1.1.4.2 The European Employment Strategy and the Employment Policy Guidelines (2005-2008)

The European Employment Strategy (EES) was established at the European Council Luxembourg Summit, “Extraordinary European Council Meeting on Employment”, on the 20th of November of 1997. This was the first time the EU interfered with the employment policies of the member states to overcome the high unemployment problems felt on a national level. This was a decision to Europeanize the employment policy.1 Under the EES, member states had total discretion and flexibility in their way to achieve the required objectives, and instead of rules they were guided through guidelines. The EES was the first and most developed example of the OMC.2 As part of the mid-term review of the Lisbon Strategy in 2005, the European Council through the Council decision of 12th of July of 2005 presented the guidelines for the employment policies of the Member States, which were adopted by the European Commission.3 These are also called the integrated guidelines for growth and jobs. They become the principal policy instrument for developing and implementing the Lisbon Strategy. There are 24 macroeconomic, microeconomic and employment guidelines in total.4 The guidelines identify the key challenges of the EU and were designed to help the Member States with structuring the priorities of the Lisbon Strategy. CSR is not mentioned in the integrated guidelines.5

These guidelines combine in a single and comprehensive document the Broad Economic Policy Guidelines6 and the Employment Guidelines.7 Differently from the integrated guidelines, in 2005 CSR was addressed in two guidelines of the Broad Economic Policy Guidelines:8 Namely, Guideline no. 11: To encourage the sustainable use of resources and strengthen the synergies between environmental protection and growth; and Guideline no. 14: To create a more competitive business environment and encourage private initiative through better regulation.

There is a Recommendation from the Council of the European Union, of 13th of July of 2010, with broad guidelines for the economic policies of the member states and of the Union (2010/410/EU). The Council’ recommendations provided guidance on the coordination of the economy policy of the member states for jointly achieving common objectives. They supported the Europe 2020 Strategy and moreover, they noted the importance of the sustainability of member states’ public finances and their macroeconomic stability. The member states should regard these recommendations of the Council when implementing their economic policies and when developing their National Reform Programmes.