Diamantopoulou set for backing over EU labour market reforms

Date: 27/02/03

By Martin Banks

EMPLOYMENT ministers are next week expected to back ambitious plans aimed at "kick-starting" the ailing EU labour market.

The centrepiece of a package of measures to be put forward by the European Commission is a commitment to increase the overall rate of employment throughout the bloc.

In the EU at present, about 64% of all 15 to 64-year-olds are in employment.

As part of an agreement reached by heads of state and government at Lisbon in 2000, the Union wants to increase this to 70% by the end of the decade.

It also wants to increase employment levels for women, from the current 54.9%, to 60% by 2010.

Anna Diamantopoulou, the commissioner for employment and social affairs, said: "This is a key issue in kick-starting the labour market."

The measures are contained in an employment strategy to be discussed at the Employment Council next Thursday (6 March).

Diamantopoulou says the skills of too many people in their mid-50s are being lost to the EU economy because more and more people in this age group are taking advantage of early retirement schemes.

The average retirement age throughout the EU is 58 and the Commission's strategy includes a proposal to increase this to 63 within five years.

Ministers will also discuss plans to reduce the wide differences in pay between men and women alongside provision of more affordable pre-school places for children.

The strategy also includes proposals for tax and benefit reforms for low-paid workers.

Finally, an initiative is on the way aimed at making job centres more active in getting the unemployed back to work.

Employment ministers are expected to back ambitious plans aimed at 'kick-starting' the ailing EU labour market. The measures are contained in an employment strategy to be discussed at the Employment Council on 6 March 2003.