Unequal Europe: Recommendations for a more caring EU 2015 Executive Summary UNEQUAL EUROPE RECOMMENDATIONS FOR A MORE CARING EU

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1 Unequal Europe: Recommendations for a more caring EU 2015 Executive Summary 1 UNEQUAL EUROPE RECOMMENDATIONS FOR A MORE CARING EU Final report of the High-Level Group on Social Union Spring 2015 EXECUTIVE SUMMARY

2 2 Friends of Europe Quality Europe This report has been drafted on the basis of a series of meetings, discussions and written contributions from the members of the High-Level Group, under the sole responsibility of Friends of Europe and the Chairman of the High-Level Group, Frank Vandenbroucke. Members have agreed to co-sign this report as they have judged it to be a fair and balanced exercise. The views expressed in this report are opinions of the individuals in the High-Level Group, and not necessarily the views of the organisations they represent, nor of Friends of Europe s Board of Trustees, its members or partners. Reproduction in whole or in part is permitted, provided that full credit is given to Friends of Europe and that any such reproduction, whether in whole or in part, is not sold unless incorporated in other works. Friends of Europe would like to thank the King Baudouin Foundation, the European Social Observatory and Thomas Fischer of DGB. Publisher: Geert Cami Director: Nathalie Furrer Programme Managers: Lindsay Digneffe & Jean-Yves Stenuick Design: Marina Garcia Serra Friends of Europe - Spring 2015 This report is printed on responsibly produced paper

3 Unequal Europe: Recommendations for a more caring EU 2015 Executive Summary 3 MEMBERS OF THE HIGH-LEVEL GROUP Frank Vandenbroucke Professor, University of Leuven, former Deputy Prime Minister and Minister of Social Affairs, Belgium, Trustee of Friends of Europe, and Chairman of the High-Level Group Etienne Davignon President, Friends of Europe László Andor Former EU Commissioner for Employment, Social Affairs and Inclusion, and Trustee of Friends of Europe Tony Atkinson Honorary Fellow, Nuffield College, University of Oxford Fabrizio Barca Director General, Ministry of Economy and Finance, and former Minister of Territorial Cohesion, Italy Pervenche Berès Member of the European Parliament Committee on Economic and Monetary Affairs, and former Chair of the Committee on Employment and Social Affairs

4 4 Friends of Europe Quality Europe Geert Cami Co-Founder & Director, Friends of Europe Philippe de Buck Member of the European Economic and Social Committee, and former Director General, BusinessEurope Aart Jan De Geus Chairman & Chief Executive Officer, Bertelsmann Stiftung, former Deputy Secretary General, OECD, and former Minister of Social Affairs and Employment, The Netherlands Anna Diamantopoulou President, Diktio Network, former Minister of Development and Competitiveness, Greece, former EU Commissioner for Employment and Social Affairs, and Trustee of Friends of Europe Nathalie Furrer Director, Friends of Europe Reiner Hoffmann President, Deutscher Gewerkschaftsbund (DGB) Danuta Jazłowiecka Vice Chair of the European Parliament Committee on Employment and Social Affairs

5 Unequal Europe: Recommendations for a more caring EU 2015 Executive Summary 5 Sony Kapoor Managing Director, Re-Define, and Trustee of Friends of Europe Pascal Lamy Former Director General, World Trade Organization, former EU Commissioner for Trade, and Trustee of Friends of Europe Roger Liddle Chair, Policy Network Giles Merritt Secretary General, Friends of Europe Rhodri Morgan Chancellor, Swansea University, and former First Minister of Wales John Morley Senior Policy Advisor, Applica, and former European Commission Head of Employment Policy Riccardo Perissich Former European Commission Director General for Industry

6 6 Friends of Europe Quality Europe Christopher Pissarides Regius Professor of Economics, London School of Economics and Political Science (LSE), and 2010 Nobel Laureate in Economic Sciences Conny Reuter Secretary General, Solidar Vladimír Špidla President, Masaryk Democratic Academy, former EU Commissioner for Employment, Social Affairs and Equal Opportunities, and former Prime Minister of the Czech Republic Freek Spinnewijn Director, European Federation of National Organisations working with the Homeless (FEANTSA) Dimitris Tsigos President, European Confederation of Young Entrepreneurs (YES), and European Young Leader "40 under 40" Bart Vanhercke Director, European Social Observatory (OSE) Fabian Zuleeg Chief Executive, European Policy Centre (EPC)

7 Unequal Europe: Recommendations for a more caring EU 2015 Executive Summary 7 EXECUTIVE SUMMARY It is an unwelcome truth that Social Europe has been slipping down the European Union s policy agenda. Yet investment in people remains crucial to help generate the long-term, sustainable growth needed by Europe as it seeks to overcome the effects of its prolonged economic crisis. The time is right for urgent action from policymakers at EU and national levels to recover lost ground in social policy areas ranging from education to employment, pensions, labour rights and migration. Last year, Friends of Europe convened a high-level group of experts to assess the strengths and weaknesses of social policies that have been fundamental to the creation of the EU. The team was headed by former Belgian deputy prime minister and social affairs minister Frank Vandenbroucke. It encompassed an unusually wide range of opinions, bringing together trade union leaders like Reiner Hoffmann, head of Germany s DGB; Philippe de Buck, who for many years ran the BusinessEurope employers confederation; Anna Diamantopoulou, a former Greek minister for competitiveness and EU employment commissioner; ex- WTO head Pascal Lamy; and the then EU social affairs commissioner László Andor. Despite the range of backgrounds and opinions, the experts managed to reach consensus on all the recommendations in this report as they shared a fundamental belief in the importance of restoring Europeans self-confidence in their unique social model. The thrust of their report is clear: human investment must be given equal priority with investment in infrastructure, innovation and all other areas viewed as vital to boosting Europe s competitiveness. Europe s future is threatened by under-investment in people in their workoriented education and in their early family life, health, social development and schooling. In response, Europe needs to face up to the challenge of raising education levels, bridging the widening skills and education divide between the haves and have-nots. A broad social investment agenda is required.

8 8 Friends of Europe Quality Europe Credible unemployment measures must be associated with this effort, especially those designed to tackle the scourge of youth unemployment. Labour market and pension reforms should be enacted to meet the challenge of Europe s ageing population. Migration and labour mobility policies must be improved and better explained to sceptical publics. The report sets out a range of concrete recommendations for EU institutions to reaffirm Europe s social principles and address competitiveness goals. It calls on Jean-Claude Juncker s new European Commission to take a far broader approach to social investment, which is essential, the authors argue, to avoiding long-term burdens on economic growth. It sees a need for greater investment in caring arrangements for the deprived and under-privileged, and in education and training to ensure equal opportunities for all. The report debunks claims that social policy is a drag on the economy. Instead it emphasises the importance of social policy in maintaining living standards, creating opportunities and boosting competitiveness. That argument is borne by facts and figures: EU member states that invest more in social policies like health, education and labour market support perform better overall than those that spend less. Among OECD countries, there is no correlation between low levels of social spending and a high competitiveness score. In Finland, Germany, the Netherlands and the United Kingdom (which also has an important share of private spending) social spending is high, at around 30% of GDP, but they are all in the Global Competitiveness Index s top ten. Swedish social spending is higher still, but that does not prevent it from coming sixth in the ranking. Rather than calling the essence of Europe s welfare states into question, the report urges a wide-ranging review of the balance of demand and supply for different social programmes and social services, and their costs. This should be backed by an EU-wide effort to improve the performance of all member states social systems. Although responsibilities for social policy lie primarily at national level, an over-arching EU policy framework agenda could make a valuable contribution. Member state authorities and the EU need to more clearly define their social policy competences and better clarify Brussels role in linking the two so that all can work better together.

9 Unequal Europe: Recommendations for a more caring EU 2015 Executive Summary 9 Among its recommendations, the report says European authorities need to: raise public awareness of the economic benefits of social policy; establish strong reciprocal links between social, education, employment, budgetary and economic policies; mainstream social policy targets for member states, putting them on a par with macroeconomic goals assessed by the European Commission; hold more "jumbo councils" that bring together ministers for employment and economic affairs to create a stronger link between policies; enhance the role of trade unions, business groups and other social partners in economic governance, including though more tripartite summits; organise a high-level employment and social policy conference to launch a thorough debate on future orientation; put forward new proposals to reinforce EU action on youth employment, for example through better mobilisation of the European Social Fund, or a new financial package to replace the 6 bn Youth Employment Initiative that will not be in place until the end of 2015; address the issue of citizens participation to create a new public arena that can complement the decision-making process; put public investment in education higher on the agenda to reverse diverging trends across Europe; reform education systems with a view to helping countries most under pressure to deliver basic education; develop key and transversal skills; promote entrepreneurial skills and financial literacy; and improve the transition from education to work by providing a better match between skills and labour market demands; reaffirm the unquestionable right of labour mobility within the EU, while addressing problematic issues such as illegal work and exploitation linked to poor enforcement of regulations; resist protectionism and give tangible support to member states confronted with the greatest need to house and integrate migrants;

10 10 Friends of Europe Quality Europe consider a new fund attached to the ESF to support the integration of EU migrants and additional finance for help desks, information and legal assistance for mobile workers; where possible, define minimum standards of European labour conditions and social protection, taking into account all new forms of labour like parttime workers, and carefully monitor the implementation of the enforcement directive on the posting of workers; improve the social context of mobility by enhancing the portability of supplementary pensions, and strengthening the enforcement of social and employment rights of mobile and migrant workers; complement the economic arguments for migration with a strong social case for minimum standards and against discrimination based on origin or ethnicity; place discussion of external migration to the EU into a longer-term demographic context, given that a shrinking European population means migration should be seen as a positive contribution; recognise the enormous waste of immigrants skills when they are not adequately integrated into the labour market, or not allowed to develop their entrepreneurial potential; strengthen support for social policy development programmes in migrants countries of origin to reduce pressure on the EU and contain brain drains from those countries; consider a European policy on the overall quality of minimum income protection, with minimum wages playing a key role together with social benefits; give real bite to the Youth Guarantee by embedding it in social dialogue, increasing its funding and scope, and ensuring its rapid implementation with transparent monitoring; ensure a guaranteed right to shelter for all EU citizens who become destitute whatever their status, develop a European Action Plan against homelessness, and provide a Care Guarantee for vulnerable young people.

11 Unequal Europe: Recommendations for a more caring EU 2015 Executive Summary 11 Securing the well-being of future generations of Europeans is the EU s most relevant common purpose. Children should grow up in a world that offers them the skills and education they need for the future; as they reach adulthood and enter the labour market they need opportunities and protection for their social rights; when they retire, they deserve security. That requires clear priorities, tough choices and effective common action. Well-conceived social policy can contribute to the attainment of those goals, not only building a more equitable, secure and harmonious society but also boosting Europe s growth and competitiveness. The members of the Working Group hold different opinions on many questions, but they share a mission statement on what the European Union now needs. They oppose an unequal and unbalanced Europe because Europe should stand for fairness and social cohesion, openness and social mobility, and hope for a better future not just in solemn declarations, but also in practical day-to-day policies. Read the full report at unequal-europe-recommendations-caring-eu/

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