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Introduction

The impact of globalisation on European society, the imminent expansion of the Union and the aging of the population in Europe have brought the need for a re-evaluation of social policies at the EU level. Individual Member States are dealing with issues such as immigration, the viability of social security schemes and measures to stem high rates of unemployment in the backdrop of the Union's expansion. The Commission is currently funding research in innovation and the promotion of social dialogue in the wake of these issues.

Overview

Innovative approaches must be used for the preparation and effective training of workers in order to equip them with the flexibility and skills required by the ever-changing, modern work environment. Other anticipatory actions include social dialogue and these measures are aimed at strengthening employment and job qualifications.

Firms must also adapt to the new conditions of global competition. Firms must create and exploit the competitive advantage associated with the shift towards a knowledge-based economy; promote sustainable industrial development; make supply more responsive to demand; reconcile family and working life. Innovative measures are aimed at new forms of work organisation pursuing these objectives by helping firms to build new, long-term forms of competitive advantage through exchanges of best practices on more effective development and deployment of human knowledge and skills.

Issues

Promoting an economically and socially sustainable society with a high level of employment and the equal status of men and women has become a core area of EU cooperation. This was reiterated in Lisbon as the European Council adopted a new strategic goal to the effect that the European Union should be the most competitive and dynamic knowledge-based economy in the world with sustainable economic growth, more and better jobs and a higher degree of social cohesion.

The Lisbon Strategy sets a focus on combating poverty and social exclusion, the creation of an inclusive society, and modernisation of the social protection systems with a view toward ensuring sustainable pensions schemes. Efforts to integrate marginalized groups in society and on the labour market are included in the concept of "the inclusive society".

Economic policy, employment policy and social policy, moreover, are regarded as equal and mutually enhancing and are so structured as to be mutually strengthening. In this way economic and social sustainability can be achieved.

EU objectives for social and labour-market policy are stated in Article 136 of the Treaty, which states that the target is to promote employment, the improvement of living and working conditions, suitable social protection, dialogue on the labour market, the development of human resources to enable a permanently high level of employment, and to combat social exclusion. These areas of action must constantly be re-evaluated through social dialogue especially during the transition period before and after EU expansion as the new member states will bring with them their individual social disparities as well as their level of ability to pursue an "inclusive society".

What's Next

Member states are already active in the implementation of their individual two-year National Action Plans on employment and social inclusion. When the 10 candidate countries enter the Union they too will have to move in similar directions as far as inclusion and employment strategy is concerned. Also many initiatives for the promotion of lifelong learning, corporate social responsibility, the reorganisation of work structure come into play creating the background in which the employment strategy must be laid.

In the backdrop of these initiatives and policies that ensue, the EU's employment strategy is based on four key elements:

It was decided at the meeting of the European Council in Lisbon, March 2000, that in future the European Council should to a higher degree coordinate the various Council's measures to promote growth and employment within the EU. It was thus decided that the European Council is to hold sessions at which the major themes are to be growth and employment. Simultaneously, a number of (sub) objectives in various areas were adopted to reach the goals of full employment and the strengthening of welfare (the "Lisbon Process"), including that the rate of economic activity for men and women in the EU should be significantly raised before 2010 (to an average of 70 percent). The European model is to be modernised. The European social model and the social protection systems developed were to support the transition to a knowledge-based economy and further incorporation and the equal status of men and women. The major challenge is the consolidation of current and new member states and their societies to the goal of an inclusive, knowledge based society for all.

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