Labour and Social Affairs Council debates employment issues

The EU Labour and Social Affairs Council met on 22 October 1999 to discuss a number of employment issues, including the Commission's "employment package" - consisting of the draft 1999 Joint Employment Report, recommendations on the implementation of Member States' employment policies, and the proposed Employment Guidelines for 2000.

The Labour and Social Affairs Council of Ministers of 22 October 1999 focused on employment-related issues. Ministers held a first debate on the European Commission's "employment package", issued in September 1999 (EU9909187F). The package consists of the draft 1999 Employment Report, a Commission Recommendation on recommendations to Member States on the implementation of employment policy, and the proposed Employment Guidelinesfor 2000. This employment package was issued within the framework of the European employment strategy, provided for by Article 128 of the EC Treaty, as amended by the Amsterdam Treaty.

Ministers welcomed the fact that the 2000 Employment Guidelines differ little from the existing guidelines and are intended to consolidate and refine those of the two previous years. The Commission's Recommendation on recommendations to the Member States, which caused some controversy when first issued, was received positively, although ministers expressed regret at the manner of presentation by the Commission and at the number of recommendations (55 in total). A further debate was to be held at the Labour and Social Affairs Council set for 12 November 1999.

Other issues discussed by the October Council included the following:

• progress in the examination of the draft decision establishing the Employment Committee, based on the new Article 130 of the Treaty (EU9707135F), which which will replace the existing Employment and Labour Market Committee (EU9702105N) It is expected that agreement will be reached at the 29 November 1999 Labour and Social Affairs Council;

• the drawing up of a new medium-term Community Action Programme to promote equality between men and women. The Commissioner responsible for employment and social affairs, Anna Diamantopoulou, announced that the Commission would issue a proposal for a new programme - replacing the current fourth action programme which expires at the end of 2000 - during the first half of 2000; and

• the Commission's strategy for modernising social protection. Commissioner Diamantopoulou presented a Commission Communication, issued in July 1999 (EU9909190N) outlining four objectives - work should provide sufficient and secure income, pensions must be made safe and pension systems sustainable, social inclusion should be promoted, and healthcare should be of high quality and sustainable. Although noting that social protection remains within the competencies of Member States, the Communication suggests that Member States should cooperate more closely in this area.

In addition, the Council adopted the Directive amending Directive 77/388/EEC regarding the possibility of applying on an experimental basis a reduced VAT rate on labour-intensive services, following political agreement at the Economic and Financial Affairs Council in September 1999 (EU9909194N). The Council also approved the draft rules of procedure of the Standing Committee on Employment.