Introductory text

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 148(2) thereof,

Having regard to the proposal from the European Commission,

Having regard to the opinion of the European Parliament^f1,

Having regard to the opinion of the European Economic and Social Committee^f2,

Having regard to the opinion of the Committee of the Regions^f3,

Having regard to the opinion of the Employment Committee,

Whereas:

Member States and the Union are to work towards developing a coordinated strategy for employment and particularly for promoting a skilled, trained and adaptable workforce and labour markets responsive to economic change with a view to achieving the objectives of full employment and social progress set out in Article 3 of the Treaty on European Union. Member States, taking into account national practices related to the responsibilities of management and labour, are to regard promoting employment as a matter of common concern and coordinate their action in this respect within the Council.

The Union is to combat social exclusion and discrimination and promote social justice and protection, as well as equality between women and men. In defining and implementing its policies and activities, the Union is to take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion, and a high level of education and training.

The guidelines for the employment policies of the Member States are consistent with the broad guidelines for the economic policies of the Member States and of the Union set out in Council Recommendation (EU) 2015/1184^f4. Together, they form the integrated guidelines for implementing the Europe 2020 strategy (‘Europe 2020 integrated guidelines’) and are to be adopted by the Council to guide the policies of Member States and of the Union.

In accordance with the Treaty on the Functioning of the European Union (TFEU), the Union has developed and implemented policy coordination instruments for fiscal, macroeconomic and structural policies. The European Semester combines the different instruments in an overarching framework for integrated multilateral surveillance of economic, budgetary, employment and social policies and aims to achieve the Europe 2020 targets, in particular those concerning employment, education and poverty reduction, as set out in Council Decision 2010/707/EU^f5. The streamlining and strengthening of the European Semester, as set out in the Commission's 2015 Annual Growth Survey, are expected to further improve its functioning.

The financial and economic crisis has revealed and emphasised important weaknesses in the economy of the Union and in the economies of its Member States. It has also underscored the close interdependence of the Member States' economies and labour markets. Ensuring that the Union progresses to a state of smart, sustainable and inclusive growth and job creation is the key challenge faced today. This requires coordinated, ambitious and effective policy action at both Union and national levels, in accordance with the TFEU and Union economic governance. Combining supply- and demand-side measures, that policy action should encompass a boost to investment, a renewed commitment to structural reforms and the exercise of fiscal responsibility, while taking into account their employment and social impact. In this respect, the scoreboard of key employment and social indicators within the 2015 Joint Employment Report by the Council and the Commission is a particularly useful tool that contributes to the detection of key employment and social problems and divergences in a timely way and identifies areas in which a policy response is most needed.

Reforms to the labour market, including the national wage-setting mechanisms, should follow national practices of social dialogue and allow the necessary policy space for a broad consideration of socioeconomic issues.

Member States and the Union should also address the social impact of the crisis and aim to build a cohesive society in which people are empowered to anticipate and manage change, and can actively participate in society and the economy. Access and opportunities for all should be ensured and poverty and social exclusion reduced, in particular by ensuring an effective functioning of labour markets and social protection systems and removing barriers to labour-market participation. Member States should also make sure that the benefits of economic growth reach all citizens and all regions.

Action in line with the Europe 2020 integrated guidelines is an important contribution to reaching the goals of the Europe 2020 strategy for smart, sustainable and inclusive growth (‘Europe 2020 strategy’). The Europe 2020 strategy should be underpinned by an integrated set of European and national policies, which Member States and the Union should implement in order to achieve the positive spillover effects of coordinated structural reforms, an appropriate overall economic policy mix and a more consistent contribution from European policies to the objectives of the Europe 2020 strategy.

While the Europe 2020 integrated guidelines are addressed to Member States and the Union, they should be implemented in partnership with all national, regional and local authorities, closely involving parliaments, as well as social partners and representatives of civil society.

The Europe 2020 integrated guidelines give guidance to the Member States on implementing reforms, reflecting interdependence between the Member States. Those integrated guidelines are in line with the Stability and Growth Pact and with existing European legislation. Those integrated guidelines should form the basis for country-specific recommendations that the Council may address to the Member States.

The Employment Committee and the Social Protection Committee should monitor how the relevant policies are implemented in the light of the employment guidelines, in line with their respective Treaty-based mandates. These committees and other Council preparatory instances involved in the coordination of economic and social policies should work together closely,

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