General framework

Resolution of the European Council on growth and employment Amsterdam, 16 June 1997

THE 2EUROPEAN COUNCIL,RECALLING the conclusions of the Essen European Council, the Commission's initiative for 'Action on Employment: A Condence Pact' and the Dublin Declaration on Employment,HAS ADOPTED THE FOLLOWING GUIDELINES:

Introduction

1. It is imperative to give a new impulse for keeping employment rmly at the top of the political agenda of the European Union. Economic and monetary union and the Stability and Growth Pact will enhance the internal market and will foster a non-inflationary macroeconomic environment with low interest rates, thereby strengthening conditions for economic growth and employment opportunities. In addition, we will need to strengthen the links between a successful and sustainable economic and monetary union, a well functioning internal market and employment. To that end, it should be a priority aim to develop a skilled, trained and adaptable workforce and to make labour markets responsive to economic change. Structural reforms need to be comprehensive in scope, as opposed to limited or occasional measures, so as to address in a coherent manner the complex issue of incentives in creating and taking up a job.

Economic and social policies are mutually reinforcing. Social protection systems should be modernised so as to strengthen their functioning in order to contribute to competitiveness, employment and growth, establishing a durable basis for social cohesion.

This approach, coupled with stability based policies, provides the basis for an economy founded on principles of inclusion, solidarity, justice and a sustainable environment, and capable of beneting all its citizens. Economic eciency and social inclusion are complementary aspects of the more cohesive European society that we all seek.

Taking account of this statement of principles, the European Council calls upon all the social and economic agents, including the national, regional and local authorities and the social partners, to face fully their responsibilities within their respective sphere of activity.

Developing the Economic Pillar

2. The Treaty establishing the European Community, in particular Articles 102a and 103, provides for close coordination of the Member States' economic policies referred to in Article 3a of the Treaty. While primary responsibility in the ght against unemployment rests with the Member States, we should re cognise the need both to enhance the eectiveness and to broaden the content of this coordination, focusing in particular on policies for employment. To this end, several steps are necessary.

3. The broad guidelines of the economic policies will be enhanced and devel oped into an eective instrument for ensuring sustained convergence of the economic performances of the Member States. Within the framework of sound and sustainable macroeconomic policies and on the basis of an evaluation of the economic situation in the European Union and in each Member State, more attention will be given to improving European competitiveness as a prerequis ite for growth and employment, so as, among other objectives, to bring more jobs within the reach of the citizens of Europe. In this context, special attention should be given to labour and product market eciency, technological innova tion and the potential for small and medium-sized enterprises to create jobs.

Full attention should also be given to training and education systems including life-long learning, work incentives in the tax and benet systems and reducing non-wage labour costs, in order to increase employability.

4. Taxation and social protection systems should be made more employment friendly thus improving the functioni...

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