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Europe Daily Bulletin No. 9079
Contents Publication in full By article 17 / 37
GENERAL NEWS / (eu) eu/austrian presidency

Competition priorities to focus on Services Directive and 'Flexicurity' for European Social Model

Brussels, 30/11/2005 (Agence Europe) - At a dinner on the fringes of the 28/29 November Competitiveness Council in Brussels, Austrian Economics Minister Martin Bartenstein outlined to a few reporters the priorities of the upcoming Austrian Presidency for the first half of next year. First and foremost, the Austrian Presidency wants to ensure the revised Lisbon Strategy is put back on track. The new approach combining integrated Growth and Employment Guidelines and national reform programmes guarantees a clear division of powers at EU and national level. It is important to boost the commitment of Member States, but national action plans must be backed with concrete action at EU level, explained Bartenstein. To this end, the Austrian Presidency aims to make progress with the Services Directive at the Competitiveness Council, and the Working Time Directive at the Employment and Social Affairs Council.

Secondly, the Austrian Presidency will focus on 'flexicurity - flexibility through security' based on the Scandinavian model, combining the institutional features of a flexible labour market with a high level of social security. Flexicurity will be the main topic of the Austrian Presidency's employment policy. One issue will be to look at concrete policy consequences of the paradigm at European level, taking into account the very different forms that social security systems take in each Member States (or group of Member States). 'Applying the name to the concept, flexicurity has to be adapted flexibly to national peculiarities and cannot be treated as a 'one size fits all' concept.

The Services Directive will be another of the Austrian Presidency's flagships. The Austrian Presidency explains that 'services are the engine of economic growth in Europe, as 70% of Europe's GDP and 70% of European jobs result from the services sector. It is of fundamental importance that the EU internal market of goods should be completed by an internal market of services.' The Austrian Presidency says that the 'country of origin principle - or as it is now called 'freedom to provide services' …. Should not undermine what is called the 'general legal framework'. This term refers to, for example, construction law, environmental law, social and civil law. Therefore, derogations will be needed for these areas.' 'In order to combat fears regarding social dumping, a clear line needs to be drawn between the Services Directive (SD) and the posting of workers directive as well as international private law,' explains the Austrian Presidency. 'We want the mobility of workers, but we want to be sure there is no social dumping,' said Bartenstein. 'Similarly, it is essential that there is a clear line between the SD and the recently adopted Directive on the Recognition of Professional Qualifications.' The European Social Model must be maintained. Therefore certain sensitive areas need to be excluded from the scope of the SD. Most important among these areas are health and social services.' My Swedish counterpart, Thomas Ostros, and myself are in agreement and will be fighting for exceptions, said Bartenstein. He said the European Commission had made a step in the wrong direction in the time of Commissioner Bolkestein and should now monitor the SD more carefully to end up with a new draft capable of winning the necessary broad support. Bartenstein added: 'There's no chance to conclude this huge dossier before the end of the Presidency.'

REACH and Better Regulation will be Austrian Presidency priorities for the Competitiveness Council. It is planning to ensure the continuity of work started since the Dutch Presidency and at the Commission to ensure a regulatory framework favouring business, with less red tape hampering European competitiveness. The Austrian Presidency says it 'is prepared to continue the negotiations' on REACH if political agreement is not possible under the British Presidency.

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