The Lisbon European Council of 23 and 24 March 2000 incorporated the promotion of employment and social inclusion as an integral part of the overall strategy of the Union in order to achieve its strategic goal for the next decade of becoming the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth, with more and better jobs and greater social cohesion. It set ambitious objectives and targets for the Union aiming to recreate the conditions for full employment, improve quality and productivity at work, and promote social cohesion and an inclusive labour market. Furthermore, the strategy was focused upon again by the Brussels European Council of 22 and 23 March 2005.

In line with the Commission's express intention of consolidating and rationalising Community funding instruments, this Decision should establish a single and streamlined programme providing for the continuation and development of the activities launched on the basis of Council Decision 2000/750/EC of 27 November 2000 establishing a Community action programme to combat discrimination (2001 to 2006)4, Council Decision 2001/51/EC of 20 December 2000 establishing a Programme relating to the Community framework strategy on gender equality (2001-2005)5 and European Parliament and Council Decisions No 50/2002/EC6 of 7 December 2001 establishing a programme of Community action to encourage cooperation between Member States to combat social exclusion, No 1145/2002/EC7 of 10 June 2002 on Community incentive measures in the field of employment and No 848/2004/EC8 of 29 April 2004 establishing a Community action programme to promote organisations active at European level in the field of equality between men and women, as well as those activities undertaken at Community level in relation to working conditions.

The Extraordinary European Council on Employment in Luxembourg of 20 and 21 November 1997 launched the European Employment Strategy to coordinate Member States' employment policies on the basis of commonly agreed employment guidelines and recommendations. The European Employment Strategy is now the most important instrument at European level for implementation of the employment and labour market objectives of the Lisbon Strategy.

The Lisbon European Council concluded that the number of people living below the poverty line and in social exclusion in the Union was unacceptable and therefore deemed it necessary to take steps to make decisive progress in the eradication of poverty by setting adequate objectives. Such objectives were agreed by the Nice European Council of 7, 8 and 9 December 2000. It further agreed that policies for combating social exclusion should be based on the open method of coordination, combining national action plans and a Commission initiative for cooperation.

Demographic change represents a major long-term challenge to the ability of social protection systems to deliver adequate pensions and high-quality health and long-term care which are accessible to all and can be funded in the long term. It is important to promote policies that can achieve both adequate social protection and the sustainability of social protection systems. The Lisbon European Council decided that cooperation in this area should be based on the open method of coordination.

Attention should be drawn to the specific situation of migrants in this context and also to the importance of taking action to transform undeclared work into regular employment.

Ensuring minimum standards and the constant improvement of working conditions in the Union is a central feature of European social policy and an important overall objective of the European Union. The Community has an important role to play in supporting and complementing Member States' activities in the fields of workers' health and safety, working conditions, including the need to reconcile work and family life, protection of workers where their employment contract is terminated, information, consultation and participation of workers, and representation and collective defence of the interests of workers and employers.

Non-discrimination is a fundamental principle of the European Union. Article 13 of the Treaty provides for action to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation. Non-discrimination is also enshrined in Article 21 of the Charter of Fundamental Rights of the European Union. The specific features of the diverse forms of discrimination should be accommodated, and appropriate action developed in parallel to prevent and combat discrimination on one or more grounds. Therefore, when considering the accessibility and results of the Programme, the particular needs of people with disabilities should be taken into account in terms of ensuring their full and equal access to the activities funded by this Programme and the results and evaluation of those activities, including the compensation of additional costs that they incur as a result of their disability. Experience gained over many years of combating certain forms of discrimination, including discrimination based on sex, may be useful in combating other kinds of discrimination.

On the basis of Article 13 of the Treaty, the Council has adopted the following directives: Directive 2000/43/EC of 29 June 2000 implementing the principle of equal treatment between persons irrespective of racial or ethnic origin which prohibits discrimination based on racial or ethnic origin9 in, inter alia, employment, vocational training, education, goods and services and social protection, Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal treatment in employment and occupation10 which prohibits discrimination in employment and occupation on the grounds of religion or belief, disability, age and sexual orientation, and Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services11.

Pursuant to Articles 2 and 3 of the Treaty equal treatment for men and women is a fundamental principle of Community law. The directives and other acts adopted on the basis of this principle play a major part in improving the situation of women in the Union. Experience of action at Community level has shown that promoting gender equality in Community policies and combating discrimination in practice call for a combination of instruments, including legislation, funding tools and mainstreaming, designed to complement one another. In accordance with the principle of equality between men and women, gender mainstreaming should be promoted in all sections and activities of the Programme.

Many non-governmental organisations (NGOs) active at various levels can make an important contribution at European level through key networks which assist in changing policy orientations relating to the general objectives of the Programme.

Since the objectives of this Decision cannot be sufficiently achieved at Member States level because of the need for exchange of information at European level and the Community-wide dissemination of good practice and since therefore these objectives can, by reason of the multilateral dimension of the Community actions and measures, be better achieved at Community level, the Community may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in that Article, this Decision does not go beyond what is necessary to achieve those objectives.

This Decision lays down, for the entire duration of the Programme, a financial envelope constituting the prime reference, within the meaning of point 37 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management12, for the budgetary authority during the annual budgetary procedure.

The measures necessary for the implementation of this Decision should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission13.

As the Programme is divided into five sections, Member States may provide for the rotation of their national representatives according to the subjects addressed by the Committee assisting the Commission,