THE Luxembourg Presidency of the Council of the European Union, beginning today, will be marked by two European Council meetings dealing with the essential questions that the Union has to confront in the short term - the fight against unemployment and enlargement.
At their Amsterdam meeting of June 16th and 17th, the heads of state and government gave the Luxembourg Presidency the mandate to organise an extraordinary European Council on employment. They thus wanted to signal their concern for the anxieties of the European citizen. Never before has such a high-level meeting dealt directly and exclusively with unemployment, in spite of it being the greatest disruption of the European economy.
The change in attitude towards this social question owes much to the British decision to sign the Social Chapter and to accept its insertion in the Treaty on European Union. The drive with which France set about persuading its partners of the need to go beyond the concern for stability, and give a new impulse to the fight against unemployment, which is threatening social cohesion in our countries, also played a major part in this change in approach.
What exactly can the Union do about unemployment?
First it needs to guarantee a stable macroeconomic setting. The completion of the single market and the introduction of a single currency are the conditions on which a successful policy of growth and employment must be based.
As Nicole Notat, the French, trade unionist, wrote: "A renunciation of the single currency is tantamount to condemnation to economic warfare where the weapons used are devaluation and protectionism, which destroy jobs." Hence, to fight for jobs in Europe also means fighting for the euro. We need also to modernise the employment market, stimulate information exchange within the Union on effective measures against unemployment, and support the creation of and access to local jobs. Bodies such as the European Investment Bank need to be encouraged to invest in small- and medium-sized businesses, which constitute the greatest potential for job creation in Europe.
All these measures will undoubtedly be insufficient. To reverse the tendency, more will have to be done. There is a need for a radical change in the mentality of European investors. The current disposition towards short-term investment and maximum returns in a minimum time is not conducive to job creation investment in Europe is not geared towards the improvement of company productivity.
Instead, it is being lured by delocalisation to countries with low salaries, or by global restructuring that pays little heed to productivity achieved within the production units of a large group. Vilvoorde is the traumatising symbol of this suicidal trend.
However, things are starting to move. An increasing number of investors have come to question an investment strategy that risks destroying the very basis of European human resources, social cohesion and the economic system.
The seeds have been sown for reflection, and even for a more global dialogue, on investment in Europe and its link to the European social model. It would be useful if this dialogue was initiated by governments and social partners before the European Council on employment takes place. Their thoughts and suggestions could fuel the think-tank of the summit.
Employers who are quick to complain about Europe's weaknesses should focus instead on its strengths. Contrary to the Asian tigers, does Europe not dispose of a priceless stock of economic value, which is readily available and is of high technological level, as well as of highly qualified human resources? Is the European continent not endowed with the potential markets on its very doorstep that could be developed through a wide movement of continental solidarity? Does it not enjoy a long tradition of social dialogue and democracy that guarantees the social partner's rights and respect based on reciprocal responsibility? Does the continent not enjoy a level of political stability without equal anywhere else in the worlds
These advantages and achievements need to be preserved and developed. This is possible if the European Union and its member-states devote greater financial resources to training and research. It is a signal of confidence in the European social model of this potency that is needed to launch the Luxembourg summit.
A change in attitude is also necessary regarding enlargement of the Union towards the 11 candidate states.
The position on this question seems to be divided between sceptics and enthusiasts. This situation does not facilitate the implementation of the decision reached in Copenhagen in 1992. On July 16th, the Commission will present its detailed opinion on each of the candidate states. It will also submit a document entitled "Agenda 2000" divided in three parts.
This document will analyse the effects of enlargement on Union policies, in particular the Common Agricultural Policy and on the structural policies. It will further examine horizontal aspects of enlargement not covered in the accession applications, notably transition regimes, and it will study the future financial framework of the EU as from 1999.
It will fall upon the Luxembourg Presidency of the Council to organise the work in a way that will enable these documents to be analysed in depth by the end of the autumn. The aim is to reach an objective opinion on the capacity of the candidate countries to accommodate the acquis communautaire (the overall achievements of the Union). In December 1997, at the end of this process of reflection and discussion, the European Council in Luxembourg will take a decision on the launching of the enlargement process and the procedures of the first phase of negotiations.
The 15 will be taking on a historic challenge. They will need to conduct a realistic, lucid evaluation of the situation in each of the candidate states, since enlargement will undoubtedly have an impact on the amount of spending, the redistribution of resources and the institutional mechanisms of the EU. These states need to restructure their economies fundamentally. The social shock that the progressive insertion into the single market will carry with it needs to be mitigated. We must prevent the populations from turning against Europe.
During the negotiations we will have to convince both sides of the necessity and the positive impact of enlargement. The governments of the member-states will have to ensure that the enlargement takes place without political haste and in strict conformity with the accession criteria - stable political institutions guaranteeing democracy, primacy of law, human rights and the protection of minorities, the existence and the successful operation of a market economy, integration into the single market, and the implementation of the acquis communautaire into national law. Adherence to these criteria alone will guarantee the success of the fifth enlargement of the EU.
Member-states therefore should guard against spreading fear or building up false hopes.
The Luxembourg Presidency has the mandate to ensure that enlargement is prepared in an orderly and objective manner. The presidency is convinced that this is the best way for the Union to extend its solidarity, stability and prosperity to the part of Europe which has regained its liberties since 1989.