durably higher employment.In this context, the European Council welcomes the statement on the international economic situation made by Finance Ministers on 15 June (Annex I).

10.After 1 January 1999 it will be important to strengthen this process further.The Broad Economic Guidelines must be an effective instrument for surveillance, coordination of economic policies, and for promoting sustained convergence.

11.Economic policy should focus on promoting growth and employment and on securing macro-economic stability and efficient working of labour, product (goods and services) and capital markets.The European Council welcomes the decision by the Council to establish a light procedure under which Member States and the Commission will produce short year-end reports within their areas of competence on product and capital markets.This procedure will fully respect subsidiarity, help exchange best practice and complement the information already available in national employment plans and other existing reports.The European Council also welcomes the Commission's proposal to produce a report on structural issues and policies drawing on this material for consideration by the ECOFIN and other formations of the Council.

ACTION FOR EMPLOYMENT

12.An enterprising and inclusive society needs to give all citizens, particularly the young and long-term unemployed, the opportunity to work and to contribute to broader economic and social development.For the first time, all 15 Member States have submitted Employment Action Plans as agreed at the Luxembourg European Council.From the initial assessments of the Action Plans by the Commission and the Council it is clear that Member States are:

Making serious efforts to enhance the employability of the active population, in particular of the young and long-term unemployed, and of women ;actively promoting the development of skills and lifelong learning ;seeking to improve conditions for SMEs and the self-employed ;taking measures to promote work as opposed to dependence.

13.The European Council welcomes this progress and urges the Member States to proceed with the practical implementation of the Action Plans as speedily as possible, allowing for continuing evaluation and updating.

14.The Social Affairs and ECOFIN Councils should continue to work together to exchange best practice, to develop peer group evaluation of Member States' Action Plans and to consider the 1999 Employment Guidelines in preparation for the Vienna  

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