Informal Council discusses future of social policy

EU employment and social affairs ministers met for an informal Council in July 2004 to examine the future direction of European social policy and prepare for the drafting of a new social policy agenda, which will run from 2006 to 2010.

The Dutch EU Presidency held an informal employment and social affairs Council of Ministers meeting on 8-10 July 2004 in Maastricht. The main focus of delegates’ deliberations was the future of social policy in the EU and in particular the drawing up of a new social action plan, to run from 2006 to 2010. The EU’s social policy is at present conducted within the framework of an agenda that runs until the end of 2005 (EU0007266F) and ministers are now planning for its successor.

Participants at the informal Council stated that the main challenges facing Europe include slow economic growth, an ageing population and low labour market participation rates among older workers (those over 55). In addition, they asserted that the labour market is suffering from a lack of training and is not adapting as it should to changing needs. Ministers therefore stated that the next social policy agenda needs to focus on labour mobility, productivity, continuous learning and vocational training, and the modernisation of the EU’s social security systems.

Looking specifically at the issue of early retirement, which is widespread in the EU but which contributes to a low participation rate for older workers, ministers agreed that this was not a sustainable solution to labour market problems. Although it may create employment for younger workers, early retirement means that many older workers become excluded from the labour market.

In order to debate the issues more closely, ministers attended four workshops on the following themes:

• managing change, increasing adaptability and adapting more people to the labour market;

• modernising social protection systems, promoting social cohesion and fighting poverty;

• managing diversity and promoting equal opportunities; and

• investment in 'human capital' and improving productivity.

The discussions resulted in a number of areas of consensus. For example, ministers agreed that the promotion of temporary work should be accompanied by better enforcement of health and safety legislation. In the area of social security, they agreed that an exchange of best practice on the provision of social services will help Member States to reform their social security systems. In the area of discrimination, ministers agreed that there is no need for additional EU legislation (the deadlines for implementing the two most recent Directives in this area, the framework equal treatment Directive [2000/78/EC] and racial discrimination Directive [2000/43/EC], were in 2003 - EU0408202N). Finally, in the area of training, ministers agreed that labour market needs should determine education and training facilities and that effective measures to increase education attainment levels should be put in place at enterprise level.

The Dutch Presidency, which runs until the end of 2004, will hold a range of conferences on specific social policy issues, culminating in a major conference in November.