15. Notes that undeclared work represents an important issue in the retail sector, entailing high social risks and low income for workers, who are excluded from health coverage and social benefits, adversely affecting the economies of the Member States and the financial viability of the European social model, and undermining the funding and distribution of social benefits and public services; observes with concern the understaffing of employment authorities in many Member States; calls for a proper implementation of existing social and labour legislation and increased labour inspections, where needed; welcomes the Commission’s initiat ...[+++]ive to engage in dialogue with stakeholders in the retail sector, under the European Platform to fight undeclared work, to assess the impact of the informal economy on working conditions and to identify an EU approach to combat it; considers that it would be desirable for employers’ associations to expel employers who use undeclared employees;

1. Notes the importance of the retail sector, which accounts for almost 15 % of the EU’s total employment, skilled as well as unskilled, and in particular its importance for young people; acknowledges the Commission’s approach based on the belief that facilitating mobility could assist the growth of the sector, but stresses that cross-border job placement alone should not be regarded as a way out of the crisis; notes as well that 29 % of all EU enterprises, including a very high share of SMEs, are engaged in this sector; considers, ...[+++] also, that traditional trades have suffered in recent years and that measures are needed to bolster and promote quality employment in this sector;

3. Welcomes the Commission’s intention to create a permanent Group on Retail Competitiveness, but emphasises the importance of balanced representation, including, inter alia, of both big and small retailers, suppliers, co-operatives and consumer, environmental and social interest groups; calls on the Commission to take a holistic approach to retail, avoiding duplication and extra bureaucracy, and to ensure coherence and close co-ordination with other existing fora, such as the yearly Retail Market Roundtable;

A. whereas the importance of the retail market can hardly be over-estimated, since it represents 11 % of EU GDP and delivers more than 15 % of all jobs in Europe, including both skilled and unskilled labour, and contributes to the social fabric of society;

While the Synthesis Report contains the key messages which the Commission addresses to the Spring European Council, this Communication presents in more detail the implications of such messages as regards employment policy.

The draft Joint Employment report, which is part of the implementation package, gives a detailed account and evaluation of the measures and initiatives implemented by Member States in response to the 2002 European Employment Guidelines and the country specific employment recommendations.