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President Barroso said: "The EU has taken giant leaps forward in terms of economic governance in the last five years, providing financial lifelines to many vulnerable Member States. From the start of the crisis, we have taken targeted action to deal with the social distress created in part of our societies. But the severity of the crisis, particularly in the euro area, has taught us that we need to work even more closely to heal the social scars it has left behind. This Communication is about building on the rules we have already put in place under the European Semester to ensure there is a strong social dimension in the way we run our Economic and Monetary Union. We owe that to the 26 million unemployed and the most deprived in our society."
The Communication focuses on three areas:
Surveillance and coordination
The European Semester sets out an annual calendar and rules for monitoring and coordinating economic policies, while the Europe 2020 strategy contains key social and employment targets for the next decade for all 28 EU Member States.
The Communication focuses on issues that are directly relevant for the well-functioning of the EMU, while fully respecting the general social agenda for the wider EU. In it, the Commission proposes to create a scoreboard to follow key employment and social developments in order to better analyse and more swiftly identify major problems before they arise.
It also proposes to integrate a limited number of extra employment and social indicators into the annual Alert Mechanism Report (AMR) used to detect economic imbalances. The data should feed into policy – for example, the in-depth economic reviews undertaken as a result of the AMR exercise, or the Country-Specific Recommendations published each spring by the European Commission.
Social dialogue
There is room to consult social partners better at key steps of the decision-making process under the European Semester. The Commission has pledged to:
Background
The Communication is part of an ongoing process to improve the EU's economic governance architecture, and takes forward the ideas in the Commission's Blueprint for a deep and genuine EMU. It responds to the request of the 13/14 December 2012 European Council to present possible measures on the social dimension of the EMU, including social dialogue.
The June 2013 European Council recalled that the social dimension should be strengthened, emphasising the importance of better monitoring of the social and labour market situation within the EMU, notably by using appropriate employment and social indicators within the European Semester.
The European Council has also pointed out the need to ensure better coordination of employment and social policies, while fully respecting national competences, and highlighted the role of the social partners and social dialogue, including at national level.