The "EU policy brief" has been created for members of the PES family, bringing together the latest information on the EU agenda, on a monthly basis, focusing particularly on social democratic priorities. PES initiatives and actions are highlighted where relevant.

PES activists are invited to give comments and suggestions or to contribute information in the forum on the PES website

Future of Europe

	State of Play: Just a week before the European Council in Brussels on 21-22 June, the debate around the reform of the European treaties is warming up again. After a series of public statements and bilateral consultations in the run-up to the summit, potential conflicts and a possible consensus have been taking shape. A majority of EU Member States support the idea of a simplified treaty, stripped of all elements of a Constitution. After Portuguese Prime Minister Sócrates, head of the incoming EU presidency in the second half of this year, called for a "precise mandate" for the Intergovernmental Conference (the IGC is responsible for negotiating treaty reform), the pressure is now on the countries which oppose a simplified treaty, based on the text of parts of the draft constitutional treaty of 2004. Portugal has signalled that it would not continue diplomatic efforts to find a compromise, during its Presidency, if the mandate for the IGC is not sufficiently precise at the European Council in June, which suggests that in the absence of an agreement in June, treaty reform would be postponed indefinitely. The German Presidency is still fairly optimistic that Member States are heading towards a consensus. It remains unclear how the summit will deal with the policies of the EU, mentioned in Part III of the draft constitutional treaty, and what can be done about new policy challenges mentioned in the Berlin Declaration in March (Europe's energy supply; climate change; terrorism; organised crime; illegal immigration; Common Foreign and Security Policy; the "social responsibility" of the European model; solidarity as a key European value).
	Potential Conflicts: There is still strong opposition against a short IGC and a simplified treaty. Polish Prime Minister Jaroslaw Kaczynski indicated in early June that his country could veto a compromise if other EU Member States do not accept a new voting system in the Council. The Polish proposal would reduce the voting weight of bigger Member States. The Dutch government is pressing for a clearer definition of European competences and has stated that pensions, social security and health should remain an exclusive national competence, which should not be eroded by EU Single Market legislation. The Dutch government calls for fewer rules, more openness, a stricter application of the principle of subsidiarity, a fairer distribution of the financial burden, more respect for the EU's own rules - especially concerning enlargement - and more attention to priority policy areas. It also does not want to re-submit a constitutional treaty for ratification. The Czech Republic still sees no need for a quick solution of the institutional impasse. The United Kingdom defined some "red line" issues, in particular its resistance against the increased number of issues subject to qualified majority voting.
	New proposals: A high level group of politicians from around the EU headed by Italy's Interior Minister Giuliano Amato published a proposal for a revised treaty for the EU, which feeds into the emerging consensus among Member States that a simplified treaty is the best way forward. The proposal strips the rejected constitution of its constitutional elements - including the article on the EU's symbols and the controversial preamble - reduces the Charter of Fundamental Rights to one legally binding article and suggests that the proposed EU foreign minister could be renamed. However, the proposal suggests that the main institutional elements of the original draft constitutional treaty should remain in a revised treaty.

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Social Europe

	Health services: EU Health Ministers met on 30 and 31 May and called the European Commission to take account of the following: the "Statement on Common Values and Principles" in health care, agreed last year; the responses to the public consultation on Community action on health services; and the broad approach for EU health policies as expressed by the EU-Troika, when drafting specific proposals on health services. The European Commission is now expected to present, amongst other measures, a draft piece of legislation on health services, which would offer a framework for patient mobility in the EU. The European Parliament adopted a resolution calling for a new regulatory framework for cross-border health care to improve access to high quality health care, contribute to patient safety and increase the number of choices available to patients in the EU, without increasing inequality in health care outcomes.
	Education: EU Education Ministers met on 24 and 25 May to discuss the development of a common framework of indicators and benchmarks for monitoring progress to the Lisbon objectives, which were to modernise Europe's education and training systems in response to the demands of a knowledge-based economy and the increasing socio-economic and demographic challenges. The Ministers agreed that the following indicators needed to be fully used and developed by which success would be measured in achieving the Lisbon objectives in education and training: participation in pre-school education; early school leavers ; literacy in reading, mathematics and science; upper-secondary completion rates of young people; higher education graduates; participation of adults in lifelong learning; cross-national mobility of students in higher education; educational attainment of the population; special needs education; ICT skills; investment in education and training; civic skills; adult skills; and, professional development of teachers and trainers.
	PES action on flexicurity: The PES believes that the balance and interaction between security and flexibility are fundamental for a true and accurate interpretation of flexicurity as it has been implemented in, notably, the Nordic countries. The PES Lisbon Network has set out its position on flexicurity, in a paper that contends that issues like child care and clear measures on social protection must be part of the flexicurity concept.
	PES action on education: PES Education Ministers and spokepersons met to discuss the priorities ofthe Portugu ese Presidency of the EU in the field of education and training. PES Ministers agreed that education and training should be given greater importance during the revision of the Lisbon Strategy's integrated guidelines, due to take place during the Portuguese Presidency and conclude at next year's March European Council.
	PES action on hedge funds and private equity: The PES held a successful press conference on Monday 4 June where it addressed the lack of transparency in financial markets and the effects this has upon workers rights. PES President Poul Nyrup Rasmussen was joined by Barney Frank, head of the Financial Services Committee of the US Congress (via video link), Pierro Fassino, leader of DS Italy, John Monks, Secretary General of the ETUC, and Philippe Busquin, MEP and former European Commissioner, to call on the G8 summit to act on the serious concerns in relation to the operation of some hedge funds and private equities. A message of the Portuguese Labour Minister, José Vieira da Silva, was also read. There was consensus among the speakers that the lack of transparency in these markets is an issue that needs to be tackled, via the disclosure of information. Moreover, efficient financial markets must work towards the real economy and not against it. Healthy companies need to invest and need transparent and equitable financial markets to do so. However, it is becoming clearer that the short term profit-oriented strategy of some of these funds is incompatible with the long term needs of the real economy.  Poul Nyrup Rasmussen and Barney Frank thus presented at the press conference a joint letter which the PES President addressed to chancellor Merkel and Barney Frank to President Bush asking for an international task force to be set up with the aim of studying the behaviour of some of these funds and propose appropriate measures. PES President Poul Nyrup Rasmussen also participated in the ETUC Congress, at which he called on European trade unions to mobilise on the issue of some hedge funds and private equities that were undermining workers' rights and collective bargaining.

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Climate change and energy

	G8 summit: At their meeting in Germany on 6-8 June, G8 Heads of State and Government agreed to continue work on a common strategy against global warming. Even though many NGOs consider the results meagre, some elements may pave the way towards a global fight against climate change. All eight governments, including the US, noted the International Panel on Climate Change (IPCC) reports and their findings. This means effectively that all G8 countries accept that global warming is largely man-made. Also for the first time, the G8, including the US, agreed that the framework for the global fight against climate change is the UN Framework Convention on Climate Change (UNFCCC). The G8 presidency conclusions state: "In setting a global goal for emissions reductions in the process we have agreed in Heiligendamm involving all major emitters, we will consider seriously the decisions made by the European Union, Canada and Japan which include at least a halving of global emissions by 2050. We have agreed that the UN climate process is the appropriate forum for negotiating future global action on climate change. We are committed to moving forward in that forum and call on all parties to actively and constructively participate in the UN Climate Change Conference in Indonesia in December 2007 with a view to achieving a comprehensive post 2012-agreement (post Kyoto-agreement) that should include all major emitters. To address the urgent challenge of climate change, it is vital that the major emitting countries agree on a detailed contribution for a new global framework by the end of 2008 which would contribute to a global agreement under the UNFCCC by 2009." Some criticised the conclusions for being vague; however, all participants, including the US, now accept that not only technology, offers a way out of global warming, but also means like energy efficiency, market mechanisms like the emission trading system or tax incentives. But the agreement does not contain binding targets yet. G8 leaders did not commit their countries to limiting global warming to two degrees above pre-industrial limits, which is the target set by the Kyoto Protocol. They merely consider reducing greenhouse gas emission by 50% by mid-century.
	Transport and climate change: EU transport ministers set out a new energy strategy for transport at a meeting on 8 June, calling for measures to cap CO2 emissions from cars, to include aviation in the carbon emissions-trading scheme, and also calling for maritime shipping, inland waterways and railways to take up a larger share of freight transport. They said that further efforts were necessary to strengthen these modes of transport against road and air. Warning of the potential negative side-effects linked with the development of biofuels, the Ministers requested that the Commission present a scheme for the certification of biofuels on the basis of sustainability criteria and their contribution to cutting greenhouse gas emissions.
	PES action: The PES and its member parties will intensify efforts to achieve an ambitious and effective post-2012 agreement, as the PES believes that the EU should now clearly take the lead in international negotiations.

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Migration and integration of immigrants

Franco Frattini, Commissioner for Justice, Freedom and Security presented on 16 May 2007 three different piece of legislation on migration policy:
	A proposed directive providing for sanctions against employers of illegally staying third-country nationals, which tackles the main pull-factor for illegal immigration, that is the availability of illegal work in EU Member States. Illegal immigrants are particularly vulnerable and are therefore often employed under exploitative and unsafe conditions (lack of protection, inappropriate wages, no health insurance and pension rights). Apart from the human rights issues linked to illegal employment such as human trafficking or unexplained deaths, the Commissioner highlighted that illegal immigration also harms EU's economy, competition and internal market. The directive includes the following proposals: general prohibition on employing illegally staying third-country nationals; when establishing the work relationship, employers would be required to check residence permits or other residence documents, as well as inform competent authorities. If employment is based on forged documents, employers would only be liable when documents are manifestly incorrect (e.g. photograph not corresponding); besides companies private individuals equally qualify as "employers" and would be sanctioned; sanctions against employers comprise fines, loss of public contracts and subsidies, exclusion from public procurement, obligation to pay the costs for the migrant's return, obligation to pay any outstanding wages, taxes and social contributions. Criminal penalties for four types of serious cases are proposed: repeated infringements, employment of a significant number of third-country nationals, particularly exploitatively working conditions, and where employers know that the worker is a victim of human trafficking. Member States would be required to create mechanisms through which illegal migrants can lodge complaints directly or through designated third parties. Member States would be required to undertake controls in at least 10% of the companies established on their territory, to be selected on the basis of a risk assessment. Despite the controls on employers for contracting illegal employees and for illegal workers to be able to report on employers contracting illegal workers, the directive does not make clear the support or assistance to be provided to illegal workers. Denmark does not participate in this policy and the UK and Ireland have six months to decide on participating in this initiative.
	The Commission Communication on Circular migration and mobility partnerships between the EU and third countries proposes negotiations of bilateral mobility between the EU and third countries - that is agreements on the temporary stay of workers in the EU with their countries of origin - and looks at how to offer a legal avenue to migrants into the EU to meet labour shortages, while preventing brain drain from developing countries by ensuring that migrants do not stay permanently in the EU.
	The Commission Communication on Applying the Global Approach to Migration to the Eastern and South-Eastern Regions Neighbouring the European Union brings together migration, external relations and development policy to address the broad migration agenda in an integrated, comprehensive and balanced way in partnership with third countries. The Communication expands the geographical scope of the successful Global Approach, which has so far focused on Africa and the Mediterranean region. The forthcoming Portuguese Presidency of the EU will especially focus on the global approach of migration.
	Illegal migration: Following the recent shipwrecked illegal immigrants in the Mediterranean sea near the Maltese coast, Commissioner Franco Frattini has called for greater cooperation and solidarity amongst EU Member States in helping and saving stranded illegal immigrants. The Commissioner stated that a common approach is needed on the issue of asylum seekers. France and Spain have called for a common immigration policy to be established in the EU treaties. Spanish Prime Minister, Mr Zapatero also called for enhanced development cooperation and linking legal residency with finding a job.

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Gender equality

At the informal meeting on Gender Equality in Bad Pyrmont on 15-16 May, the Ministers from the trio Presidency (Germany, Portugal and Slovenia) made a joint declaration, presenting their concrete plans and actions for their joint work programme, which will focus on promoting equal opportunities and equal pay, helping women from immigrant backgrounds, and fighting gender stereotypes.

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Enlargement

Balkans: EU Enlargement Commissioner Olli Rehn announced that the European Commission would resume Stabilisation and Association Agreement (SAA) negotiations with Serbia. Talks will probably resume in about ten days, although the exact date will not be determined until UN Chief Prosecutor Carla del Ponte releases her report on the level of co-operation. If UN chief prosecutor Ms Del Ponte confirms her satisfaction to the EU, it is expected that the bloc will resume SAA talks already this month, with foreign ministers meeting in Luxembourg on 18 June possibly formally agreeing the decision. President Boris Tadic said that Serbia is ready to do anything in its power to finalise co-operation with the tribunal. Both Tadic and Rehn stressed that the issues of Kosovo and Serbian ties with the EU would be treated separately.

PES action: During a PES Conference "Integrating Western Balkan in the EU. A progressive agenda for the people" in Belgrade on 16th May, 2007, the PES and its member parties agreed on a "Solidarity Pact for the Western Balkans".

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External dimension of Europe

	Trade/WTO: The EU has provisionally called an emergency meeting of foreign ministers on 25 June to assess a possible trade deal among the world's major trading powers. EU ambassadors agreed that ministers would meet in Luxembourg if the so-called G4 group of trade powers (EU, United States, Brazil and India) achieves a breakthrough in the long-running talks. G4 negotiators are due to hold talks in Potsdam, Germany, on June 19-22 to try to rescue the Doha round of World Trade Organisation negotiations, launched in 2001. If the G4 can reconcile conflicting demands, this could allow for a wider deal involving the WTO's full 150 members before the August break, considered essential to meet an end-of-year deadline to complete the round. Otherwise, it could take several more years before there is another chance to conclude a world trade pact.
	Decent Work: on 23 May 2007 the European Parliament adopted the "Report on promoting decent work for all", which recognizes that decent work is a centerpiece of the fight against poverty and social exclusion. It proposes substantial measures and calls on the European Institutions to undertake steps aimed at promoting decent work and to include the perspective of decent work in all the activities of the EU and its Member States. Furthermore, it calls on the Commission to implement the decent work agenda, following its Decent Work Communication of last year, which set out how the EU could contribute to the achievement of decent work as a global objective More specifically, the EP calls on the Council and the Commission to "abdicate their responsibilities in implementing GSP+", suspend trade preferences for countries which do not respect fundamental working standards, in particular free trade unions. The EP also called on the Commission to encourage respect for the ILO Labour Standards and include the objective of decent work in the trade policy of WTO Members. The European Parliament also stresses greater need for cooperation between international organizations including: WTO, UNCTAD, ILO.
	EU-UN: UN Secretary General Ban Ki-Moon and German foreign Minister Frank-Walter Steinmeier, representing the EU, signed a joint statement on 7 June to intensify EU-UN cooperation in international crisis management.
	PES action on European Neighbourhood Policy: The PES organised a post election mission in Armenia, on 30-31 May 2007. The parliamentary elections, held on 12 May were an important test for democracy and shed light on the country's commitment to political reform. The delegation was led by Peter Schieder, Chair of the PES Working Group on Eastern European Neighbours (SPÖ Austria), who issued a statement on the visit. During the two days, the delegation had intensive talks with Armenian political parties, NGOs and think-tanks. A coalition agreement was signed on 6 June, 2007, between the Republican Party, the Prosperous Armenia Party and The Armenian Revolutionary Federation (SI member). For more information, please read the presentation of the European Forum for Democracy and Solidarity.

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Acronyms

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Party of European Socialists