European Commission EU policy response to the crisis EU policy response to the crisis ILO Thematic Dialogues Geneva, 4 June 2009 Robert Strauss, DG EMPL. D2 European Employment Strategy, CSR, Local Development Directorate-General Employment, Social Affairs and Equal Opportunities

European Commission Directorate-General Employment, Social Affairs and Equal Opportunities 2 European Economic Recovery Plan Nov  Boost demand, coordinated fiscal stimulus,1.5% GDP (€200B)  Accelerate structural reforms (as set out in Lisbon Strategy) to create an innovative, highly skilled, low carbon economy to ensure emerging stronger from crisis Current forecasts: GDP decline 4% 2009, stabilising 2010; unemployment rising reaching 11%.

European Commission Directorate-General Employment, Social Affairs and Equal Opportunities 3 Outcomes so far  Coordinated fiscal stimulus 1.8 % of GDP (0.3% at EU level, structural funds, EIB…). Automatic stabilisers add further demand boost.  Member States are stepping up labour market measures, supporting vulnerable groups, often with European Social Fund support.  Infrastructure investments figure prominently.  Some measures to make business easier, especially for SMEs.

European Commission Directorate-General Employment, Social Affairs and Equal Opportunities 4 Fiscal stimulus  40% (€ 80 B) spent on short term measures to save or create jobs.  35% (€70 B) increased payments for unemployed and vulnerable groups.  25% (€50 B) long term: innovation, greening the economy.

European Commission Directorate-General Employment, Social Affairs and Equal Opportunities Easing labour market transitions and supporting vulnerable groups  Temporary short time working arrangements  Upgrading skills and new training opportunities  Modernisation of public employment services  Increased funding for ALMPs  Lowering taxation and social security contributions  Tax relief for specific groups of workers or industries  Support for vulnerable groups including integrated social welfare packages.

European Commission Directorate-General Employment, Social Affairs and Equal Opportunities Strengthening infrastructure and the business environment  Smart (only in part) investments in infrastructure.  Specific support for construction sector and housing market functioning  Cutting red tape  Easing access to finance  Other measures to support firms

European Commission Directorate-General Employment, Social Affairs and Equal Opportunities Investing in a greener and more knowledge based economy  Tax breaks or scrapping premiums for environmentally- friendly cars  Financial incentives for investment in energy saving materials or green technologies.

European Commission Directorate-General Employment, Social Affairs and Equal Opportunities The European dimension  Frontloading of Structural Funds  Expanded European Globalisation Fund  Enhanced European Investment Bank activity  Increased trans-European energy inter-connections and broadband infrastructure projects  Temporary framework for State aid measures to support access to finance

European Commission Directorate-General Employment, Social Affairs and Equal Opportunities 9 Conclusions European Council 18 June 2009 Communication “A Shared Commitment for Employment” between the European Union, its Member States and EU social partners Specific actions for  Maintaining employment, creating jobs, promoting mobility  Upgrading skills and matching labour market needs  Increasing access to employment

European Commission Directorate-General Employment, Social Affairs and Equal Opportunities 10 “The main impact of the recession is on people: the top challenge for the EU today must be to prevent high levels of unemployment, to boost job creation and pave the way for economic renewal, sustainable recovery and growth. This will only be achieved with stronger cooperation between all stakeholders, better policy coordination and mutual learning, i.e. with a shared commitment to develop and implement the right policies and actions: to preserve sustainable jobs in sound economic activities and help people into productive employment; to support the most vulnerable; and to prepare for the jobs and skills of the future. “