Hrvoje Butković Economic Policy Guidelines(BEPGs) forming the Integrated Guidelines for Growth and Jobs(IGs) which are set for a three-year period. European Employment Strategy(EES)/ Luxembourg Process The European Employment Strategy(EES) also known as the Luxembourg Process represents an action and development plan launched in 1997 at the Luxembourg Jobs Summit on the basis of the new provisions in the employment title of the Amsterdam Treaty. The EES represents an employment pillar of the Lisbon Strategy. Its ambition was to achieve decisive progress within five years. An extensive evaluation of the first five years was carried out in 2002 emphasising the need to revamp the EES with a view to aligning it more closely to the Lisbon goals which occurred with new simpler guidelines in 2003. The EES is an annual programme of planning, monitoring, examination and readjustment of policies put in place by member states to coordinate the instruments they use to tackle unemployment. Until the re-launch of the Lisbon Strategy in 2005 the EES was based on four components: Employment Guidelines(EGs)- common priorities for member states' employment policies drawn up by the Commission; National Action Plans(NAPs) for employment ­implementation of the EGs at national level; Joint Employment Report ­summary of the NAPs for employment to be used as a basis for drawing up the following year's EGs; and recommendations- country-specific recommendations adopted by the Council by a qualified majority. The relaunch of the Lisbon Strategy in 2005 led to a thorough review of the EES. Since then the EES is based on four components: the Integrated Guidelines for Growth and Jobs(IGs)- the guidelines for employment are now presented jointly with the guidelines for the EU's macroeconomic and microeconomic policies; the National Reform Programmes(NRPs) for each country; the Commission's Annual Progress Report on Growth and Jobs; and any recommendations adopted by the Council. Flexicurity Flexicurity(originating from flexibility and security) is a welfare state model, a mix of flexibility and social security, combining job security, an active labour market, and the social policies and skills needed for a knowledge economy. The model is a combination of easy hiring and dismal(flexibility for employers) and high benefits for the unemployed(security for the employees). It was first implemented in Denmark by the social democratic Prime Minister Poul Nyrup Rasmussen in the 1990s. In context of the Lisbon Strategy flexicurity is a case of 176