Europe 2020 : EAPN SIWG Capacity Building May 2011

Outline 1.Europe 2020 in a nutshell 2.The new poverty target - will it deliver? 3.National Reform Programmes and the Economic Semester 4.Flagship Platform against Poverty 5.Agenda for Skills and Jobs 6.Role of Structural Funds 7.EAPN Action and Way Forward

 Smart, sustainable and inclusive growth  Europe 2020 – 5 overarching targets, including: - Achieving 75% employment rate - Reducing people in poverty and social exclusion by at least 20 million  Other objectives: increase R&D spending; climate change / energy targets; reduce school leavers  Guidelines reduced from 27 to 10 – specific Guideline 10 on poverty and social exclusion (under Employment)  Delivered through National Reform Programes with national targets  Monitored by Commission / Council with Recommendations  7 Flagship programmes – European Flagship Platform against Poverty, Agenda for New Skills and Jobs, Youth on the Move EUROPE 2020 – in a nutshell

 Poverty target, guideline, flagship initiative, SF support for inclusion - a major achievement  But overarching EU economic governance strategy likely to undermine it: reducing deficits through cuts & wage restraint  Flagship Platform against Poverty potential to move beyond social policy, make progress on integrated active inclusion, child poverty, homeless strategies, social innovation….  Flagship on Skills and Jobs potential to support job creation, upskilling and lifelong learning, quality jobs…  But weak commitment to Social Europe beyond Growth and Jobs…  Unclear role of Social OMC and National Strategic Reports; complex new indicators taking focus off relative poverty and inequality  Low commitment to participation / governance in NRP: national and EU NGOs and People experiencing poverty despite Recital 16.  Will it reduce poverty, social exclusion and inequality? EUROPE 2020 – Key Concerns

From Lisbon to Europe 2020 – failure of trickle down theory….  2000 Lisbon Council objective: to make a decisive impact on the eradication of poverty by 2010  Social OMC – the tool to coordinate national action, but lacked political will to deliver.  2008 :16% at risk of poverty (same 2000), children (20%) older people (19%), single parents (34% )  Despite years of economic growth and high employment, poverty levels not reduced.  The crisis and fiscal austerity measures are likely to increase poverty.  Europe 2020 – a break with the past or more of the same ?

In-work poverty also remained stable at 8%. The risk of poverty of the unemployed is much higher and was even on the rise, highlighting concerns about the adequacy of safety nets. At-risk-of poverty rates by groups, EU, Despite economic and employment growth poverty was not reduced before the crisis

New EU Poverty Target  Reduce poverty by lifting at least 20 million people out of poverty and social exclusion  Based on 3 indicators : 1)At risk of poverty (60% of median income) 2)Severe material deprivation (4 out of 9 deprivation factors) 3)People living in households with low work intensity (jobless households).

120 Million people (114) at risk of poverty or exclusion 80 Mio people at risk of poverty 40 Mio people materially deprived 40 Mio people in workless households Million people People at-risk-of-poverty 80 + Those materially deprived, not at-risk-of-poverty 22 + Those living in a workless household, not at-risk-of-poverty, not deprived 1818 Total: People at-risk-of poverty or exclusion 120

81 million at risk of poverty At-risk-of-poverty rate, total, by age and by employment status; EU-27 The risk of poverty threshold is set at 60 % of the national median equivalised disposable income (after social transfers). Source: EU-SILC

42 million face severe material deprivation Source: Eurostat Severely materially deprived persons; Percentage of total population, 2008 People are considered « severely materially deprived" if they experience at least 4 out of 9 deprivations: people cannot afford afford i) to pay their rent or utility bills, ii) keep their home adequately warm, iii) face unexpected expenses, iv) eat meat, fish, or a protein equivalent every second day, v) a week of holiday away from home once a year, vi) a car, vii) a washing machine, viii) a colour tv, or ix) a telephone.

34 million live in jobless households Source: Eurostat Persons living in households with very low work intensity, 2008 People aged 0-59 living in households where the adults work less than 20% of their total work potential during the past year.

EAPN Concerns on Target  Too low a target  Danger of creaming those easiest to help  Confusing indicator could undermine priority given to poverty and full set of OMC indicators  Risk only focus on jobless households  Lack of ambition of national targets – only 15 million so far….  Target only important if gets the backing of the right policies (social, economic and employment) and backed by adequate funding.

Governance of the Europe 2020 strategy Fiscal surveillance Macro-economic surveillance Thematic surveillance Europe 2020 Integrated Guidelines (IG) Europe 2020 five headline targets Stability and Growth Pact National Reform Programmes Stability and Convergence Programmes Commission’s Annual Growth Survey EU annual policy guidance and recommendations EU flagship initiatives and levers National level EU level

EU tools in support of the Europe 2020 strategy Single market relaunch Trade and external policies EU financial support EU levers for growth and jobs EU flagship initiatives EU monitoring and guidance Macro, thematic and fiscal surveillance Annual Growth Survey Annual policy guidance Innovation Union (Sept. 2010) New Skills and Jobs (Nov. 2010) Digital Agenda (May 2010) Youth on the Move (Sept. 2010) New Industrial Policy ( Oct. 2010) Platform against Poverty (Dec. 2010) Resource Efficiency (Early 2011)

Europe 2020 – new timeline  January – Annual Growth Survey  March - Spring European Council reviews bottlenecks to growth and provides guidance to Member States  Mid April – MS Present NRP based on Commission Guidance.  End May-June – Commission present country-specific recommendations  June – ECOFIN and Sectoral Councils adopt policy recommendations, with European Council  Autumn – MS to finalize national budgets and policy measures and implement their NRPs

NRP Content The NRP consists of 4 main elements: 1.Macro-economic surveillance – debt/imbalances/growth 2.Macro-economic situation and context 3.Thematic Coordination  review of targets,  Policy measures to deliver based on guidelines  use of Flagship initiatives  budgets allocated (Structural Funds and N)  Identifying bottlenecks to growth. 4.Participation, Communication and Good Practice – how stakeholders involved, communication plan and highlighting good practices.

But fiscal surveillance and economic governance is main driver ….  Economic semester – EU economic management system (6mth) followed by 6 month national implementation  Package proposed Sept 2010 – 6 regulations to be agreed by June 2011:reforming SGP, new process surveillance of macro-economic imbalances/enforcement mechanisms  Stability and Growth Pact (3% debt) now reinforced with new mechanisms – sanctions against MS who don’t reduce  Focus on reducing macro-economic imbalances/fiscal restraint through reducing wages, raising pension ages, reducing deficits through cuts  Major democratic deficit – no accountability as European Council drives neo-liberal response to the crisis.

EAPN Concerns on NRP  NRP driven by economic governance agenda  Written by finance/economic dept with low role for social ministries  Minimal section on poverty/ overly strong focus on employment solutions  Limited governance and participation of NGOs – 14 EAPN networks invited, 6 more made inputs but little impact or feedback  Risk to rely only on NRP - need separate Social OMC/National Reports on social protection and social inclusion to prepare NRP.

Commission’s proposals on European Flagship Platform on Poverty New European Framework for “social and territorial cohesion ”, “ensure benefits of growth and jobs are widely shared’ - tackling multiple dimension of poverty and exclusion, life cycle, severe exclusion, new risks. 5 Lines of Action 1) Delivering actions across the policy spectrum – active inclusion, education/migration/ anti-discrimination, social impact assessment 2) Greater and more effective EU funds to support social inclusion – ESF to deliver poverty target, microfinance, global 3) Promoting evidence-based social innovation – social experimentation – possible focus on Minimum Income 4) Working in partnership and harnessing potential of social economy – supporting exchanges in thematic fields 5) Enhanced policy coordination among Member States – role of SPC and OMC reviewed in 2011, after 1 st European Semester

EAPN Response to EPAP EAPN welcomes:  Idea of dynamic European Framework engaging all actors  Recognition of need to mobilise all policies  Building on Social OMC – with progress on key thematic priorities – active inclusion, child poverty, homelessness  Social economy and social innovation- tools for inclusion  Targeting of EU Funds on inclusion with specific support to engage NGOs in active inclusion projects

But is concerned about…. 1.Lack of focus on inequality and discrimination 2.Weak rights-based approach and mainstreaming 3.Lack of concrete actions on social rights – implement Active Inclusion – adequate minimum income guarantee 4.Weak governance and unclear role of the Social OMC 5.Employment alone no guarantee against poverty – develop a strategy in-work poverty and for quality jobs 6.Social Innovation useful but should not replace existing solutions that work – support social economy 7.How EU funds will be on poverty and ensure NGO engagement in development, delivery and evaluation.

EU Agenda for Skills and Jobs  Builds on 2008 New Skills for New Jobs communication  4 pillars: skills upgrading and matching demand needs, flexicurity, job creation and improvement of working conditions EAPN Response:  Positive elements: references to social protections, job creation, improved security, positive activation, lifelong learning, involvement of stakeholders, but:  Need to mainstream inclusive growth, promote social impact assessment and prevent austerity cuts from endangering employment/training  Invest in active inclusion, job quality beyond working conditions and ensuring equal access to skills, and training leads to decent work,  Engage stakeholders and use EU fund to ensure delivery on social targets – inclusive employment and social inclusion.

New proposals to refocus Cohesion on Europe 2020 Strategy priorities and in NRP New conditionalities and incentives to be introduced to get more results Flagship Platform against Poverty gives strong role for SF to deliver on inclusion and to simplify access for small NGOs EAPN View  Want a comprehensive/integrated delivery on social targets – particularly poverty  Make social inclusion and fight against poverty a binding priority, primarily through active inclusion  Strengthen links with Structural funds as new Social OMC and Reports  Make the partnership principle a binding requirement– availability of global grants and technical assistance at EU and national level.  Set up a social conditionality and incentive system aiming at ensuring progress on targets. Role of Structural Funds

EAPN ACTION  Shaping EU2020: EU we can trust/Spring Alliance  Lobbying on Poverty target, Guidelines, Flagship Platforms (Poverty, Skills and Jobs), NRP..  Raising alarm about economic governance undermining social rights and commitment to poverty target  Defending the Social OMC – national reports based on Common Objectives involving NGOs and PEP.  Pressing for good governance and engagement of national networks in NRP/flagships  Lobbying for adequate funding support and access for NGOs to follow target – Structural Funds, Progress, etc.  Preparing a review of first full NRP with members

What next on Europe 2020? EAPN Strategy. 1)Engaging and reviewing the National Reform Programmes –Engaging at national level in developing NRP –Reviewing together the results and process 2)Shaping and engaging with Flagship Initiatives (N and EU) –EU Platform v Poverty platform + a strong Social OMC –Agenda for skills and jobs –Structural Funds/ Progress for social inclusion/ NGO access 3)Challenging the paradigm/overall approach –Lobbying/campaigning on overall approach of Europe 2020 – progress to reduce poverty/role in generating poverty/inequality –Lobbying on Financial Framework and future of Cohesion –Alliances to develop an alternative approach

Building cooperation in the fight against poverty