Georg Fischer European Commission The European Social Policy debate EUROPEAN COMMISSION DG Employment and Social Affairs

Drivers of Change in EUROPE 1 1. Globalisation and Migration 2. Enlargement and Integration 3. Society: individualisation 4. Ageing: higher dependency ratios

Shares of world trade in Goods (exlc. intra EU-25 trade) Drivers 3 Source: WTO statistical database and IMF (DOTS).

Foreign Direct Investment relative to Domestic Production, 1990 and 2002 Drivers 6

Distribution of the Population per age group in the EU 25 ( ) 1 general

EU25: Distribution of the population per age and household type (B1) Source: Eurostat Demographic Statistics (2001 Census Round) Drivers 2

Drivers of Change in EUROPE 2 Consequences Less scope more need for social policy? Less resources for social policy? More or less support in population? More or less scope for European action?

Drivers of Change in EUROPE 3 Policy options Protection and isolation: not an option for Europe ! Liberalisation and reduction of standards: A solution for Europe ?

Drivers of Change in EUROPE 4 Policy options Promote Adjustment and social justice: Difficult reforms and policy balance Understanding and transparency Involve those affected

Key Policy Issues Labour market reform Pension reform Health care, long-term care From Poverty Relief to Social Inclusion

Key Policy Issues: Pension System reform + = Strengthen Contribution-Benefit link Gender equality in systems Credit for periods of care Promote employment of older people Fighting age discrimination

Ageing 5

Ageing 3

Old age dependency ratio Ratio 60+ / %58%80% Ratio 65+ / %39%58% Ratio 70+ / %25%40% Note : EU25. Source : Eurostat 2005 demographic projections. 7 general

Older workers employment (55-64) 4 general

Key Policy Issues : Health care, long-term care Reduce health inequalities Choice and competition but Strengthen care coordination within and across care systems Long-term care systems Prevention and autonomy

Key Policy Issues: Social Inclusion Adequate income provision Inclusive labour markets Access to education and training - to public services and housing Address multiple disadvantages A policy for ethnic minorities Address intergenerational poverty

Effects of taxes and transfers in reducing relative income poverty among the working-age population Source: Calculations from OECD questionnaire on distribution of household incomes. poverty 5

Relative poverty among the working-age population and social spending, 2000 Note: Social spending is defined as public social spending excluding health, old-age and survivor benefits, as a share of GDP. Poverty rates are measured with respect to a threshold set at half of the median equivalised household disposable income. Exact years are those specified in the note to Table 1. Source: OECD Social Expenditure database and data from the OECD income distribution questionnaire. poverty 6

Poverty 3

Long term unemployment 3 general

Key Policy Issues: Involve Civil Society Essential for successful Policy development and Implementation Community base of policy Dialogue not allocation of tasks

Three policy lines: Participation in employment/society Activation : work and autonomy Preventive rather than curative action ……. Education and Training are crucial

European Social Policies 1: Common Objective on high levels of social protection and employment Treaty of Rome 1957: Equal Pay for women and men Free Movement of workers

European Social Policies 1b: Economic Integration leads to deepening labour and social policy: Health and safety in the work place incl. working time European works councils European social dialogue Antidiscrimination beyond labour market

European Social Policies 2: Policy Coordination: Common objectives Policy review and Peer Pressure Mutual Learning

EU measures: European Market needs European Standards: pension and health Cross country migrants: accumulation of rights and portability European Social Policies 3:

European Social Policies 4 Solidarity: Financial Solidarity: European Social Fund New Globalisation Fund?

European Social Policies 4: European Social Fund Financial Instrument to support employment and social cohesion 60 Billion EURO for Priority in poorer countries but support in all countries

Questions for discussion Less scope more need for social policy? Less resources for social policy? More or less support in population? More or less scope for European action?

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European Social Policies 8: Policy Coordination Employment Policy Coordination Social Protection/Social Inclusion Open Method of Coordination Role of Member States and European Union 2005: “Strategy for Growth and Employment”

European Social Policies 9: Antidiscrimination 1999: introduction of a new legal basis to tackle discrimination on grounds of racial or ethnic origin, religion or belief, disability, age and sexual orientation (Article 13 TEC) 2000: adoption of two Directives and a Community action programme to combat discrimination

European Social Policies 10: Antidiscrimination Ban on racial discrimination covers employment, training, education, social protection, access to goods and services. Specialised bodies to assist victims of racial discrimination Commission taking legal action against several MS for late/incomplete transposition

EU action to tackle anti-Semitism EU financial support for European Network Against Racism & various projects EU Monitoring Centre against Racism and Xenophobia (Vienna) Proposed EU-wide criminal sanctions for racism and xenophobia (Framework Decision, currently blocked in Council)

Health 2

Health 3

Health 4

Employment 1

Employment 2

Employment 3

Employment 4

Employment 6

General 1

General 2

General 3

General 4