Brussels, 05/09/2012 (Agence Europe) - The legislative proposal for a quota of 40% women on the boards of in major listed companies has not yet been officially put forward by Commissioner for Fundamental Rights Viviane Reding, yet a clear dividing line is already forming on the basis of a draft directive circulating in the press. The British permanent representation apparently informed its European counterparts of its intention to block the future Commission proposal in the name of the principle of subsidiarity. However, the European women's lobby considers that Reding's effort is too skimpy. This is an opinion that is most definitely shared by MEP Marije Cornelissen (Greens/EFE, Netherlands) who hopes that this will be corrected in the final version of the proposal. If this is not the case, she promises to take the issue in hand within the European Parliament.
London will be intransigent. The United Kingdom is showing its colours, recently circulating at COREPER 1 a draft letter, which should be addressed to the college of European commissioners, expressing opposition from across the Channel to the imposition of women's quotas in the business world. “We do not support the adoption of legally binding provisions for women on company boards at the European level”, the letter says. The UK justifies its position by the fact “that it is first and foremost up to the member states to find their own national approaches to achieving this goal”. Although other countries have not yet come out of the woodwork to follow in the UK's footsteps, Sweden would nonetheless be opposed to Europe intervening in the matter.
First version of the text. The facts are, however, these: the Commission estimates that only 13.7% of directors' posts in major companies are held by women and progress on the issue is slow, with less than 1% increase per year. Reding, distressed to note that at the current pace several decades would be required for men and women to reach the same level in European companies, has decided to take the bull by the horns. A proposal for a directive, expected in October or November, would provide for the imposition of this famous 40% quota. A first version of the text, disclosed by the Financial Times this week, has fed the controversy on this issue even more.
Women's lobby not satisfied. The text in question provides sanctions if major listed companies do not respect the quota from 2020 onwards (fines, withdrawal of subsidies). If these companies are majority state-owned they will even have to respect the quota from 2018. The text specifically excludes small and medium sized enterprises. In the opinion of the women's lobby this is deplorable and the directive should go further. The association suggests that Reding should impose this quota on non-listed companies too, if they employ more than 50 people. State-owned companies should already include 40% of women on their boards from 2015, in order to be able to reach parity from 2050, the women's lobby states.
Greater firmness at the Parliament. Dutch MEP Marije Cornelissen says that she also regrets that the Commission's ambition is limited. “To really change company culture, we need to establish equality in the day to day management of companies.” She hopes, then, that the Commission's proposal will evolve further; otherwise she is already planning to act within the European Parliament to plug the gaps. (MD/transl.fl)