ATTEMPTS by the President of the European Commission, Mr Jacques Santer, to lay the basis for a Europe wide "Confidence Pact for Jobs", similar to the PCW, between governments, employers, and unions, took its first tentative steps in Brussels yesterday.

The conference, which continues today behind closed doors, embraces representatives of unions and employers from all the member states. It will be attended by the Irish Commissioner for Social Affairs, Mr Padraig Flynn.

EU unemployment has reached 8 million. Mr Santer argues that the challenge of tackling the problems of reconstructing labour markets, reducing government payroll costs and stimulating employment must be done on a partnership basis.

There will inevitably be concern from unions that willingness to show moderation in pay and flexibility at work will not be matched by real commitment from employers and governments on the jobs' front. Despite corporate profitability running at 30 year highs, many large firms have warned that growth will not necessarily lead to more hiring.

Some Commission sources suggest that there is more hope for job creation in stimulating the small business and the voluntary sectors.

Last week, German unions reacted with anger to Chancellor Helmut Kohl's decision to bypass consultations in implementing new austerity measures - yet in Germany the concept of social dialogue is probably the most advanced in Europe.

At the conference Mr Santer argued that workers' fears could be overcome only if the approach were global.