WRITTEN QUESTION E-1877/99

by Daniela Raschhofer (NI) to the Commission

(29 October 1999)

Subject: Expenditure on job creation

Since widely differing statistics are available concerning expenditure on the creation of jobs in the European Union and the individual Member States, the questions set out below arise:

1. What is the annual expenditure in the European Union on the creation of new jobs under EU programmes (ESF, etc.) or appropriate guidelines?

2. What is the expenditure in the Member States on the creation of new jobs under EU programmes (ESF, etc.) or appropriate guidelines?

3. What statistics are available on this subject, and where can I obtain them?

4. What statistics are available, and what information must the Member States publish?

5. What information on this subject has the Commission received from Austria?

6. Are there studies on this subject? If so, which ones and where can I obtain them?

7. Are there specialists working on this subject? If so, which individuals and institutions are concerned, and where can I find them?

8. What other projects are there for job creation, and what is their funding?

9. What other Commission activities are there relating to job creation?

10. Have there previously been questions on this subject? If so, may I have them and the answers to them?

11. Is there EU experience showing that individual Member States have taken particularly promising measures regarding job creation (best practice)? If so, which Member States have provided the most positive examples?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(20 December 1999)

The structural funds are the most important budgetary tool, at Community level, to support the Member States in their initiatives to promote a more balanced regional development, assist them in their structural restructuring and, hence promote strong job creation. The European social fund (ESF) supports, in particular, Member States' initiatives to promote job creation, in a more indirect way, through facilitating better and more flexible functioning of the labour markets in the Community.

In 1994-1999, the main priorities for the ESF have been to combat long-term unemployment and exclusion, to enhance professional skills and qualifications among potential job seekers, and to promote equal opportunities in the access to the labour market. In the new programming period (2000-2006), the ESF role has seen reinforced its role as the key instrument, at Community level, to support the employment strategy and so, will be addressed to support Member States in their implementation of their national action plans for employment.

1. and 2. The Commission can only provide figures on budgetary spending channelled through ESF-co-funded programmes. In the current programming period (1994-1999), the total spending allocation for the ESF amounted to some 43 000 million over the six-year period. In the next programming period (2000-2006), it is not yet possible to give final figures on allocations to ESF, for these depend on the final national plans currently under discussion with the Member States, but the total should amount to not less than 56 000 million.

3. and 4. The Organisation for economic cooperation and development (OECD) employment outlook provides roughly comparable data on expenditure for labour market policies (active and passive measures) as from 1993 and expressed as a percentage share of the gross domestic product (GDP). In recent years, annual total expenditure on subsidised employment (public, non-profit and private sectors as well as business start-ups) varies between Member States, ranging from 0,88 % of GDP in Ireland down to less than 0,1 % in Greece, Luxembourg and Austria. Member States also begin to report on their spending for active labour market policies in their national action plans as part of the Luxembourg process. In the new programming period of the structural funds (2000-2006), the Member States will have to report on data on spending on active labour market policies, to prove that additionality for objectives 2 and 3 is respected. The Commission is developing a database on labour market policies covering all Member States. Data will be available in 2001.

5. Some examples for Austria, taken from the 10th annual report of the structural funds (1998), underline the important contribution to the target of job creation. In Burgenland, which is the only Austrian region under objective 1, by the end of 1998 2 100 new jobs had been created and over 5 800 jobs had been saved by structural funds. In addition, over 6000 people underwent training instigated by the ESF. More than 900 small undertakings benefited from aid for investment in small and medium sized enterprises (SMEs) and around 1 700 new jobs were created. Under objective 2, the programme for Styria anticipates the creation of more than 2 000 new jobs. In Lower Austria, some 800 new jobs are projected and around 6 000 should be safeguarded. Under objective 3, more than 30 000 people took part in the various measures and two thirds found jobs in the six months following their training.

6. to 9. Job creation is part of the outcome sought in the interventions co-funded through structural funds. But it is only partly addressed to support measures of direct job creation. It is, therefore, not possible to provide figures on total impact of the funds on job creation. The Commission, the OECD and academics have published some partial evaluation of the impact of different programmes on job creation in the Member States. They often present sound evidence that the success of the programmes improves the social situation of individuals and groups and contributes significantly to job creation.

10. There is no particular question that the Commisison would bring to the Honourable Member's attention on these matters.

11. All Member States have taken action in line with the employment guidelines since 1997, adapted to the specific characteristics of their labour markets. As regards direct job creation, the joint employment reports of 1998(1) and 1999(2) illustrate some examples of best practice submitted by the Member States where estimates of job creation impact are provided. At the beginning of 1999, the Commission launched a peer-review examination, together with the Member States to assess more in depth such practices. A report on the outcome of this examination will be presented in 2000. Also ESF publications have presented cases of best practice developed under the Community initiative Employment.

(1) SEC(98) 1688 final.

(2) SEC(1999) 1386 final.