The European Commission is expected to publish a communication on common principles of flexicurity next month.

“Flexicurity” may be described as a combination of flexibility and security. The concept was coined and implemented in Denmark in the 1990s by Prime Minister Rasmussen, and is perceived to be the crucial factor that has contributed to near full employment in Denmark suppressing unemployment to under four per cent. Implementing this “proactive labour market” concept, the Danes managed to reconcile flexibility for enterprises and employers with a high standard of social security for employees.

This new communication on flexicurity follows the Commission’s public consultation on “Modernising labour law to meet the challenges of the 21st century” which closed on 31 March involving member states, trade unions and businesses, NGOs and the general public.

A stakeholder conference on flexicurity was also organised by the Commission’s Directorate General responsible for employment, social affairs and equal opportunities last month in Brussels. The communication will be discussed in the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) Council of Ministers, which should allow the member states to adopt a set of common principles by the end of 2007.

Citing the background document used in the stakeholder conference on flexicurity, the Commission and the member states reached a consensus on a definition of flexicurity comprising four components:

• Flexible contractual arrangements both from the perspective of the employer and the employee;

• Active labour market policies which help people to cope effectively with rapid change, unemployment and transitions to new jobs;

• Reliable and responsive life-long learning systems to ensure the continual adaptability and employability of workers; and

• Modern social security systems which provide adequate income and facilitate labour market mobility including provisions that help people combine work with private and family responsibilities, such as childcare.

Meanwhile, it has to be kept in mind that countries differ strongly in their socio-economic contexts. As the Commissioner responsible for employment, Vladimir Špidla reiterated each country’s economy has its particularities and solutions which may have worked for one country, need not necessarily work in another. In fact, the communication is likely to establish flexicurity as a non-binding EU policy objective.

However it is still worth investigating how the concept, or particular aspects of it, could be applied in the EU. All member states can take decisive steps towards better combinations of flexibility and security, in line with their specific situations and circumstances.

Social partners agree that there is no “one-size-fits-all” model of flexicurity. Decisions on concrete measures can only be taken in the member states but the EU can play an important role by identifying common principles and pathways which would facilitate discussions and policy developments at national levels.

Considering the importance of tackling flexicurity, particularly in view of the Lisbon strategy for growth and jobs and the EU’s need to adapt and respond to the changing social reality of European societies, globalisation and demographic changes, the European Business Test Panel’s latest consultation focused on flexicurity. Registered panel members, including Maltese businesses, are being consulted on the concept prior to the publication of the Commission’s communication.

The EBTP constitutes a unique link between European businesses and the Commission by providing a representative group of enterprises with an opportunity to give direct input to the development of various important initiatives.

Through the EBTP, the Commission obtains the views of more than 3,600 businesses located in the Community whenever Commission legislative proposals and policy initiatives are being considered. The system is entirely internet-based using online consultation tools.

Any company interested in becoming a registered panel member of the EBTP, can do so directly through the EBTP’s website: http://ec.europa.eu/

yourvoice/ebtp/index_en.htm or by contacting the National Contact Point at the Forum Malta fl-Ewropa (FME) on tel.: 2590-9101 or by email to: [email protected].

Cleavon Vella is consultation coordinator at Forum Malta fl-Ewropa

[email protected]