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BackEU Justice Commissioner Viviane Reding wanted to try the soft approach when she started the initiative on a voluntary commitment for more women on company boards of listed companies exactly a year ago. The result is sobering. Just 24 companies in the whole of Europe have signed the voluntary commitment, not one of them comes from Austria. Hence, the time has come to bring bigger guns into play, and Reding threatens the introduction of a statutory EU-wide quota for women as a last resort. However, it will be some time until this comes into fruition.
Eurobarometer survey: 75 percent of EU citizens want quota for women
In a Eurobarometer survey published this week, the European population is clearly in favour of introducing legislation on gender balance in company boards in the EU. This result should certainly be enough to initiate a rethink. Even Commissioner Reding, not really a supporter of quotas is gradually running out of patience. She left no doubt that in her opinion only quotas would achieve something. Voluntary commitments, which in Austria had also been decided in respect of government-related companies, would not get any satisfactory results. Progress is only being made under legislative pressure. This is demonstrated by the example of France. In 2011, Paris introduced legalisation concerning the promotion of women into top managerial positions. And hey presto: their share in governing bodies rose from twelve to 22 percent. It has long been a known fact that the lack of women in top positions in business is to the detriment of Europe’s competitiveness, holding back economic growth. That is why some EU Member States - Belgium, France, Italy, the Netherlands and Spain - have already adopted legislation to introduce gender quotas for company boards.
Public consultation to increase pressure again
However, EU Commissioner Reding has not yet dared to go the whole way, even though it had been expected that she would present a proposal, which would have required mandatory quotas. This amazed many who had expected more. Now, the next - intermediary - step will be a public consultation. Even though the facts are already well known, the EU Commission now wants to ask the population, social partners, companies and associations what they think about possible - also legal - measures, based on which better gender balance in boardrooms could be achieved at EU level. The consultation will run until the end of May. Let’s hope that Commissioner Reding retains her fighting spirit, that she draws the necessary conclusions and that she sticks to her guns. The European Parliament is certainly backing her all the way. In July 2011, the European Parliament had come out in favour of an EU-wide quota for women on executive and supervisory boards of listed companies, if voluntary measures would not bring the desired results. In any case, the Commissioner can expect fierce resistance from German industrial circles. The demands of the Chamber of Labour are well known: we request the introduction of a legal gender quota of 40 % in respect of filling top managerial positions. A failure to meet this requirement should result in stiff sanctions and an entry in the commercial register. It is plain to see that self-regulation has failed and that only legislation can bring about the desired success.
Further information:
Press release of the EU Commission on options to break the ‛glass ceiling’ for women on company boards
Public consultation: Gender imbalance in corporate boards in the EU
In a Eurobarometer survey published this week, the European population is clearly in favour of introducing legislation on gender balance in company boards in the EU. This result should certainly be enough to initiate a rethink. Even Commissioner Reding, not really a supporter of quotas is gradually running out of patience. She left no doubt that in her opinion only quotas would achieve something. Voluntary commitments, which in Austria had also been decided in respect of government-related companies, would not get any satisfactory results. Progress is only being made under legislative pressure. This is demonstrated by the example of France. In 2011, Paris introduced legalisation concerning the promotion of women into top managerial positions. And hey presto: their share in governing bodies rose from twelve to 22 percent. It has long been a known fact that the lack of women in top positions in business is to the detriment of Europe’s competitiveness, holding back economic growth. That is why some EU Member States - Belgium, France, Italy, the Netherlands and Spain - have already adopted legislation to introduce gender quotas for company boards.
Public consultation to increase pressure again
However, EU Commissioner Reding has not yet dared to go the whole way, even though it had been expected that she would present a proposal, which would have required mandatory quotas. This amazed many who had expected more. Now, the next - intermediary - step will be a public consultation. Even though the facts are already well known, the EU Commission now wants to ask the population, social partners, companies and associations what they think about possible - also legal - measures, based on which better gender balance in boardrooms could be achieved at EU level. The consultation will run until the end of May. Let’s hope that Commissioner Reding retains her fighting spirit, that she draws the necessary conclusions and that she sticks to her guns. The European Parliament is certainly backing her all the way. In July 2011, the European Parliament had come out in favour of an EU-wide quota for women on executive and supervisory boards of listed companies, if voluntary measures would not bring the desired results. In any case, the Commissioner can expect fierce resistance from German industrial circles. The demands of the Chamber of Labour are well known: we request the introduction of a legal gender quota of 40 % in respect of filling top managerial positions. A failure to meet this requirement should result in stiff sanctions and an entry in the commercial register. It is plain to see that self-regulation has failed and that only legislation can bring about the desired success.
Further information:
Press release of the EU Commission on options to break the ‛glass ceiling’ for women on company boards
Public consultation: Gender imbalance in corporate boards in the EU