During the Employment Council in Luxemburg on 8th/9th June 2009, the ministers of the 27 Member States were not able to agree that the different social security systems would apply to third country nationals, who are regularly staying within the EU and who are in a cross-border situation (for example: an employee works in Austria and his children study in France.

The EU Ministers for Finance and Economic Affairs met in Luxembourg at the beginning of the week to debate the future of financial supervision in Europe and the current economic situation.

The European Trade Union Confederation (ETUC), in cooperation with the European Trade Union Institute (ETUI), organised a workshop on taxation against the background of the financial and global economic crisis. The objective of the discussion was among others to make recommendations to stem the Casino capitalism and to find methods for a fair taxation.

The Council of Ministers for Employment and Social Affairs in particular served the purpose of preparing the European Council on 18th/19th June, whose aim it will be to formulate solutions and strategies respectively against the rapidly increasing unemployment in Europe. The basis for the discussion among others was a Commission Communication on the demographic challenges facing the EU. Making forecasts about increased age-related government expenditure for the year 2060, the Commission uses its Communication to demand budget discipline and structural reforms.

On 3rd July, the European Commission presented the Communication “Joint Engagement for Employment”. The Communication goes back to the last EU employment summit and is supposed to counteract the impact of the financial crisis on the labour markets. The Commission proposal in particular includes bringing forward payments of ESF funds, a new EU lending facility and the propagation of better framework conditions for companies.

On 27.5.2009, the European Commission in Brussels organized a public on the harmonisation of solvency rules applicable to Institutions for Occupational Retirement Provision (IORPs). The objective of the hearing was to draw the first conclusions from the public consultation carried out in 2008. There is still no clear indication of the Commission, as to what further action should be taken.

As a further consequence of the financial crisis, the European Commission presented its plans for restructuring the Financial Supervision within the EU on 27th May. Compared to the modest Directive on Regulating Hedge Funds and the toothless recommendation for manager salaries, the current proposal is definitely far-reaching.

In cooperation with its members (among others the Association for Consumer Information and the Austrian Federal Chamber of Labour), the European Consumers' Organisation BEUC has started an initiative for a pact between consumers and (future) members of the European Parliament, who have put themselves forward for election.

For years, the comprehensive regulation of hedge funds and private equity funds had topped the list of demands of the European Parliament and labour representatives. Following years, during which the Commissioner in charge Charlie McCreevy, had bowed to the pressure of the finance lobby and prevented any form of European regulation, a respective initiative of the Commission came at last within reach during the course of the financial crisis. In Brussels, the time had finally come this week.

As another measure against the financial crisis, the Commission published on 29th April 2009 two proposals for remuneration systems in listed companies and in the financial industry. These proposals should make the “golden handshakes” for failed managers redundant and should counteract the short-term actions of the financial industry.