ESC calls for European Bank for SMEs
On 31 October 1996, the European Economic and Social Committee (ESC) adopted an opinion on the "Confidence Pact for Employment" initiated by President Jacques Santer. The ESC recognizes that unemployment in Europe has reached crisis proportions and that urgent action must be taken. With this in mind, it makes a number of recommendations for measures to be taken by the EU and the Member States. In particular, it underlines the need to simplify legislation on the internal market and to reduce the administrative, financial and legislative constraints on small and medium-sized enterprises (SMEs). It also stresses the case for the setting up of a European Bank for SMEs (EBSME), separate from the European Investment Bank (EIB). Other recommendations from the Committee include: - The drawing up, at the European Council in Dublin, of a multiannual plan for employment backed up by specific measures and a binding timetable; - The inclusion of employment policy in the EU Treaty; - Increased support for transport infrastructure schemes, the establishment of the Information Society, the expansion of the services sector and the definition of the EU's role in international trade policy. The Committee also notes that the Commission Green Paper in this area should use and expand on the findings and research carried out by the social partners into work organization, flexibility and shorter working hours.