Speech by Prime Minister Simitis at the European Trade Union Confederation Conference
Date: 11-3-2003
Ladies and Gentlemen,
It has been almost half a century since the countries of Europe began to reconstruct the post-war welfare state. In the same period, the target of full employment was given priority status in economic policy.
Nowadays, we all acknowledge that full employment and the welfare state have been the finest social achievements of Europe, achievements of which all Europeans feel particularly proud.
Since then, the landscape not only in Europe but also in the world has changed. Developments in the economy and technology, as well as demographic developments have made it necessary to reshape and renew both our employment and social strategy. This is not because previous strategies have proven to be ineffective. On the contrary, it was with these that Europe gained the position it holds today in the world.
The role played by Europe's social model in the process of European integration is also stressed in the Report of the Working Group on Social Europe. The group, formed by the Convention charged with drawing up the EU Constitutional Treaty, underlines that the text of the Constitutional Treaty should include the promotion of:
- full employment
- social justice, social peace
- sustainable development
- economic, social and territorial cohesion
- social market economy
- quality of work
- lifelong learning
- social inclusion
- a high level of social protection
- equality between men and women
- non-discrimination on the basis of racial or ethnic origin, religious or sexual orientation, disability and age
- childrens rights
- a high level of health and
- efficient and high quality social services and services of general interest
as social targets that form the basis for the achievements of Europe's social model.
Those of us who believe in the target of full employment, in the role of the social state and social policies, acknowledge the need to redefine our strategies in order to strengthen the effectiveness of our interventions.
In March 2000, in Lisbon, we defined Europe's new strategy on the economy, society and sustainable development. In the Lisbon conclusions, we stressed the importance of employment and social protection policies as factors that contribute to the acceleration of development in Europe and the prosperity of its citizens.
We stressed that:
- These policies must relate to all citizens and aim at eliminating those factors which encourage poverty and isolation.
- Solidarity and economic success can go hand-in-hand
- The social state is not a luxury but a means for strengthening development.
However, at the same time, we acknowledged the need for speedy reforms in the economy, the labour market and pension systems. Reforms that are necessary in order to revitalise the European economy and ensure sustainable development.
Five years after the establishment of the European Employment Strategy (EES), we are being given the opportunity to evaluate the achievements and proceed with the necessary reforms. At the same time, we acknowledged the need for better coordination of the European Employment Strategy with the macroeconomic policy of the EU.
The main targets of our policies on employment remain:
- The creation of preconditions for full and sustainable employment.
- The improvement of the quality and productivity of work.
With the EES we have achieved a great deal. Despite the unfavourable economic environment, new jobs have been created at a much faster pace than in recent decades. However, we did not adequately attain the employment objectives.
In order to meet the goals set in Lisbon, we need an additional 15 million jobs. Although it has fallen, unemployment is still an important problem for certain regions of Europe and even countries. It is no coincidence that the citizens of Europe regard unemployment as one of the most important problems and are demanding regional, national, even European policies to tackle it.
Two years ago, unemployment in Greece reached very high levels for post-war standards, despite the jobs created. The employment challenge was and continues to be one of our main priorities. It impinges on the very core of our ideology, of the society we envisage.
Today, in Greece, we have reduced unemployment to below 10 percent and are continuing our efforts with the same persistence. The international environment is characterised by many difficulties. It does not help. But we are persisting. We have achieved high rates of economic growth. We hope and are optimistic that our course of growth, in combination with our policies on entrepreneurship - particularly with regard to small- and medium-sized enterprises which create new jobs - will reduce unemployment even further in the future.
The EES review gives us the opportunity to consider the new circumstances. To take into account the presence of the single currency, the perspective of a Europe of 25 Member States, with 450 million citizens.
Within the framework of review, we wish to simplify the EES. We want our strategy on employment to make us more effective in pursuing the employment goals set in Lisbon.
In the area of industrial relations, the Greek Presidency's intention is to promote measures which facilitate the efficient functioning of the labour market and its timely adjustment to changes in the economy and society. We must all understand:
- That the object of these changes is not to disarrange industrial relations.
- That the object is how - by means of new arrangements - we can ensure the necessary adaptability, in order to strengthen the competitiveness of enterprises and employment.
For instance, the draft directive on part-time work is a very important issue. The Greek Presidency is working to secure adoption of this directive, which aims at:
- helping enterprises make optimum use of human resources,
- while at the same time protecting this category of workers.
We understand the concern felt by some partners that are opposed to the Directive. However, we believe that workers should enjoy a minimum of protection. I would like to stress that in Greece, we have adopted a much more protective arrangement for workers.
In Greece, the labour market is much more flexible than in the past. We have adopted regulations on working hours, which facilitate both employees and enterprises. Now, we are now planning to introduce part-time work in the public sector.
With our active policy measures, we aim to put people who have become unemployed - and because of their age have difficulty finding employment - back in the job market. For example, enterprises that hire people who have been dismissed are entitled to additional financial assistance.
The Lisbon Council, in March 2000, was a milestone in the course of the EU. The decisions taken by the Council outline a vision and objectives for the EU.
Today we find ourselves in what is undoubtedly a feeble economic environment, which does not inspire optimism, which is pregnant with danger. Despite this environment, we must remain dedicated to attaining the objectives agreed in 2000, namely to make the European economy "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".