1. EUROPEAN COMMISSION
DG Employment, Social Affairs and Inclusion
Europe 2020: Social policies
Walter WOLF
EU social inclusion policy coordination in the EU 2020 strategy and the European Platform Against Poverty and Social Exclusion Belgrade, 29 March 2011
Thanks
I very much welcome the opportunity to address your ... to share with you some ideas about the European Union’s approach to tackling poverty and social exclusion.

2. EU Social Inclusion Process
‘Open Method of Coordination’ (OMC)
Definition of common Objectives and agreed indicators
Reporting to national partners and to the EU (EC, Council, EP)
Facilitating mutual learning and exchange of good practices
EU and national poverty reduction targets

3. EU social protection and inclusion strategy Overarching Objectives
social cohesion, equality between men and women and equal opportunities for all through adequate, accessible, financially sustainable, adaptable and efficient social protection systems and social inclusion policies.
effective and mutual interaction between the Lisbon objectives of greater economic growth, more and better jobs and greater social cohesion, and with the EU's Sustainable Development Strategy.
good governance, transparency and the involvement of stakeholders in the design, implementation and monitoring of policy

4. The 2006 Social Inclusion Objectives
Making a decisive impact on the eradication of poverty and social exclusion by ensuring:
access for all to the resources, rights and services needed for participation in society, addressing exclusion, and fighting all forms of discrimination
the active social inclusion of all, both by promoting participation in the labour market and by fighting poverty and exclusion
that social inclusion policies are well coordinated and involve all levels of government and relevant actors, including people experiencing poverty, that they are efficient and effective and mainstreamed into all relevant public policies

5. Europe 2020 7 EU ’flagship initiatives’
’Smart, sustainable and inclusive growth’
7 EU ’flagship initiatives’
Smart: innovation, youth on the move digital agenda
Sustainable: resource efficiency, competitiveness
Inclusive: new skills and jobs, ’European Platform against Poverty’

6. Europe 2020 The 5 EU headline targets
75 % of aged employed
3% of EU's GDP invested in R&D
20/20/20 climate /energy targets
Early school leavers down to 10% and
30-34 with tertiary education up to 40%
Lifting 20 million people out of poverty and exclusion

7. At-risk-of poverty rates by groups, EU, 2005-2008
Despite economic and employment growth poverty was not reduced before the crisis
At-risk-of poverty rates by groups, EU,
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.

8. Possible gains in the efficiency of social transfers
Source: SILC 2008 & ESSPROS 2007

9. Gaps in social safety nets
In some countries 80% of longer term unemployed do not get any benefits poverty rate for unemployed is 44%

10. Impact of the crisis Expected GDP growth for 2010 remains modest
Unemployment > 10% and expected to stay high
Social expenditure (social protection, education and health) ~ 70% of public expenditure in EU
Social protection > 40% of public expenditure
Fiscal consolidation will affect social expenditure: a challenge for social polices aimed at addressing poverty and exclusion
The social situation is likely to further deteriorate and poverty is likely to increase.

11. Poverty reduction Target
EU level
“Lifting 20 millions people out of poverty or exclusion by 2020”
Based on 3 existing EU social inclusion indicators:
At-risk-of-poverty rate
severe material deprivation
people living in jobless households
National level
Member States are free to chose the most appropriate indicator to set their national target
Member States to show how they will contribute to meeting the EU level target, in dialogue with the Commission

12. Severe material deprivation
Definition: People whose living conditions are severely constrained by a lack of resources:
They experience at least 4 out of 9 deprivations:
people cannot 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
A non monetary measure of poverty
Based on a single European threshold – reflecting the disparities across the EU
It concerns 8.3% of the EU population varying from 1% in LU to 33% in RO
List of items to be reviewed in 2015

13. People in workless households
People (aged 0-59, not students) living in a family where no one works (or very little)
Reflects long-term exclusion from the labour market, for individual workers and the family members who depend on them
Strong link to child poverty and intergenerational transmission of poverty
It concerns approx. 8% of the total EU population, varying from 4% to 14%

14. 120 Million people at risk of poverty or exclusion
40 Mio people materially deprived
80 Mio people at risk of poverty
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 18
Total: People at-risk-of poverty or exclusion
120

15. Country A focusing on raising living standards
People materially deprived
People at risk of poverty
People in workless households

16. Country B focusing on labour market inclusion
People materially deprived
People at risk of poverty
people in workless households

17. Next steps National targets Monitoring of the target at EU level
Member States set their targets on the most appropriate indicators, given national circumstances and priorities
Monitoring of the target at EU level
Part of the monitoring of the 5 headline targets
Eurostat website

18. Candidate Countries
Expressed their interest to be associated to EU2020
Could serve as source of inspiration
Setting their own targets on the most appropriate indicators, given national circumstances and priorities
The Joint Social Protection and Social Inclusion Memorandum Process will prepare CC for their full participation in EU2020 upon accession

19. European Platform Against Poverty and Social Exclusion
Adopted on December 17, 2010
To support concrete and innovative actions and a broader involvement of stakeholders
Four main pillars:
Stepping-up Member States coordination to address common challenges
Promoting effective partnerships and the social economy
The fight against poverty beyond social policy
Community Funding in support of social inclusion

20. Five areas for action Delivering action across the policy spectrum
Making EU funds deliver on the social inclusion and social cohesion objectives
Developing an evidence-based approach to social innovation and reforms
Promoting a partnership approach and the social economy
Stepping up policy coordination between the Member States

21. Delivering action across the policy spectrum (1)
Enhancing access to employment and active inclusion of vulnerable groups
Communication on active inclusion, 2012
Making social protection and services more responsive to new social needs
White paper on Pensions, 2011
Further develop quality framework on social services
Follow-up to communication on health inequalities
Breaking the cycle of disadvantage
Recommendation on early school leaving, 2011
Recommendation on child poverty, 2012

22. Delivering action across the policy spectrum (2)
Promoting the inclusion of disadvantaged groups
EU framework for national Roma Integration Strategies , 2011
Follow-up to 2010 consensus conference on homelessness
Tackling poverty beyond social policies
Implementation of energy internal market legislation
Combating digital divide (implementation of Digital Agenda)
Legislative initiative on access to basic bank services, 2011
Social impact assessment
improving cooperation with EU institutions and Member States

23. Making EU funds deliver on social inclusion objectives
2010 Budget review stresses need to linking more directly structural funds and ESF to Europe 2020 headline targets (incl. poverty target)
Commission Proposals for next Multi-Annual Financial Framework (2011) will explore following options:
Enhancing ESF contribution to achievement of poverty target
Devoting necessary resources to social inclusion
Reinforcing support to disadvantaged groups
Simplified access grant schemes for local partnerships
Greater synergies and complementarities between EU funds

24. Promoting evidence based social innovation
Build on existing tools to guide structural reforms
peer reviews, mutual learning…
Major social experimentation initiative
Pooling resources from various EU funds
Fine-tuning methodology
Development of wider scale experiment
Communication and dissemination

25. Promoting partnership and the social economy
Strengthening existing partnerships and involving new actors (social partners, regional/local authorities, NGOs)
Voluntary guidelines on stakeholders’ involvement and participation of people experiencing poverty (2012)
Regular dialogue on thematic priorities
Harnessing the potential of the social economy
Improving legal structures (e.g. foundations)
Social Business Initiative (2011) to support socially innovative corporate projects (Single Market Act)

26. Implementation and next steps
Regular reporting within Europe 2020
(e.g. Annual Growth Survey)
Poverty Round Table to be transformed into an Annual Platform Convention:
Bring together key actors
Take stock of progress made towards headline target
Review implementation of activities
Suggestions for future action
Implementation reviewed in 2014

27. EUROPEAN COMMISSION
DG Employment, Social Affairs and Equal Opportunities
Further Information
DG Employment, Social Affairs and Equal Opportunities ‘Social Inclusion’ website