Social and employment policy overshadowed by a deep employment crisis

During the coming 6 months, Spain will concentrate on the impact of the employment crisis and try her utmost to contain it. The Presidency decided to focus on the following key aspects: die EU 2020 Strategy, the “new” Social Agenda, Social Protection as well as Social Security. The intention is to strengthen the social dimension and to contribute to the creation of high quality jobs within the scope of the new EU 2020 Strategy. In accordance with the programme of the Spanish, new jobs will be green (new energies, environmental and climate protection), white (nursing care jobs) and blue (new technologies).

The legislative programme is characterised by the still open dossiers from 2009 and by the proposals of the new Commission. The Commission is not expected to introduce new proposals during the coming 6 months. The only exception is the Working Time Directive, which might be discussed by the European social partners as early as February. This would mean a complete “New start”. With respect to the Posting of Workers Directive, the Commission plans to introduce a new legal instrument. There has, however, not been any indication what this will look like.

Spain will have to make great efforts in the area of employment and social issues. Several legislative dossiers are waiting for their completion. These include the Directive on Maternity Leave, the Micro-finance Instrument and the new Anti-Discrimination Directive. All previous Presidencies have failed to implement these. One can only hope that Spain will not suffer the same fate.

Spanish Presidency inherits major construction site in the economic and financial sector

The Spanish Presidency has taken over a comprehensive inheritance, which it needs to pursue also with respect to economic and financial policy. With regard to the future European Financial Supervision, the Spanish have set themselves the ambitious target of reaching agreement between the position of the Member States and the European Parliament. However, disputes are already on the cards as the Member States have once again severely cut the Draft of the Commission, which provided for more European responsibility for the Supervision and because the Parliament has already made clear its opposition to these cuts.

Strong disagreements are also expected between Council and Parliament with regard to another big issue, the future regulation of hedge funds and other alternative investment funds. Here too, the Spanish Presidency would like to reach agreement; due to the great political significance of the Dossier, however, an intensive and long debate is expected in the European Parliament.

Other financial market regulation aspects, which the Spanish would like to finalise during their Presidency, are additional changes of the Capital Requirements Directive as well as an amendment of the Prospectus Directive.

One plan of the Spanish, which looks promising from the workers’ perspective, concerns a better coordination of economic policies by the Member States. In connection with the future Post-Lisbon Strategy, which Brussels circles now call EU 2020 Strategy, the Spanish Government wants to initiate a closer interlocking of economic policies,  a request that in the past has been repeatedly made by the French, but which until now has failed because of the national vested interests of the Member States.

No progress to be expected concerning the Eurovignette Directive

The Spanish Presidency too, does unfortunately not give priority to considering the inclusion of environmental costs in the HGV toll (the so-called Eurovignette Directive). The Draft proposals on bus passenger rights and rail freight freeways, however, shall be adopted under the Spanish Presidency. In the air traffic sector, Spain wants to reach agreement concerning the Draft proposal on the remuneration for expenses in the security sector. It is also planned to finalise the negotiations regarding passenger rights in sea and inland waterway transport.

The discussions on uniform consumer rights across Europe will also be continued during the Spanish Presidency and dealt with by the Competitiveness Council. With regard to the fact that the European Parliament is only expected to vote on the proposal in November 2010, the negotiations between Council and Parliament, however, could be concluded in 2011 at the earliest.

Continuing to wait for a proposal on the reform of the EU budget

The European Commission has for a long time announced its intention to reform long-term financial planning in the EU budget sector. Following the latest information, however, the publication of the Commission proposal is expected to be delayed again, so that it will probably be dealt with under the Belgian Presidency.

The possible introduction of a Financial Transaction Tax is still discussed at EU level. The European Commission was asked to prepare a relevant Policy Paper. It is, however, unclear whether this paper can still be discussed under the Spanish Presidency.

Further information:

Homepage of the Spanish Presidency