Eliminating Poverty What can the European Parliament Do? Briefing Pack for Participants Contents

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1 Eliminating Poverty What can the European Parliament Do? A series of meetings to promote dialogue between Members of the European Parliament (MEPs) and anti-poverty groups and networks November 2004 Briefing Pack for Participants Contents A. The European Union and its Parliament 1. A (very) short history of the EU 2. The EU s institutions 3. The European Parliament 4. Jargon-buster B. The EU and Social Policy 5. Introduction 6. Sources of information 7. Balancing economic growth and social justice: the Lisbon Strategy 8. The EU Social Inclusion Strategy and the NAP Inclusion (National Action Plan Against Poverty and Social Exclusion) 9. European Employment Guidelines and National Employment Action Plan (NEAP) 10. Structural Funds 11. Draft EU Constitution Page C. Some policy areas (to be distributed separately) D The EAPN Líonra Eorpach i gcoinne na Bochtaine, Eire.

2 Section A The European Union and its Parliament 12. A (very) Short History of the EU 13. The EU s Institutions 14. The European Parliament 15. Jargon-buster 2

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4 1 A very Short History of the EU Note: this section is adapted from the handouts from the EAPN introductory course Understanding and influencing EU policy on poverty. In 1951, six countries combined to form the European Coal and Steel Community and, in 1957, the European Economic Community (EEC).' The EEC initially concentrated on industrial and trade co-operation between the members, but the founding politicians also envisaged a broader political co-operation. The EEC has evolved into the European Union through a series of Treaties to revise the Treaty of Rome. Each Treaty is agreed between the member states in an 'Inter- Governmental Conference (IGC) and ratified by all states, although not all have referenda like Ireland. A Constitution for the EU was been drafted by a 28- country 'Convention on the Future of Europe' made up of two members from each national parliament, one from each Government and 15 from the European Parliament. The draft Constitution was amended and adopted by the governments of all 25 member states of the EU in June In Ireland, and in 10 other countries, the Constitution will have to be passed by a referendum before entering into force. In the other 14 countries the national Parliament will be responsible for its adoption. See briefing note May 2004 Members Belgium, France, Germany, Italy, Luxembourg, Netherlands Denmark, Ireland, UK Greece Spain, Portugal Austria, Finland, Sweden Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, 'Candidate Countries': Bulgaria, Romania, Turkey Treaties 1951 European Coal and Steel Community 1957 Treaty of Rome (EEC) 1986 Single European Act 1992 Treaty of Maastricht (Treaty on European Union) 1997 Treaty of Amsterdam 2002 Treaty of Nice 4

5 2 EU Institutions Main Roles Legislation Co-ordination Main Roles Citizens Representation Legislative Power Budget Supervision Composition and roles 25 Commissioners: Initiates proposals for legislation Guardian of Treaties Implementation Council of Ministers How does it work? The real decision-making power in the EU Working Groups of Civil Servants from member states prepare decisions Rotating Presidency (every 6 months): arranges and presides over meetings seeks compromises represents the EU European Parliament How does it work? 732 members, 20 Committees: MEPs sit by political group rather than by country Committees deal with different areas of work (rapporteurs appointed to prepare reports and resolutions) MEPs very accessible (and are usually happy to bring issues to key people from other countries in their political group) The Parliament can sack the Commission See Briefing Note 3 European Commission Some impressions Accessible (and easy to identify who is dealing with particular issues) - possible to find allies in Commission Overworked (only 16,000 staff including huge number of translators/interpreters) Can take member states to court for violation of Council decisions Economic and Social Committee Committee of the Regions European Court of Justice European Court of Auditors Other Bodies Consultative body for representatives of Trade Unions, Employers and other interests (including one community and voluntary sector representative from Ireland) Consultative body for representatives of local and regional governments. Ensures the law is observed in the interpretation and application of the Treaties and all the activities of the EU. Ensures the EU spends its money according to budgetary rules and regulations 5

6 3 The European Parliament Introduction The European Parliament was set up in 1957, made up of representatives of the parliaments of the then six EEC member states. Since June 1979 it has been directly elected and it now has 732 MEPs representing the 25 European Union member states. 13 of these are from the Republic of Ireland and three from Northern Ireland. Over time, the European Parliament has steadily acquired greater influence and power through a series of Treaties which have increased the number of areas where they must be consulted or involved in decision-making. The Parliament's main functions The European Parliament has three fundamental powers: legislative power, budgetary power and supervisory power. It considers the Commission's proposals and is associated with the Council in the legislative process by means of various procedures (co-decision, assent, consultation) It shares budgetary powers with the Council in voting on the annual budget and overseeing its implementation It has the power of supervision over the Union's activities through its confirmation of the appointment of the Commission and through the written and oral questions it can put to the Commission and the Council; What can your MEP do? Volunteer to be rapporteur to draw up a Committee proposal, study or opinion Initiate a proposal for own initiative action in the Committee Propose amendments to Committee opinions etc. Make a public statement to promote public debate on any issue Raise an issue in their political group, (even if the MEP does not sit on the relevant committee her/his-self) Question Commissioners, Ministers from the Presidency etc. formally and informally Irish members of the Parliament 13 members were elected from four constituencies in the Republic of Ireland, as well as three from Northern Ireland. The Southern members are as follows: South Simon Coveney (Fine Gael, EPP-ED) Brian Crowley (Fianna Fáil, UEN) Kathy Sinnott (Independent, Ind/Dem) North & West Dublin East Marian Harkin (independent, ALDE) Jim Higgins (Fine Gael, EPP-ED) Sean O Neachtain (Fianna Fáil, UEN) Prionsias De Rossa (Labour, PES) Mary Lou McDonald (Sinn Féin, GUE/NGL) Gay Mitchell (Fine Gael, EPP-ED) Eoin Ryan (Fianna Fáil, UEN) Avril Doyle (Fine Gael, EPP-ED) Mairead MacGuinness (Fine Gael, EPP-ED) Liam Aylward (Fianna Fáil, UEN) 6

7 Political Groups in the Parliament The Members of the European Parliament group themselves by party groups not by national delegations. Currently, there are 7 political groups, as follows: EPP-ED (Group of the European People s Party and European Democrats): 268 members, Irish member: Fine Gael PES (Socialist Group in the European Parliament): 198 members, Irish Member: Labour Party ALDE (Alliance of Liberals and Democrats for Europe): 88 members, Irish Member: Marian Harkin (Ind) Greens/EFA (Group of the Greens/European Free Alliance). 42 members, Irish Member: Green Party GUE/NGL (Confederal Group of the European United Left Nordic Green Left): 41 members, Irish Member: Sinn Fein IND-DEM (Independence and Democracy): 37 members, Irish Member: Kathy Sinnott (Ind) UEN (Union for Europe of the Nations Group): 27 members, (Co-Chaired by Brian Crowley), Irish Member: Fianna Fail Committees of the Parliament Much of the work of the Parliament is carried out by Standing Committees. These draw up and adopt reports on legislative proposals and own-initiative reports and prepare opinions for other standing committees. In addition to these standing committees, Parliament can set up temporary committees and committees of inquiry. MEPs can also work together informally on matters of common concern through the so-called inter-groups. EAPN is currently working with ATD 4 th World to support the re-forming of an inter-group on poverty. The Standing Committees, and their Irish members (substitute members in brackets) are: Committee Irish members (and substitute members) 1. Foreign Affairs (78 members) Simon Coveney (Prionsias de Rossa) 2. Development (34) Gay Mitchell, (Eoin Ryan) 3. International Trade (33) 4. Budgets (47) (Mairead McGuinness, Sean O'Neactain) 5. Budgetary Control (35) 6. Economic & Monetary Affairs (49) Gay Mitchell, Eoin Ryan 7. Employment & Social Affairs (50) Prionsias de Rossa, Mary Lou McDonald, Kathy Sinnott 8. Environment, Public Health & Food Safety (63) Liam Aylward, Avril Doyle, Kathy Sinnott 9. Industry, Research & Energy (51) (Avril Doyle) 10. Internal Market & Consumer Protection (40) (Simon Coveney) 11. Transport & Tourism (51) Sean O'Neactain (Jim Higgins) 12. Regional Development (51) Marian Harkin, Jim Higgins 13. Agriculture (42) Mairead McGuinness (Liam Aylward) 14. Fisheries (35) Sean O'Neactain (Liam Aylward, Simon Coveney, Brian Crowley) 15. Culture & Education (35) 16. Legal Affairs (26) (Brian Crowley) 17. Civil Liberties, Justice & Home Affairs (53) (Mary Lou McDonald) 18. Constitutional Affairs (28) Brian Crowley, (Kathy Sinnott) 19. Women's Rights & Gender Equality (25) 20. Petitions (25) Prionsias de Rossa, Mairead McGuinness 7

8 4 Jargon-buster (adapted from the European Parliament website) Acquis communautaire: the whole range of laws, practices, principles and obligations adopted or developed by the European Union. Countries seeking membership are legally obliged to accept the acquis communautaire and to incorporate it in their legislation before they can join the European Union. Area of freedom, security and justice: this 'area', which under the Amsterdam Treaty must be progressively established, will embrace measures on asylum, immigration, police and judicial cooperation in civil and criminal matters, prevention of racism and xenophobia, and the fight against organised crime. Charter of Fundamental Rights of the European Union: the Charter, which was drawn up and adopted by a Convention made up of representatives of the European Parliament, the national parliaments, the member states and the European Commission, was proclaimed at the Nice European Council in December It forms Part 2 of the draft EU Constitution. Citizenship of the Union: all nationals of EU member states have the status of citizens of the Union. This guarantees, among other things: freedom of movement and residence within the territory of the Union; the right to vote and stand in local and EP elections in the country of residence; and the right to petition the European Parliament and to bring complaints before the European Ombudsman. Citizenship of the Union does not replace national citizenship, but complements it. Co-decision: a legislative procedure introduced by the Maastricht Treaty which places the European Parliament and the Council of Ministers on an equal footing in the adoption of much of the Community legislation. Committee of the Regions: a consultative committee set up by the Maastricht Treaty and made up of 222 representatives of the local and regional authorities of the Union, appointed by the member states. It meets in Brussels. Common foreign and security policy (CFSP): initiated in the early 70s, at first in the form of 'European political cooperation', the Union's foreign policy has developed steadily; the Maastricht and Amsterdam Treaties codified it and incorporated the common security dimension. The High Representative for the CFSP assists the Council Presidency in this area. Convention: a Convention on the future of Europe drafted the proposed EU Constitution. It was made up of 16 MEPs, 56 members of national parliaments, 28 representatives of current and future member states governments, and 2 European Commissioners. Council of Europe: Not to be confused with the European Council, this is an intergovernmental organisation with 43 member countries which drafts pan- European Conventions for adoption in areas such as human rights, culture and education. It has been based in Strasbourg since The Council of Europe is not an EU body. Council of the European Union (also called the Council of Ministers : made up of ministers (or their representatives) from each of the member states. It meets periodically in Brussels or Luxembourg to adopt Community legislation, often jointly with the European Parliament under the codecision procedure. The Council presidency rotates among the member states on a 6-monthly basis. The makeup of the Council varies with the subject (finance, agriculture, foreign affairs, etc.). Its decisions are prepared by the Committee of Permanent Representatives of the Member States (Coreper). [See also European Council] Court of Justice of the European Communities: consisting of judges appointed by the member states and advocates-general, the Court ensures compliance with the law in the application and interpretation of the treaties. Not to be confused with the International Court of Justice, which is an organ of the United Nations and has its seat in The Hague, or the European Court of Human Rights, which has its seat in Strasbourg and is an organ of the Council of Europe. Decision: in European law a decision is binding in its entirety on those to whom it is addressed (cf. Regulation). Directive: EU directives are binding on the member states as regards the results to be achieved, but leave the choice of method up to them (cf. Regulation). Economic and Social Committee: a consultative committee consisting of 222 representatives of employers, trade unions and other interests. Enlargement: the term used to describe the five waves of new accessions whereby the six founding members of the European Community - Belgium, France, Germany, Italy, Luxembourg and the Netherlands - were joined by a further nine: Denmark, Ireland and the United Kingdom in 1973; Greece in 1981; Spain and Portugal in 1986; Austria, Finland and Sweden in 1995 and a further 10 in Several other countries have applied to join the EU, of whom 8

9 Bulgaria and Romania are expected to join in In order to join the EU they have to satisfy political and economic criteria and incorporate the acquis communautaire into their legislation. Eurogroup: informal grouping of the twelve members of the Economic and Finance Council representing the euro zone (countries using the Euro, including Ireland). European Central Bank: based in Frankfurt, the European Central Bank is responsible for the monetary policy of the euro zone, i.e. the member states that have opted for the single currency. European Coal and Steel Community (ECSC): the first European community, set up by the Treaty of Paris of 18 April It was abolished in European Commission: the institution that initiates Community legislation, runs European common policies, implements the budget and ensures compliance with the treaties. It is made up of 25 (1 from each country). It is appointed for 5 years subject to the approval of the European Parliament, to which it is accountable. The current President Commission has not yet been approved by the Parliament. European Community (EC): under the 1992 Maastricht Treaty the EC replaced the European Economic Community (EEC) established by the Treaty of Rome in It governs matters relating to the free movement of people, goods, services and capital, transport, competition, tax, economic and monetary policy, trade policy, employment and social policy, culture, health, consumers, industry, regional development policy (economic and social cohesion), research, the environment and development. It forms part of the wider entity of the European Union. European Council: since 1975 the European Council has brought together, at least twice a year, the heads of state or government of the member states of the Union - assisted by the foreign ministers - and the President of the European Commission. It lays down the broad policy guidelines of the Union and discusses topical international issues of major importance. The meetings are referred to by the media as 'summits'. [See also Council of the European Union] European Court of Auditors: the European Court of Auditors has 15 members. It monitors the management of Community finances and can inform Parliament and the Council of any irregularities it may uncover. It is based in Luxembourg. European Parliament resolution: a text adopted by the European Parliament embodying its opinion either on a legislative text - a 'legislative resolution' - or on any subject chosen on Parliament's own initiative - a 'non-legislative resolution' - with the intention of influencing a given European Union policy. High Representative for the CFSP: this office, which was created by the Amsterdam Treaty, is filled by the Secretary-General of the Council with the aim of assisting the EU presidency in matters of foreign policy and common security. Intergovernmental Conference (IGC): forum in which the member state governments negotiate changes to the treaties. Investiture of the Commission: the member states nominate the person they envisage appointing as President of the Commission 'by common accord'. The nomination is then approved (or not approved) by the European Parliament. The member states, in consultation with the President-designate, choose nominees for the other members of the Commission. After individual hearings by Parliament's standing committees, the Commission thus formed is subject, as a whole, to a vote of approval by the European Parliament, and is then formally appointed. NAPs Inclusion: National Action Plans Against Poverty and Social Exclusion, drawn up every two years to implement the commitment to make a decisive impact on the eradication of poverty by See separate briefing. NAPs Employment : National Action Plans for Employment (often called the National Employment Action Plan NEAP- in Ireland. Against Poverty and Social Exclusion, drawn up every year to implement the European Employment Guidelines See separate briefing. Presidency of the European Union: the presidency of the Union rotates among the member states every six months. The Presidency country chairs all Councils, working groups etc. Qualified majority: the method of voting used by the Council in the legislative procedure (except where unanimity is required). It involves giving the vote of each member state a weighting which broadly reflects the size of its population. Regulation: in European legislation regulations are of general applicability; they are directly applicable in all member states. Structural funds: the term denoting the European Regional Development Fund (ERDF), the European Social Fund (ESF), the European Agricultural Guidance and Guarantee Fund and the Cohesion Fund. Their purpose is to narrow the development gap between regions and between EU member states. 4

10 Section B The European Union and Social Policy 5. Introduction 6. Sources of Information 7. Balancing Economic Growth and Social Justice: The Lisbon Strategy 8. The EU Social Inclusion Strategy and the NAP Inclusion (National Action Plan Against Poverty and Social Exclusion) 9. European Employment Guidelines and National Employment Action Plan (NEAP) 10. Structural Funds 11. Draft EU Constitution 5

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12 5 Introduction to EU social policy Why is the EU important to anti-poverty groups? The EU has responsibility for overall economic policy which shapes our society The EU can set minimum standards and rights It is a major source of funding for community development and anti-poverty projects It has recently taken responsibility for co-ordinating action against poverty Why does the EU have a social policy? To equalise economic competition To popularise the European project To respond to public and political pressure Notes The EEC was originally envisaged as an economic project, based on free trade between the members. For a free trade area to work, there must be equal conditions: a country which has low wages, poor protection of workers' rights and low taxes because of poor social provision will tend to 'win' in competition if there is no regulation. EU social policy now also reflects popular pressure to balance economic growth with social cohesion and inclusion. Some social policy milestones in the EU Year Adopted 1957 Treaty of Rome 1965 European Social Fund 1974 Pilot Scheme Against Poverty (Poverty 1) 1985 Poverty Single European Act Charter of fundamental social rights of workers Poverty 3 Poverty 4 Treaty of Amsterdam Lisbon Agenda (see Brief 7) 2000 Social Inclusion Strategy (Open method of coordination) (see Brief 8) 2000 Charter of Fundamental Rights (see Brief 11) 2002 Social Exclusion Action Programme Some social policy effects Free Movement of Labour Equal pay between Men and Women Initially funded mostly training but later expanded to community development Research and community projects Targeting disadvantaged groups Health and safety at work, Economic and Social Cohesion Rights at work. Not signed by the UK Partnership approaches Proposal blocked by Britain and Germany Action against poverty written into Treaties Competitiveness, Employment and Social Inclusion Common Objectives and National Action Plans against poverty and social exclusion Proclaimed, not included in the Treaties Analysis, exchange of best practice, participation and networking Some key social policy instruments discussed on the pages below European Process Social Inclusion Strategy European Employment Guidelines European Structural Funds Irish Process NAP/Inclusion (National Action Plan) and NAPS (National Anti Poverty Strategy) National Employment Action Plan National Development Plan (NDP) PEACE II, EQUAL 7

13 6 Sources of Information EAPN Ireland is preparing a website on understanding and influencing EU policy for Irish community and voluntary groups. This will be on-line by January The EAPN (Europe) site at has a comprehensive and easily accessed guide to key policy areas such as the NAPs\incl, EU enlargement etc. It also has a link to the Platform of EU Social NGOs site, which in turn has information on most EU-level social NGO networks. The Europa site is the official portal site for the European Union. The Europa home page has links to subheadings of News: the latest stories Activities: links to information and documents by policy areas. It is well worth exploring the sections on Employment and Social Policy and on Equality Institutions: a series of links to each of the EU institutions' websites The EU at a glance, a guide to the history and workings of the EU, including links to all the member states' websites and a handy 'glossary' of Euro-jargon Official Documents: which can be searched by subject, key words, dates, document numbers Information sources: a useful guide to offices, websites, 'who to contact' and a guide to how to use the Europa site itself The European Parliament has information on Members of the European Parliament, the work of the Parliament and links to the sites of all the political groups. The Irish government site has links to all government departments, each of which contains information on European activities in their own field. European Union Information Centres in Ireland EPIC (European Public Information Centre) 18 Dawson Street, Dublin 2, provides a one-stop-shop for handouts, video, materials for loan etc. The EPIC website at also provides a list of about 40 local information providers in different towns linked through 'Team Europe'. These include Info Points Europe, European Centres for Rural Development, Euro Info Centres and the Urban Forum for Sustainable Development. The European Commission Representation Ireland (18 Dawson Street,, Dublin 2, Tel: (01) , Fax: (01) , eu-ie-info-request@cec.eu.int) and the European Parliament Office in Ireland (43 Molesworth Street, Dublin, Tel: (01) , Fax: (01) , epdublin@europarl.eu.int) are more useful for detailed questions. In spite of their different addresses, these offices are adjacent to each other and to EPIC The European Foundation for the Improvement of Living and Working Conditions, based in Loughlinstown, Dublin, has a wide range of publications on a range of social issues and also keeps a good library. Website: 8

14 7 Balancing Economic Growth and Social Justice: Introduction to the issues Poverty in the EU In the EU, one of the richest economic areas the World has ever seen, 68 million people are living in poverty, according to European Commission Figures. As the Continent gets richer, the gap between rich and poor has widened and groups like Travellers, Roma and lone parents face increasing discrimination and we are seeing vicious attacks on the rights of migrants and refugees. Ireland is an extreme example of this, with the fastest growing economy but the worst poverty in the EU. This is the result of deliberate political decisions and effective pressure by powerful forces. It is reflected in the Treaties of the EEC\EC\EU which emphasis market and monetary integration above all else. The EU and poverty The European Union has grown out of the European Economic Community, which in turn came from the European Iron and Steel Community. From the names alone, we can see that the priorities of the EEC/EU have always been economic integration and growth rather than social development. To put it another way, the member states who created the Union have agreed to share competence at European level in certain economic areas, such as free trade in goods and services and monetary union. Most member states see social policy as a matter for national decisions alone. This is particularly true of the countries who would be most affected by harmonisation, including those with the most developed welfare states, such as the Scandinavian countries, and those with the least developed welfare states, such as Ireland. On the other hand, there is also strong public pressure for the EU to take on a stronger social agenda. When opinion polls ask what are the most urgent challenges for the EU, poverty comes top of the list in all 25 member states. If there are very different levels of social protection and social services in a single market, there is a danger that capital will be moved to the countries with lowest social systems, leading to low taxes and low wages. This is a recipe for a race to the bottom in which the poorest will suffer and only the rich will gain. EAPN recognises that responses to poverty will be different in different countries, and even regions. However, it is vital that member states agree on common goal, indicators and mechanisms at EU level to eradicate poverty The Lisbon Strategy In March 2000, as part of the broader goal for Europe to become the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, the Lisbon European Council (Heads of State and Heads of Government) identified a series of challenges to be met and officially launched the European social inclusion strategy. This has come to be known as the Lisbon Agenda, or Lisbon Strategy. Political and economic developments in recent years have led to a pressure from some to focus the Lisbon strategy on a narrower view of competitiveness and where social inclusion is mentioned to reduce it to the creation of more (but not necessarily better) jobs. The European Council (Prime Ministers) this year set up a High-Level Group to evaluate the strategy and to make proposals to implement it. EAPN considers this a backwards step, taking the debate out of the public arena. The Group has a strong bias towards business interests and no members specifically promoting social inclusion. The European Social Inclusion Strategy and NAPs Inclusion The Lisbon Strategy includes the commitment to a concerted effort which will make a decisive impact on the eradication of poverty by

15 The Nice European Council of December 2000 (the same meeting which agreed the Nice Treaty) transformed the Lisbon commitment into a series of specific objectives, and agreed that each country would draw up a series of two-yearly National Action Plans (NAPs Inclusion) to achieve this. This is supported by a process of exchange of information and learning through a Joint Inclusion Report summarising the Plans and naming challenges and a series of peer review meetings. The NAPs Inclusion have kept the fight against exclusion on the political agenda, and helped shape policies and the national dialogue on it. On the other hand, it has had little actual impact on policy, particularly in terms of national budgets and resources. Poverty is still very much with us, and equality gaps are widening. See Brief 8 Make the fight against poverty and exclusion central to policy action An inclusive society will not be achieved by isolated measures against exclusion alone: the whole of public policy action must be brought to bear on the aim. Therefore action on poverty needs to be mainstreamed across all public policy spheres, and all policies to be poverty-proofed. It is essential for the other two strands of the Lisbon strategy - employment and economic growth - to help promote social inclusion. The 2003 revision added social inclusion as an objective of the European Employment Strategy: it should be made a central concern, and its delivery carefully tracked. In economic terms, growth alone is not enough to wipe out poverty. That is why economic policies must not only aim for competitiveness and growth, but also social inclusion as an aim in its own right. Economic policies should also be poverty-proofed. All stake holders should develop an analysis on the mechanisms that lead to social exclusion in order prevent its development by the reshaping of the economic framework. The main policy instrument which the EU could use to achieve the objective of making a decisive impact on the eradication of poverty is the Structural Funds (Community Support Framework/National Development Plan). To date the over-arching social inclusion objective within the structural funds has been either ignored, side-lined or watered down so much as to be meaningless. See Briefs 9 and 10 Draft Constitution Under the Irish Presidency, the first draft Constitution has been agreed by the heads of Government of the EU. This now needs to be ratified (or not) by each country, either by Parliaments or by referendum (as in Ireland). The outcome is a compromise, but represents progress in some key areas. The Charter of Fundamental Rights (political, economic, social and cultural) is now a chapter of the draft Constitution, albeit with extra restrictions. All policies, including economic and monetary policy, would have to take account of equality and combating social exclusion. There are also hard-fought provisions to protect services of general interest like health, education, etc. from the ravages of the market. See Brief 11 10

16 8 Social Inclusion The EU Social Inclusion Strategy and the NAP Inclusion (National Action Plan Against Poverty and Social Exclusion) What is the NAP Inclusion? The National Action Plan for Social Inclusion for 2003 to 2005 was completed by the Government in August 2003 as part of the second round of plans drawn up by each of the 15 old EU member states under the European Union Social Inclusion Strategy. The Lisbon Strategy, agreed in 2000 (see previous paper) included the commitment to make a decisive impact on poverty and social exclusion by 2010 Because social policy is still mainly the responsibility of member states, rather than the EU, the strategy is held together by an 'open method of co-ordination' involving: common objectives agreed at EU level 2-yearly national action plans in each country to implement these objectives A Joint Report on Social Inclusion (also called the Joint Inclusion Report or JIR) which analyses the plans from the 15 member states by theme and by country a system of 'peer review', involving scrutiny of the national plans and exchange of examples of good practice development of a number of common indicators What is in the Objectives? The European Objectives that underpin the NAP\Inclusion are grouped under four headings: 1. 'to facilitate participation in employment and access by all to resources, rights, goods and services'. This objective deals both with access to quality employment and with rights in areas such as income, healthcare, services etc. 2. 'To prevent the risks of exclusion'. This covers the uses of technology, particularly to prevent exclusion of disabled people; avoidance of life crises such as indebtedness and promoting family solidarity in all its forms 3. 'To help the most vulnerable'. This deals with preventing exclusion of those most at risk of persistent poverty (immigrants have been added to the list of those at risk this time), action for children and for 'areas marked by exclusion' 4. To mobilise all relevant bodies. Better co-ordination of national and local government and also to participation of non-governmental organisations, other social partners etc. Why is it important? The NAP Inclusion is the main statement of Government policy on the fight against poverty. Some features of the NAP\Inclusion approach which are new, compared to Ireland NAPS include: The emphasis on rights throughout the objectives The clearer link between objectives, actions, targets and indicators The emphasis on the involvement of 'all relevant actors' The opportunities to compare and learn from strategies in other EU countries How successful has it been? As in many other countries, the Irish NAP Inclusion has been important in defining overall Government policy in relation to poverty. On the other hand, it has not been successful in 'mainstreaming' the fight against poverty into areas of government policy beyond the control of the lead department, particularly in the national budgets and economic plans. The Plans mostly 'listed and linked' existing strategies, rather than introducing new thinking. Few countries showed how they would move towards reaching the ambitious objectives agreed at EU level. 11

17 What needs to be done? The Joint Inclusion Report, agreed between the European Commission and the European Council (Prime Ministers and equivalents) identifies six challenges for member states over the next two years: 1. Promote investment in and tailoring of active labour market measures and education and training systems to meet the needs of those who have the greatest difficulties in accessing employment; 2. Ensure that social protection schemes are adequate and accessible for all and that they provide effective work incentives for those who can work; 3. Increase the access of the most vulnerable and those most at risk of social exclusion, including disabled people, to decent housing, quality health and lifelong learning opportunities; 4. Prevent early school leaving and promote smooth transition from school to work; 5. Develop a focus on eliminating child poverty and social exclusion among children; 6. Make a drive to reduce poverty and social exclusion of immigrants and ethnic minorities. EAPN Priorities EAPN has welcomed this statement of priorities, but called for more urgent attention to implementing them. We agree that there is a strong link between unemployment and poverty. However, given that there are some 5 million people who are facing poverty and who are unemployed, but 11.4 million people facing poverty are in employment, the reality is more complex than at first appears. The emphasis must therefore not only be on more jobs but must also focus on better jobs. We must concentrate on the quality of the measures on offer rather than increasing conditionality for accessing social benefits. Challenges for Ireland In the chapter on Ireland, the Joint inclusion Report says: The major challenge is to ensure that resources are made available to implement the agreed (anti poverty) targets, particularly if the economic downturn continues Other priority challenges for Ireland identified by the report include: Infrastructure and access to services, particularly in rural areas. Tackling educational disadvantage Integration of refugees and immigrants Greater focus on income inequalities Policy responses to gender inequality Monitoring and evaluation of the NAP Strengthening social inclusion co-ordination at local and regional level. The report notes that consistent poverty in Ireland (measured buy a combination of deprivation indicators like not being able to afford a warm coat and relative income) has declined. However, relative poverty (the number living below 60% of average income) has increased (in fact it is the highest in Europe), indicating continued income disparities affecting, in particular, elderly people, large families and lone parents. What can the European Parliament do? The Parliament can insist on a more active role in the strategy through: Public hearings on the Joint inclusion Report Promoting studies on the effectiveness of the strategy and on poverty Pushing for a stronger legal basis for the strategy 12

18 9 Employment The European Employment Guidelines and National Employment Action Plan Introduction The promotion of quality employment is primarily the responsibility of the member states or the EU. In 1997 the governments agreed to work together to achieve common goals. This is known as the European Employment Strategy. This strategy combines the 'consideration of employment in the formulation and implementation of Community policies and activities' and 'the introduction at Community level co-ordination mechanisms'. How it works The main thrust of the 'co-ordination mechanisms' is the adoption of Employment Guidelines by the Council of Ministers. These are translated by national Governments into National Employment Action Plans (NEAPs, sometimes called NAPs Employment ) by Member States. The NEAPs are analysed by the Commission and the Council, the results presented in a Joint Employment Report, whose findings are the basis for conclusions to be drawn: reshaping the Guidelines and Country Specific Recommendations for Member States employment policies. The Employment Guidelines: A European strategy for full employment and better jobs for all contain the following objectives: Full employment Improving quality and productivity at work Strengthening social cohesion and inclusion In pursuing the three overarching objectives, Member States are expected to implement policies taking into account the following specific guidelines which are priorities for action. In doing so they are expected to adopt a gender-mainstreaming approach across each of the priorities: 1. Active and Preventative measures for the unemployed and inactive 2. Job creation and entrepreneurship 3. Address change and promote adaptability and mobility in the labour market 4. Promote development of human capital and lifelong learning 5. Increase labour supply and promote active ageing 6. Gender equality 7. Promote the integration of and combat the discrimination against people at a disadvantage in the labour market 8. Make work pay through incentives to enhance work attractiveness 9. Transform undeclared work into regular employment 10. Address regional employment disparities Member States are also expected to ensure the effective implementation of the Employment Guidelines through the involvement of parliamentary bodies, the social partners and other relevant actors. The NEAPs must take into account the objectives for the fight against social exclusion which underlie the social inclusion strategy. This means that the employment guidelines should work not only to promote employment numbers and quality but must also focus on social inclusion. Content of the Irish NEAP The Commission makes specific recommendations to each country. Here is the recommendation for Ireland for 2004: Ireland has made impressive progress in terms of employment and productivity performances since The total employment rate has increased from 57.5% to 65.3% while unemployment has fallen by nearly two-thirds and long-term unemployment from 6.1% to 1.3%. Female participation in the labour force has improved, but there is still a significant gap between employment rates for women 13

19 and men, as well as a high gender pay gap. Labour shortages remain a problem although they are eased by increased immigration. A significant element in Ireland's success is its capacity to attract foreign direct investment. Social partnership, its tax system, a good regulatory environment and investment in human capital are also major factors. The assessment of the Employment Taskforce and the analysis in the Joint Employment Report of the implementation of the EU guidelines and 2003 Council Recommendations shows that Ireland should give immediate priority to: Attracting more people to the labour market and making work a real option for all Increase access to active labour market measures for a larger share of the unemployed and inactive population and ensure their efficiency; strengthen incentives to make work pay; Increase the supply and affordability of childcare facilities and take urgent action to tackle the causes of the gender pay gap. Investing more and more effectively in human capital and lifelong learning Implement a coherent lifelong learning strategy to reduce early school leaving and increase participation in training, especially for the low-skilled and for older workers. These are very similar to the last year s recommendations, and the current NEAP contains little by way of proposed action to deal with these issues. What we want In addition to supporting the above recommendations from the Commission, the Irish community and voluntary sector demands also include: The need for a clear vision on full employment More attention to equality Right to work for asylum seekers Targeting of budget tax benefits to the lower-paid. Promotion of back-to work allowances Evaluation of the impact of employment services Giving work permits to worker rather than to enterprise Support for women returners Need for individualisation of welfare Progress on equal pay What could the European Parliament do? The European Parliament has no major formal role to play in decisions about the European Employment Strategy, but what MEPs can do is: to bring the issue into the public domain by keeping an eye on the NEAP to ensure that the government acts on the Commission recommendations (or explains why it is unable/unwilling to act) to ensure that their groups in the European Parliament insist on a debate on the Joint Employment Report and bring their concerns to the Council of Ministers. to coordinate their efforts with their party/group colleagues in the Oireachtas in order to ensure that the NEAPs are properly scrutinised and are subject to genuine public debate Further Information A useful summary of the strategy and links to the guidelines, analyses and national action plans is on the 'Europa' website 14

20 10 Structural Funds National Development Plan, PEACE, Community Initiatives, etc, What are the Structural Funds? The Structural Funds are intended to be used by European Union to support economic development in poorer regions of Europe; and social development for excluded groups in all areas. The Funds are the main instrument the EU uses to fight poverty and social exclusion. The National Development Plan (NDP) is drawn up by the Irish government and outlines development priorities and spending programmes for the period It outlines the spending of most of the structural funds in Ireland as well as the public and private matching funds. The agreement between the Irish government and the European Commission on how EU structural funds may be spent in Ireland is called the Community Support Framework (CSF). Objectives and Priorities The following key objectives underpin the NDP and CSF: Continuing sustainable national economic and employment growth; Consolidating and improving Ireland s economic competitiveness; Fostering balanced regional development; Promoting social inclusion. Under the development strategy set out to achieve these objectives, investment should be concentrated on the following six priority areas: Economic infrastructure primarily roads, public transport and the environment; Employment and human resource development; Productive sector investment; Balanced regional and rural development; Social inclusion; Social capital (housing and health capital) NDP Programmes The National Development Plan is managed through three national operational programmes : Economic and Social Infrastructure (roads, public transport, water, energy, social housing, hospitals) Employment and Human Resources (training, equality) Productive Sector (industry, agriculture, fisheries) There are two regional programmes: South and Eastern Border, Midlands and West In addition there are accompanying measures for Agriculture (supporting the Common Agricultural Policy) PEACE (mostly for border regions) Community Initiatives In addition to the National Development Plan there are a series of so-called Community Initiatives which are proposed by the European Commission and cover all regions in the European Union: EQUAL (equality and social inclusion) 15

21 LEADER+ (rural development) INTERREG III (cross-border cooperation including north-south and Ireland-Wales) URBAN II (urban social inclusion) Content of Irish National Development Plan Over the years the Structural Funds have concerned themselves largely with regional economic development and the smoother functioning of the labour market, following a model of development which does little to confront the root causes of social exclusion. Social inclusion is one of the four over-arching objectives of the NDP, but this fact appears to have been forgotten with: Private / corporate sector gaining the most. Social inclusion cast aside as a priority when it suits the government (particularly in times of perceived economic difficulty) Strategies for promoting social inclusion reduced almost exclusively to labour market measures, and even then are not geared towards the needs and interests of the most marginalised groups and communities. Social inclusion targets being wholly inadequate (if they are set at all). The institutional mechanisms not geared listening to the voices of the excluded and marginalised. Proofing (poverty, gender, rural and environmental) seen as a tokenistic measure at best. As part of the Mid-Term Review of the NDP, EAPN Ireland researched and prepared a publication outlining views from the Community and Voluntary Sector of the Plan. EAPN (Europe) prepared its own position, based on the views and experiences of anti-poverty groups and organisations across the European Union. Many of the experiences of the community and voluntary sector in Ireland are mirrored across the continent. Among the recommendations of EAPN (Europe) are Programming documents must make clear the links between the structural funds and the national and European strategies for social inclusion. The model of social integration that informs the structural funds must be broadened to encompass measures that are not exclusively linked to training for the open labour market. Funds should be targeted and concentrated on groups in especial need. PEACE II Programme The PEACE II Programme, which supports the Peace Process in the 6 counties of Northern Ireland and in Donegal, Monaghan, Cavan, Louth, Sligo & Leitrim is scheduled to finish in Discussions are under way to extend the funding to 2006, in line with other structural funds. The consultation process which took place in autumn 2004 identified the need to prioritise social integration, inclusion and reconciliation above economic renewal. What could the European Parliament do? The next round of European Structural Funds is due to begin in Over the next year or two the European Parliament will have to adopt a position their scale and their use. MEPs can seek to ensure that: Social Inclusion is a genuine priority and that there are clear links between the Structural Funds and the European Social Inclusion Strategy (as well as between the National Development Plan and the National Action Plan Against Poverty and Social Exclusion). The social inclusion measures in the structural funds are not exclusively linked to the labour market. Structural funds should be targeted and concentrated on groups in special need. Further Information No Discernible Progress: How Social Inclusion has been forgotten in the National Development Plan, an EAPN Ireland publication outlining view from the Community and Voluntary Sector in Ireland, and the EAPN (Europe) policy paper on the structural funds after 2007 are both available from EAPN Ireland and, in the latter case, from 16

22 11 Draft EU Constitution What is the draft Constitution? After two years of negotiation, the text of a draft Treaty to establish the EU s first Constitution was agreed by the 25 EU Heads of Government in Dublin in June The Treaty must now be accepted or rejected by the Member States, either by their national Parliament, or in the case of at least 10 countries, including Ireland, by referendum over the next two years. Since the Treaty of Rome, between the six founder members of the EEC, the EU has evolved through a series of Treaties, each amending the one before. Since each has gone to a referendum in Ireland, the names, if not the content, are familiar Single European Act, Maastricht, Amsterdam, Nice. The draft Constitution has three main parts: Part I: The main Objectives and principle provisions, Part II: The Charter of Fundamental Rights Part III: The policy section, which describes how policy will be made This is followed by a concluding statement (Part IV) and there are a long list of Declarations and Protocols on a range of subjects, many carried over from previous Treaties (including Irish ones on, for example, abortion and neutrality). The Constitution was negotiated by a Convention of representatives of the parliaments and governments of 28 countries (15 old, 10 new and 3 applicant ).. EAPN (Europe) and EAPN Ireland lobbied actively, in alliance with other NGOs and trade unions in the act4europe campaign ( for our priority demands. In Ireland, much of our lobbying was through the National Forum on Europe, linking political parties and civil society ( What impact will it have? The EU Treaties have always been both legal and political documents. They do not just define and divide powers but also set out a vision for the direction of the EU and put in place the legal mechanisms to achieve it. Much more than national Constitutions, the European Treaties have always been as much about what the EU should do as about how it should do it. The draft represents an important but limited step forward in each of the three EAPN areas of concern: setting objectives to fight social exclusion and providing policy instruments to mainstream this in all policy areas incorporating the Charter of Fundamental Rights, albeit with new limitations, and providing the basis for more openness and dialogue in policy-making. On the other hand, much of the thrust of the policy section of the Constitution is to hard-wire neo-liberal economic approaches into the EU structure, and the instruments for social policy are still extremely weak. Eradicating poverty and social exclusion The draft Constitution includes the Objective that (the EU) shall combat social exclusion and discrimination and shall promote social justice, equality between men and women, solidarity between the generations and protection of the child.. As in the Lisbon Strategy, this is linked to a commitment to a competitive economy aiming at full employment and social progress, and with a high level of social protection and protection of the environment. On the other hand, the drafters refused to name poverty in the EU, or to make its eradication an Objective of the Union, as it is for the EU s relations with the wider World. To make this Objective meaningful, the Constitution also includes a cross-cutting clause in the policy section (Part III) which reads: In defining and implementing the policies and actions referred to in this Part (i.e. all EU policy), the Union shall take into account requirements linked to the promotion of a high level of employment, the 17

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