Transcript Slide 1

European
Labour Law
Lecture 05B
5.2 Employment policies –
instruments 1
The ECSC was the first to start monetary
intervention at the labour market via art. 56 and
for many years has conducted reconversion
operations in various regions dotted with coal and
steel industries.
Money was mainly given to retrain and resettle
the millions of migrants who came, primarily from
Southern Italy, to work in the coal industry of NW
Europe and to retrain victims of accidents at work.
As the ECSC Treaty expired in 2000 this kind of
intervention is over now.
5.2 Employment policies –
instruments 2
On a comparable basis the EEC Treaty of 1957
contained some provisions for the establishment
of the European Social Fund (now art. 162-164
TFEU).
Later more funds were established, such as
- European Regional Development Fund
- The Cohesion Fund
Finally there is the European Investment Bank.
In 1988 the various Funds were restructured and
harmonised as the so-called Structural Funds.
5.2 Employment policies –
instruments 3
The means for these Funds are provided for in the
Multiannual Financial Framework, which is voted
by the EP and the Council of Ministers on the
basis of unanimity in the Council for a 5-year
cycle (art. 312 TFEU). The next round is 20132018 for which the negotiations are actually in
course.
The EU budget already for many years is about
1% of the GDP of the EU – circa ¼ of the national
budget of Italy. Of this budget ca. 1/3 is spent on
agricultural subsidies and another 1/3 on the
Structural Funds. Each round of negotiations the
netto contributory countries (like UK, DE, NL)
press for moderations, while the netto benefitting
countries (Spain, Eastern Europe) and the EP are
pressing for expansion.
5.2 Employment policies –
instruments 4
From the money for the Structural Funds ca. 1/3
is given to the European Social Fund, thus ca.
10% of the total EU budget or ca. 11 billion
yearly.
Each year ca. 10 million of the 200 million EU
workforce is in one way or another benefitting
from this money.
So, the ESF is the EU’s main financial instrument
to promote employment and increase opportunity
for workers. However also the Regional Fund
should not forgotten. For instance in 2005 the
social consequences of the downfall of the MG
Rover car manufacturer was compensated with
money destined for the West Midlands region.
5.2 Employment policies –
instruments 5
The way how the money of the ESF is to be spent
and divided is laid down in yearly decisions of the
EP and the Council of Ministers, taken by
qualified majority (art. 164 TFEU).
These decisions are giving the criteria.
Subsequently it is the European Commission that
takes the decisions about individual cases of
spending, applying these criteria. The
Commission is assisted by a Committee
composed of representatives of governments,
trade unions and employers’ organisations (art.
163 TFEU).
5.2 Employment policies –
instruments 6
The ESF is strong regionally targeted – four-fifth
of the funds are concentrated in the poorer areas
of the EU.
The classic spending category is: vocational
training and retraining (art. 162 TFEU). Today this
includes lifelong learning, forecasting skills needs
and helping people who are made redundant to
find new jobs, improving the employability of the
disabled, boosting labour market institutions such
as job centres, helping business start-ups, reduce
early school leave, etc.
In the 2007-2013 period, ESF support is focussed
at four priorities: adaptability, access to
employment, inclusion and human capital.
5.2 Employment policies –
instruments 7
The ESF is organised into programmes lasting
over several years. MS prepare a single national
strategic framework, based on the Commission’s
guidelines.
The costs of the fundung are to be shared
between the EU and the national governments.
The range of partners have been broadened to
include non-governmental organisations active in
civil society, the environment and gender.
5.2 Employment policies –
instruments 8
It are primarily the individual MS which must
monitor whether the individual receivers of the
money are spending the money according to the
rules.
Here is a large problem. Already for many years
the European Auditors have felt unable to certify
the reports.
Apparently there are many abuses.
If abuses are discovered the European
Commission will require the MS restitution of the
money donated. Those decisions may lead to CoJ
EU cases, but frequently are settled amicably.
5.2 Employment policies –
instruments 9
The Netherlands ca. 2000 have been confronted
with strong requests for restitution because of
abuses, which were finally settled amicably.
This resulted in a number of years in which Dutch
authorities did not dare to take up ESF money
destined for The Netherlands.
What are the Italian experiences???
5.2 Employment policies –
instruments 10
An interesting debate has emerged whether rich
MS should also obtain money from the Fund. Why
not only the poor MS?
The argument against giving money to the rich
states is, that this unnecessarily increases the
money-streams via Brussels and entails Brussels
bureaucracy.
The argument in favour of also giving money to
rich states is, that inside rich states there are
pockets of poverty too (for instance: suburban
Paris) and it is wise to show the people there that
Europe feels solidarity with them.