EMPLOYMENT

Date: 12/06/1997

European leaders will be presented with a very gloomy assessment of the Union's efforts to tackle unemployment over the past six months.

An interim report jointly drawn up by finance and social affairs ministers, along with the European Commission, will argue that member states must redouble their efforts to tackle unemployment and suggests a number of areas where changes must be made.

Member states will be told that they must tackle inflation by keeping wage demands at moderate levels.

They will also be urged to ensure wage agreements drawn up between employers and trade unions reflect differences in employees' qualifications as well as regional economic variations.

In addition, the report will stress the need for more competition and better regulation in Europe's service industries, especially in the transport and energy sectors, and call on national governments to implement outstanding internal market rules as a matter of urgency.

EU leaders will be presented with a detailed summary of national developments in social policy over the last six months, and will scrutinise a report drawn up by the Dutch presidency on the progress made by member states in coordinating their efforts to tackle unemployment.