A European Policy for Older People? by Karen Chapman

Originally established to break down barriers to trade, the European Community now f inds itself with a new

name-- The European Union--and new powers to influence aging policy. How did it happen?

T he European Year of Older People and Solidarity between Generations marks the culmination of considerable progress over the

past 10 years by the European Community (EC) on issues of aging. With one-third of its population age 50-plus, aging must play an integral part in the EC economic equation and the community has started to acknowledge this. This is true both in terms of the social and economic contributions older people have made and continue to make, and in terms of the implications of aging for pensions systems and health care. With the adoption of the European Year, the Community has fully acknowledged this relationship.

Progress towards the adoption of the European Year was slow, however, reflecting the piecemeal history of the EC's action on behalf of older people, a pattern that can be traced to the original purpose of the Community itself.

The treaty that established the European Community--the Treaty of Rome--was drawn up as a first step towards European integration. There were in fact three treaties: for a coal and steel community, an atomic energy community and--most inportantly--an economic community. (The original name was the European Economic Community.) It was never the purpose of the treaty's signers to assume the role of the governments of member states. The EEC treaty makes little reference to social policy and contains few commitments in the social sphere. Rather, it provides for the freedom of movement of services, goods, people and capital. As amended by the Single European Act of 1986, the treaty also provides the legislative basis for the completion of the Single European Market. With the ratification of the Maastricht treaty, the Community's new name, the European Union (EU), came into play. This name reflects the increased federal powers granted by that treaty.

Community Legal Authority for Social Policy

Consistent with this background, the institutions of the EU have limited legal authority in the social domain. To date, social policy has concentrated largely on training and employment, complementing the goal of economic integration. The EC began to formulate policy regarding older people only in the last 10 years.

Action in the social field throughout the community is governed by the political concept known as "subsidiarity"--decisions should be made at the European level if they cannot better be made at the national, regional or local level. In other words, some issues, often including those affecting older people--such as housing, health services and so on--are considered better handled by individual member states than by a supranational European body. Nevertheless, a number of key developments at the EC level over the past few years have had direct implications for older people.

Budget Allocation

The year 1984 saw the first ever allocation in the EC budget for measures involving older people--a token amount but nonetheless a significant one since it acknowledged an EC role for older people. The budget for action on behalf of its aging population has continued to grow; the expected budget for 1994. stands at 5.7 million ecus, the European currency unit, or US$ 6.3 million. These funds will be used to finance a variety of activities relating to older people including

research, information exchanges, conferences and SO o n .

A European Policy for Older People.'? I

Key Institutions of the

European Commission Brussels

The European Commission holds executive power and has sole authority to propose Community legislation. It implements EC policies, either directly under the authority of EC treaties or under powers delegated to it by the Council of Ministers. In addition, the Commission oversees implementation of EC policy in member states, proposes policy, defends the interest of the EC in the Council of Ministers, and represents the Community internationally.

The Commission consists of 17 members, appointed by agreement among the 12 member governments. The Commissioners, all of whom act independently of their governments, share responsibility for the Commission's 23 departments or Directorates General. Each Commissioner may therefore have more than one portfolio. Aging issues are the responsibility of Directorate General V for Social, Affairs and Employment, whose current Commissioner is Padraig Flynn of Ireland.

Council of Ministers Brussels

The Council of Ministers is the primary decision making body. It consists of representatives of the national governments of the 12 member states. The Council considers broad issuesmagriculture,

European Community

transportation, economic and financial affairs--in

government of each member states. These meetings, at meetings attended by the relevant minister from the which representatives of the Commission are present but may not vote, are the legislative fora for the EU. Approval of legislation may be by majority vote or require unanimity, depending on the constitutional basis to which it is related. Lengthy negotiations at lower levels, including the European Parliament, are likely to precede Council acceptance of Commission proposals. Proposals the Commission makes to the Council can be amended only by a unaminous agreement, however. The first Council meeting dedicated to issues of aging was held in January 1993.

The presidency of the Council rotates among the member governments in six-month intervals. The current president (June to December 1993) is Willy Claes, the Belgian Foreign Minister. Greece will hole the presidency for the first half of 1994 and Germany for the second.

European Parliament S t rasbourg / Luxe mbourg

The European Parliament debates policy and must be consulted about major Community decisions. It also shares power over the EC budget with the Council. In addition, the Parliament has the authority to propose amendments to EC legislation and has approval rights

Equal Treatment

EC Directives call for equal treatment for men and women in social security schemes. (A Directive is an agreement that binds in terms of results but leaves the methods of achieving the result to the member state.) In the past, some countries' pension systems provided for unequal treatment of men and women. These must now be amended to conform with EC law.

The European Court of Justice's interpretations of EC law have had a number of implications for older people in terms of pensions and related social security benefits. In the Marshal case of 1986, a British woman who had been working for a state-run health authority and had been compelled to retire at age 60 while her male colleagues were allowed to work until age 65, claimed discrimination under the Equal Treatment Directive and won her case. In the important Barber case, suit was brought by a man made redundant at age 52 on terms that entitled him to a lump-sum

redundancy payment but not to an immediate pension, which women could claim at age 50 but men could claim only after age 55. He won the right to equal treatment but in view of the financial implications, the court restricted the judgment's application to cases subsequent to May, 1989.

European Seniors Pass

In 1989, the European Commission issued a non- binding recommendation that the member states adopt a European Seniors Pass aimed at facilitating access to cultural and leisure concessions for older people traveling within Europe. This pass would act as proof of age and entitle the holder to any existing discounts on cultural and leisure activities throughout Europe. Theoretically, the pass would also stimulate the development of additional discounts for older people. Some countries, i.e., Portugal, already extend concessions available to national pensioners to visiting

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over applications for new membership in the Community and over new associations or agreements with countries outside the EC. It cannot, however, initiate legislation.

The members of parliament (MEPs) are elected from across the European Community. The members sit in the parliamentary chamber, known as the hemicycle, according to their political party rather than their nationality. The next elections to the parliament will be held in June 1994, when more than 560 parlimentarians will be chosen. The Parliament meets regularly in Strasbourg for plenary sessions, twice a year in Luxembourg and its committees meet in Brussels, where the EP also now has facilities for extraordinary plenary sessions.

The Social Affairs Committee of the European Parliament has primary responsibility for issues of aging.

The Intergroup on Aging was formed specifically to put issues concerning older people on the agenda of the European Parliament. Its membership currently stands at approximately 100 MEPs representing the political and national spectrum of the EC-12. The Intergroup holds meetings three to six times a year, which are attended by a representative of the Commission's policy unit on the elderly. One of the group's successful initiatives resulted in the adoption of the European Year of the Elderly and Solidarity Between Generations.

Economic and Social Committee Brussels The Economic and Social Committee is the institution of the European Community/Union that reflects the integration of the "social partners" (representatives of employers and workers), into a third strand voicing the views of special interest groups. Its role is to be consulted by the Commission in the preparation of legislation, and it may also produce reports on its own initiative on topics of particular concern. In 1993, it has produced a report on older people's concerns in the EU.

European Court of Justice Luxernbourg The European Court of Justice is the constitutional court for the European Union. An institution may challenge actions of another before the Court, and the Commission may call a members states to account for failure to implement EC/EU legislation. Most cases heard by the Court are referred from the courts and tribunals of member states, where resolution of a legal claim depends on interpretation of the treaties, regulations or directives of the EC/EU. The Court is composed of 13 judges, one each from each member state and one additional justice appointed on a rotating basis. The cases are prepared by six attorneys general. All appointments must be approved by all member states. They are for six years, renewable.

pensioners from other EC countries. In the case of Portugal, this offer extends free or discounted entry to museums, art galleries and cinemas. A Seniors Pass with a common symbol would facilitate access to these concessions.

To date progress on the recommendation has been slow and the universal pass has yet to be implemented in any EC member state. In particular, problems have been raised in the area of public transport. Most countries feel it is difficult to allow visiting pensioners the same concessions on public transportation services that local residents enjoy. In Northern Europe, discount fares on local transport are organized regionally and often are not available even to national pensioners visiting from other regions of the country. In the UK, transportation policy is the domain of local " governments who provide all discounts for older people. Another hurdle appears in the countries of southern Europe who tend to expect vacationing retirees from Northern Europe to be able to afford the full price of local public transportation.

The European Year, however, has provided a stimulus for the debate on the Seniors Pass with the European Commission announcing its intention to launch a newly designed symbol to identify organizations offering discounts.

Rights of Residence

An EC Directive of July 1992, forming part of the Single Market legislative program, gave retired workers, both employees and self-employed, the right to retire to any member state provided they have health insurance and an adequate income.

Adopted to complete the rights of free movement for individuals in the EC, this is the only measure under the Sing.le Market legislation that directly affects older people. The Directive falls far short of establishing the right of pensioners to live in any EC country, however.

It excludes pensioners who have not worked--mainly women--giving them the right of

(Cont. on page 6)

A European Policy for Older People? 3

Landmark Treaties of the European Community

1951 The European Coal and Steel Community placed specific sectors of the economy under a single authority to demonstrate the potential of the free movement of goods across the borders. 1956 The Treaty of Rome created the European economic community. Article 118 says "the Commission shall have the task of promoting close cooperation between Member States in the social field, particularly in matters relating t o : . . , social security . . . " The Euratom Treaty formed a European atomic energy community. 1986 The Single European Act amended previous treaties and strengthened the Community's ability to create a single market and to act in matters "concerning health, safety, environmental protection and consumer p r o t e c t i o n . . . " 1991 The European Treaty on European Union, the Maastricht Treaty, broadens the federal powers of the former European Community and changes its name to the European Union. However the name European Community will continue to designate all directives, recommendations and laws passed prior to November 1, 1993.

residence only if they are married to an ex-worker. In addition, it allows national authorities to maintain their current practice of demanding proof of income and savings from a retired person wanting to move to their country. This practice is justified by the assumption that lower income pensioners would become a "burden" on the social security systems of another country within the Community.

Regulations in most EC countries set minimum qualifying periods for residency of up to five or more years or for employment in that country of a certain number of years before a resident can qualify for social security benefits such as housing or disability.

The Social Charter

In December 1989, the Community Charter of Fundamental Social Rights of Workers was adopted by

heads of state of government of all states except the United Kingdom. Known as the Social Charter, this document recommends measures on behalf of individuals as a complement to the Single Market legislation that enacted favorable provisions for businesses and employers. As its name suggests, the charter concentrates almost exclusively on the rights of workers, however, rather than those of retired people.

Although not binding, two recommendations of the Social Charter have been adopted by national governments. The first addresses the right of retired people to "resources affording a decent standard of living" and the second specifies that "any person who has reached retirement age but who is not entitled to a pension or does not have other means of subsistence" have "medical and social assistance specifically suited to his needs." Since both recommendations have financial implications for national governments, they are unlikely to be given legislative expression in the near future.

First EC Program for Older People

After 10 years of progress on issues of aging, the Community agreed in 1990 on the first EC program for older people. This three-year effort, culminating in the European Year, marked the official recognition by the Council of Ministers of the relevance of older people's issues to the European policy agenda.

The Wider Context

In addition to measures having a direct effect on older people, a number of developments in other areas of EC policy address the needs of older people.

Helios H, the current and third EC program on disability, aims to promote good practices on issues affecting people with disabilities. Its activities include information exchange, meetings, publications and so on. The current program is the first to recognize the needs of the elderly, who account for 60% of disabled people. This represents a shift from the previous Helios policy of focusing only on the integration of disabled people into the workplace.

The Second EC Poverty Program for Elderly People took direct action on behalf of older people in poverty; the third program (currently in force) has acknowledged the poverty of elderly people, but only marginally.

Karen Chapman is Executive Secretary of Eurolink Age and editor of its Bulletin, which monitors all EC legislation and developments affecting older people. A linguist with a background in European affairs, she has worked for Eurolink Age for nearly five years.

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