Social Europe ETUC Social Protection Working Group 24 September 2013 Egbert Holthuis DG Employment, Social Affairs and Inclusion

Social Europe Unemployment rates in Europe and the US Source: European Commission

Social Europe Striking North/South Divide Unemployment rates (%)

4 The number of Europeans living at risk of poverty or social exclusion has increased to 120 million people (24.3% of the EU-28 population) Population at risk of poverty or social exclusion*, 2011 At risk of poverty 84 Mio Severely materially deprived 44 Mio Jobless households 39 Mio At Risk of Poverty Severe Material DeprivationJobless Households Material deprivation prevails in BG and RO Source: European Commission * People at risk of poverty or social exclusion are at least in one of the following three conditions: at-risk-of-poverty, severely material deprivation or living in a jobless household.

Social Europe A Social Investment Approach Developing human capital gives people the skills and capabilities to participate in society Empowering and support people in crucial stages of their lives, starting in childhood Prevention keeps larger economic and social costs from arising in the future

Social Europe Social Investment Framework: 3 Integrated Pillars 1. Increase the sustainability and adequacy of social systems through simplification and better targeting 2. Pursue activating and enabling policies through targeted and more effective support 3. Social Investment throughout the individual's life

Social Europe 1. Increase the sustainability and adequacy of social systems through simplification and better targeting Better targeting policies on benefits/services that yield higher returns Simplify administration for benefits/services to facilitate user access and reduce administrative burdens Increase efforts to reduce fraud and error Identify good practices on how efficiency of social spending can be raised.

Social Europe Room for efficiency gains in social protection spending

Social Europe 2. Pursue activating and enabling policies through targeted, conditional and more effective support 1.Integrating benefits and services to enhance people's capacity to participate in the social and economic life of society.  Help prepare for (re)entry into the labour market  Create incentives and remove disincentives for labour market participation  Promote inclusive labour markets  Provide adequate income support

Social Europe Areas in which Member States have improved access to services for the most disadvantaged a. employment and training AT, BE, BG, CY, CZ, DK, EE, FI, FR, DE, EL, IE, IT, LV, LU, MT, NL, PL, PT, RO, SK, SI, ES, SE, UK b. social assistanceDK, FI, LT, LU, RO c. healthLV, LT, RO, SI d. transportationBE, AT e. housingAT, BE, BG, DK, FR, LT, LU, RO, SI, ES f. ChildcareAT, CY, HU, LU, MT, PL g. BankingCZ, DK h. otherEE (in-kind benefits), IE (education), IT (social card), PT (in kind benefits/ associated rights), UK (school meals for children). Source: Country Surveys on Implementation of Active Inclusion Strategies

Social Europe 3. Social investment throughout the individual's life Target policies to the various risks that people face during different stages of their lives, which often compound over time. Investing as early as possible is the best way to break intergenerational cycles of disadvantage and ensure that people live up to their full potential Policies to address child poverty, including early child education and care (ECEC) Youth guarantee schemes Lifelong learning Active ageing

Social Europe The earlier you invest, the higher the returns Source: Heckman (2008)

Social Europe Influence of pre-primary education policies on PISA results, 2009 Source: OECD (2012)

Social Europe The Social Investment Package Social Investment for Growth and Cohesion - including implementing the ESF (COMM) Investing in Children - Breaking the Cycle of Disadvantage (REC) Evidence on Demographic and Social Trends – Social Policies' Contribution to Inclusion, Employment and the Economy (SWD) Follow-up on the implementation by Member States of the 2008 European Commission Recommendation on Active Inclusion of People Excluded from the Labour Market (SWD) 3 rd Biennial report on Social Services of General Interest (SWD) Long Term Care in Ageing Societies – Challenges and Policy Options (SWD) Confronting Homelessness in the EU (SWD) Investing in Health (SWD) Social Investment through the European Social Fund (SWD)

Social Europe European Semester

Social Europe The Commission on social investment and the ESF “The ESI Funds, in particular the ESF, … are important instruments for the Member States in implementing the strategy set out in the Social Investment Package.” “Member States are urged to duly take into account the social investment dimension in the programming of the EU funds and the ESF in particular for the period ” “The Commission will actively support Member States in their programming based upon the guidance contained in this Package...”

Social Europe The Council on social investment and the ESF “EU financial resources can act as a direct support to Member States in undertaking certain activities and indirectly as a catalyst in improving national policies with the practical implementation of the social investment concept". “This support should be delivered through existing EU funds, notably the European Social Fund, and reinforced by forthcoming operational policy guidance.”

Social Europe Key inputs for each area of potential ESF support - Employment guidelines Country-Specific Recommendations - draft ESF and ESIF Regulations - Social Investment communication and ESF annexe - Other relevant policy (e.g. Employment Package, Youth Employment Package)

Social Europe Thank you for your attention!