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Study

Filip Hamro-Drotz

February2012 (Revised edition, May 2012)

Employers in the European Economic and Social Committee (EESC):

impact and role

1.Foreword

1.1. Aim of the study

Employers and businesses, operating in different branches of industry (including services etc.) and commerce in the EU Member States are represented in the EESC ( Their participation is provided for in the articles on the EESC in the Treaty on the Functioning of the European Union ("Lisbon Treaty", TFEU). They alsosee the Committee as an opportunity to express their views and concernsand to contribute to the wider European dialogue, helping to foster understanding of theiraims and perspectives.

The purpose of this study is to throw light on why and how employers participate in the EESC;what impact their engagement has on the results of the EESC's work, and what addedvalue it brings to their overall efforts at the EU level.

The definition "employers" covers in the study the whole range of business.

The study is primarily aimed at European business community at large, as well as atthe EU institutions and any other interested parties.

Contents

1. Foreword

1.1. Aim of the study

2. Background

2.1. The European Economic and Social Committee: its role and structure in the EU

2.1.1. Role

2.1.2. Future challenges

2.1.3. Structure

2.1.4. Drafting opinions is the core task

2.1.5. The added value of opinions

2.1.6. Other major tasks

2.2. European employers, industry and commerce: profile and organisation within the EU

2.3. Employers’ profile and organisation within the EESC

2.3.1. Composition and appointment of members

2.3.2. Members' engagement in the work of the EESC

2.3.3. Management of the Employers Group

3. Ways of influencing EU decision-shaping and making

3.1. Lobbying

3.2. Social partners and social dialogue

3.3. Civil society and civil dialogue

3.4. Official consultation

4. Employers' and businesses’ main objectives and priorities in engaging in EU decisionshaping and making

4.1. European employers, industry and commerce in general

4.2. The EESC Employers Group

5. Conclusions and recommendations

5.1.Added value of the EESC for the EU

5.2.Should employers be involved in the EESC? Reasons and arguments

5.3.Improvement of employers’ involvement and influence within the EESC

5.4.Interaction with national, sectoral and EU-level employers’ organisations

2. Background

2.1.The European Economic and Social Committee: its role and structure in the EU

2.1.1.Role

The EESC is an official EU body. It was established in 1957 by the Treaty of Rome. The EESC is a consultative body comprising representatives of the main socio-economic interest groups in the Member States. Article 300(1) of the TFEU states: "The European Parliament, the Council and the Commission shall be assisted by an Economic and Social Committee …, exercising advisory functions".The conceptstems from France, where the role of thenational Economic and Social Council (since 2009,the Economic, Social and Environmental Council) is enshrined in the French constitution and has ahigh-ranking officialstatus in the state.

National ESCs have been systematically set upin nearly allFrancophile countries. Today such councils exist in some 20 or so MemberStatesand they have also created a European network of cooperation amongst themselves. Efforts to establish national ESCs in non-EU countries continue and have met with fairly positive results. ESCs have been established in some 30 non-EU countries.In addition, some regional councils have been created.

The national councils work together in AICESIS, an international association that seeks to consolidate its position as a spokesman for ESCs in the leading international institutions (the UN, the WTO, the World Bank etc.). To date, just over 50 national ESCs have been granted membership of the association. In many cases, however, these ESCs do not enjoy ahigh degree of independence vis-à-vis their national governments. The future of AICESIS is currently under discussion.

The EESC is "the voice of European organised civil society" and is also referred to as "the house of European civil society"."Civil society" and "civil dialogue" are relatively new conceptsin the EU. They first appeared on the EU's agenda in the early 1990sin connection with the completion of the EU Treaties, chiefly in circles close to the administration of then-president of the European Commission, Jacques Delors.

The EESC remains the only treaty-based EU body which is not appointed on political grounds; its specific role is to deliverindependent advice (opinions) on current EUissues to political decisionmakers in the EU. Article304(1) of the TFEU specifies the EESC's advisory/consultative role:"The Committee shall be consulted by the European Parliament, by the Council or by the Commission where the Treaties so provide. The Committee may be consulted by these institutions in all cases in which they consider it appropriate. It may issue an opinion on its own initiative in cases in which it considers such action appropriate".

2.1.2Future challenges

Article 11 (1-3)of the Treaty on European Union (TEU)is of specific interest for the EESC. It states:"(1) The institutions shall, by appropriate means, give citizens and representative associations the opportunity to make known and publicly exchange their views in all areas of Union action. (2) The institutions shall maintain an open, transparent and regular dialogue with representative associations and civil society. (3) The European Commission shall carry out broad consultations with parties concerned in order to ensure that the Union's actions are coherent and transparent".The fundamental new aspect is that these provisions are now laid down in the EU's founding treaties,which was not the case before. They oblige the EU institutionsto take appropriate action. The Parliament has been doing this for some years now, in part through the launch of its Agoraplatform, an annual forum for discussion with representatives from civil society at large. Different modes of interaction have evolved through the decades between the Council, the Commission and civil society.

There is a continuously ongoing critical consideration and discussion about the influence, the role and the value added of the EESC in the EU. Article 11 offers an excellent basis for the EESC to continue and strengthen its consultative activities. In fact, the Treaties charge the EESC with additional responsibilities: they offer new opportunities for a higher profile for the EESC and greater awareness of its role in influencing legislative proposals. It should, however, be noted that points 1-3 of the Article do not explicitlystate that dialogue and consultation should be conducted with the EESC. Therefore, one of the main challenges is to enhance the EESC's role as themost credible, representative and interesting mouthpiece for players inEuropean civil society, also making particular reference to TFEU Articles 300(1) and 304(1) regarding the EESC.

The fourth point of Article 11refers to the new process whereby an appropriate number of EU citizens can, by submitting a proposal on specific issues,require action by the EU (a "citizens' initiative"):"Not fewer than one million citizens who are nationals of a significant number of Member States may take the initiative of inviting the European Commission…"The EESC's role in this regard is under consideration.

2.1.3.Structure

Today the EESC has a total of 344 members–the maximum number isstipulated as 350 in Article301(1) of the TFEU, the implementation of which is still open as new Member States enter.The number from each MemberStatedepends on the size of the country (3-24 members). The term of office is five yearsand the Council of Ministers appoints members on the basis of proposals from MemberState governments. The selection procedure varies from country to country; in some cases there is considerable competition for membership betweenthe various national organisations.

Members have a kind of special status as EU officials; however in practice this is of minor importance. Members do not receive any payment or remuneration for the work carried out.Travel costs are reimbursed and members receive a meeting and travel allowance. Decisions about budgets and allowances are made by the European Council and the European Parliament.

The members are divided intothree groups in the EESC: Employers (Group I),Workers (Group II), and Various Interests (Group III, includingcrafts, farmers, consumers and NGOs). AllEESC activity is based on cooperation, coordination and competition between these groups (which contrasts with the role of the political groupings in the European Parliament, such as the EPP, the S&D and the ALDE and in the Committee of Regions, also based on political groupings).

The work conducted by the EESC is divided among six sections, in addition to which there are four"observatories"which analyse specific subjects (e.g. the single market, sustainable development andemployment). A special bodyto analyse industrial change (Consultative Commission on Industrial Change, CCMI) was set up after the expiry of the Treaty on European Coal and Steel Community in 2002. All of the EESC's substantive work is prepared in the different sections and observatories.

The EESC is governed by a president (elected for a term of 2.5 years), assisted by two vice-presidents (the "Presidency"), the three group presidents (all of the above forming the "Enlarged Presidency") and the 39-members "Bureau", in which theaforementioned form the core. The Bureau also includes the six section presidents and at least one representative of each MemberState. Thesebodies meet regularly.

The EESC is supported by a secretariat based in Brussels and led by thesecretary-general. It employs more than 700 persons, approximately 400 of whom are in joint service with the Committee of the Regions.

The EESC's activities and decisions are based on the respective articles in the Treaties and on the EESC's detailed Rules of Procedure and Implementing Provisions.

2.1.4. Drafting opinions is the core task

The main task of the EESC is to express"opinions" with the views, concerns and recommendations of organised civil society in Europe. The EESC produces justover 200 opinions a year based on the aforementioned Article 304(1) of the TFEU: these may be at the request of the Commission, the Parliament or the Council; be exploratory opinions typically requested by a MemberStateabout to take on the EU presidency; or be own-initiated opinions.Though the majority of opinions are mandatory, the number of exploratory and own-initiative opinions has increased considerably in recent years and now account for about20% of all opinions.

Opinions are prepared by study groups with input from a balanced number of representatives from each of the three groups; the composition is between 3 and 24 members depending on the importance of the issue. The rapporteur of the opinion has primary responsibility for it.

Following preparation in the study group, the draft opinion is discussed, amended and votedon in the relevant section before being submitted for debate, amendment, and final voting at the EESC's plenary session. Sectionand plenary decisions are voted on,in accordance with the EESC's Rules of Procedure.

The procedure for handling opinions takes 3-5 months on average. The TFEUrequires that the time taken to draw up opinions be shortened substantially and there are often tight deadlines imposed by referrals from the European Parliament.

The EESC continuously strives to act transparently when preparing its opinions, trying to include the views and concernsofcivil society actors at large by arranging public hearings and establishing contacts with those actors in relevant countries,whether EU Member States or third countries(see, for instance, the Single Market Observatory, other observatories and theJoint Consultative Committees).

In the external field, approximately 50 joint statements, conclusions etc. are prepared and approved annually in cooperation with the counterpart in the respective third country or region. There is ongoing discussion about how to make better use of these "joint opinions".

2.1.5.The added value of opinions

At all stages of preparation of an opinion,the intention of the rapporteur,the members of the study group, the section and the plenary is to achieve aresult acceptable to all concerned and to comply with the EESC's institutional role laid down by the EU Treaties. A duplication of individual interest groups' statements and positions at national or European level is not relevant, although the members concerned are typically well aware of them. The added value of the EESC is that its opinions and standpoints represent a large majority of organised civil society in the EU and are the result of a search for consensus through negotiations, discussions and compromises between the groups.The members have a wide range of high-quality expertise across a broad spectrum, and this addsweight and value to the opinions.

EESC opinions are occasionally criticised for focusing excessivelyon compromise. However, an opinion which is adopted unanimously or by a large majority has an impact on further work by the Commission (the Parliament or Council of Ministers) onthe matter at hand. Moreover, when subjects are discussed by the study groups and sections this provides important pointers to the EUinstitutions – above all the Commission – whose representatives often attend the meetings of these bodies.

The Commission carries out a quarterly analysis of the EESC's impact on directives currently under preparation. This shows that the EESC's views are taken into consideration in about 80% of proposals for directives – albeit often in the form of details and rewording. There is, however a continuous search to find ways to achieve a better influence of,and public interest in, the findings of the EESC.

As indicated above, activity in the EESC does not amount to"proactive lobbying" by different interest groups in society. The value to Europe's society and economy comes rather from having healthy debate in the EESC among mixed groups of people representing the diversity within society, bringing their unique perspectives and experience to the discussions, and working together to find consensus on policy. In this context, the Employers Group brings value to the EESCand influence on policy at the EU level, through collaboration with members from other groups and by sharing the employers' and businesses' perspective on issues. The core added value stems from EESCopinions based on understanding between the different groups of interest. This concept is the primaryraison d'etre of the EESC, and should be purposefully defended.

2.1.6.Other major tasks

Apart from issuing opinions, the EESC has a widely valued and,over the years, increasingly recognised role as "bridgebuilder"in two areas. The first concerns its role as a link between citizens in the EU Member States and the EU institutions. This corresponds to the ever-increasing demand in the EU for openness, transparency, democracy and proximity to ordinary citizens. There is a pressure to consolidate and enhance the EESC's role within the machinery of the EU as a catalyst and mouthpiece for citizens (Article 11, 1-3 of the TFEU).

The second concerns the EESC's support for the EU institutions in their efforts to establish and strengthen relations with third countries and regions, i.e. the contribution the EESC makes primarily to the EU'scommon foreign,security, trade,development and enlargement policies by activelyforging contacts with,and supporting the strengthening of, civil society and promoting capacity building of civil society actors inthird countries or regions. This work is, for the most part, conducted in close cooperation and partnership with the Commission/European External Action Service (EEAS)or on the basis of the EU's external/internationalcooperation agreements. Topical themes at the EU agenda are dealt with and joint statements etc. prepared and tabled. They are directed to the EUinstitutions and the government of the third country/region concerned.

The importance of the EESC's role in the external field is likely to increase considerably as the TEU requires the EU to strengthen its role as a global player. Expectations are high and this also applies to the EESC. Improvingworking relationships with relevant commissioners, the relevant EP units and the EEAS is a challenge for theEESC.

2.2. European employers, industry and commerce: profile and organisation within the EU

European employers, industry(including services etc.) and commerce have established organisations to represent their interests in the EU. The forms they take have evolved over the years, starting as far back as the 1950s. This interest in involvement has increased in line with the strengthening of the EU, the deepening and widening of integration and the extension of the EU's remit. Today, some 70% of the laws that affect companies/employers in one way or another originate from, or are dealt with by, the EU. It is therefore essential for businesses and employers to maintain a presence in the EU in order to represent their interests in the most effective way possible.

The main multi-sectororganisations at EU-level representing the interests of employers, industry and commerceare:

BUSINESSEUROPE (formerly UNICE), the confederation of national federations of employers, industrial and service sector companies (

EUROCHAMBRES, the association of European chambers of commerce and industry (

UEAPME, the European umbrella organisation for SMEs(

CEEP, representing public sector companies (providers of services of general interest: railways, post offices,water, electricity, communication etc.) (

A majority of companies belongs, usually through their national federation/chamber, to the organisations that represent their interests at EU level. BUSINESSEUROPE represents more than 20million small, medium-sized and large companies through its 41 national member federations from 35 countries; EUROCHAMBRES has 47 national member chambers, representing numerous local chambers and 19 million companies;UEAPME for SMEs incorporates 80 national member organisations representing 12 million companies; and CEEP covers enterprises and employers in the public sector through national associations in the Member States and sector-based associations at the European level.

Experts from the federations, chambers and associations in the Member Statesare heavily involved in drafting the positions of the aforementioned organisations' policy committees, numerous working groups and task forces.Their decision-making bodies are made up of representatives at the highest level of the member associations. EU lobbying is deeply rootedin the work of the national federations, chambers and associations.