Policy Sections
Mini Sections
A downgraded EU employment summit in Prague yesterday (7 May) agreed on ten measures to fight soaring unemployment and calm sweeping social unrest, which has brought thousands of people to the streets across Europe.
The Employment Summit was called last February to assess the impact of the current financial and economic crisis and identify good practices in mitigating the worst effects of the crisis on the labour market.
However, the idea did not find many followers among EU leaders. Amid fears of further social unrest, the decision was taken to downgrade the summit to a lower-level "troika meeting" of the current Czech and future Swedish and Spanish EU Presidencies (EurActiv 25/03/09).
The meeting yesterday (7 May) in Prague aimed to stimulate coordination between the Union, its Member States and social partners, and to contribute to the forthcoming June European Council.
"We cannot prevent this crisis from causing unemployment. But acting now can reduce job losses, and help millions of people to find new and better jobs. Acting now also means paving the way for sustainable recovery," said European Commission President José Manuel Barroso at the end of the meeting.
According to the latest figures published by the Commission this week, the economic downturn will cost 8.5 million people their jobs and drive up unemployment to 11.5% in the 16-nation euro zone next year, the highest level for several decades (EurActiv 04/05/09).
No concrete results
To reassure millions of people across Europe, a few EU leaders agreed on a 10-point plan, which urged the EU 27 to swiftly step up action on increasing access to employment, particularly for young people and upgrade skills, match labour needs and promote mobility.
Social partners invited to the meeting, however, refused to sign the final document. "There are some responses, but it's not enough," said John Monks, secretary-general of the European Trade Union Confederation (ETUC).
European social NGOs are also "disappointed and concerned" by a summit that had turned into a meeting between social partners. "President Barroso spoke of the social impact of the crisis and has affirmed that the economic and social agendas can't be separated. Yet today this is precisely what happened," said Roshan di Puppo, director of the Social Platform.
"The social impact of the crisis was not mentioned in the summit conclusions, which are just 'business as usual': increase mobility, increase flexicurity and create a favourable environment for enterprises," she added.
Adjusting working hours to keep jobs
Maintaining jobs as much as possible by allowing companies to adjust working hours and retrain employees by using public funding, such as the European Social Fund and the European Globalisation Fund, tops the 10-point plan.
But "flexibility tools such as the temporary use of short-term work are not appropriate for services that have to function around the clock and cannot adapt their output," noted the European Centre of Employers and Enterprises providing public services (CEEP), adding that the collapse of negotiations on the Working Time Directive (EurActiv 28/04/09) would increase costs for service providers.
"Small businesses have tried their best to act as shock absorbers in the present crisis. Some might have reduced production, but all have done their utmost to keep employment levels stable. But we wonder for how much longer they will continue to do so if they are left on their own," stressed Andrea Benassi, secretary-general of UEAPME, the European small business organisation.
A 'non-summit' with little substance
Called by the Czech EU Presidency in February, the summit was supposed to bring together all EU leaders to find ways to soften the impact of the economic crisis and coordinate measures to tackle rising unemployment. But with European elections to be held in less than a month, few heads of state and government attended the gathering.
For Party of European Socialists President Poul Nyrup Rasmussen, the "non-summit" failed to give concrete responses to tackle the critical economic crisis. "Europe needs a new stimulus to create jobs, fresh actions to safeguard jobs that should have a long-term future, more support for the unemployed and new initiatives to assist those at risk of poverty and social exclusion," Rasmussen said.
"Europe should take a lead in coordinating national policies to tackle the crisis and strengthening European measures, such as by speeding up the use of structural funds and enhancing EIB support for small businesses," the PES president added.
By focusing on the immediate impact of the crisis on labour markets at the Employment Summit, instead of these longer-term trends, the EU has missed a trick, noted Fabian Zuleeg, senior policy analyst at the European Policy Centre.
"It is vital to understand how the crisis will affect our long term well-being and how our economic and social models might be challenged by these profound changes in our labour markets. If the Summit had addressed this, real progress could have been made," he argued while stressing that the EU cannot afford to miss such opportunities "it it wants to be seen as a relevant and important player in addressing European citizens' concerns."
"Our first priority in this crisis is people: keeping them in jobs and getting them back into jobs as quickly as possible," said Vladimír Špidla, the EU's commissioner for employment.
"We must use all the tools at our disposal to limit the impact of the crisis on the real economy, and on people and their livelihoods in particular," he added.
"We see that the crisis will bring about structural changes in the labour market and we must reflect on this situation," said Mirek Topolánek, the outgoing Czech prime minister.
According to Topolánek, the meeting represents the starting point for further progress in fight against unemployment. "It is a basis for discussions for ministers so that June summit has sufficient foundation for potential adoption of conclusions that will put up concrete measures," he said.
"Today's summit is a significant step towards more and better coordinated action," added Commission President José Manuel Barroso. "With this employment summit, we are telling our citizens that we want their employment to be Europe's objective number one," he added.
John Monks, secretary-general of the European Trade Union Confederation, stressed that growing unemployment could unravel nationalist economic rivalries as witnessed in several member states already.
"We all know what will happen. People will look nationally, and this could lead to nationalism, and that could damage cooperation among the countries of Europe," Monks said.
Swedish Prime Minister Fredrik Reinfeldt, whose country is set to assume the EU helm on 1 July, told the meeting that free trade, open markets, and sustainable budget deficits and public debts were essential to boost the labour market. "Protectionism is never the solution if we are going to get a long-term recovery in the labour market […] Coming from a medium-sized country who has got rich on trade with others, we know from history that this is no time to be closing borders, otherwise we will create a problem for the future," Reinfeldt said.
"The people of Europe deserve a real 'Social Summit', not a meeting with social partners only. Unfortunately, the EU has not yet embarked on a debate with all the actors involved, and particularly not civil society organisations," added Roshan di Puppo, director of the Social Platform.