THE "OPEN METHOD" OF CO-ORDINATION: INNOVATION OR TALKING SHOP? by Kirsty Hughes
DECEMBER
2000/JANUARY 2001 - CER BULLETIN, ISSUE 15
THE "OPEN
METHOD" OF CO-ORDINATION: INNOVATION OR TALKING SHOP? by Kirsty Hughes
AT THE 'DOT.COM'
SUMMIT AT Lisbon in March 2000, the EU set itself the strategic goal of creating
full employment in a competitive and inclusive knowledge-based economy. To reach
this goal, EU prime ministers announced the adoption of 'a new open method of
co-ordination', which is based on benchmarking and spreading best practice.
It is intended to help member-states converge towards common objectives in areas
such as employment, economic reform and social cohesion.
The new method works in four stages. First, EU ministers agree on policy goals
in the area concerned. Second, member-states translate these guidelines into
national and regional policies, with specific targets. Third, the ministers
agree on benchmarks and indicators, to measure and compare best practice within
the EU and worldwide. Finally, through evaluation and monitoring, member-states'
performances are assessed - relative to each other and to their declared goals.
Advocates of this 'soft' (i.e. not law-based) approach argue that it enables
member-states to co-operate closely, yet recognises their diversity and avoids
forced harmonisation. It allows co-ordinated action in areas where it would
be politically difficult, or even impossible, to move forward through a common
policy or legal framework. It allows for a concerted EU approach while leaving
legal competence and authority with the individual member-states. Thus progress
can be made through open co-ordination where otherwise there would be none.
CRITICS FEAR, HOWEVER, THAT OPEN co-ordination is at best a talking-shop and
at worst a weapon aimed at the traditional "Community method" of European
integration. They view the new approach as a Trojan horse for more "inter-governmental"
decision-making. Whether they are right will become apparent as the targets
of the Lisbon summit are met - or not - over the next few years. The more difficult
question is whether it is indeed another tool for integration, or rather a move
towards increased, and perhaps less effective, inter-governmentalism.
At Lisbon, the EU leaders suggested that open co-ordination should apply to
areas such as social exclusion, enterprise and e-Europe, where most or all powers
remain with the member-states. In social exclusion, for example, the only way
for the EU to play a role in such a politically-sensitive area was for the Council
of Ministers to agree in October 2000 on a set of common, but not legally-binding,
objectives for tackling poverty and exclusion. The member-states will produce
national action plans for reaching these objectives, on which the Commission
will then comment.
But will open co-ordination really prove effective and gain acceptance among
the member-states? The European employment strategy, established at the Luxembourg
European Council in November 1997, is the longest-running example of this method.
Unlike some of the newer areas subjected to open co-ordination, the employment
strategy has a treaty base that allows the Commission to put guidelines and
recommendations to the Council for agreement. As the proposals have no legal
force, the political effectiveness of the new method rests on the strength of
the political commitment to the process, on its perceived value and utility,
and on peer pressure and public support.
AFTER ITS FIRST THREE YEARS, THE employment strategy is clocking up results.
The unanimously-agreed guidelines cover policies ranging from active labour
market measures to help the long-term unemployed, to equal opportunities. In
some cases, such as Spain and its labour market, the EU-wide policy consensus
has helped governments to push through difficult reforms.
It remains to be seen whether open co-ordination can boost the EU's progress
towards a competitive, knowledge-based economy. But it is a fact that this method
has allowed the EU to extend the concept of joint action into new policy areas.
And it gives a key role to the Commission, not only in analysing best practice,
but also in drafting guidelines and issuing recommendations on improving the
effectiveness of policies. It is early days for this new method of open co-ordination,
and perhaps it needs a catchier, more media-friendly name. But so far it looks
like an important new addition to the EU's policy-making toolbox.
Kirsty is deputy head of cabinet to the
Commissioner for employment and social affairs, Anna Diamantopoulou. She is
writing in a personal capacity.
