Lisbon process and employment policies through European Union's social dimension

The European Union is a supranational organization established primarily foreconomic purposes. Social policy and employment issues within the organization were left tomember countries? disposal and no significant decisions were made related to social issues atthe union level until 1990s. With the increase of social issues after 1970s, social dimensionhas become a matter of primary importance in the EU. Social regulations gained paceparticularly in the 1990s and European Union formed a special ?European Social Model?according to the Union?s values and targets.The European Social Model is an approach based on high level social protection, jobsecurity and high salary. Stability and reconciliation atmosphere were established until theend of 1980s. As a result of the welfare losses with the globalization, economic growthstopped, inflation rose and unemployment rates reached to the highest levels in the recentyears. In addition, high labor costs stemming from social protection paved the way for thearguments on that the union is inefficient in creating employment and can not compete withflexible labor markets. As a result of these developments, the European Union faces the needof revising its social model in response to increasing competition and change in the goods andservices market.In this study, European Union?s new understanding change in its employment policiesto increase competition power and to secure social values is examined. In this context, theLisbon Summit has started an important process. Turning Europe into the most competitiveand dynamic knowledge economy, providing sustainable economic growth and reachingpotential full employment target by creating more employment opportunities are aimed at inten years. Besides, stressing the need for flexibility in labor markets with the summit, effortsto provide a flexibility ensuring job security in labor markets in order to adapt to changingworld conditions have been increased.Keywords: European Union, Employment Policy, European Social Model, LisbonProcess.