European Commission 1 The European Employment Strategy within the Europe 2020 strategy

European Commission 2 Key benchmarks in the employment process White book on growth, competitiveness and employment in 1993 Amsterdam Treaty 1997: Employment a Community Issue Luxembourg process in 1997: European Employment Strategy (EES) launched

European Commission 3 Created 1997 Cooperation between Member States Member States still decide their own labour market policy, taxes, education system, social welfare… Open Method of Coordination Agreed employment targets: 70% over all, 60% for women, 50% for older workers in 2010 The European Employment Strategy

European Commission 4 The European Employment Strategy (EES) has coordinated Member States' employment policies since 1997 through “the open method of coordination”: Common European Guidelines and recommendations Annual national action plans for employment Monitoring, evaluation and assessment Mutual learning at EU level The open method of coordination

European Commission 5 Employment Rate- target 70%

European Commission 6

7 The Lisbon Agenda Lisbon objective (2000): to become the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion (+ respect for the environment)  Why? EU lagging behind in terms of GDP per capita, employment and productivity rates Facing up the challenges of demographic change and global economic integration (+ enlargement) Need for coordinated action at EU level (governance)

European Commission 8 The impact of ageing Total employment (in million) assuming an employment rate of 70 % in 2010 and for the following period until 2030 Source: Eurostat, Commission services calculation, based on Eurostat Populations projections.

European Commission 9 Europe 2020: delivering reforms 3 thematic priorities Smart growth (knowledge, innovation) Sustainable growth ( resource efficient, greener, competitive) Inclusive growth (high-employment, social and territorial cohesion) 5 EU headline targets – translated into national ones 7 flagship initiatives – EU & national action Mobilising existing EU instruments: Single market External dimension Stability and Growth Pact (SGP) EU and national Budgets & new financing instruments 9

European Commission 10 Europe 2020: 5 EU headline targets By 2020: 75 % employment rate (% of population aged years) 3% investment in R&D (% of EU’s GDP) “20/20/20” climate/energy targets met (incl. 30% emissions reduction if conditions are right) Improving education levels (*) (by reducing school drop-out rates and increasing the share of the population having completed tertiary or equivalent education) Promoting social inclusion (*), in particular through the reduction of poverty (*) The European Council will revert to these issues at its June 2010 meeting 10

European Commission 11 Integrated Guidelines: Economic Ensuring the quality and sustainability of public finances Addressing macroeconomic balances Reducing imbalances in the euro area Optimizing support for R&D and innovation, strengthening the knowledge triangle and unleashing the potential of the digital economy Improving resource efficiency and reducing greenhouse gases Improving the business and consumer environment and modernizing the industrial base 11

European Commission 12 Integrated Guidelines: Employment Increasing labour market participation and reducing structural unemployment Developing a skilled workforce responding to labour market needs, promoting job quality and lifelong learning Improving the performance of the education systems at all levels and increasing participation in tertiary education Promoting social inclusion and combating poverty 12

European Commission 13 Guideline 7 Increasing labour market participation and reducing structural unemployment through: Adequate flexicurity policies Review tax/benefit systems Promote active ageing Promote work-life balance Combat youth unemployment 13

European Commission 14 Guideline 8 Developing a skilled workforce responding to labour market needs, promoting job quality and lifelong learning through: Adequate supply of knowledge and skills to match labour demand Access to lifelong learning and vocational training Remove barriers to geographical and occupational mobility 14

European Commission 15 Guideline 9 Improving the performance of the education systems at all levels and increasing participation in tertiary education through: Modernise universities Prevent early school leaving Building national qualification frameworks Making teaching carriers more attractive Promote teacher and student mobility 15

European Commission 16 Guideline 10 Promoting social inclusion and combating poverty through: Modernise social security and pension systems Ensuring access to affordable, sustainable and high quality services Ensuring equal opportunities Effective anti-discrimination 16

European Commission 17 Europe 2020: new governance Lead role for the European Council Extend partnership to regions, social partners & civil society COM and European Council monitoring... 1.) Thematic - combining priorities and headline targets 2.) Country - Member States strategies to meet targets … based on international comparison Country-specific recommendations & policy warnings Simultaneous reporting under Europe 2020 and SGP – but keeping instruments separate & maintaining integrity of SGP Macroeconomic imbalances, structural and competitiveness developments will be considered simultaneously 17

European Commission European Semester - Governance tools

European Commission 19 Annual policy cycle Council of Ministers European Commission European Parliament European Council Annual economic & social summit JanuaryMarchApril February MayJuneJuly Adoption of National Reform Programmes (NRPs) & Stability and Convergence Programmes (SCPs) Autumn: Peer review at EU level Autumn: Decisions at national level Debate & orientations Endorsement of guidance Finalisation & adoption of guidance Member States Annual Growth Survey Policy guidance including possible recommendations Debate & orientations

European Commission Main deliverables Annual Growth Survey Macro-economic report Draft Joint Employment Report Alert Mechanism Report Staff Working Documents ECFIN holds the pen Road map by end 2012 NRP assessments Thematic reviews Country examinations Country Specific Recommendations Thematic fiches

European Commission Working with the MS  Bilateral meetings with MS: 3 rounds  Missions to MS  Multilateral surveillance  Thematic and Country Reviews  Employment / Social Performance Monitor  JAF, Reform Tracking Device, benchmarking  Europe 2020 officers in the Reps in the MS

European Commission Working inside the Commission Coordination Core Group at DG/cab Core Group at Directors DG Europe 2020 coordinators Europe 2020 country teams