accept these clearer definitions of the EP.
Framework directive on Services of General Interest
The ETUC reiterates its demand for a framework directive on services of general interest. Together with the CEEP we intend to argue for the need for such an intersectoral legal framework vis-à-vis the European Commission, the European Parliament and the European Council. The ETUC expects the Finnish Presidency to take up this issue, making it clear that the longstanding inactivity from the Commission on services of general interest is no longer acceptable.
Better regulation
Better regulation has been on the agenda for the last 20 years. The Barroso Commission relaunched it as a response to the deep crisis of the EU losing the support of its citizens. Commissioner Verheugen declared that he does not like the EU being seen as a “bureaucratic monster” and wants to reduce the acquis by 25 per cent.
But a lot of questions remain unanswered: what are the objectives of this exercise, what are the risks and what are the opportunities? How is it related to social Europe and full employment? Is this a Trojan horse of deregulation, the demise of the state and a more business oriented agenda?
According to the ETUC the focus must be on how to improve European regulation in order to better meet the objectives associated with sustainable development, job quality and the social dimension. Better regulation is a concept that can easily be filled with different, even contradictory, contents - some link it to less regulation, others to deregulation, others to clearer regulation. The underlying assumption is that an improved regulatory environment could bring productivity gains for many EU economies. All regulation has a social impact and is always connected to the essential political categories of power, authority and interest. There is concern that the better regulation agenda is an attempt to depoliticise the debates by focussing on more output oriented notions like problem-solving capacity, efficiency and instruments.
Simplification can be reached by consolidation, codification, recasting or withdrawal of legislative proposals. The ETUC has asked for prior notification, information and consultation when the Commission goes for simplification in the social area. Simplification can be useful, but a clear distinction between the instruments is necessary to be clear about the procedure and the objectives. The role of the social dialogue has to be highlighted and the association of the social partners throughout the process will also help them to decide whether or not they wish to act as co-legislators.
So far the results of better regulation for the citizens are not obvious. It is still a weak point in the better regulation agenda not to mention that the reduction of costs for business often implies the shift of these costs to someone else, to society in general and the citizens. There, the assessment of costs and benefits has to include such shifts of costs.
5. TRADE AND EXTERNAL RELATIONS
The ETUC draws attention to the need to enhance the capacity of trade unions to play a full part in the democratic development of European Neighbourhood Policy partner countries, notably in encouraging and consolidating social dialogue there. To that end, we ask that specific budget lines be included in the new instrument to finance the ENP. Similar considerations apply to countries already moving towards EU accession or that are potential candidates.
We welcome the intention of the Presidency to enhance the coherence of external relations both in the EU's internal decision-making and in the EU's action in different international organizations in the fields of trade and development as well as economic issues; and to promote multilateral structures and mechanisms. This applies in particular in the case of China. The ETUC also asks to be fully consulted about follow-up actions in the context of the Memorandum of Understanding agreed at the EU-China Summit in September 2005.
The ETUC welcomes the interest shown by the Finnish Government in developing relations through ASEM and with Russia and looks forward to being involved fully in this.
We also welcome the intention to build on the basis of the Helsinki Process on Governance and Democracy, and would emphasise the need to promote dialogue with the social partners, especially on advancing the decent work agenda, as well as including the social dimension of globalisation in the Union's external policies in the light of the recommendations of the World Commission on the Social Dimension of Globalisation.
WTO Trade Negotiations
The ETUC hopes that the conclusions of WTO negotiations will favour development and the creation of employment in the least developed countries, according to the engagements taken by the Doha round.
In relation to the Non Agricultural Market Access (NAMA), ETUC considers that negotiations should allow for the use of flexibilities by the emerging countries. The European Union should establish better links between the NAMA negotiations and its industrial policy and, in close cooperation with the social partners, to anticipate restructuring.
As regards services, the ETUC recommends that the EU should not make additional commitments in the water, energy, transport, post and telecommunications sectors as well as for Mode 4 (temporary mobility of persons). Moreover, all non-commercial public services, such as education, health and culture should be kept out of the liberalisations of exchanges.