10 December 2014, Room C, OECD Headquarters, Paris. Welfare, Wealth and. Programme

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1 Joint OECD-WWW FOR EUROPE WORKSHOP 10 December 2014, Room C, OECD Headquarters, Paris How to further enhance Welfare, Wealth and Work in Europe? Programme

2 ABOUT WWW FOR EUROPE $ 10 DECEMBER ROOM C WWWforEurope Welfare, Wealth and Work for Europe started in April 2012 as a four year research project within the 7th Framework Programme funded by the European Commission. The research project is coordinated by the Austrian Institute of Economic Research (WIFO) under the guidance of Karl Aiginger, director of WIFO. It brings together researchers from 34 scientific institutions in 12 European countries with interdisciplinary expertise from economics and ecology to history, demography, political science and gender research. Members of WWWforEurope s scientific and policy boards include: Kenneth Joseph Arrow Gunilla Almgren Tony Atkinson Giuliano Amato Graciela Chichilnisky Colin Crouch Giacomo Corneo Sheila Dow Barry Eichengreen Franz Fischler Jean-Paul Fitoussi Helga Nowotny Paul de Grauwe Juliet Schor Jeffrey Sachs Bernadette Ségol PROJECTS OUTPUTS Aiginger, K., Cramme, O., Ederer, S., Liddle, R., Thillaye, R. (2012) Reconciling the short and the long run. Governance reforms to solve the crisis and beyond. WWWforEurope Policy Brief 1. This policy brief is the first outcome of WWWforEurope. It identifies the blind spots of the institutional changes embarked on by the EU in the aftermath of the sovereign debt crisis, and puts forward a combination of short-term and long-term measures in order to make an exit strategy compatible with the requirements of an economically dynamic, socially inclusive and ecologically sustainable Europe. Aiginger, K., Firgo, M., Huber, P. (2012). Policy options for the development of peripheral regions and countries of Europe. WWWforEurope Policy Brief 2. Given the recent economic problems of Southern EU countries that are rooted in lacking competitiveness, WWWforEurope Policy Brief 2 summarises existing knowledge of the factors impeding or facilitating the economic development of peripheral/low income regions in the EU, and discusses policy options to improve economic performance of Southern European countries while at the same time maintaining (or improving) sustainability.

3 WELFaRE StatE EnViRonMEntaL SUStainaBiLitY innovation GoVERnanCE REGionS regions SOCIO ECOLOGICAL TRANSITION Pitlik, H., Heinemann, F., Schweickert, R. (2014). Overcoming reform resistance and political implementation of large-scale welfare state reforms. WWWforEurope Policy Brief 3. The most important sources of seemingly irrational opposition to reforms are status quo bias, loss aversion and ideological beliefs. WWWforEurope s third Policy Brief explores the origins of political attitudes towards substantial welfare state reforms, paying particular attention to innovative insights originating from behavioural, evolutionary and cultural economics. Asatryan, Z., Braun, S., Görg, H., Heinemann, F., Molana, H., Montagna, C. (2014). Compensating the losers of globalisation. WWWforEurope Policy Brief 4. In the last decades inequality in the developed countries has increased significantly, not only due to globalisation computerisation is another important factor but globalisation and trade liberalisation can be identified as having a profound effect. Policy Brief 4 presents insights on who are the potential losers of globalisation and Fischer-Kowalski, M., Wiedenhofer, D. (2014). An optimal policy mix for resource use. WWWforEurope Policy Brief 5. Research for WWWforEurope Policy Brief 5 was directed at identifying a policy mix that allows Europe to achieve goals of GDP growth and beyond while reducing carbon emissions and its dependence on material resources in production and consumption, in particular metals, industrial minerals, construction materials, fuels, and biomass. All papers can be found on under the header Publications. Contact for information Kristin Smeral WWWforEurope Project Management Office WIFO Austrian Institute of Economic Research Arsenal, Objekt 20, 1030 Vienna wwwforeurope-office@wifo.ac.at T: Project officer Domenico Rossetti di Valdalbero DG Research and Innovation European Commission Domenico.Rossetti-di- Valdalbero@ec.europa.eu This project has received funding from the European Union s Seventh Framework Programme for research, technological development and demonstration under grant agreement no

4 1 how TO FURThER EnhAncE Welfare, Wealth & Work In EUROPE? WELCOMING REMARKS H.E. Ambassador Marlies Stubits-Weidinger, Austrian Ambassador to the OECD session 1. central research questions Introduction «Why has the European Commission sponsored this pan-european research initiative?» Domenico Rossetti, Principal Administrator, European Commission, Directorate-General for Research and Innovation Karl Aiginger, Director, WIFO and Professor of Economics at the Vienna University of Economics and Business Administration, Austria SESSION 2. The long-term productivity challenge & drivers for change CHAIR: Martine Durand, Director, OECD Statistics Directorate ImPUlsE statement: David Bailey, Professor of Industry, Aston Business School, Birmingham, UK DIscUssAnT: Dirk Pilat, Deputy Director, Directorate for Science, Technology and Innovation Q&A (15 ) COFFEE BREAK

5 SESSION 3. Biophysical boundaries & long-run growth CHAIR: Anthony Cox, Deputy Director, OECD Environment Directorate Impulse statement: Jeroen van den Bergh, ICREA Research Professor and Deputy Director research at the Institute of Environmental Science & Technology of Universitat Autònoma de Barcelona, Spain Discussant: Shardul Agrawala, Head of the Environment and Economy Integration Division, OECD Environment Directorate Q&A (15 ) SESSION 4. The inequality challenge & the welfare state $ CHAIR: Georg Fischer, Director for «Analysis, Evaluation, External Relations», Directorate General for Employment, Social Affairs and Inclusion, European Commission Impulse statement: Thomas Leoni, Research staff member and Research group co-ordinator on Labour Market, Income and Social Security, WIFO Discussant: Stefano Scarpetta, Director, OECD Directorate for Employment, Labour and Social Affairs Q&A (15 ) Main challenges ahead WRAP-UP: Mathilde Mesnard, Senior Advisor to the OECD Secretary General and NAEC Coordinator WRAP-UP: Elena Flores, Director, Policy Strategy and Coordination, Directorate General for Economic and Financial Affairs, European Commission

6 Biographies MARLIES STUBITS-WEIDINGER $ 10 DECEMBER ROOM C Ambassador Marlies Stubits-Weidinger took up her duties as Permanent Representative of Austria to the OECD on 6 August Prior to the OECD, in 2003, she was appointed Expert for EU and international financial institutions in the Department for European Intregration and International Financial Institutions in Vienna; from 2004 to 2011, she was Chief Representative of the OeNB at the Permanent Representation of Austria to the European Union in Brussels. She holds a Master in Law from the University of Vienna and a Master of Business Administration (MBA) in Leadership and Social Management. DOMENICO ROSSETTI Domenico Rossetti di Valdalbero is Principal Administrator at the European Commission, Directorate-General for Research and Innovation. He is responsible for managing a large part of the Socioeconomic Sciences and Humanities theme of the 7th EU Research Framework Programme (FP7). He is currently implementing the Horizon 2020 Societal Challenge on Inclusive, innovative and reflective societies. Domenico got his PhD in economics from Paris Dauphine University and he is Professor at the Belgian royal Academy of Sciences. KARL AIGINGER Karl Aiginger is the director of the Austrian Institute of Economic Research (WIFO). He teaches at the Vienna University of Economic and Business Administration and is managing editor of the Journal of Industry, Competition and Trade (JICT). He is the coordinator of the project «WWWforEurope a new growth path for Europe» which the WIFO is undertaking together with 32 partners within the 7th Framework Programme of the EU. He studied economics at the University of Vienna and Purdue University in Indiana, USA. He obtained the habilitation in 1984 with the book «Production Theory and Uncertainty». DAVID BAILEY David Bailey is Professor of Industry at Aston Business School, Birmingham. Service College in Singapore. He is an influential business expert on economic restructuring and industrial policy and is perhaps best known for his knowledge of UK and West Midlands car manufacturing. Most recently, David has undertaken European funded research on using foreign investment to upgrade clusters and on industrial and regional policy and the rise of phoenix industries such as the low carbon vehicles cluster here in the West Midlands

7 Jeroen van der bergh Jeroen van der Bergh is ICREA Research Professor at Universitat Autònoma de Barcelona (UAB) since September 2007, affiliated with the Institute of Environmental Science and Technology (ICTA). In addition, he is professor of Environmental and Resource Economics in the Faculty of Economics & Business Administration and the Institute for Environmental Studies, VU University Amsterdam (VUA). Work in recent years involves evolutionary economics and environmental innovation, behavioural-environmental economics, and the economics of climate change. GEORG FISCHER Georg Fischer is Director for «Analysis, Evaluation, External Relations» in the Directorate General for Employment, Social Affairs and Inclusion at the European Commission in Brussels. His responsibilities include employment and social analysis, evaluation of major employment and social EU programmes as well as the social dimension of external EU relations and of EU enlargement. He is a member of the Impact Assessment Board of the European Commission. He studied at the University of Vienna in Austria as well as at the University of Warwick in the United Kingdom. thomas leoni Thomas Leoni has been working as researcher at WIFO since 2005 and is currently research group co-ordinator of the Research Group Labour market, income and social policy. He holds degrees from the University of Bologna, the Johns Hopkins University and the Vienna University of Economics and Business. His research covers topics in labour economics, particularly health-related labour market issues, comparative social policy and industrial relations. He has been teaching at various Austrian universities and is affiliated with the NBER Disability Research Center in Boston. elena flores Elena Flores is Director of Policy Strategy and Coordination at the Directorate General for Economic and Financial Affairs at the European Commission. She was appointed Director for Policy Strategy and Coordination in DG ECFIN in Previously, she was Director, Economies of Member States II and head of the unit for Public finance in the euro area and the EU. Ms. Flores was an assistant professor at the Universitat Autònoma de Barcelona (UAB) in the field of international economics from 1982 to She has a Master s degree from the UAB and a Master in European Economy from the College of Europe in Brugge, Belgium..

8 OECD INITIATIVE NEW APPROACHES TO ECONOMIC CHALLENGES (NAEC) The OECD initiative on New Approaches to Economic Challenges (NAEC) is an organisation-wide reflection process on the causes of the crisis and the lessons for policy. It was launched at the 2012 OECD Ministerial Council Meeting (MCM) with the objective to catalyse a process of continuous improvement of the organisation s analytical frameworks and advice. Photo Credits: Cover illustration: Istockphoto/Vetta