PDF to HTML - Convert PDF files to HTML files

Europaudvalget 2005-06
Det Europæiske Råd 23-24/3-06 Bilag 4
Offentligt

COUNCIL OF

THE EUROPEAN UNION

Brussels, 13 March 2006

7249/06

LIMITE

POLGEN 26

NOTE

from :

to :

Subject :

Presidency

Coreper

European Council (23 and 24 March 2006)

– Draft conclusions

The Presidency submits herewith to Coreper a revised set of draft conclusions to be adopted by the

European Council at its meeting on 23 and 24 March 2006.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

The meeting was preceded by a presentation given by Mr Josep Borrell, President of the

European Parliament, followed by an exchange of views.

IMPLEMENTING THE RENEWED PARTNERSHIP FOR JOBS AND GROWTH

Drawing on lessons learnt from five years of implementing the Lisbon Strategy, the European

Council in March 2005 decided on a fundamental re-launch. It agreed to refocus priorities on

jobs and growth coherent with the Sustainable Development Strategy, by mobilising to a

greater degree all appropriate national and Community resources. It also agreed on a new

governance cycle based on partnership and ownership.

At Hampton Court, the Heads of State or Government provided further political impetus to

the renewed Lisbon Strategy, in particular by emphasising the way in which European values

can underpin modernisation in our economies and societies in a globalised world.

Finally, the agreement reached at the December 2005 European Council on the Financial

Perspectives 2007-2013 represented an important step forward in providing the Union with

the means to carry through its policies, including those contributing to an effective

implementation of the renewed Lisbon Strategy. On that basis, the European Council stresses

the importance of concluding as soon as possible the new Inter Institutional Agreement and of

rapidly adopting the necessary legal instruments.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

The background in Europe is characterised by intensified competition from abroad, an ageing

population, higher energy prices and the need to safeguard energy security. Since the end

of 2005, a gradual economic recovery is under way, with growth expected to return towards

potential in 2006 and to accelerate further in 2007. The EU is expected to create six million

new jobs during the three-year period 2005-2007, helping to reduce unemployment from a

peak of 9.0% at the end of 2004 to 8.1% in 2007. However, the further reduction of

unemployment, raising productivity and the increase of potential growth remain the key

challenges for the Union.

Preparing for ageing populations and the ambition to reap the full benefits of globalisation

will be the two main drivers for structural reforms. Further structural reforms are required to

increase the competitiveness of Europe and to sustain growth, thereby contributing to an

increase in living standards and the creation of new jobs. At the same time, appropriate

macro-economic policies are key towards reaping the full benefits of structural reforms in

terms of growth and employment. Improving business and consumer confidence will

contribute to durably bring growth up to its potential level. Determined fiscal consolidation

will further strengthen the conditions for more jobs and growth.

The economic recovery provides a strong opportunity for pursuing vigorously structural

reforms in line with the National Reform Programmes, as well as for enhanced fiscal

consolidation in line with the renewed Stability and Growth Pact. In this context, concrete

targets and timetables are a useful tool for speeding up the implementation of the envisaged

reforms and for delivering better results in terms of growth and employment.

The European Council welcomes the Commission communication "Time to move up a gear"

and the fact that all Member States have rapidly drawn up their National Reform Programmes

(NRPs). It also welcomes progress made concerning the Community Lisbon Programme.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

The European Council notes the large convergence of views in the NRPs on the key

challenges. It also notes that the NRPs contain a wealth of promising policies to be shared and

learnt from. However, the European Council at the same time notes the Commission's view

that some NRPs could include more specific targets and timetables and that they could also be

more detailed as concerns competition and removing obstacles to market access, as well as on

the budgetary aspects of envisaged reforms.

10.

The European Council welcomes the fact that Member States have made real efforts to

involve national parliaments and representatives from regional and local authorities as well as

social partners and other stakeholders of the civil society in the formulation of their NRPs. It

also welcomes the initiatives taken up by the European Parliament, the Committee of the

Regions and the European Economic and Social Committee to increase the ownership on

Community level. It encourages the European Economic and Social Committee and the

Committee of the Regions to continue their work and asks for summary reports in support of

the Lisbon Strategy in early 2008.

11.

It is necessary to involve European citizens more actively in the process in order to increase

the understanding how timely and properly implemented reforms will contribute to greater

and better shared prosperity. An effective renewed partnership for jobs and growth will

require an active contribution of the social partners. The European Council welcomes the

intention of the Finnish Presidency to hold a Tripartite Social Summit.

12.

Now that the NRPs are in place, it is essential to maintain momentum by ensuring their

effective, timely and comprehensive implementation and if necessary, strengthening of

measures agreed in the NRPs, in line with the European Council’s conclusions of

March 2005. Accordingly, the European Council:



calls on the Member States to report in Autumn 2006 on the measures taken to

implement their NRPs, in the light of the evaluation by the Commission and the Council,

as well as of the agreed priority actions mentioned below; and to take account of the

NRPs when drawing up their Strategic Reference Frameworks for Cohesion;

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files



invites the Commission to organise with the Member States the exchange of experiences

in a practical way; and to pay particular attention, in its report in view of the 2007 Spring

European Council on progress towards implementing the NRPs, to the priority actions

and to propose any additional measures.

13.

The European Council confirms that the Integrated Guidelines 2005-2008 for jobs and growth

remain valid. Within that framework it agrees on:



specific areas for priority actions

concerning investment in knowledge and

innovation, business potential, especially of SMEs and employment of priority

categories (see part I);



the definition of a

New Energy Policy for Europe

(see part II);

measures to be taken across the board in order to

maintain the momentum

under all

pillars of the Lisbon Strategy (see part III).

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

PART ONE

SPECIFIC AREAS FOR PRIORITY ACTION

14.

The European Council agrees on the following specific areas for priority action to be

implemented by the end of 2007 in the context of the renewed Lisbon Strategy.

(a)

Investing more in knowledge and innovation

15.

In view of the importance of R&D for future growth and in providing solutions for many of

the problems confronting our society today, the European Council reiterates the commitment

entered into at Barcelona, welcomes the progress made concerning setting specific national

targets and calls upon all Member States to promote policies and actions aiming at the

established overall 3% objective by 2010, taking into account the different starting points of

Member States (see Annex X). To provide more and better resources for research and

innovation, Member States should refocus their public expenditure on research and innovation

as well as promote private sector R&D, in particular by improving their mix of support

instruments.

The European Council calls for the speedy adoption of the

Framework Programme

for

Research and Development and the new Competitiveness and Innovation Programme. It calls

for the quick establishment of the European Research Council working on the basis of criteria

aiming at raising yet further the excellence of Europe's best research teams. Action

undertaken under the Research Framework Programme should be better coordinated with

other European and national actions to promote public-private partnerships, including

intergovernmental initiatives such as Eureka.

16.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

17.

dynamic environment

should be fostered by the creation of attractive clusters. Member

States are invited to create a single, open and competitive European labour market for

researchers, notably by overcoming remaining obstacles to geographical and intersectoral

mobility, and by improving employment and working conditions for senior researchers as

well as by attracting young research talent into research careers. The cooperation and

technology transfer between public research and industry should be enhanced, both within and

across national borders.

18.

ICT policies

play an important role in boosting innovation and knowledge. In this connection,

the European Council notes the significance of the Aho report on Creating an Innovative

Europe and invites the Commission to assess its recommendations. The European Council

accordinlgy calls for a broad-based innovation strategy for Europe that translates invetsments

in knowledge into products and services. A comprehensive approach to innovation policy can

be achieved by supporting markets for innovative goods and services and excellence in

research in new technologies. This would imply inter alia identifying best practices in

innovation policies that would have the greatest potential for creating real value added and

boosting procuctivity. Furthermore links should be stengthened between R&D, innovation

systems and business environment in order to improve the effectiveness of the innovation

process and shorten the time needed for innovations to mature and to be translated into

commercial products and services.

19.

Education and training

are critical factors to develop the EU's long-term potential for

competitiveness as well as for social cohesion. The search for excellence and innovation at all

levels of education and training, in particular through better links between higher education,

research and enterprises is crucial. Reforms must also be stepped up to ensure high quality

education systems which are both efficient and equitable. National lifelong learning strategies

should provide all citizens with the competences and qualifications they need. To support

greater mobility and an efficient labour market, progress on a European Qualifications

Framework (EQF) should also be achieved.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

20.

Investments in education and training

produce high returns which substantially outweigh

the costs and reach far beyond 2010. They should be targeted on areas where economic

returns and social outcomes are high. Education and Training must occupy a central position

in the Lisbon reform agenda, in this context, the new Lifelong Learning Programme 2007-

2013 will be essential. The European Council calls on the Member States to facilitate, in line

with national practices, by the end of 2007 universities' access to complementary private

sources of funding and to remove barriers to public-private partnerships with businesses.

Furthermore, it underlines the crucial role of universities and their research staff in the

dissemination and transfer of research results to the business community and hence the need

of developing managerial skills and competencies for the people involved. The European

Council looks forward to the report of the Commission on higher education which will

address in particular the triangle education-research-innovation as well as the links between

universities and the business community.

21.

The European Council recognises that the establishment of a European Institute for

Technology will be an important step to fill the existing gap between higher education,

research and innovation. It invites the Commission to submit a proposal for its establishment

by the end of June 2006.

(b)

Unlocking business potential, especially of SMEs

22.

There is consensus on the overall importance of a strong and competitive industrial base in

Europe and therefore on the need for a modern and coherent concept for EU manufacturing.

The European Council stresses the importance of achieving the right balance between

horizontal and sectoral approaches and refers to the necessity of improving the consistency of

policies in order to be able to benefit on a larger scale from potential synergies. The European

Council calls on Member States to proactively develop national strategies and implement

measures to foster competitiveness, innovation and productivity through policies that address

the social dimension and the needs of individuals in the process of internationalisation and

structural change.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

23.

The European Council acknowledges the utmost importance of creating a more favourable

business environment, especially for small and medium-sized enterprises (SMEs), which are

the backbone of the European economy. At Community level, significant progress has been

achieved, notably through the Commission's thorough and balanced impact assessments of

new proposals and their strengthened competitiveness dimension, as well as the rolling

programme of simplification. To complement this at national level, the European Council

calls on Member States to transpose, enforce and fully implement Community legislation to

allow consumers, workers and business to enjoy the benefits of the internal market. Member

States should also put into practice the commitment entered into in their NRPs to making

impact assessments on legislative initiatives and to measuring administrative costs.

24.

SMEs have a crucial role in creating growth and better jobs in Europe. There is a need to

develop comprehensive supportive policies for SMEs of all types, as well as a regulatory

environment that is simple, transparent and easy to apply. The principle of "think small first"

must be applied systematically and become a guiding principle for all legislation at

Community and national levels. The European Council accordingly invites the Commission to

bring forward specific provisions to encourage SME growth and development, such as longer

transition periods, reduced fees, simplified reporting requirements and exemptions. The

European Council also expects the Commission to further assist Member States in adapting

their policies for SMEs and to further promote the dialogue with all stakeholders.

25.

The Commission is invited to launch an exercise to measure administrative costs associated

with EU rules in specific areas, giving particular attention to SMEs and to identifying which

costs flow directly from EU legislation and which costs arise from Member States' differing

transposition of EU rules. This exercise should be coordinated with ongoing national

initiatives. On this basis, the Commission is invited to explore options for establishing

measurable targets in specific sectors for reducing administrative burdens.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

26.

The Member States should establish, by 2007, a one-stop-shop, or arrangements with

equivalent effect, for setting up a company in a quick and simple way. Member States should

take adequate measures to considerably reduce the average time for setting up a business, with

the ultimate objective of being able to do this within one week anywhere in the EU by 2010.

Start-up fees should be as low as possible and the recruitment of a first employee should not

involve more than one public administration point.

27.

Europe needs more entrepreneurs equipped with the appropriate skills to successfully compete

in the markets. The European Council therefore underlines the need of creating an overall

positive entrepreneurial climate and of appropriate framework conditions that facilitate and

encourage entrepreneurship and therefore invites the Member States to strengthen respective

measures, including through entrepreneurship education and training at the appropriate level

of education. Communication and media can also play an important role in promoting

entrepreneurship and in encouraging people to decide for an entrepreneurial career.

Furthermore, measures to improve the business environment for SMEs and to encourage more

people, in particular women and young people, to become entrepreneurs should also be

explicitly mentioned in the NRPs as well as in the reporting.

28.

A fully integrated financial market and sufficient access to finance is crucial for the growth of

small and medium sized enterprises. If not properly addressed, the lack of finances will

continue hindering innovation in SMEs. At community level, funding sources shall be made

available through the financial instruments under the forthcoming Community programmes,

in particular the 7th Research Framework Programme and the Competitiveness and

Innovation Programme (CIP). In addition, the Council calls on Member States to fully utilise

the potential of structural funds, through traditional and new funding instruments such as

JEREMIE. Moreover, the intellectual property rights' (IPR) potential of SMEs deserves more

attention. Furthermore, SMEs' access to markets will be improved by facilitating their access

to public procurement markets and standardisation as well as by supporting their

internationalisation.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

29.

The European Council welcomes the Commission's intention to take fully into account the

need to give consideration to amending existing state aid rules thus reflecting market failures

relevant to SMEs and to simplifying administrative procedures,

inter alia

the so called

"de-minimis" exemptions and to provide for wider block exemptions. The review of state aid

should encourage a high level of investment in Europe and make Europe attractive for future

investment.

(c)

Increasing employment opportunities for priority categories

30.

Increasing employment in Europe remains one of the top priorities for reform. Labour market

reforms that have been undertaken in recent years are beginning to bear fruit. A key objective

is to increase labour market participation, especially of the young, women, the elderly,

persons with disabilities and immigrants and minorities. To achieve these objectives, work

should be conducted in close cooperation with social partners.

31.

Taking advantage of Europe's improved economic prospects to create more and better jobs,

more effort must now be put into implementing the European Employment Strategy and the

three priorities for action: attract and retain more people in employment, increase labour

supply and modernise social protection systems, improve adaptability of workers and

enterprises, and increase investment in human capital through better education and skills.

Better organisation of work, quality of working life and continuous updating of workers'

qualifications are factors which should be analysed in view of boosting labour productivity.

32.

Within these priorities, and given the recent improvement of economic conditions, further

efforts should be undertaken to increase European employment by at least 2 million jobs

yearly until 2010 as a further step to reaching the Lisbon employment targets.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

33.

The European Council calls on the Member States to:



develop a life-cycle approach to work, facilitating swift employment transitions

throughout working life and leading to an increase in the total number of hours worked

in the economy, and to improving the efficiency of investment in human capital;

pursue the shift towards active and preventative policies, encouraging and helping

people to find paid employment;

better focus measures for those with low skills and low pay, in particular those on the

margins of the labour market.



34.

It is urgent to improve the situation of young people in the labour market and to reduce

significantly youth unemployment. To that end, the European Council stresses that in line

with the agreed target for 2010, efforts should be intensified to reduce early school leaving to

10% and to ensure that at least 85% of 22 year olds should have completed upper secondary

education. By the end of 2007 every young person who has left school and is unemployed

should be offered a job, apprenticeship, additional training or other employability measure

within six months, and within no more than 100 days by 2010.

35.

With a view to making it more attractive for older workers to stay employed for longer, the

European Council underlines that active ageing strategies should be implemented. In this

context, incentives for prolonging working lives, gradual retirement, part-time work,

improving quality at work and targeted incentives to ensure that the number of older workers

participating in training rises faster than that for the overall workforce should be considered.

36.

Acknowledging that gender equality policies are vital to economic growth, prosperity and

competitiveness, the European Council stresses that it is time to make a firm commitment at

European level to implement policies to promote women's employment and to ensure a better

work-life balance. To this end, the European Council approves the European Pact for Gender

Equality (see Annex Y) and agrees that the availability of quality childcare should be

increased in line with Member States' own national targets.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

37.

The European Council stresses the need to develop more systematically in the NRPs

comprehensive policy strategies to improve the adaptability of workers and enterprises. In this

context, the European Council asks Member States to direct, special attention to the key

challenge of "flexicurity" (flexibility through security): Europe has to exploit the positive

interdependencies between competitiveness, employment and social security. Therefore

Member States are invited to pursue reforms in labour market and social policies under an

integrated flexicurity-approach, adequately adapted to specific institutional environments. The

European Council welcomes the Commission's proposal to explore the development of a set

of common principles on flexicurity and invites Member States and social partners to actively

participate in this process. In this context, it also notes the proposal by the Commission to

establish a European Globalisation Adjustment Fund to provide additional support for

workers made redundant as a result of major structural changes in world trade patterns and to

assist them with their re-training and job search efforts, and invites the Council, the European

Parliament and the Commission to take the appropriate measures in order for the Fund to be

operational as soon as possible.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

PART TWO

A NEW ENERGY POLICY FOR EUROPE

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

PART THREE

MAINTAINING MOMENTUM ACROSS THE BOARD

(a)

Ensuring sound and sustainable public finances

38.

At present, 12 EU Member States are in excessive deficit and the debt levels are above 60%

of GDP in several Member States. In the context of the recovery underway, Member States

should make fast progress towards their medium term objective and those Member States in

excessive deficit should pursue ambitious fiscal consolidation so as to put an end to their

excessive deficit as soon as possible.

39.

Further comprehensive reforms are needed in many Member States to improve the

sustainability of their welfare systems, and meet the economic and budgetary consequences of

ageing. In this context, the European Council takes note of the report on the impact of ageing

populations on public spending, and reaffirms the three-pronged strategy, aiming at reducing

public debt, increasing employment rates and productivity, and reforming pension and health

care systems. Measures which discourage early withdrawal from the labour force, or reduce

pension costs should be promoted. Further the European Council invites the Commission to

undertake a comprehensive assessment of the sustainability of Member States' public finances

by autumn 2006, using the commonly agreed framework.

40.

The European Council underlines the need to further improve the efficiency and effectiveness

of public spending and taxes in order to enhance the quality of public finances and foster

growth and employment enhancing activities, in line with the Lisbon priorities.

41.

Monetary integration creates stronger spill over effects amongst members. Membership in the

euro area places also a particular premium on effective policy coordination to ensure fiscal

discipline and flexibility to cope with asymmetric shocks, and to carry on with structural

adjustment needed for example to deal with deviating trends in competitiveness. In that

respect, further fiscal consolidation and enhanced structural reforms in goods, services, labour

and real estate markets are especially important in Euro-area Member States.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

(b)

Completing the internal market and promoting investment

42.

The extension and deepening of the internal market is a key element for achieving the aims of

the renewed Lisbon Strategy. Accordingly, the European Council calls for:



final agreement on the REACH package before the end of 2006, as well as - if

agreement between the European Parliament and the Council can be reached at first

reading - on the closely-related Regulation concerning classification and labelling of

hazardous substances and mixtures;

progress towards an effective, modern and affordable European intellectual property

rights regime;

further progress on simplification and modernisation of the VAT and customs system;

promotion of a fully integrated and well functioning financial market and better access

to finance, particularly through the implementation of the FSAP-measures and the

Commission's working programme outlined in the White Paper on Financial Services

Policy (2005-2010), making progress on clearing and settlement of securities

transactions, the creation of a Single European Payment Area, enhancing the framework

for cross–border financial sectors supervision and crisis management, and a mutual

recognition of accounting standards with the US.



43.

Recalling the conclusions of the European Council of March 2005, the European Council

stresses that the internal market for services must be made fully operational, while preserving

the European social model. The European Council takes good note of the Commission's

intention to present an amended proposal for the Services Directive largely based on the first

reading of the European Parliament, taking account of the discussions in the Council to date

and ensuring the broadly shared objective of making a significant step forward while

respecting the Treaty and the jurisprudence of the Court of Justice; it invites the Commission

to present the amended version without delay and expresses the hope that the institutions will

be able to swiftly conclude the legislative process.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

44.

The European Council welcomes the presentation of the Commission communication on the

functioning of the Transitional Arrangement on freedom of movement and takes note of the

evaluation contained therein. In the light of experience Member States will notify the

Commission of their intentions according to the relevant provisions of the 2003 Accession

Treaty.

45.

The European Council calls on Member States to transpose, enforce and fully implement EC

legislation to allow consumers, workers and businesses to enjoy the benefits of competitive,

border-free markets.

46.

The European Council recalls the Hague Programme of November 2004 whereby legal

migration could play an important role in enhancing the knowledge-based economy in

Europe, in advancing economic development, and thus contributing to the implementation of

the Lisbon strategy. It takes note of the Commission's Policy Plan on Legal Migration

presented in December 2005.

47.

Taking due account of the principle of subsidiarity and proportionality and the importance of

respecting the acquis communautaire, the European Council underlines the importance it

attaches to Better Regulation at national and European level as a means to achieving the

Lisbon goals and urges all institutions and the Member States to implement their

commitments, including using robust and balanced impact assessment with measurement of

administrative costs, delivering the rolling programme of simplification for the priority

sectors of waste, construction and the automotive industries. Unnecessary bureaucratic

burdens hinder entrepreneurial dynamism and pose a significant barrier to a more innovative

and knowledge-intensive economy. Such burdens particularly harm small and medium-sized

enterprises, which account for two thirds of jobs in Europe.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

48.

The European Council recognises the importance of a pro-active competition policy, a

regulatory framework that eases market access and a reform of State aid as key policy

instruments to help complete the internal market. It recognises the important role of

competition in ensuring effective delivery of Europe's network industries. It calls on Member

States to take action in these areas.

49.

The European Council recognises the crucial importance to the Lisbon Strategy of more

productive use of information and communication technologies in business and administrative

organisations throughout the European Union. Focused, effective and integrated ICT policies

at both at European and national level are essential to achieving the Lisbon goals of economic

growth and productivity. As such, the European Council calls on the Commission and the

Member States to implement the new i2010 Strategy vigorously.

50.

In support to the completion and deepening of the internal market, further efforts are required

with a view to making progress on the expansion, improvement, interconnection and

interoperability of European infrastructure. The European Council stresses the importance of

carrying out the TEN projects in the fields of transport and energy and Member States setting

the right incentives for infrastructure investment.

51.

The European Council welcomes the EIB's Group contribution to promoting growth and

employment, which, building on the European Action for Growth with new financial

instruments combining multi-annual EU and EIB resources, will shift the quality of the Bank's

operations towards higher value added and risk, thereby leveraging private capital to increase

substantially financing available for growth-enhancing investments in R&D, SMEs,

infrastructure and energy security in Europe.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

52.

The European Council invites the relevant actors to take the necessary follow-up steps

without delay, taking into account the final agreement on the Financial Perspectives, and

respecting the agreed framework for the EIB's capital (i.e. no capital increase before 2010 and

self financing via reserves) and the need to fulfil its tasks under the Treaty. It also underlines

the need of close co-operation between the EIB and the Commission as well as between the

EIB and the EBRD in order to fully exploit their catalyst function with regard to economic

growth and employment.

53.

The European Council further underlines the importance of ensuring open and competitive

markets inside and outside Europe. An ambitious and balanced outcome of the WTO DDA

negotiation can make a significant contribution to European growth.

(c)

Enhancing social cohesion

54.

The new strategy for jobs and growth provides a framework where economic, employment

and social policy mutually reinforce each other, ensuring that parallel progress is made on

employment creation, competitiveness, and social cohesion in compliance with European

values. For the European social model to be sustainable, Europe needs to step up its efforts to

create more economic growth, a higher level of employment and productivity while

strengthening social inclusion and social protection in line with the objectives provided for in

the Social Agenda.

55.

The Spring European Council in March 2005 stated on the occasion of the mid-term review of

the Lisbon Strategy that growth and employment are at the service of social cohesion. In this

context, the European Council welcomes the Joint Report for Social Protection and Social

Inclusion and the new objectives and working methods in this area and asks the Member

States to submit National Reports for Social Protection and Social Inclusion for 2006-2008 by

September 2006. The Commission and the Council will inform the Spring European Council

with the Joint Report on the progress in the area of social protection and social inclusion.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

56.

The European Council stresses that the policies for social protection and social inclusion have

to be closely coordinated with the partnership for jobs and growth, both at national and

European level in order to ensure that economic, employment and social policies interact in a

positive way and that social protection is regarded as a productive factor.

57.

The European Council reaffirms the Lisbon objective that steps have to be taken to make a

decisive impact on the eradication of poverty. Social inclusion policies should be pursued by

the Union and the Member States, with its multifaceted approach, focusing on target groups

such as children in poverty. The European Council asks the Member States to take necessary

measures to rapidly and significantly reduce child poverty.

58.

The European Council stresses that in view of the demographic change in the European Union

employment rates have to be increased and the reconciliation of work and family life has to be

promoted. To tackle these demographic challenges, it will be necessary to support policies

that make it possible to combine working life with children and family life, equal

opportunities, to enhance the solidarity between the generations, promote health, improve

affordable care for children and other people in need of care, life-long learning and an

increased employment rate of young people, older workers and disadvantaged groups.

59.

Further progress is also needed as concerns measures for young people, including the

implementation of the European Pact for Youth. The European Council encourages the

Member States to reinforce links between policies on education, training, employment, social

inclusion and mobility, so as to develop more effective cross-sectoral strategies. The

Commission and the Member States are requested to involve young people and youth

organisations in the implementation of the European Pact for Youth.

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

(d)

Environmentally sustainable growth

60.

Over and above its importance in its own right, environmental policy can make an important

contribution to jobs and growth and can impact positively on important sectors such as public

health and health-care costs, and social inclusion and cohesion as well as on the development

of a new energy policy, including the promotion of energy security and energy efficiency.

61.

The European Council endorses the following lines for action:



strong promotion and diffusion of eco-innovations and environmental technologies,

inter alia

through the Environmental Technology Action Plan and considering setting

performance targets;

following up the Montreal Climate Action Plan under the UN Framework Convention

on Climate Change, preparation of options for a post-2012 arrangement without delay

through constructive engagement in a broad dialogue on long-term cooperative action

and at the same time through a process under the Kyoto Protocol;

review of the environmental structural indicators in order to cover the environmental

dimension of the Lisbon Strategy more comprehensively;

urgent implementation of the EU objective of halting the loss of biodiversity by 2010,

notably by integrating its requirements into all relevant Lisbon agenda policies and by

swift presentation and discussion of the Commission communication on biodiversity;

exploration of specific actions to bring about more sustainable consumption and

production patterns at EU and global level, including the development of an EU SCP

Action plan, and fostering green public procurement, inter alia by promoting

environmental criteria and performance targets and by examining the proposal for a

Directive on the promotion of clean road transport vehicles as soon as possible;

further exploration of appropriate incentives and disincentives, and a reform of

environmentally harmful subsidies with a view of gradually eliminating them.



________________________

7249/06

DQPG

PDF to HTML - Convert PDF files to HTML files

ANNEX X

R&D expenditure (2004) as % of GDP and targets set by Member States in National Reform

Programmes

Member State

Belgium

Czech Republic

Denmark

Germany

Estonia

Greece

Spain

Ireland

France

Italy

Cyprus

Latvia

Lithuania

Luxembourg

Hungary

Malta

Netherlands

Austria

Poland

Portugal

Slovenia

Slovakia

Finland

Sweden

2004

1,93

1,28

2,61

2,49

0,91

0,58

1,07

1,20

2,16

1,14

0,37

0,42

0,76

1,78

0,89

0,273

1,77

2,26

0,58

0,78

1,61

0,53

3,51

3,74

1,79

Target for 2010

or other years

3,00

2,06

3,00

1,90

1,50

2,00

2,50% of GNP

3,00

2,5

1,0

1,50

2,00

3,00

1,8

0,75

3,00

1,65

1,80

3,00

1,80

4,00

2,50

Remarks

Target for 2013.

with an increased participation of the private sector

Target for 2007

Target for 2008.

Target of 1% public R&D and tripling of private R&D.

Target of 1% public R&D and unchanged private R&D.

Target for 2014.

________________________

Source: Eurostat. Most values are provisional. The values for IT, LU and PT refer to 2003.

Source: National Reform Programmes, with European Commission estimates based on the

targets provided by PT, SE.

DQPG

7249/06

ANNEX X

PDF to HTML - Convert PDF files to HTML files

ANNEX Y

EUROPEAN PACT FOR GENDER EQUALITY

Considering the need to:



contribute to fulfilling EU ambitions on gender equality as mentioned in the Treaty,

close the gender gaps in employment and social protection, thus contributing to make full use

of the productive potential of the European labour force,

contribute to meeting the demographic challenges by promoting better work-life balance for

women and men,

the European Council has adopted a European Pact for encouraging action on Member State and

Union level in the following fields:

Measures to close gender gaps and combat gender stereotypes in the labour market



promote women's employment in all age brackets and reduce gender gaps in

employment, including by combating all forms of discrimination;

equal pay for equal work;

combat gender stereotypes, in particular those related to the sex-segregated labour

market and in education;

consider how to make welfare systems more women's employment friendly;

promote women's empowerment in political and economic life and women's

entrepreneurship;

encourage social partners and enterprises to develop initiatives in favour of gender

equality and promote gender equality plans at the workplace;

mainstreaming the gender perspective into all public activities.

7249/06

ANNEX Y

DQPG

PDF to HTML - Convert PDF files to HTML files

Measures to promote a better work-life balance for all



achieve the objectives set at the European Council in Barcelona in March 2002 on the

provision of childcare facilities;

improve the provision of care facilities for other dependents;

promote parental leave for both women and men.

Measures to reinforce governance through gender mainstreaming and better monitoring



ensure that gender equality effects are taken into account in impact assessments of new

EU policies;

further develop statistics and indicators disaggregated by sex;

fully utilise opportunities presented by the establishment of the European Institute for

Gender Equality.

The European Pact for Gender Equality, as well as the Annual Report on Equality between Women

and Men, should be linked to the established follow-up mechanisms of the Lisbon Strategy, taking

into account the European Youth Pact, and aim to promote the implementation of gender

mainstreaming in actions taken within the strategy. When reporting on the implementation of their

NRPs for jobs and growth, Member States are encouraged to include a perspective of gender

equality, especially concerning Guideline 18. The Commission and the Council are invited to do

likewise in the Annual Progress Report on the Lisbon Strategy.

7249/06

ANNEX Y

DQPG