Avis juridique important

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31992H0131

92/131/EEC: Commission Recommendation of 27 November 1991 on the protection of the dignity of women and men at work

Official Journal L 049 , 24/02/1992 P. 0001 - 0008

COMMISSION RECOMMENDATION of 27 November 1991 on the protection of the dignity of women and men at work (92/131/EEC)THE COMMISSION OF THE EUROPEAN COMMUNITIES,  Having regard to the Treaty establishing the European Economic Community, and in particular the second indent of Article 155 thereof,  Whereas unwanted conduct of a sexual nature, or other conduct based on sex affecting the dignity of women and men at work, including the conduct of superiors and colleagues, is unacceptable and may, in certain circumstances, be contrary to the principle  of equal treatment within the meaning of Articles 3, 4 and 5 of Council Directive 76/207/EEC of 9 February 1976 on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and  promotion, and working conditions (1), a view supported by case-law in some Member States;  Whereas, in accordance with the Council recommendation of 13 December 1984 on the promotion of positive action for women (2), many Member States have carried out a variety of positive action measures and actions having a bearing, inter alia, on respect  for the dignity of women at the workplace;  Whereas the European Parliament, in its resolution of 11 June 1986 on violence against women (3), has called upon national governments, equal opportunities committees and trade unions to carry out concerted     information campaigns to create a proper awareness of the individual rights of all members of the labour force;  Whereas the Advisory Committee on Equal Opportunities for Women and Men, in its opinion of 20 June 1988, has unanimously recommended that there should be a recommendation and code of conduct on sexual harassment in the workplace covering harassment of  both sexes;  Whereas the Commission in its action programme relating to the implementation of the Community Charter of Basic Social Rights for Workers undertook to examine the protection of workers and their dignity at work, having regard to the reports and  recommendations prepared on various aspects of implementation of Community law (4);  Whereas the Council, in its resolution of 29 May 1990 on the protection of the dignity of women and men at work (5), affirms that conduct based on sex affecting the dignity of women and men at work, including conduct of superiors and colleagues,  constitutes an intolerable violation of the dignity of workers or trainees, and calls on the Member States and the institutions and organs of the European Communities to develop positive measures designed to create a climate at work in which women and  men respect one another's human integrity;     Whereas the Commission, in its third action programme on equal opportunities for women and men, 1991 to 1995, and pursuant to paragraph 3 (2) of the said Council resolution of 29 May 1990, resolved to draw up a code of conduct on the protection of the  dignity of women and men at work (1), based on experience and best practice in the Member States, to provide guidance on initiating and pursuing positive measures designed to create a climate at work in which women and men respect one another's human  integrity;  Whereas the European Parliament, on 22 October 1991, adopted a resolution on the protection of the dignity of women and men at work (2);  Whereas the Economic and Social Committee, on 30 October 1991, adopted an opinion on the protection of the dignity of women and men at work (3),  RECOMMENDS AS FOLLOWS: Article 1 It is recommended that the Member States take action to promote awareness that conduct of a sexual nature, or other conduct based on sex affecting the dignity of women and men at work, including conduct of superiors and colleagues, is unacceptable if:  (a)  such conduct is unwanted, unreasonable and offensive to the recipient;  (b) a person's rejection of, or submission to, such conduct on the part of employers or workers (including superiors or colleagues) is used explicitly or implicitly as a basis for a decision which affects that person's access to vocational training,  access to employment, continued employment, promotion, salary or any other employment decisions;  and/or (c) such conduct creates an intimidating, hostile or humiliating work environment for the recipient;   and that such conduct may, in certain circumstances, be contrary to the principle of equal treatment within the meaning of Articles 3, 4 and 5 of Directive 76/207/EEC. Article 2 It is recommended that Member States take action, in the public sector, to implement the Commission's code of practice on the protection of the dignity of women and men at work, annexed hereto. The action of the Member States, in thus initiating and  pursuing positive measures designed to create a climate at work in which women and men respect one another's human integrity, should serve as an example to the private sector. Article 3 It is recommended that Member States encourage employers and employee representatives to develop measures to implement the Commission's code of practice on the protection of the dignity of women and men at work. Article 4 Member States shall inform the Commission within three years of the date of this recommendation of the measures taken to give effect to it, in order to allow the Commission to draw up a report on all such measures. The Commission shall, within this  period, ensure the widest possible circulation of the code of practice. The report should examine the degree of awareness of the Code, its perceived effectiveness, its degree of application and the extent of its use in collective bargaining between the  social partners. Article 5 This recommendation is addressed to the Member States.  Done at Brussels, 27 November 1991.  For the Commission Vasso PAPANDREOU Member of the Commission       (1) OJ No L 39, 14. 2. 1976, p. 40.  (2) OJ No L 331, 19. 12. 1984, p. 34.  (3) OJ No C 176, 14. 7. 1986, p. 79.(4)  COM(89) 568 final, 29. 11. 1989. For example, 'The dignity of women at work: A report on the problem of sexual harassment in the Member States of the European Communities', October 1987, by Michael Rubenstein  (ISBN 92-825-8764-9).  (5) OJ No C 157, 27. 6. 1990, p. 3.  (1) COM(90) 449 final, 6. 11. 1990.  (2) OJ No C 305, 25. 11. 1991.  (3) OJ No C 14, 20. 1. 1992.   ANNEX    PROTECTING THE DIGNITY OF WOMEN AND MEN AT WORK  A code of practice on measures to combat sexual harassment 1. INTRODUCTION This code of practice is issued in accordance with the resolution of the Council of Ministers on the protection of the dignity of women and men at work (1), and to accompany the Commission's recommendation on this issue.  Its purpose is to give practical guidance to employers, trade unions, and employees on the protection of the dignity of women and men at work. The code is intended to be applicable in both the public and the private sector and employers are encouraged  to follow the recommendations contained in the code in a way which is appropriate to the size and structure of their organization. It may be particularly relevant for small and medium-sized enterprises to adapt some of the practical steps to their  specific needs.  The aim is to ensure that sexual harassment does not occur and, if it does occur, to ensure that adequate procedures are readily available to deal with the problem and prevent its recurrence. The code thus seeks to encourage the development and  implementation of policies and practices which establish working environments free of sexual harassment and in which women and men respect one another's human integrity.  The expert report carried out on behalf of the Commission found that sexual harassment is a serious problem for many working women in the European Community (2) and research in Member States has proven beyond doubt that sexual harassment at work is not  an isolated phenomenon. On the contrary, it is clear that for millions of women in the European Community, sexual harassment is an unpleasant and unavoidable part of their working lives. Men too may suffer sexual harassment and should, of course, have  the same rights as women to the protection of their dignity.     Some specific groups are particularly vulnerable to sexual harassment. Research in several Member States, which documents the link between the risk of sexual harassment and the recipient's perceived vulnerability, suggests that divorced and separated  women, young women and new entrants to the labour market and those with irregular or precarious employment contracts, women in non-traditional jobs, women with disabilities, lesbians and women from racial minorities are disproportionately at risk. Gay  men and young men are also vulnerable to harassment. It is undeniable that harassment on grounds of sexual orientation undermines the dignity at work of those affected and it is impossible to regard such harassment as appropriate workplace behaviour.  Sexual harassment pollutes the working environment and can have a devastating effect upon the health, confidence, morale and performance of those affected by it. The anxiety and stress produced by sexual harassment commonly leads to those subjected to  it taking time off work due to sickness, being less efficient at work, or leaving their job to seek work elsewhere. Employees often suffer the adverse consequences of the harassment itself and short- and long-term damage to their employment prospects if  they are forced to change jobs. Sexual harassment may also have a damaging impact on employees not themselves the object of unwanted behaviour but who are witness to it or have a knowledge of the unwanted behaviour.  There are also adverse consequences arising from sexual harassment for employers. It has a direct impact on the profitability of the enterprise where staff take sick leave or resign their posts because of sexual harassment, and on the economic  efficiency of the enterprise where employees' productivity is reduced by having to work in a climate in which individuals' integrity is not respected.  In general terms, sexual harassment is an obstacle to the proper integration of women into the labour market and the Commission is committed to encouraging the development of comprehensive measures to improve such integration (3).     2. DEFINITION Sexual harassment means unwanted conduct of a sexual nature, or other conduct based on sex affecting the dignity of women and men at work (1). This can include unwelcome physical, verbal or non-verbal conduct.  Thus, a range of behaviour may be considered to constitute sexual harassment. It is unacceptable if such conduct is unwanted, unreasonable and offensive to the recipient; a person's rejection of or submission to such conduct on the part of employers or  workers (including superiors or colleagues) is used explicitly or implicitly as a basis for a decision which affects that person's access to vocational training or to employment, continued employment, promotion, salary or any other employment decisions;  and/or such conduct creates an intimidating, hostile or humiliating working environment for the recipient (1).  The essential characteristic of sexual harassment is that it is unwanted by the recipient, that it is for each individual to determine what behaviour is acceptable to them and what they regard as offensive. Sexual attention becomes sexual harassment if  it is persisted in once it has been made clear that it is regarded by the recipient as offensive, although one incident of harassment may constitute sexual harassment if sufficiently serious. It is the unwanted nature of the conduct which distinguishes  sexual harassment from friendly behaviour, which is welcome and mutual.  3. THE LAW AND EMPLOYERS' RESPONSIBILITIES Conduct of a sexual nature or other based on sex affecting the dignity of women and men at work may be contrary to the principle of equal treatment within the meaning of Articles 3, 4 and 5 of Council Directive 76/207/EEC of 9 February 1976 on the  implementation of the principle of equal treatment for men and women    as regards access to employment, vocational training and promotion, and working conditions (2). This principle means that there shall be no discrimination whatsoever on grounds of sex either directly or indirectly by reference in particular to marital  or family status.  In certain circumstances, and depending upon national law, sexual harassment may also be a criminal offence or may contravene other obligations imposed by the law, such as health and safety duties, or a duty, contractual or otherwise, to be a good  employer. Since sexual harassment is a form of employee misconduct, employers have a responsibility to deal with it as they do with any other form of employee misconduct as well as to refrain from harassing employees themselves. Since sexual harassment  is a risk to health and safety, employers have a responsibility to take steps to minimize the risk as they do with other hazards. Since sexual harassment often entails an abuse of power, employers may have a responsibility for the misuse of the  authority they delegate.  This code, however, focuses on sexual harassment as a problem of sex discrimination. Sexual harassment is sex discrimination because the gender of the recipient is the determining factor in who is harassed. Conduct of a sexual nature or other conduct  based on sex affecting the dignity of women and men at work in some Member States already has been found to contravene national equal treatment laws and employers have a responsibility to seek to ensure that the work environment is free from such  conduct (3).  As sexual harassment is often a function of women's status in the employment hierarchy, policies to deal with sexual harassment are likely to be most effective where they are linked to a broader policy to promote equal    opportunities and to improve the position of women. Advice on steps which can be taken generally to implement an equal opportunities policy is set out in the Commission's guide to positive action (1).  Similarly, a procedure to deal with complaints of sexual harassment should be regarded as only one component of a strategy to deal with the problem. The prime objective should be to change behaviour and attitudes, to seek to ensure the prevention of  sexual harassment.  4. COLLECTIVE BARGAINING The majority of the recommendations contained in this code are for action by employers, since employers have clear responsibilities to ensure the protection of the dignity of women and men at work.  Trade unions also have responsibilities to their members and they can and should play an important role in the prevention of sexual harassment in the workplace. It is recommended that the question of including appropriate clauses in agreements be  examined in the context of the collective bargaining process, with the aim of achieving a work environment free from unwanted conduct of a sexual nature or other conduct based on sex affecting the dignity of women and men at work and free from  victimization of a complainant or of a person wishing to give, or giving, evidence in the event of a complaint.  5. RECOMMENDATIONS TO EMPLOYERS The policies and procedures recommended below should be adopted, where appropriate, after consultation or negotiation with trade unions or employee representatives. Experience suggests that strategies to create and maintain a working environment in  which the dignity of employees is respected are most likely to be effective where they are jointly agreed.  It should be emphasized that a distinguishing characteristic of sexual harassment is that employees subjected to it often will be reluctant to complain. An absence of complaints about sexual harassment in a particular organization, therefore, does not  necessarily mean an absence of sexual harassment. It may mean that the recipients of sexual harassment think that there is no    point in complaining because nothing will be done about it, or because it will be trivialized or the complainant subjected to ridicule, or because they fear reprisals. Implementing the preventative and procedural recommendations outlined below should  facilitate the creation of a climate at work in which such concerns have no place.  A. Prevention (i) Policy statements As a first step in showing senior management's concern and their commitment to dealing with the problem of sexual harassment, employers should issue a policy statement which expressly states that all employees have a right to be treated with dignity,  that sexual harassment at work will not be permitted or condoned and that employees have a right to complain about it should it occur.  It is recommended that the policy statement make clear what is considered inappropriate behaviour at work, and explain that such behaviour, in certain circumstances, may be unlawful. It is advisable for the statement to set out a positive duty on  managers and supervisors to implement the policy and to take corrective action to ensure compliance with it. It should also place a positive duty on all employees to comply with the policy and to ensure that their colleagues are treated with respect and  dignity.  In addition, it is recommended that the statement explain the procedure which should be followed by employees subjected to sexual harassment at work in order to obtain assistance and to whom they should complain; that it contain an undertaking that  allegations of sexual harassment will be dealt with seriously, expeditiously and confidentially, and that employees will be protected against victimization or retaliation for bringing a complaint of sexual harassment. It should also specify that  appropriate disciplinary measures will be taken against employees found guilty of sexual harassment.  (ii) Communicating the policy Once the policy has been developed, it is important to ensure that it is communicated effectively to all employees, so that they are aware that they have a right to complain and to whom they should complain; that their complaint will be dealt with  promptly and fairly; and that employees are made aware of the likely consequences of engaging in sexual harassment. Such communication will highlight management's commitment to eliminating sexual harassment, thus enhancing a climate in which it will not  occur.  (iii) Responsibility All employees have a responsibility to help to ensure a working environment in which the dignity of employees is respected and managers (including supervisors) have a particular duty to ensure that sexual harassment does not occur in work areas for  which they are responsible. It is recommended that managers explain the organization's policy to their staff and take steps to positively promote the policy. Managers should also be responsive and supportive to any member of staff who complains about  sexual harassment, provide full and clear advice on the procedure to be adopted, maintain confidentiality in any cases of sexual harassment and ensure that there is no further problem of sexual harassment or any victimization after a complaint has been  resolved.  (iv) Training An important means of ensuring that sexual harassment does not occur and that, if it does occur, the problem is resolved efficiently is through the provision of training for managers and supervisors. Such training should aim to identify the factors  which contribute to a working environment free of sexual harassment and to familiarize participants with their responsibilities under the employer's policy and any problems they are likely to encounter.  In addition, those playing an official role in any formal complaints procedure in respect of sexual harassment should receive specialist training, such as that outlined above.  It is also good practice to include information as to the organization's policy on sexual harassment and procedures for dealing with it as part of appropriate induction and training programmes.  B. Procedures The development of clear and precise procedures to deal with sexual harassment once it has occurred is of great importance. The procedures should ensure the resolution of problems in an efficient and effective manner. Practical guidance for employees on  how to deal with sexual harassment when it occurs and with its aftermath will make it more likely that it will be dealt with at an early stage. Such guidance should of course draw  attention to an employee's legal rights and to any time limits within  which they must be exercised.  (i) Resolving problems informally Most recipients of harassment simply want the harassment to stop. Both informal and formal methods of resolving problems should be available.  Employees should be advised that, if possible, they should attempt to resolve the problem informally in the first instance. In some cases, it may be possible and sufficient for the employee to explain clearly to the person engaging in the unwanted  conduct that the behaviour in question is not welcome, that it offends them or makes them uncomfortable, and that it interferes with their work.  In circumstances where it is too difficult or embarrassing for an individual to do this on their own behalf, an alternative approach would be to seek support from, or for an initial approach to be made by, a sympathetic friend or confidential  counsellor.  If the conduct continues or if it is not appropriate to resolve the problem informally, it should be raised through the formal complaints procedure.  (ii) Advice and assistance It is recommended that employers designate someone to provide advice and assistance to employees subjected to sexual harassment, where possible with responsibilities to assist in the resolution of any problems, whether through informal or formal means.  It may be helpful if the officer is designated with the agreement of the trade unions or employees, as this is likely to enhance their acceptability. Such officers could be selected from personnel departments or equal opportunities departments for  example. In some organizations they are designated as 'confidential counsellors' or 'sympathetic friends'. Often such a role may be played by someone from the employee's trade union or women's support groups.  Whatever the location of this responsibility in the organization, it is recommended that the designated officer receives appropriate training in the best means of resolving problems and in the detail of the organization's policy and procedures, so that  they can perform their role effectively. It is also important that they are given adequate resources to carry out their function, and protection against victimization for assisting any recipient of sexual harassment.   (iii) Complaints procedure It is recommended that, where the complainant regards attempts at informal resolution as inappropriate, where informal attempts at resolution have been refused, or where the outcome has been unsatisfactory, a formal procedure for resolving the complaint  be provided. The procedure should give employees confidence that the organization will take allegations of sexual harassment seriously.  By its nature sexual harassment may make the normal channels of complaint difficult to use because of embarrassment, fears of not being taken seriously, fears of damage to reputation, fears of reprisal or the prospect of damaging the working  environment. Therefore, a formal procedure should specify to whom the employee should bring a complaint, and it should also provide an alternative if in the particular circumstances the normal grievance procedure may not be suitable, for example because  the alleged harasser is the employee's line manager. It is also advisable to make provision for employees to bring a complaint in the first instance to someone of their own sex, should they so choose.  It is good practice for employers to monitor and review complaints of sexual harassment and how they have been resolved, in order to ensure that their procedures are working effectively.  (iv) Investigations It is important to ensure that internal investigations of any complaints are handled with sensitivity and with due respect for the rights of both the complainant and the alleged harasser. The investigation should be seen to be independent and objective.  Those carrying out the investigation should not be connected with the allegation in any way, and every effort should be made to resolve complaints speedily - grievances should be handled promptly and the procedure should set a time limit within which  complaints will be processed, with due regard for any time limits set by national legislation for initiating a complaint through the legal system.  It is recommended as good practice that both the complainant and the alleged harasser have the right to be accompanied and/or represented, perhaps by a representative of their trade union or a friend or colleague; that the alleged harasser be given full  details of the nature of the complaint and the opportunity to respond, and that strict confidentiality be maintained throughout any investigation into an allegation. Where it is necessary to interview witnesses, the importance of confidentiality should  be emphasized.   It must be recognized that recounting the experience of sexual harassment is difficult and can damage the employee's dignity. Therefore, a complainant should not be required repeatedly to recount the events complained of where this is unnecessary.  The investigation should focus on the facts of the complaint and it is advisable for the employer to keep a complete record of all meetings and investigations.  (v) Disciplinary offence It is recommended that violations of the organization's policy protecting the dignity of employees at work should be treated as a disciplinary offence and the disciplinary rules should make clear what is regarded as inappropriate behaviour at work. It  is also good practice to ensure that the range of penalties to which offenders will be liable for violating the rule is clearly stated and also to make it clear that it will be considered a disciplinary offence to victimize or retaliate against an  employee for bringing a complaint of sexual harassment in good faith.  Where a complaint is upheld and it is determined that it is necessary to relocate or transfer one party, consideration should be given, wherever practicable, to allowing the complainant to choose whether he or she wishes to remain in their post or be  transferred to another location. No element of penalty should be seen to attach to a complainant whose complaint is upheld and in addition, where a complaint is upheld, the employer should monitor the situation to ensure that the harassment has stopped.   Even where a complaint is not upheld, for example because the evidence is regarded as inconclusive, consideration should be given to transferring or rescheduling the work of one of the employees concerned rather than requiring them to continue to work  together against the wishes of either party.  6. RECOMMENDATIONS TO TRADE UNIONS Sexual harassment is a trade union issue as well as an issue for employers. It is recommended as good practice that trade unions formulate and issue clear policy statements on sexual harassment and take steps to raise awareness of the problem of sexual  harassment in the workplace, in order to help create a climate in which it is  neither condoned or ignored. For example, trade unions could aim to give all officers and representatives training on equality issues, including dealing with sexual  harassment, and include such information in union-sponsored or approved training courses, as well as information on the union's policy. Trade unions should consider declaring that sexual harassment is inappropriate behaviour and educating members and  officials about its consequences is recommended as good practice.  Trade unions should also raise the issue of sexual harassment with employers and encourage the adoption of adequate policies and procedures to protect the dignity of women and men at work in the organization. It is advisable for trade unions to inform  members of their right not to be sexually harassed at work and provide members with clear guidance as to what to do if they are sexually harassed, including guidance on any relevant legal rights.  Where complaints arise, it is important for trade unions to treat them seriously and sympathetically and ensure that the complainant has an opportunity of representation if a complaint is to be pursued. It is important to create an environment in which  members feel able to raise such complaints knowing they will receive a sympathetic and supportive response from local union representatives. Trade unions could consider designating specially trained officials to advise and counsel members with  complaints of sexual harassment and act on their behalf if required. This will provide a focal point for support. It is also a good idea to ensure that there are sufficient female representatives to support women subjected to sexual harassment.  It is recommended too, where the trade union is representing both the complainant and the alleged harasser for the purpose of the complaints procedure, that it be made clear that the union is not condoning offensive behaviour by providing  representation. In any event, the same official should not represent both parties.  It is good practice to advise members that keeping a record of incidents by the harassed worker will assist in bringing any formal or informal action to a more effective conclusion, that the union wishes to be informed of any incident of sexual  harassment and that such information will be kept confidential. It is also good practice for the union to monitor and review the union's record in responding to complaints and in representing alleged harassers and the harassed, in order to ensure its  responses are effective.  7. EMPLOYEES' RESPONSIBILITIES Employees have a clear role to play in helping to create a climate at work in which sexual harassment is unacceptable. They can contribute to preventing sexual harassment through an awareness and sensitivity towards the issue and by ensuring that  standards of conduct for themselves and for colleagues do not cause offence.  Employees can do much to discourage sexual harassment by making it clear that they find such behaviour unacceptable and by supporting colleagues who suffer such treatment and are considering making a complaint.  Employees who are themselves recipients of harassment should, where practicable, tell the harasser that the behaviour is unwanted and unacceptable. Once the offender understands clearly that the behaviour is unwelcome, this may be enough to put an end  to it. If the behaviour is persisted in, employees should inform management and/or their employee representative through the appropriate channels and request assistance in stopping the harassment, whether through informal or formal means.    (1)  OJ No C 157, 27. 6. 1990, p. 3.  (2)  'The dignity of women at work: A report on the problem of sexual harassment in the Member States of the European Communities', October 1987, by Michael Rubenstein (ISBN 92-825-8764-9).(3)  Third action programme on equal opportunities for women and  men, 1991 to 1995, COM(90) 449, 6. 11. 1990.  (1)  Council resolution on the protection of the dignity of women and men at work (OJ No C 157, 27. 6. 1990, p. 3, point 1).  (2) OJ No L 39, 14. 2. 1976, p. 40.  (3)  Council resolution on the protection of the dignity of women and men at work (OJ No C 157, 27. 6. 1990, p. 3, point 2 (3) (a)).  (1)  Positive action: Equal opportunities for women in employment - a guide, Office for Official Publications of the European Communities, 1988.


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		52013DC0360

			Recommendation for a COUNCIL RECOMMENDATION on France’s 2013 national reform programme and delivering a Council opinion on France’s stability programme for 2012-2017 /* COM/2013/0360 final  */

Recommendation for a
COUNCIL RECOMMENDATION
on France’s 2013 national reform programme
and delivering a Council opinion on France’s stability programme for 2012-2017
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 121(2) and 148(4)
thereof,
Having regard to Council Regulation (EC) No
1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary
positions and the surveillance and coordination of economic policies[1], and in particular Article 5(2)
thereof,
Having regard to Regulation (EU) No
1176/2011 of the European Parliament and of the Council of 16 November 2011 on
the prevention and correction of macroeconomic imbalances[2], and in particular Article 6(1)
thereof,
Having regard to the recommendation of the
European Commission[3],
Having regard to the resolutions of the
European Parliament[4],
Having regard to the conclusions of the
European Council,
Having regard to the opinion of the
Employment Committee,
After consulting the Economic and Financial
Committee,
Whereas:
(1)       On 26 March 2010, the
European Council agreed to the Commission’s proposal to launch a new strategy
for growth and jobs, Europe 2020, based on enhanced coordination of economic
policies, which will focus on the key areas where action is needed to boost Europe’s potential for sustainable growth and competitiveness.
(2)       On 13 July 2010, on the
basis of the Commission's proposals, the Council adopted on 13 July 2010 a
recommendation on the broad guidelines for the economic policies of the Member
States and the Union (2010 to 2014) and, on 21 October 2010, adopted a decision
on guidelines for the employment policies of the Member States[5], which together form the
‘integrated guidelines’. Member States were invited to take the integrated
guidelines into account in their national economic and employment policies.
(3)       On 29 June 2012, the Heads
of State or Government decided on a Compact for Growth and Jobs, providing a
coherent framework for action at national, EU and euro area levels using all
possible levers, instruments and policies. They decided on action to be taken
at the level of the Member States, in particular expressing full commitment to
achieving the objectives of the Europe 2020 Strategy and to implementing the
country-specific recommendations.
(4)       On 6 July 2012, the
Council adopted a recommendation on France’s national reform programme for 2012
and delivered its opinion on France’s updated stability programme for 2011-2016.
(5)       On 28 November 2012, the
Commission adopted the Annual Growth Survey[6],
marking the start of the 2013 European Semester for economic policy
coordination. Also on 28 November 2012, the Commission, on the basis of
Regulation (EU) No 1176/2011, adopted the Alert Mechanism Report[7], in which it identified France as one of the Member States for which an in-depth review would be carried out.
(6)       On 14 March 2013, the
European Council endorsed the priorities for ensuring financial stability,
fiscal consolidation and action to foster growth. It underscored the need to
pursue differentiated, growth-friendly fiscal consolidation, to restore normal
lending conditions to the economy, to promote growth and competitiveness, to
tackle unemployment and the social consequences of the crisis, and to modernise
public administration.
(7)       On 10 April 2013, the
Commission published the results of its in-depth review[8] for France, under Article 5 of
Regulation (EU) No 1176/2011. The Commission’s analysis leads it to conclude
that France is experiencing macroeconomic imbalances, which require monitoring
and decisive policy action. In particular, developments related to a
deterioration in the trade balance and competitiveness, driven both by cost and
non-cost factors, also in the context of a deteriorating external position and
high public debt deserves continued attention so as to reduce the risk of
adverse effects on the functioning of the French economy and of the Economic
and Monetary Union, notably given the size of the French economy.
(8)       On 30 April 2013, France submitted its 2013 stability programme covering the period 2012-2017 and its 2013
national reform programme. In order to take account of their inter-linkages,
the two programmes have been assessed at the same time.
(9)       Based on the assessment of
the 2013 Stability Programme pursuant to Council Regulation (EC) No 1466/97,
the Council is of the opinion that despite considerable consolidation efforts
that brought the headline deficit down from 7.5 % of GDP in 2009 to 4.8 % in
2012, France is not expected to correct its excessive deficit by 2013 as
recommended by the Council in late 2009. This is linked notably to a worse
economic environment than expected at the time the recommendation was made
which was only partly compensated by windfall revenues, while the effort was
somewhat backloaded. The macroeconomic scenario underpinning the budgetary
projections in the programme is plausible for 2013 but overly optimistic for
2014. In particular, the authorities anticipate that after a standstill in 2012
(0%) and in 2013 (+0.1%), GDP will grow by 1.2% in 2014 while assuming that
fiscal measures are taken to bring the general government deficit to 2.9% of
GDP. By comparison, the Commission forecasts that GDP will grow by 1.1% in 2014
based on a no-policy-change assumption, a scenario which only takes into
account measures that have been adopted or sufficiently specified and hence
forecasts a deficit of 4.2% of GDP. The main objective of the budgetary
strategy outlined in the programme is to achieve the medium-term objective
(MTO), which is a balanced budget in structural terms, as in last year's
programme. This is more ambitious than required by the Stability and Growth
Pact. The target year for reaching the MTO is 2016, compared with 2015 in the
previous stability programme. The planned headline deficit set by the stability
programme is consistent with a correction of the excessive deficit by 2014, one
year after the revised deadline set by the Council under the excessive deficit
procedure in late 2009. Given the overly optimistic growth forecast in the
programme for 2014, unless additional measures are taken to substantially
reinforce the effort for that year, the Council considers that the fiscal
effort envisaged by the authorities is not compatible with an actual correction
of the excessive deficit by 2014. Planned savings and additional revenue also
lack specifics. In these circumstances, measures need to be specified for both
2014 and 2015 to credibly ensure that the excessive deficit is corrected by
2015 at the latest [as recommended by the Council]. In 2016, the structural
balance, as recalculated by the Commission, is expected to be -0.4 % of GDP
(-0.3 % in 2017) and thus the MTO would not be reached by the end of the
programme horizon. Progress towards the MTO in that year is expected to
represent 0.3% of GDP, which is below the 0.5% of GDP benchmark. The general
government debt has increased substantially since the beginning of the crisis.
Starting from 64.2% in 2007, the ratio of debt to GDP reached 90.2% in 2012 and
is projected to increase further to 96.2% by 2014 according to the Commission
services' 2013 Spring Forecast. The authorities expect the debt ratio to peak
at 94.3% of GDP in 2014 and then to drop to 88.2% in 2017. France will be in a transition period from 2016 regarding compliance with the debt
criterion.
(10)     Given the high and still
increasing debt and the fact that the deadline to correct the excessive deficit
is postponed again, [to 2015], it is all the more important that the 2013
budget is strictly implemented and substantial consolidation efforts are firmly
pursued in subsequent years. In particular, it is crucial that France’s public spending grows significantly less rapidly than potential GDP as
improvements in the structural deficit have so far been mainly revenue based.
In this respect, the on-going public spending review ('Modernisation de l’action
publique'), whose scope includes local government and social security
administrations in addition to central government, should provide indications
to further improve the efficiency of public expenditure. There is also room for
further streamlining of the different administrative layers and competences in
order to achieve further synergies, efficiency gains and savings. The planned
new decentralisation law should address this issue. In view of the expected
increase over the medium-and long-term in public health care expenditure, future
public expenditure on health care requires greater scrutiny and efficiency, in
particular in pharmaceutical spending. The most recent projections by the
Pensions Advisory Council ('Conseil d'orientation des retraites') point to
persistent deficits of the pensions system by 2018, contrary to the 2010 reform
objective of achieving a balanced system by that time. In addition, the partial
rollback of the 2010 reform goes against the Council recommendation. Hence, the
pension system will still face large deficits by 2020 and new policy measures
are urgently needed to remedy this situation while preserving the adequacy of
the system. Such measures could include further increasing both the minimum and
the full-pension retirement ages as well as the contribution period to obtain a
full pension, adapting the indexation rules and reviewing the currently numerous
exemptions to the general scheme for specific categories of workers. Given its
negative impact on the cost of labour, an increase in the level of social
security contributions should be avoided. In light of the public finance
challenge faced by France, it is of critical importance that fiscal measures
are complemented by increased efforts to pursue structural reforms in order to
support and increase the long-term growth potential of the French economy.
(11)     As shown by the 2013
In-Depth Review (IDR), France’s competitiveness remains a significant
challenge, as the strong erosion of its export markets shares in recent years shows.
The French government proposed in November 2012 several policy measures in the
context of the ‘Competitiveness Pact’. The introduction of a corporate income
tax credit (crédit d’impôt pour la compétitivité et l’emploi — CICE), with a
planned full-year impact of EUR 20 billion, is a
significant step which should contribute to lowering labour costs. There is
room for further action as the new tax credit does no more than halve the gap
between the French tax wedge and the OECD average at the level of the median
wage. In addition, the fiscal measures affecting companies adopted since 2010 result
in an overall increase in business taxation, even when corrected for that
measure. The increase in the minimum wage decided in July 2012, while limited, may
have a negative impact on job and competitiveness, as stressed by the 2012
Council recommendation. Between 2002 and 2012, the hourly minimum wage
increased by 38% (16% in real terms). The high level of the minimum
wage, which represents two thirds of the median wage, is partially compensated
for employers by a number of social security contribution exemptions for
employers. The related cost for public finances has increased rapidly over the
last few years, representing more than 1 % of GDP, in part to compensate
for the rapid increase in the minimum wage. In addition, alternative
instruments such as income support schemes (the ’Prime pour l'emploi’ and the ’Revenu
de solidarité active’) are more efficient instruments than the minimum wage to
address in-work poverty.
(12)     As regards non-price
competitiveness, while the government has recently renewed its export strategy,
supporting the development of export oriented networks and partnerships would
promote the internationalisation of SMEs[9].
More generally, measures could be taken to ensure that the business environment
is conducive to SMEs' growth. Despite considerable efforts deployed by firms in
R&D-intensive sectors and sizeable government support (e.g. the research
tax credit), high- and medium-high-tech sectors represent only a modest and
declining share of the French economy. Hence, there is a need to foster the
creation and growth of SMEs and mid-tier companies (ETI) in these sectors by
improving the framework conditions that encourage innovation and
entrepreneurship. The cluster policy that has been developed to link public
research and private companies might also be further geared towards positive
externalities between private companies located closely to one another. In
addition, PhD studies and research experience should be made sufficiently
attractive to further foster linkages between private companies and research
institutions.
(13)     With regard to services,
only limited progress was seen in the course of 2012. In particular, no
horizontal reform was initiated to remove unjustified restrictions in regulated
sectors and professions. Many professional service providers still face restrictions
as regards their legal form and shareholding structure (e.g. restrictions on
capital ownership for veterinarians and lawyers). Other significant barriers to
entry or practice (such as commercial communications, quotas or territorial
restrictions) remain in a number of sectors (such as taxis, certain health
professions, notaries and other legal professions). The retail sector is still
subject to a number of regulations, such as cumbersome and time-consuming
authorisation procedures for the establishment of retail outlets. In addition,
the existing ban on selling below costs induces a number of distortions while
the objective of supporting producers and small distribution outlets could be
effectively achieved through less distortionary measures. These excessive
restrictions in regulated sectors and professions weigh on competition and tend
to raise their prices. As the in-depth review shows, higher prices in
intermediary services, which account for close to a quarter of production costs
in the manufacturing sector, ultimately impact on the external competitiveness
of French firms. Limited progress was achieved in 2012 on network industries.
The French electricity market remains one of the most concentrated in the EU. Regulated
prices in electricity and gas distort competition and continue to act as a
barrier for new entrants. Regulated tariffs for non-household customers should
be removed according to the timetable agreed with the French authorities. More
interconnection capacity with neighbouring countries and the launch of the
tenders for hydro-concessions would also contribute to fostering competition in
the electricity market. In the railway sector, the rail-freight market is less
dynamic than in other Member States, while rail passenger transport is not open
to competition, except for international services. The forthcoming reform
should ensure that any new ‘unified infrastructure manager’ remains independent
of the incumbent operator to guarantee new entrants fair and non-discriminatory
access.
(14)     The French tax system
remains complex and lacks efficiency due to the wide range of exemptions,
special allowances, but also frequent changes in legislation. Despite efforts
to reduce and streamline tax expenditures, the amount of foregone revenue from
these remains high. The choice of a broad base-low rate approach for corporate and
personal income taxation would be more conducive to growth and social welfare. The
intermediate VAT rate is set to increase from 7 % to 10 % from January 2014. This
is a move in the right direction but additional efforts are necessary. Overall,
the cost of tax and social-security exemptions remains very high up to 10% of
GDP. Despite the demonstrated ineffectiveness of some reduced VAT rates, such
as those for restaurant services, no sufficiently differentiated policy
measures have been taken. The introduction of the CICE tax credit, financed partly
through the above-mentioned increase in the intermediate but also standard VAT
rates, shifts the tax burden away from labour. Further scope for action is
however needed, in particular to rebalance the share of environmental taxes. Last
year, France adopted some measures to address tax incentives to indebtedness in
corporate taxation. However, there is scope for further improvement (interest
deduction is only limited above EUR 3 million and only 15% of the interest
above that limit will be disallowed for tax deductibility in 2013 and 25% in
2014).
(15)     The unemployment rate
increased from 9.7 % in 2010 to 10.2 % in 2012. The Commission forecasts
that the unemployment rate will increase to 10.6% in 2013 and 10.9% in 2014 due
to persistently weak economic growth. Against this background, the segmentation
of the French labour market continues to be a source of concern. The likelihood
of moving from a temporary to a permanent job was only 10.6 % in 2010, as
against 25.9 % on average in the EU. As a result, low-skilled workers in
precarious forms of employment tend to bear the brunt of any adjustment process
in the labour market. A law was adopted in May 2013, based on the
inter-professional agreement (ANI) on securing jobs concluded between the
social partners in January 2013. It foresees increased rights for workers,
addressing the legal uncertainty of dismissals and greater flexibility for
employers. The law is a positive step towards a more fluid labour market. The
actual implementation of this reform, as well as its impact, remain uncertain
at this stage because following the adoption of the law transposing the ANI further
branch/enterprises agreements will be needed before the agreement can fully
enter into force.
(16)     A sixth of young people in France leave education and training without a qualification. This is particularly worrying
as the unemployment rate of young people was of 25.4% at the end of 2012 and as
the risk of being unemployed was almost two times higher for the least
qualified young people. Schemes to promote apprenticeships should reach in
particular the least qualified young people. The alignment of national schemes
to the Youth Guarantee Council recommendation should play a structuring role in
responding to these challenges. Despite reforms initiated in 2009, the French
participation rate of adults in lifelong learning (5.7 % in 2012,
low-skilled adults: 2.5 %) is below the EU average. The planned transfer
of competences to the regional Councils might provide an opportunity to address
the weaknesses of the current system. The employment rate for workers aged
55-64 is among the lowest in the EU (45.7 % in the fourth quarter of 2012),
and unemployment is rising among older people. Although a step in the right
direction, it is not clear to what extent the ‘generation contracts’ will contribute
to the employment of older workers and facilitate a return to work by older
jobseekers. French public spending on unemployment benefits rose by 5.3 %
in 2012 and are expected to further increase by 6.1 % in 2013 according to
the stability programme. The cumulated deficit of the unemployment regime,
which would be close to 1 % of GDP by 2013, calls for a reform of the
unemployment benefit system. In particular, some elements, such as the
eligibility conditions, the degressivity of benefits over time or the
replacement rates for workers with the highest wages should be adapted to
ensure that incentives to work are adequate. The new tripartite convention of
the public employment service (Pôle emploi) foresees a differentiated follow-up
of jobseekers. The average size of a job counsellor’s portfolio has however
further increased due to the rising unemployment level and the reorientation of
the Pôle emploi strategy is hampered by the weak economic situation. All in
all, there is a need to take further action in view of the negative economic
prospects and the expected further increase in unemployment in France.
(17)     In the context of the
European Semester, the Commission has carried out a comprehensive analysis of France’s economic policy. It has assessed the stability programme and national reform
programme, and presented an in-depth review. It has taken into account not only
their relevance for sustainable fiscal and socio-economic policy in France but
also their compliance with EU rules and guidance, given the need to reinforce
the overall economic governance of the European Union by providing EU-level
input into future national decisions. Its recommendations under the European
Semester are reflected in recommendations (1) to (6) below.
(18)     In the light of this
assessment, the Council has examined France’s stability programme, and its
opinion[10]
is reflected in particular in recommendation (1) below.
(19)     In the light of the
Commission’s in-depth review and this assessment, the Council has examined the
national reform programme and the stability programme. Its recommendations
under Article 6 of Regulation (EU) No 1176/2011 on the prevention and
correction of macroeconomic imbalances are reflected in recommendations (1),
(2), (3), (4), (5) and (6) below.
(20)     In the context of the
European Semester the Commission has also carried out an analysis of the economic
policy of the euro area as a whole. On this basis the Council has issued
specific recommendations addressed to the Member States whose currency is the
euro. France also should ensure the full and timely implementation of these
recommendations.
HEREBY RECOMMENDS that France should take action within the period 2013-2014 to:
1.           Reinforce and pursue the
budgetary strategy in 2013. Enhance the credibility of the adjustment by
specifying by autumn 2013 and implementing the necessary measures for the year
2014 and beyond to ensure a correction of the excessive deficit in a
sustainable manner by 2015 at the latest and the achievement of the structural
adjustment effort specified in the Council recommendations under the EDP. Use
all windfall gains for deficit reduction. A durable correction of the fiscal
imbalances requires a credible implementation of ambitious structural reforms to
increase the adjustment capacity and boost growth and employment. Maintain a
growth-friendly fiscal consolidation course and further increase the efficiency
of public expenditure, in particular by proceeding as planned with a review of
spending categories across all sub-sectors of general government. Take action
through the forthcoming decentralisation law to achieve better synergies and
savings between central, regional and local government levels. After the
correction of the excessive deficit, pursue the structural adjustment effort at
an adequate pace so as to reach the MTO by 2016,. Take measures by the end of
2013 to bring the pension system into balance in a sustainable manner no later
than 2020, for example by adapting indexation rules, further increasing the statutory
retirement age and full-pension contribution period and reviewing special
schemes, while avoiding an increase in employers' social contributions, and increase
the cost-effectiveness of healthcare expenditure, including in the areas of
pharmaceutical spending.
2.           Ensure that the ‘crédit d’impôt compétitivité et
emploi’ effectively reduces labour costs by the planned amount and that no
other measure will offset its effect. Take further action to lower the cost of
labour, in particular through further measures to reduce employers’
social-security contributions. Ensure that developments in the minimum wage are
supportive of competitiveness and job creation, taking into account the
existence of wage support schemes and social contribution exemptions.
3.           Take measures to improve the business environment and
develop the innovation and export capacity of firms, in particular SMEs and
enterprises of intermediate size. In particular, launch the announced
simplification initiative of the regulatory framework, and improve the
framework conditions for innovation, by enhancing technology transfer and the
commercial exploitation of research, including through a reorientation of the
competitiveness poles.
4.           Take action to enhance competition in services; remove
unjustified restrictions in the access to and exercise of professional services,
notably regarding legal form, shareholding structure, quotas and territorial
restrictions; take action to simplify authorisation for the opening of trade
outlets and to remove the ban of sales at a loss; remove regulated gas and electricity
tariffs for non-household customers and strengthen interconnection capacity
with neighbouring countries; in the railway sector, open domestic passenger
transport to competition.
5.           Pursue efforts to simplify the tax system and improve
its efficiency, while ensuring continuity of tax rules over time. Take measures
to remove the debt bias in corporate taxation. Step up efforts to reduce and
streamline personal and corporate income tax expenditures while reducing
statutory rates; bring reduced VAT rates closer to the standard rate and remove
inefficient reduced rates. Take further measures shifting the tax burden from
labour to environmental taxation or consumption.
6.           Implement fully and without delay the January 2013
inter-professional agreement, in consultation with the social partners. Take
further action to combat labour-market segmentation, in particular to address
the situation of interim agency workers. Launch urgently a reform of the
unemployment benefit system in association with the social partners to ensure sustainability
of the system while ensuring that it provides adequate incentives to return to
work. Enhance the employment rate of older workers and stimulate their
participation in the labour market. Take specific action to improve the
employment perspective of older unemployed people in particular through
specific counselling and training. Increase adult participation in lifelong
learning, especially of the least qualified and of the unemployed. Ensure that
public employment services effectively deliver individualised support to the
unemployed and that active labour market policies effectively target the most
disadvantaged. Take further measures to improve the transition from school to
work through, for example, a Youth Guarantee and promotion of apprenticeship.
Done at Brussels,
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 209, 2.8.1997, p. 1.
[2]               OJ L 306, 23.11.2011, p. 25.
[3]               COM(2013) 360 final.
[4]               P7_TA(2013)0052 and P7_TA(2013)0053.
[5]               Council Decision 2013/208/EU of 22 April 2013.
[6]               COM(2012) 750 final.
[7]               COM(2012) 751 final.
[8]               SWD(2013) 117 final.
[9]               European Commission (2011), "Small business, big
world - a new partnership to help SMEs seize global opportunities", COM(2011) 702
[10]             Under Article 5(2) of Council Regulation (EC) No
1466/97.