aeip news july 2010

8/9/2019 AEIP News July 2010

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AEIP Newsletter Week 28

12 16 July 2010

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EU Financial Services

EU FINANCIAL SERVICES................................................... ........................................................... ................. 1

I.HERMAN VAN ROMPUY SAYS MINISTERS SHOULD PLAY A GREATER ROLE IN ECONOMIC GOVERNANCE .......... 2II.FINANCIAL SUPERVISION, PUBLIC DEFICITS AND FOLLOW-UP FROM JUNE EUROPEAN COUNCIL ON TUESDAY'S

AGENDA..................................................... ............................................................ .............................................. 2

EU INTERNAL MARKET ...................................................... ........................................................... ................. 3

I.FRANCE AND GERMANY SAY EU MUST CONTINUE EFFORTS ON GLOBAL TAX ON FINANCIAL TRANSACTIONS .. 3

II.EUROPE 2020 STRATEGY FOR JOBS AND GROWTH: THE COUNCIL ADOPTS BROAD ECONOMIC POLICYGUIDELINES ......................................................... ............................................................ .................................... 3

EU HEALTH......................................................... ............................................................ .................................... 4

I.THE NHS IN ENGLAND IS TO UNDERGO A MAJOR RESTRUCTURING IN ONE OF THE BIGGEST SHAKE-UPS IN ITS

HISTORY, THE GOVERNMENT HAS ANNOUNCED. .................................................... .............................................. 4

EU SOCIAL AFFAIRS................................................... ........................................................... ........................... 5

I.PARLIAMENT WANTS PROTECTION FOR WORKERS ON NON-STANDARD CONTRACTS......................................... 5II.COMMISSION PRESENTS COMMUNICATION ON FREE MOVEMENT OF WORKERS -NEW EUROBAROMETER

MOBILITY SURVEY ......................................................... ........................................................... ........................... 5III.GREEN PAPER'S SOLVENCY SUGGESTION WOULD BE 'UNFAIR' ON PENSION SCHEMES..................................... 5IV.SWITZERLAND TO COMMISSION SURVEY ON SECOND-PILLAR COSTS ...................................................... ....... 6V.BELGIANS SEEK TO ENFORCE LISBON TREATY SOCIAL CLAUSE ..................................................... ................. 6VI.HALF OF EUROPEANS WOULD CONSIDER MOVING FOR WORK....................................................... ................. 7VII.EUROPEAN COMMISSION PROPOSES COMMON ENTRY AND RESIDENCE CONDITIONS FOR THIRD-COUNTRY

SEASONAL WORKERS ..................................................... ........................................................... ........................... 7VIII.BELGIAN PRESIDENCY'S PRIORITIES.................................................... ........................................................ 8

ECONOMY ........................................................... ............................................................ .................................... 9

I.ECONOMIC GOVERNANCE WORKING GROUP TALKS ABOUT STRENGTHENING STABILITY AND GROWTH PACT . 9II.BROAD ECONOMIC POLICY GUIDELINES ADOPTED....................................................... .................................... 9III.SLOVAK GOVERNMENT APPROVES EMERGENCY EU FUNDING SUBJECT TO RESERVATIONS ........................... 9

EVENTS AND COURT OF DE JUSTICE CALENDAR ...................................................... ......................... 10

I.TECHNOLOGICAL INNOVATION IN HEALTH AS ATOOL TO CUT COSTS AND IMPROVE PUBLIC HEALTH SYSTEMS

........................................................ ............................................................ ...................................................... 10III.COURT OF JUSTICE CALENDAR .................................................... ........................................................... ..... 10

IN DEPTH ANALYSIS .................................................. ........................................................... ......................... 11

I.HERMAN VAN ROMPUY SAYS MINISTERS SHOULD PLAY A GREATER ROLE IN ECONOMIC GOVERNANCE ........ 11II.BELGIAN PRESIDENCY'S PRIORITIES ........................................................ ...................................................... 13

Table of ContentsTable of ContentsTable of ContentsTable of Contents


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I. Herman Van Rompuy says ministers should play a greater role ineconomic governance

Meeting in Brussels on Thursday 8 July under the chairmanship of Belgian's employmentminister and deputy prime-minister, Jolle Milquet, the EU employment ministersdiscussed the role of employment policy in new economic governance in Europe. TheEU27 ministers explained their own analysis and ideas over lunch with the president ofthe European Council, Herman Van Rompuy, who was very open to their suggestions.Van Rompuy pointed out that only economic growth that generated new jobs could helpthe EU get out of economic crisis, and employment is a crucial lever for competitiveness.

Van Rompuy argued that the Employment and Social Affairs Council (EPSCO) should playa greater role in economic governance in the future and had to coordinate better with theECOFIN Council (of EU economics and finance ministers). He added that the waymacroeconomic surveillance interconnects with thematic surveillance had to change. Thechair of the European Parliament's employment and social affairs committee, PervencheBers, was delighted at his ideas. She had been invited to the meeting of EU ministersand said that Herman Van Rompuy's presence had sent out a very clear message and avery strong symbol because he is the permanent chair of the European Council, and thismeeting of employment and social affairs ministers was the first council of EU ministers(as opposed to a European Council of heads of state) that he had attended. TheCommission was represented by Lszl Andor.In depth analysis page:11

II. Financial supervision, public deficits and follow-up from JuneEuropean Council on Tuesday's agenda

EU economy and finance ministers will meet in Brussels on Tuesday morning 13 July totake stock of the reform of financial supervision. They are expected, too, to beginexcessive deficit procedures against Bulgaria, Cyprus, Denmark and Finland and evaluatethe measures taken by 13 other member states to correct their excessive deficits. Duringa working breakfast, ministers will examine the economic situation and review the stresstests carried out by the European supervisory authorities in the banking sector, which willbe made public in the second half of July. They will also discuss the action to be taken inresponse to a recent report by Mario Monti, President of Bocconi University and theformer European commissioner responsible for the single market, on the development ofthe EU's single market. The Council is expected to authorise Estonia to adopt the euro asits currency as from 1 January 2011. The Belgian Presidency will present its workprogramme on economic and financial matters, and the Council will review the follow-upto the June European Council, particularly with regard to strengthening economic-policycoordination. In addition, it is due to adopt a recommendation setting out the broadeconomic-policy guidelines under the new Europe 2020 strategy. Over lunch, ministerswill discuss the outcome of the G20 summit, held in Toronto on 26 and 27 June.(12/07/2010 Agence Europe)

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EU Internal Market

I. France and Germany say EU must continue efforts on global tax onfinancial transactions

France and Germany have welcomed the commitment from the Belgian Presidency of theEU Council of Ministers to give consideration to various proposals on new ways of raisingfinance, including the possibility of a worldwide tax on financial transactions, as, indeed,was called for by the European Council on 17 June (see EUROPE 10163 and 10162).French and German Finance Ministers Christine Lagarde and Wolfgang Schuble recentlywrote to Didier Reynders, who currently holds the Presidency of the Ecofin Council, topoint out that France and Germany had, at the last G20 summit in Toronto (Canada)proposed that such a tax be set up to share the burden of the crisis and to find newresources. Although a consensus could not be reached yet, we are convinced that the EUshall pursue its efforts towards the setting up of such a tax, as this is both feasible andnecessary, they say in their letter (see EUROPE 10169 for the outcome of the G20).France and Germany hope this issue will be discussed at the next informal meeting ofeconomy and finance ministers, due to take place in Brussels at the end of September. Inmid-June, the member states agreed to seek a global tax on financial transactions, buttheir calls went unheeded. They are now considering introducing such a tax at EuropeanUnion level. Some member states, in particular the United Kingdom, are hostile to theidea since they fear that it could lead to banking and financial business relocating toother areas, such as Asia. (12/07/2010 Agence Europe)

II. Europe 2020 strategy for jobs and growth: the Council adopts broad

economic policy guidelinesThe Council today (13 July) took an important step in the implementation of the newEurope 2020 strategy for jobs and growth, by adopting a recommendation establishingnew broad guidelines for the economic policies of the Member States and of the Union.The recommendation, together with a draft Decision on guidelines for employmentpolicies (adoption planned for October), forms "integrated guidelines" for structuralreforms which will have to be carried out over the next few years under the newstrategy. On the basis of these integrated guidelines, Member States will draw upnational reform programmes which will set out in detail the actions to be undertaken.Particular emphasis will be placed on the efforts needed to meet the national targets, aswell as on measures to remove the bottlenecks that constrain sustainable growth at thenational level. The European Council will assess annually the progress made at both EU

and Member State level under the 2020 strategy. Macroeconomic, structural andcompetitiveness developments, as well as overall financial stability, will be examinedsimultaneously. The integrated guidelines are as follows: (1) ensuring the quality and thesustainability of public finances; (2) addressing macroeconomic imbalances; (3) reducingimbalances in the euro area; (4) optimising support for research, development andinnovation, strengthening the knowledge triangle and unleashing the potential of thedigital economy; (5) improving resource efficiency and reducing greenhouse gases; (6)improving the business and consumer environment and modernising the industrial basein order to ensure the full functioning of the internal market; (7) increasing labourmarket participation and reducing structural unemployment; (8) developing a skilledworkforce responding to labour market needs, promoting job quality and lifelonglearning; (9) improving the performance of education and training systems at all levels

and increasing participation in tertiary education; (10) promoting social inclusion andcombating poverty. The Council had already recorded its agreement on the text of the

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recommendation at its meeting on 8 June, and the European Council gave its politicalendorsement on 17 June. (consilium.europa.eu 13/07/2010)

EU Health

I. The NHS in England is to undergo a major restructuring in one of thebiggest shake-ups in its history, the government has announced.

Hospitals are to be moved out of the NHS to create a "vibrant" industry of socialenterprises under the proposals. And, as expected, GPs are to take charge of much of thebudget. The move will lead to the abolition of all 10 strategic health authorities and the

152 management bodies known as primary care trusts. The new structure will be heldaccountable by an independent NHS board which would be free from politicalinterference, the government said. Meanwhile, responsibility for public health will bepassed to local authorities. In many ways, the plans outlined in a White Paper go furtherthan expected. The coalition agreement had promised no top-down reorganisations. ButHealth Secretary Andrew Lansley said he had decided to go further than first envisagedto rid the health service of "unnecessary" bureaucracy. He said the proposals would bechallenging and turn the NHS "upside down" but in doing so help reduce managementcosts by nearly a half within four years. He added: "The government's ambition is forhealth outcomes - and quality services - that are among the best in the world."'EXPERIMENT' The GP move had long been championed by Mr Lansley - and in recentmonths the British Medical Association had indicated it was willing to work with him onthe idea. The plans mean GPs working in groups will be in charge of a vast collection ofhospital, mental health and community services - although specialist services anddentistry will not fall under their remit. Under the new system, the independent boardwill sit above as many as 500 consortiums of GPs to set standards and hold the groups toaccount. Another key aspect of the changes involves giving patients more informationand choice. To achieve this, a new body, HealthWatch, will be set up to compile data onperformance, while GP boundaries will be abolished to allow patients to register with anydoctor they want. Mr Lansley also announced he expected all NHS trusts, which runhospitals and mental health units, to get foundation status by 2013. He also said hewould be relaxing the rules which cap the amount of income a trust can make outside theNHS, opening the door to them seeing more private patients. He said this would allowthem to innovate and widen the scope of what they did, but he also admitted it wouldmean those which were not financially viable could go under. The government will now

consult on its plans before rolling them out over the next three years. Professor ChrisHam, chief executive of the King's Fund think-tank, said: "It is a very radical programme.We have never seen anything like this since the inception of the NHS in 1948." But hesaid the moves were not without risk, pointing out some GPs would not have the skills tomanage the budget. Shadow health secretary Andy Burnham went further, describing thechanges as a "political experiment". "It is a huge gamble with a NHS that is working wellfor patients." There was a mixed reaction from NHS staff. Unison said the changes couldlead to "chaos", but the BMA said they could benefit patients and it was looking forwardto working with ministers. Katherine Murphy, of the Patients Association, called for moreclarity over how and what information would be provided to patients. "We need moredetails," she added. (BBC News 12/07/2010)

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EU Social Affairs

I. Parliament wants protection for workers on non-standard contractsLabour law reform should focus on protecting workers in "atypical forms" of employment- such as part-time, casual, temporary and fixed-term contract work - and on making iteasier to switch between various types of employment and unemployment, says aresolution adopted by the European Parliament (EP) on Tuesday 6 July. The resolution,drafted by Pascale Gruny (EPP, France) addresses atypical contracts, securedprofessional paths, flexicurity and new forms of social dialogue. What is meant by anatypical contract is part-time work, casual work, temporary work, work under fixed-termcontracts, home working and teleworking, say MEPs. They call on the Commission andnational governments to tackle the situation with regard to outsiders (employees withatypical or very atypical contracts) and to ensure that their rights and social-protectionrequirements are balanced with those of the insiders. They emphasise that, for most

jobs, contracts of indefinite duration should continue to be the norm, and thatflexicurity cannot work without strong social protection. (09/07/2010 Agence Europe)

II. Commission presents communication on free movement of workers -New Eurobarometer mobility survey

On Tuesday 13 July, the European Commission will present a communication reaffirmingthe free movement of workers, and highlighting developments over the last few years.The aim is to raise awareness of and to promote the rights of EU migrant workers, aCommission press release says. A new Eurobarometer survey will be presented at thesame time. Mobility concerns 10% of Europeans, with some 50 million people havinglived and worked in another EU member state. To help achieve the growth andemployment objectives of the EU 2020 strategy, the Commission says that it will work tofacilitate and promote mobility within the EU within the framework of the new strategyfor the single market (following the presentation of the Monti report), and adds thatTuesday's communication is a first step in that direction and a basis for further work.Background. The Commission notes on its site that every EU citizen has the right to workand live in another member state without discrimination on the grounds of nationality.However, despite the progress made, there are still legal, administrative and practicalobstacles to exercising that right. The Commission adds that other factors also influencetransnational mobility, citing inter alia accommodation, language, the employment ofspouses, return mechanisms, historical barriers and the recognition of mobilityexperience, particularly with small and medium-sized businesses. Tackling these

problems calls, therefore, for a broader approach, combined with effectiveimplementation of the principle of free movement, the Commission says. (12/07/2010Agence Europe)

III. Green Paper's solvency suggestion would be 'unfair' on pensionschemes

Companies would never have started pension schemes had they known they might besubject to solvency guidelines, according to Danny Wilding, partner at BarnettWaddingham. The release of the European Commission's Green Paper on pensions hasseen actuaries and lobby groups warn of the costs involved in implementing solvencyguidelines, with the Confederation of British Industry (CBI) estimating it could costFTSE350 companies 500bn (598bn). Wilding said pension funds should not be

scrutinised the same way as insurers, which will soon be regulated by Solvency II. "Thereare fundamental differences between a commercial insurer that has always known it

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must follow strict solvency rules and a pension scheme that was set up voluntarily by anemployer with the intention of using best efforts to provide long-term funding," he said.

Wilding said the funds "would not have been set up" had an employer known of possiblesolvency guidelines. "It is therefore questionable," he said, "whether it is fair to imposesuch rules retroactively." Wilding said that, had solvency rules been in place from thevery beginning, this would have meant valuing all benefits on a buyout basis. "The samelevel of deficit would have been more expensive than the employer thought they were,"he said. He said employers would have set a lower level of benefits or decided againstpension schemes altogether, opting for a different method for ensuring pensions.Meanwhile, the CBI has warned about the cost of introducing solvency rules in the UK,saying they would cost FTSE350 companies more than 500bn. Neil Carberry, theorganisation's head of pension policy, added he was concerned about the effects such amove could have on the country's economy. "We are distinctly concerned about theinvestment impact of moving our defined benefit universe from a world in which they are

invested in a mix of asset classes, including equity and corporate debt," he said. Carberrysaid investments could start flowing more heavily toward the sovereign debt market"When that happens, of course, you've got a diminished capital flow that exists, but youalso got an effective sovereign market where you have a lot more money coming into thesovereign market," he said. "That pushes down the return on sovereign debt." He addedthat diminished returns would lead to pension funds then having to return to theemployer to ask for more money. "It's a pretty fundamental change in the UK investmentlandscape," he said. (IPE.com 09/07/2010)

IV.Switzerland to commission survey on second-pillar costsLowering administrative costs in the second pillar will be the primary aim of a Swissgovernment initiative that will start by commissioning a survey on the subject. According

to recent government data, administration costs in the second pillar came toapproximately CHF300 (224) per member not counting asset management costs,which have been calculated to be around 0.2% of assets under management andcurrently stand at CHF550bn for the entire second pillar. Neither does the government'sfigure include any costs for occupational pension provision in the companies themselves,which has led the asset management company Swisscanto to conclude in its lastPensionskassen monitor that the average of CHF300 is "most likely too low". The Swissgovernment is now tendering for researchers to analyse the "most important remits andevents that lead to high administrative costs" for pension funds and companies, such asthe joining and leaving of members, ongoing administrative costs, divorces or invalidity.The researchers are to check which legal requirements are the most costly with regardsto distributing information and filing reports. In their talks with companies and pension

funds, they are also to determine which regulatory requirements might be deemed toocostly or superfluous. Fees for asset managers and other costs relating to investmentsmade by a pension fund will not be covered by the research. In the tenderdocumentation, the Swiss social ministry said: "Increased efficiency in administrating thesystem would be very welcome, as Pensionskassen have reported difficulties in keepingtheir financial balance in the long term, not only because of the conversion rate, but alsobecause of the financial crisis and demographic ageing. "Further, the government hasmade easing the administrative burden on companies a priority to boost economicgrowth." Research is to start in August, with a final report scheduled for 2011. (IPE.com09/07/2010)

V. Belgians seek to enforce Lisbon Treaty social clauseDuring its six-month EU presidency, Belgium will seek to enforce the so-called 'socialclause' of the Lisbon Treaty, ensuring that policymakers in Brussels and national capitalskeep a close eye on the social impact of all new legislation, a meeting of EU social


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ministers heard last Friday (9 July)Following a meeting with her European peers, BelgianEmployment Minister Jolle Milquet said the presidency would strive to guarantee

"adequate social protection" in the key EU policies which emerge during its six-month(July-December 2010) mandate. To achieve this, she noted that the main tools atBelgium's disposal are the "social clause" of the Lisbon Treaty and Guideline 10 of theEurope 2020 strategy, which aims to promote social inclusion and combat poverty.Milquet highlighted a number of important initiatives expected this autumn whichBelgium will seek to suffuse with strong social obligations. In particular, upcoming EUflagship initiatives such as 'New skills for new jobs' and 'Youth on the move' willserve this purpose, she claimed. (Euractiv.com 12/07/2010)

VI. Half of Europeans would consider moving for workThe European Commission has on July 13 2010 adopted a report setting out in aconsolidated way the rights of Europeans to live and work in another EU country. The

report also provides an update on legal developments in the past decade. Currently,2.3% of people in the EU reside in a Member State other than their own. However, a newEurobarometer survey also presented today finds that 17% of Europeans envisageworking abroad in the future and 48% would consider looking for work in another countryor region if they were to lose their job. Communication on free movement ofworkers The Communication on "Reaffirming the free movement of workers" offers anupdated picture of the rights of EU migrant workers, taking into account legaldevelopments over the past decade. It clarifies the impact of a series of judgements bythe EU Court of Justice and how they apply to these rights. At the same time, it aims toraise awareness of the rights of migrant workers. The free movement of workers is asuccess from a legal point of view, but that the right to move and live in anotherEuropean country still needs to be improved in practice. The European Commission will

work on facilitating and promoting intra-EU mobility in the context of the new strategyfor the single market (following the presentation of the Monti report). As part of its newten-year strategy: Europe 2020, the Commission will work on facilitating and promotingintra-EU mobility. In particular, the flagship initiative 'An agenda for new skills and jobs',due to be adopted by the Commission in the second half of 2010, aims to increase labourparticipation and better match labour supply and demand, including through labourmobility. Eurobarometer survey on geographical and labour market mobility Anew Eurobarometer survey released today sheds light on Europeans' attitudes to workermobility. The survey found that: Most Europeans think moving countries or regions isgood for EU integration, half think it's good for the economy, labour market andindividuals, but fewer think it's good for families. 10% of Europeans say they have livedabroad for work either within or outside the EU at some point in their lives, while 13%

have done so for education and training. 41% know a friend of relative who has eitherworked or studied abroad. 17% of Europeans envisage working abroad in the future,ranging from 51% in Denmark to just 4% in Italy. 34% of Europeans rate the chances offinding a job abroad better than at home. Unemployment is a powerful reason to move:48% of Europeans would consider moving regions or countries for work if they lost their

job. (13/07/2010 ec.europa.eu)

VII. European Commission proposes common entry and residenceconditions for third-country seasonal workers

The European Commission has today presented a proposal for a directive on seasonalemployment. The proposal aims at establishing a common procedure for entry andresidence in the EU and defines the rights of seasonal workers from third-countries.

"Employers in the EU are increasingly dependent on people from countries outside ofEurope to take up jobs in sectors such as agriculture, horticulture and tourism, as fewerand fewer EU citizens are available for this type of seasonal work. At the same time, we


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need to provide these seasonal workers, who are often vulnerable and exposed, withbetter conditions and a secure legal status in order to protect them from exploitation.

This new directive will do just that, and I am confident that today's proposal willcontribute to an effective management of migration flows for seasonal migration", saidCecilia Malmstrm, Commissioner for Home Affairs. The proposed directive concerns non-EU citizens coming to an EU Member State for the purposes of seasonal employment onEU territory. The work will be carried out during one or more fixed-term work contractsconcluded directly between the non-EU worker and the employer established in aMember State. The proposal introduces a special procedure for the entry and residence ofthird-country seasonal workers and defines their rights while at the same time providingincentives for circular migration to prevent a temporary stay from becoming permanent.In particular, the proposal: establishes a simpler entry procedure for the admission ofnon-EU seasonal workers based on common definitions and criteria, such as theexistence of a work contract or a binding job offer that specifies a salary; sets a standard

seasonal work time limit throughout the EU (6 months per calendar year); provides for amulti-seasonal permit for three years or a facilitated re-entry procedure in subsequentseasons; defines legal provisions applicable to working conditions of seasonal workers;entitles seasonal workers to equal treatment with nationals of the MemberStates in determined fields (freedom of association and affiliation, social

security schemes, income-related acquired statutory pensions, access to goods andservices, etc); leaves EU Member States free to apply a labour market test and to decidehow many seasonal workers they admit; the proposal does not create a right toadmission. Background The proposal is part of a comprehensive package of measures,proposed in the Policy Plan on Legal Migration of 2005 and further endorsed bythe Stockholm Programme, adopted by the European Council in December 2009. TheEuropean Union faces a structural need for seasonal work due to the fact that

EU labour within this field is expected to become less and less available. Thedevelopment of a well-organised legal immigration policy will therefore continue to playan important role in filling labour shortages and responding to the future demographicchallenges of the Union. (13/07/2010 ec.europa.eu)

VIII. Belgian Presidency's prioritiesMeeting in Brussels on Wednesday 14 July under the chairmanship of Pervenche Brs(S&D, France), the committee on employment and social affairs of the EuropeanParliament debated, with the Belgian ministers responsible for employment and socialaffairs, the objectives the Belgian Presidency aims to fulfil during its term in office. Theinformal Employment-Social Affairs Council (EPSCO) to be held in Brussels on 7 and 8July already dealt with the priorities of the Presidency, in particular the need to put

employment at the heart of the EU 2020 strategy and of future economic governance,making the economy greener (green jobs), the ageing population and increasingprofessional lifecycles (white jobs), pensions, social security and social inclusion (EUROPE10175/10177/10178). This was a packed agenda, causing Pervenche Bers to comment:

Even a government managing current affairs can put forward an ambitious programme!In depth analysis page: 13


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Economy

I. Economic governance working group talks about strengtheningStability and Growth Pact

The economic governance taskforce, presided over by Herman Van Rompuy, helddiscussions on Monday 12 July on the recent proposals put forward by the Commission tostrengthen coordination of economic policies, particularly the Stability and Growth Pact(SGP). According to sources close to the dossier, consensus is expected betweenmembers of the group for setting up a monitoring mechanism for following theeconomic competitiveness and budgetary situation of member states. In the context ofeconomic monitoring, the idea of the Commission creating a warning mechanism based

on a scoreboard, which would include a series of indicators (balance of current accounts,external debt position etc.) was given a positive welcome, explained these sources.Details, however, still require clarification. The working group is made up of the presidentof the European Council, the 27 finance ministers, the commissioner for economic andfinancial affairs, the president of the European Central Bank (ECB) and the president ofthe Eurogroup, who also spoke about the sanctions section. According to our sources,consensus is currently being developed in favour of implementing sanctions which areboth financial (based on payments of structural funds for structural reforms, and thepossibility of reducing EU budget funding) and non-financial (such as the name andshame practice) but no exact modalities have so far been defined. It is said that thelegal basis for financial sanctions still requires further discussions. In the non-financialsanctions category, the idea of suspending voting rights was also discussed but accordingto one diplomat close to the discussions, it did not receive much support. Van Rompuyintends to publish a press statement later on Monday evening. The next taskforcemeeting will take place on 6 September. The final report will be presented in October.(12/07/2010 Agence Europe)

II. Broad economic policy guidelines adoptedOn Tuesday 13 July, the EU Council of Ministers took an important step in theimplementation of the new Europe 2020 strategy for jobs and growth, by adopting arecommendation establishing new broad guidelines for the economic policies of themember states and of the Union. The recommendation, together with a draft decision onguidelines for employment policies (adoption of the decision on employment policies isscheduled for October), forms integrated guidelines for structural reforms which willhave to be carried out over the next few years under the new strategy. On the basis of

these integrated guidelines, member states will draw up national reform programmeswhich will set out in detail the actions to be undertaken. Particular emphasis will beplaced on the efforts needed to meet the national targets, and on measures to removethe bottlenecks that constrain sustainable growth at the national level. The EuropeanCouncil will assess annually the progress made at both EU and member state level underthe 2020 strategy. Macro-economic, structural and competitiveness developments, andalso overall financial stability, will be examined simultaneously. (13/07/2010 AgenceEurope)

III. Slovak government approves emergency EU funding subject toreservations

The Slovak government has approved the EU rescue fund for debt-laden member states

of the euro area, Slovakian Prime Minister Iveta Radicova announced on Thursday 15July. Slovakia was the only euro area country not to have agreed to take part in the

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financial stability fund which has 250 billion in IMF loans, 60 billion in EU loans and440 billion in loan guarantees from the various countries of the euro area. The

Slovakian government has approved a political statement drafted by the previous cabinetin May, but it also adopted a declaration with specific conditions under which Slovakia willpotentially take part in implementing the European Financial Stability Facility, Radicovais quoted by AFP as saying. Slovakia, the last eurozone member to join the fund, will

approve the actual launch of the mechanism only if the EU significantly strengthens theStability and Growth Pact, said Finance Minister Ivan Miklos. He called for a clearmechanism of a managed default for countries that consistently perform an irresponsiblefiscal policy. The ECB and the European Commission would have to provide clearevidence that countries concerned had done their best to secure standard funding onfinancial markets, he added. Thursday's decision by the Slovak government still has to beapproved by the national parliament (in early August), and the president. The newSlovakian government refused to grant a loan to Greece within a separate 110 billion

EU-IMF aid package. Slovakia's share of that package would have been almost 800million. (15/07/2010 Agence Europe)Events and Court of de Justice Calendar

I. Technological Innovation in health as atool to cut costs and improvepublic health systems

This event will take place on Tuesday, 20th July at 09:30h in the Flemish-EuropeanLiaison Agency

III. Court of Justice Calendar

Date Case Language Room

OpinionC-147/08

Rmer - Social policyCourt of Justice - Grand Chamber

DE Courtroom III -Level 6

Thursday15/07/201015:30

Reference for a preliminary ruling Arbeitsgericht Hamburg (Germany) Interpretation of the principle of equal treatment, Article 141 EC, and Articles 1, 2,3(1)(c) and (3) of and recital 22 in the preamble to Council Directive 2000/78/ECof 27 November 2000 establishing a general framework for equal treatment inemployment and occupation (OJ 2000 L 303, p. 16) Scope of the directive

Exclusion of payments of any kind made by state schemes or similar, includingstate social security or social protection schemes Exclusion of national laws onmarital status and the benefits dependent thereon Occupational pension schemein the form of a supplementary old-age pension for former employees of a localauthority and their survivors Method of calculation of the pension morefavourable to married beneficiaries than to those living in a registered civilpartnership Advocate General : Jskinen

OpinionC-512/08

Commission v France - Freedom toprovide servicesCourt of Justice - Grand Chamber

FR Courtroom III Level 6

Thursday15/07/201015:30 Failure to fulfil obligations Infringement of Article 49 EC Requirement of

prior authorisation, from the State of insurance, in order to obtain repayment forcertain nonhospital treatment received in another Member State Failure topay the difference between the amount received by the insured, who receives

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hospital treatment in a Member State other than the Member State of insurance,and the amount to which he would have been entitled had he received the sametreatment in the Member State of insurance Unjustified obstacle to thefreedom to provide services Advocate General : Sharpston

OpinionC-345/09

van Delft and Others - Socialsecurity for migrant workersCourt of Justice - Second Chamber

NL Courtroom III Level 6

Thursday15/07/201015:30

Reference for a preliminary ruling Centrale Raad van Beroep Interpretation ofthe EC Treaty, Articles 28, 28a, 33, and Annexe VI, R, (1)(a) and (b), of CouncilRegulation (EEC) No 1408/71 of 14 June 1971 on the application of social securityschemes to employed persons and their families moving within the Community (OJEnglish special edition 1971 (II), p. 416) and of Article 29 of Council Regulation(EEC) No 574/72 of 21 March1972 fixing the procedure for implementingRegulation (EEC) No 1408/71 (OJ English special edition 1972 (I), p. 159) Persons entitled to a pension or annuity Obligation to register with the healthcare insurance board in the Netherlands Obligation to pay a contributionAdvocate General : Jskinen

In Depth Analysis

I. Herman Van Rompuy says ministers should play a greater role ineconomic governance

Meeting in Brussels on Thursday 8 July under the chairmanship of Belgian's employmentminister and deputy prime-minister, Jolle Milquet, the EU employment ministersdiscussed the role of employment policy in new economic governance in Europe. TheEU27 ministers explained their own analysis and ideas over lunch with the president ofthe European Council, Herman Van Rompuy, who was very open to their suggestions.Van Rompuy pointed out that only economic growth that generated new jobs could helpthe EU get out of economic crisis, and employment is a crucial lever for competitiveness.Van Rompuy argued that the Employment and Social Affairs Council (EPSCO) should playa greater role in economic governance in the future and had to coordinate better with theECOFIN Council (of EU economics and finance ministers). He added that the waymacroeconomic surveillance interconnects with thematic surveillance had to change. Thechair of the European Parliament's employment and social affairs committee, PervencheBers, was delighted at his ideas. She had been invited to the meeting of EU ministersand said that Herman Van Rompuy's presence had sent out a very clear message and avery strong symbol because he is the permanent chair of the European Council, and thismeeting of employment and social affairs ministers was the first council of EU ministers(as opposed to a European Council of heads of state) that he had attended. TheCommission was represented by Lszl Andor.

Pervenche Bers: The challenge at present is to see what went wrong with theStabilityand Growth Pact since it started back in 1997

The economic governance taskforce chaired by Herman Van Rompuy is made up offinance ministers, representatives of the European Central Bank (ECB) andrepresentatives of the Commission and it is the economic and financial committee that

prepares the taskforce's work, explained Pervenche Bers at a press conference,challenging anyone to claim that employment and social issues were not key to preparing

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for the taskforce's work. Beyond the symbolism of Van Rompuy attending the EPSCOmeeting, Pervenche Bers said she felt the meeting had been very important to get ideas

across and have them turned into practice in the taskforce's work, which has beenpiloting reflection on an issue that has been on the back-burner for 13 years since theStability and Growth Pact started back in 1997. Pervenche Bers highlighted a key factorthat was usually totally ignored back in 1997, namely the risk of gaps in competitivenessarising among the economies of Europe and the emergence of new imbalances within theEU. The French Socialist MEP explained that after ten years of the single currency, it wasnow clear that gaps in competitiveness had widened and there were imbalances in theeurozone that cannot be sustained forever. Hence the importance of the consensualmessage at lunchtime from Herman Van Rompuy that unemployment is one of theimbalances within the eurozone and within the EU27 as a whole. Pervenche Bers saidthis means that the question of employment cannot be seen simply as supply anddemand. Instead, both supply and demand had to be seen as part of a wider,

macroeconomic approach. Jobs should not be seen as a side-effect of a growth strategywhose job-creation capacity is unknown, particularly if one views this from the justifiedobsession of finance ministers of cutting public deficits and debt. Instead, she said,employment should be seen as a competitiveness and innovation selling point, andunemployment should be seen as a huge cost to society due to lost competitiveness andinnovation from workers, and all that represents in terms of lost income for countries'coffers and the huge cost of providing unemployment benefits. Bers said that this wasthe very strong message relayed to Herman Van Rompuy by the EU's employment andsocial affairs ministers over lunch. Pervenche Bers stressed the fact that once again, itwas not a question of competition between the EPSCO and ECOFIN Councils to be themost important because ordinary people couldn't care less about that. Instead, she said,it was a question of determining what exactly had gone wrong with the Stability and

Growth Pact in 1997. She quoted Jacques Delors' comment that employment criteriashould have been included in the Stability and Growth Pact but there are still no suchcriteria 13 years later. The MEP said that there was now the opportunity of makingamends. A window of opportunity was open and she hoped the meeting of employmentand social affairs ministers would prove very important and useful in building progress inthis domain.

Laurette Onkelinx: importance of tenth guideline on social aspects of EU 2020 strategy

On Friday 9 July, the ministers discussed social policy in two workshops. One was chairedby the Belgian social affairs minister, Laurette Onkelinx, and looked at the social side ofthe new EU 2020 strategy, while the other was chaired by Belgium's pensions minister,

Michel Daerden, and looked at pensions and social inclusion, paying particular attentionto social welfare systems in the economic crisis. Commissioner Lszl Andor presentedhis Green Paper on the future of pensions systems, published on Wednesday.

Summing up, Laurette Onkelinx made the following points: (1) It is more important thanever that new instruments are developed if the EPSCO Council is to play a key rolealongside the ECOFIN Council in the EU's economic governance; (2) Every ministerstressed the importance of the tenth guideline that examines the social aspects of the EU2020 strategy. In this connection, the ministers instructed the social protectioncommittee to come up with a new set of indicators for monitoring implementation of thevarious points set out in the tenth guideline and to thereby help boost socialconvergence; (3) Implementation of the over-arching social clause set out in Article 9 ofthe Lisbon Treaty requires a social dimension to be added to every policy introduced atEU level; and (4) The Open Coordination Method had been unanimously hailed asinvaluable for exchanging best practice. Michel Daerden urged member states to examine


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the issues raised in the Commission's Green Paper, particularly the question of ensuringthe continuation of the pensions system and decent pensions. (09/07/2010 Agence

Europe)

II. Belgian Presidency's prioritiesMeeting in Brussels on Wednesday 14 July under the chairmanship of Pervenche Brs(S&D, France), the committee on employment and social affairs of the EuropeanParliament debated, with the Belgian ministers responsible for employment and socialaffairs, the objectives the Belgian Presidency aims to fulfil during its term in office. Theinformal Employment-Social Affairs Council (EPSCO) to be held in Brussels on 7 and 8July already dealt with the priorities of the Presidency, in particular the need to putemployment at the heart of the EU 2020 strategy and of future economic governance,making the economy greener (green jobs), the ageing population and increasingprofessional lifecycles (white jobs), pensions, social security and social inclusion (EUROPE

10175/10177/10178). This was a packed agenda, causing Pervenche Bers to comment:Even a government managing current affairs can put forward an ambitious programme!

Having taken questions from the MEPs, Jolle Milquet, the Belgian deputy prime ministerand employment minister, replied:

(1) Employment: to Csaba ry (EPP, Hungary), who asked: What do you think of theother policies needed to put employment policy at the heart of the EU 2020 strategy,such as SME policies, Jolle Milquet stressed that employment policies are enormouslysupported by other policies, such as policies for SMEs, which create the most jobs in theEU. How can Ecofin be persuaded that employment is a key element in macro-economic policies, asked Stephen Hughes (S&D, UK). Economic governance is a major

battle which is already well supported in the Council. I believe that it is vital to bolsterthe coordination within the Commission, the various committees, etc, but also to have acomplementary approach to give us a broader view of the strategy, Milquet replied.

(2) Immigration: Alejandro Cercas (S&D, Spain) rapporteur on the directive onimmigrant workers, raised the issue of seasonal workers. The debate hinges around thenew worker secondment directive and the one on seasonal workers. We must see what isbeing added to the social protection issue, the minister replied.

(3) Fight against discrimination: Elizabeth Lynne (ALDE, UK) asked whether the BelgianPresidency could do anything to unblock the anti-discrimination directive at the Council.Mara Bizzotto (EFD, Italy) asked whether the Belgian Presidency planned to ban the

Burqa. This is a debate which should be left up to the subsidiarity of the member states,and which is directly at odds with the anti-discrimination directive, Jolle Milquetobserved. Adam Kosa (EPP, Hungary) expressed his concern at the situation of thedisabled and suggested the creation of a European charter for the disabled, to guaranteethem freedom of movement within the EU. This highly important issue will be central tothe summit on Equality. The Presidency would like to move forward the debate on thefight against discrimination by creating a sequence of subjects. The situation of thedisabled is extremely important, as is your suggestion of a single charter, said JolleMilquet

(4) Minimum income: Karima Delli (EPP, Belgium) asked whether the Belgian Presidencywas prepared to support the idea of a genuine minimum income to help people living insituations of poverty. Marian Harkin (ALDE, Ireland) asked whether the BelgianPresidency was planning a minimum wage programme. Pascale Gruny (EPP, France)called for the European Social Fund to be remembered in every debate on employment.


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Laurette Onkelinx, the Belgian minister for social affairs and social integration, thenspoke of the priorities of the Belgian Presidency in the field of social affairs: the guideline

no. 10 on the social aspects of the EU 2020 strategy, minimum income and the socialservices of general interest (SSGI). Onkelinx pointed out that the economic crisis hadhad terrible social consequences in terms of increasing unemployment, precariousnessand that our social models had been a shield to absorb the blows. The Lisbon Treaty,which focuses on the transversal social clause (this article is the evaluation of all of theEU's decisions as regards their impact on European life, the minister explained) isextremely important. She announced that the Belgian Presidency would work closely withthe social protection committee to propose a European framework for quality socialservices of general interest.

Then replying to the various questions put by the MEPS (most of which were the same asthose put to Jolle Milquet), Onkelinx said:

(1) Quality of employment: this was already central to the Lisbon strategy in 2001(under the Belgian Presidency of the EU). We could dream of workers' rights but theseare still far away. We must work on the basis of the employment and social protectionguidelines, which constitutes social insurance, solidarity which must be supported by aEuropean policy.

(2) Social services of general interest (SSGI): These services constitute a fluid borderbetween the economic and the non-economic. Does this mean that we need to workunder a legal framework on the SSGI? Yes, I think this is better, observed LauretteOnkelinx.

(3) Minimum income: The main element is rules on active inclusion. The member statesdo not agree on the common criteria for a framework of this kind but they havecommitted to an exchange of ideas, Onkelinx noted, adding that guideline no. 10 speaksof minimum income, access to healthcare and a range of other services.The Belgian minister for pensions, Michel Daerden, then presented his proposal to createa European pension fund for workers and for highly mobile workers such as researchers.Jean-Marc Delize, the Belgian secretary of state in charge of the fight against poverty,stressed the fight against child poverty, the need to tackle the issue of children's accessto their rights and the same for families living in poverty, and on the issue of giving scaleto the issue at European level by adopting a recommendation with the objective ofreducing this poverty. Jean-Marc Dlize also indicated that the Presidency would do allin its power to ensure that the United Nations convention on the rights of the disabled

would be ratified by all member states. (14/07/2010 Agence Europe)

aeip news july 2010

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