London, 20 May 2003

Luís Pais Antunes, Portuguese Secretary of State for Labour and Alan Johnson, British Minister of State for Employment Relations, Industry and the Regions,

Considering that increasing employment is the major challenge facing an enlarged European Union, and taking into account the joint statement by the Prime Ministers of the United Kingdom and Portugal of 26 February and the conclusions of the British-Portuguese seminar held in London on 20 May 2003.

Declare as follows:

In 2000, the leaders of the European Union set themselves an historic goal: to make the EU "the most competitive and dynamic knowledge-based economy in the world, capable of sustaining economic growth with more and better jobs and greater social cohesion", by 2010. The programme agreed at Lisbon has set the direction of Europe's strategy for reform.

Higher employment rates are essential for economic growth because the working age population is growing more slowly. Productive employment is the best route out of poverty and the best guarantee for social cohesion.

Macroeconomic stability is the pre-condition for employment growth but it is not enough by itself. Raising employment rates requires all Member states; both existing and new Member States, to pursue policies which will:

• Help people who are unemployed or inactive to enter and remain in employment through active labour market and welfare to work measures;
Create an inclusive labour market in which men and women of all ages, including those who are disabled or otherwise disadvantaged, can find jobs and build sustainable careers;
• Reform labour markets so as to encourage job creation while safe guarding minimum standards through sensible regulation which combines security with flexibility in employment;
• Ensure a skilled and adaptable working population through lifelong learning which will enable everyone to participate in the knowledge economy.

The European Union has a comprehensive framework of essential minimum standards of employment regulation and social protection to safeguard the core rights of employees in the modern workplace. UK and Portugal believe that further progress can be best made at EU level through the voluntary spreading of good practice. These should reflect the importance of flexibility, adaptability, diversity in working patterns and care for worklife balance as keys to the delivery of a more responsive and inclusive labour market.

To this end, their respective Ministries will further develop constructive relations and co-operation to share experiences of good practices and in particular commit to holding an annual high-level seminar and to ongoing technical cooperation, focusing in the first instance, on:
• the particular organisational challenges according to company size;
• flexible working and promoting work-life balance;
• better implementation and enforcement of national and EU employment legislation;

Signed in London, 20 May 2003

Luís Pais Antunes
Secretary of State for Labour

Alan Johnson
Minister of State for
Employment Relations,
Industry and the Regions