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

European Commission

Employment & Social Affairs

Georg Fischer European Commission

The European Social Policy debate

EUROPEAN COMMISSIONDG Employment and Social Affairs

European Commission


Drivers of Change in EUROPE 1

1. Globalisation and Migration

2. Enlargement and Integration

3. Society: individualisation

4. Ageing: higher dependency ratios

European Commission


Shares of world trade in Goods (exlc. intra EU-25 trade)

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

1995 2004

EU-25 US Japan China+India (China upper part, India striped segment)

1995 2004EU-25 (excl. intra) 19,1% 18,5%US 16,5% 17,1%Japan 9,5% 7,4%China 3,4% 8,4%India 0,8% 1,2%

Drivers 3Source: WTO statistical database and IMF (DOTS).

European Commission


Foreign Direct Investment relative to Domestic Production, 1990 and 2002

0

20

40

60

80

100

120

140

160

180

Japa

n

Gre

ece

Icel

and

Ital

y

Pol

and

Uni

ted

Sta

tes

Slo

vak

Rep

ublic

Aus

tria

Cze

ch R

epub

lic

Nor

way

Aus

tral

ia

Ger

man

y

New

Zea

land

Por

tuga

l

Hun

gary

Fra

nce

Spa

in

Fin

land

Can

ada

Den

mar

k

Uni

ted

Kin

gdom

Sw

eden

Sw

itzer

land

Net

herla

nds

Irel

and

1990 2002

Drivers 6

European Commission


Distribution of the Population per age group in the EU 25 (1950-2050)

25.0 23.7 17.1 14.4 13.3

15.8 15.513.0

10.5 9.7

35.0 32.736.8

31.128.2

15.215.4

17.3

21.318.5

7.9 10.7 12.316.2

18.5

1.2 2.0 3.4 6.5 11.8

0

10

20

30

40

50

60

70

80

90

100

1950 1975 2000 2025 2050

80+

65-79

50-64

25-49

15_24

0_14

1

general

European Commission


EU25: Distribution of the population per age and household type (B1)

Source: Eurostat Demographic Statistics (2001 Census Round) Drivers 2

European Commission


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?

European Commission


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 ?

European Commission


Drivers of Change in EUROPE 4 Policy options

Promote Adjustment and social justice:

• Difficult reforms and policy balance

• Understanding and transparency

• Involve those affected

European Commission


Key Policy Issues

• Labour market reform

• Pension reform

• Health care, long-term care

• From Poverty Relief to Social Inclusion

European Commission


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

European Commission


Ageing 5

European Commission


Ageing 3

European Commission


Old age dependency ratio

2004 2025 2050

Ratio 60+ /20-59 39% 58% 80%

Ratio 65+ /20-64 27% 39% 58%

Ratio 70+ /20-69 18% 25% 40%Note : EU25. Source : Eurostat 2005 demographic projections.

7

general

European Commission


Older workers employment (55-64)

4

Trends in employment rates for older people (aged 55-64) in selected EU Member States, 1992-2004

20

25

30

35

40

45

50

55

60

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: Eurostat, structural indicators

% o

f pop

ulat

ion

aged

55-

64

DE ES FR IT UK FI

general

European Commission


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

European Commission


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

European Commission


Effects of taxes and transfers in reducing relative income poverty

among the working-age population

0%

10%

20%

30%

AUSBEL

CANCZE

DENFIN

FRAG

ERIR

LIT

AJP

NNLD NZL

NOR

POR

SWE

SWI

UKGUSA

OECD (1

7)

Effect of taxes and transfers in reducing povertyPoverty rate, disposable income

Mid-1990s2000

Source: Calculations from OECD questionnaire on distribution of household incomes.

poverty 5

European Commission


Relative poverty among the working-age population and social

spending, 2000

USA

UKG

TUR

SWISWE

POR POL

NOR

NZL

NLD

MEX

LUX

JPN

ITA IRL

HUN

GRC

GER

FRA

FIN

DEN

CZE

CAN

AUTAUS

SPA

0

4

8

12

16

20

0 4 8 12 16

Non-health public social spending tow ards w orking-age population (%GDP)

Pov

erty

rat

e (%

)

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

European Commission


Poverty 3

European Commission


Long term unemployment

3

Trends in long-term unemployment rates for selected EU Members States 1994-2004

0

2

4

6

8

10

12

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: Eurostat, structural indicators

% o

f ac

tive

po

pu

lati

on

DE ES DK IT UK

general

European Commission


Key Policy Issues:Involve Civil Society

• Essential for successful

• Policy development and

• Implementation

• Community base of policy

• Dialogue not allocation of tasks

European Commission


Three policy lines:

• Participation in employment/society

• Activation : work and autonomy

• Preventive rather than curative action

…….Education and Training are crucial

European Commission


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 Commission


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 Commission



Policy Coordination:

• Common objectives

• Policy review and Peer Pressure • Mutual Learning

European Commission


• EU measures:

• European Market needs European Standards: pension and health

• Cross country migrants: accumulation of rights and portability


European Commission


European Social Policies 4Solidarity:

Financial Solidarity:

European Social Fund

New Globalisation Fund?

European Commission


European Social Policies 4: European Social Fund

• Financial Instrument to support employment and social cohesion

• 60 Billion EURO for 2000-2006

• Priority in poorer countries but support in all countries

European Commission


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?

European Commission


Thank you very much for your attention and

please have a look at our website

http://europa.eu.int/comm/employment_social/index_en.html

European Commission


European Commission


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 Commission


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 Commission


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

European Commission


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)

European Commission


Health 2

European Commission


Health 3

European Commission


Health 4

European Commission


Employment 1

European Commission


Employment 2

European Commission


Employment 3

European Commission


Employment 4

European Commission

Employment & Social AffairsEmployment 6

European Commission


General 1

European Commission


General 2

European Commission


General 3

European Commission


General 4

Documents

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