June social and employment Council

An EU social policy and employment Council meeting was held at the beginning of June 2004. Ministers dealt with issues relating to social security and social protection, and agreed the 2004 employment package. They also discussed establishing a European Gender Institute and examined a proposed Directive relating to equal access to goods and services for women and men.

EU employment and social affairs ministers met in Luxembourg on 1-2 June 2004, within the framework of the Employment Policy, Health and Consumer Affairs Council, under the Irish Presidency.

Application of social security schemes

Ministers reached political agreement on a draft European Parliament and Council Regulation, updating Regulation 1408/71 on the application of social security schemes to persons moving within the EU. The draft Regulation aims to take account of recent changes in national legislation as well as of developments in European Court of Justice case law.

One key amendment relates to shortening the list of special non-contributory cash benefits (ie those which are financed through state budgets and not through contributions), in particular social allowances and disability benefits, that are not exportable as they are to be granted exclusively in the Member State where the beneficiary resides. It is expected that this change will further reduce obstacles to the free movement of persons within the EU. Other amendments allow for:

• the possibility of including periods spent in other Member States in the calculation of the minimum period of insurance, which is sometimes required for entitlement to benefits; and

• the applicability of bilateral social security agreements between Member States, where these are more favourable to beneficiaries.

The text that has been agreed will be adopted at a future Council meeting, without further debate, in the form of a common position. It will then be sent to the European Parliament for a second reading.

Social Protection Committee

The Council reached political agreement on a draft Decision (EU0312206F) re-establishing the Social Protection Committee (first set up in 2000 - EU0006256F) to promote cooperation on social protection policies between Member States. The Committee’s objectives have been redefined to reflect the new legal basis.

2004 'employment package'

With regard to the 2004 'employment package' under the European employment strategy, the Council reached political agreement on a draft Decision establishing new guidelines for Member States’ employment policies. The new employment guidelines will form the basis for the National Action Plans on employment, to be submitted by Member States by October 2004.

The Council also reached political agreement on a draft Recommendation on the implementation of Member States’ employment policies, which sets out the policy messages of the recent report of the Employment Task Force (EU0312209F). These include:

• increasing adaptability of workers and enterprises;

• attracting more people to enter and remain in the labour market by making work a real option for all;

• investing more effectively in 'human capital' and lifelong learning; and

• ensuring effective implementation of reforms through better governance.

The Council agreed to submit the texts to the European Council summit on 17-18 June 2004 for endorsement.

In addition, the Council invited members to share their national experiences and results in relation to the following issues:

• the integration of older workers into the labour market;

• vocational training;

• the use of 'European Social Fund' (ESF) funds to develop a knowledge-based society;

• the modernisation of employment services; and

• the use of ESF funds to increase equal opportunities in access to the labour market.

European Gender Institute

The Council held a debate on the merits of establishing a European Gender Institute, which included a discussion of the issues that need to be considered in the future development of detailed proposals for the establishment of such an institute. This debate followed a discussion held at an informal meeting of equality ministers on 7 May 2004 . It should be seen in the light of the 'European social agenda' that was adopted by the European Council in Nice in 2000 (EU0012288F), in which the Council had asked for the establishment of an institute to deal with gender issues and for the completion of a feasibility study. The study has now been completed, and, according to its results, there is a clear role for an institute to carry out some of the tasks which existing institutions are not involved in. These include:

• dealing with questions of coordination;

• the centralisation and dissemination of information;

• the raising of gender visibility; and

• the provision of tools for gender mainstreaming.

Delegations supported the principle of setting up such an institute, while stressing the importance of a structure that would bring added value but which would not duplicate existing activities in this area. They also mentioned the need for 'budget neutrality'.

Equality between women and men

In November 2003, the European Commission presented a proposal for a Directive implementing equality between women and men in the access to and supply of goods and services (EU0312201N). The June Council held a debate that focused on the overall approach taken by the Commission in addressing gender equality outside employment, on the basis of a number of indicative questions suggested by the Presidency.

Ministers were asked whether they welcomed the proposed Directive and considered that it should form part of the Commission’s approach in addressing gender equality outside employment. They were then asked whether, in relation to the insurance industry, they thought that banning sex-based actuarial factors in the insurance and related services covered by the Directive should form a key part of the Directive, and whether the use of such factors should be prohibited as unacceptable discrimination. Ministers were then asked whether, if they were in favour of banning sex-based actuarial factors in insurance and related activities, they thought it would be worth exploring partial solutions such as:

• applying the ban on sex-based actuarial factors to the calculation of premiums and benefits, while permitting them in the calculation of risk; and

• extending the transitional period to beyond six years after the implementation of the Directive; and

• devising different solutions depending on the type of insurance products.

Alternatively, ministers were asked to consider whether sex-based actuarial factors should continue to be allowed, provided that they were based on objective statistics.

Commentary

The June employment and social Council covered a number of important items, in particular the need to coordinate social security systems and the application of social security schemes. This is especially important if the goal of the free movement of persons within the EU is to be achieved, particularly in the light of EU enlargement. The debate on the merits of establishing a gender institute reflects progress with the EU’s commitment to addressing gender inequality, as does the debate on a draft Directive to implement equality between women and men in the access to and supply of services. (Beatrice Harper, IRS)