EAPN Seminar: 2010 and beyond – the legacy we want! Getting Progress on an EU without poverty and social exclusion Using EU instruments to support a fairer distribution of wealth - Promoting better indicators for progress / beyond GDP Håkan Nyman European Commission DG for Employment, Social Affairs and Equal Opportunities Unit E1: Demography and social analysis 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Development of new indicators Outline Outline Context Existing instruments Development of new indicators Indicators within the Open Method of Coordination (OMC) Beyond GDP Household wealth 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Aggregate wealth consist of both income and assets Context Context Aggregate wealth consist of both income and assets Fairly good picture of the distribution of income in the EU due to the Community Statistics on Income and Living Conditions (EU-SILC) Less is known about the distribution of household wealth 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Main tools for monitoring the Social Situation in the EU Existing instruments Main tools for monitoring the Social Situation in the EU The Social Situation Reports The Open Method of Coordination (OMC) Indicators Joint Report on Social Protection and Social Inclusion Other tools The Employment Committee Employment in Europe Reports Cohesion Reports Regional dimension 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

The Social Situation Reports Existing instruments The Social Situation Reports Joint DG EMPL and Eurostat annual publication Part 1: in-depth analyses on a specific theme: Social dimensions of geographical mobility Demographic challenges Intergenerational transmission of disadvantages Social participation Part 2: statistical portraits on various social dimensions including key indicators 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Income inequality, relative poverty, standard of living Existing instruments The OMC 14 overarching indicators (+11 context indicators) and of the three strands: Social inclusion Income inequality, relative poverty, standard of living Regional cohesion Labour market, Educational outcome Material deprivation (recently agreed) Housing (currently being discussed) Unmet need for care Child-well being (to be developed) Pensions Social protection systems Pension adequacy Health and long-term care Health outcome, inequality and access 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Development of better indicators Beyond GDP Economic indicators such as GDP were never designed to be comprehensive measures of well-being. Need to be complemented with other dimensions and distributional aspects Adequate indicators are needed to address global challenges such as climate change, poverty, resource depletion and health. 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Development of better indicators Distribution of household wealth: important information on household’s financial situation source of support during periods of low income (old age) a security for uncertainties in life The distribution of wealth may have as great an impact on social cohesion as income inequality Increasing wealth gap may lead to a divided society and may not be sustainable in the long run 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Development of better indicators Distribution of household wealth Data and research (1) Luxemburg Wealth Study (LWS) Harmonised national data on household level (AT, CY, FI, DE, IT, SE, UK + Canada, Norway and US) Survey of Health, Ageing and Retirement in Europe (SHARE) Research under the 6th and 7th FP Wave 1: AT, BE, DK, FR, DE, EL, IT, NL, ES, SE and Switzerland. Wave 2: + CZ, IE, PL Aim to include all EU countries (FI, HU, PT and SL are scheduled to participate) 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Development of better indicators Distribution of household wealth Data and research (2) The Eurosystem Household Finance and Consumption Survey (HFCS) household-level data on household finances and consumption The HFCS will cover the following household characteristics at micro level: demographics real and financial assets liabilities consumption and saving income and employment future pension entitlements, intergenerational transfers and gifts risk attitudes 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Development of better indicators Distribution of household wealth Data and research (3) Demographic change and Housing Wealth (DEMHOW) Research under the 7th FP investigate how the composition of wealth has changed with respect to changes in population, housing systems, state pension arrangements, and financial institutions. investigate how attitudes toward the acquisition of housing assets and their use  in old age are changing, particularly given that fewer people have children. identify past and future developments in financial markets, particularly in relation to equity release products identify past and future developments in national and EU public policies in relation to the growth of home ownership and the use of housing equity in old age. identify the characteristics of pension systems based on housing assets 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit

Development of better indicators Conclusions New and better EU indicators are being developed But the work is moving slowly Comparative data How to define the indicators 3-Dec-18 Directorate-General for Employment, Social Affairs and Equal Opportunities ─ Unit