In June 2000, the Lisbon European Council set out an integrated and complementary strategy for achieving the three-fold aims of a knowledge-based economy, full employment and social inclusion. This triangular approach reflected the ongoing predominance of the European Social Model (ESM), and constituted the basis of the Social Policy Agenda adopted at Nice in December 2000, which was upheld as the right direction in the mid-term review of the Social Agenda in 2003.

A chief characteristic of this approach is the emphasis on quality – both quality of employment and quality of policies – supported by open and transparent processes. Quality also implies the commitment and involvement of different actors, in order to achieve the objective of a thriving knowledge-based economy, beginning at the local level. The quality of the interrelation between the local and territorial actors and their national or European-level representatives is an essential determinant of the quality and pertinence of decision-making and policy formulation at higher levels. The effective participation of territorial social partners, as with the national and European levels, in the various decision-making and implementation processes, depends on a well-functioning social dialogue. Social dialogue is an essential component of the European Social Model and, as such, is given specific recognition in the European treaties. Of the multifarious civil society players, the social partners hold a unique position, because they are best placed to address issues related to work and to negotiate binding agreements.