EUROPEAN COMMISSION DG Employment, Social Affairs and Inclusion Europe 2020: Social policies

1. EU social inclusion policy coordination in the EU 2020 strategyand the European Platform Against Poverty and Social Exclusion Belgrade, 29 March 2011 EUROPEAN COMMISSION DG Employment, Social Affairs and Inclusion Europe 2020: Social policies Walter WOLF

2. ‘Open Method of Coordination’ (OMC)http://ec.europa.eu/social/main.jsp?langId=en&catId=750 EU Social Inclusion Process • Definition of common Objectives and agreed indicators • Reporting to national partners and to the EU (EC, Council, EP) • Facilitating mutual learning and exchange of good practices • EU and national poverty reduction targets

3. social cohesion, equality between men and women and equal opportunities for all through adequate, accessible, financially sustainable, adaptable and efficient social protection systems and social inclusion policies. • effective and mutual interaction between the Lisbon objectives of greater economic growth, more and better jobs and greater social cohesion, and with the EU's Sustainable Development Strategy. • good governance, transparency and the involvement of stakeholders in the design, implementation and monitoring of policy EU social protection and inclusion strategy Overarching Objectives

4. Making a decisive impact on the eradication of poverty and social exclusion by ensuring: • access for all to the resources, rights and services needed for participation in society, addressing exclusion, and fighting all forms of discrimination • the active social inclusion of all, both by promoting participation in the labour market and by fighting poverty and exclusion • that social inclusion policies are well coordinated and involve all levels of government and relevant actors, including people experiencing poverty, that they are efficient and effective and mainstreamed into all relevant public policies The 2006 Social Inclusion Objectives

5. Europe 2020 • ’Smart, sustainable and inclusive growth’ • http://ec.europa.eu/eu2020/index_en.htm • 7 EU ’flagship initiatives’ • Smart: innovation, youth on the move digital agenda • Sustainable: resource efficiency, competitiveness • Inclusive: new skills and jobs, ’European Platform against Poverty’

6. Europe 2020 The 5 EU headline targets • 75 % of aged 20-64 employed • 3% of EU's GDP invested in R&D • 20/20/20 climate /energy targets • Early school leavers down to 10% and • 30-34 with tertiary education up to 40% • Lifting 20 million people out of poverty and exclusion

7. Despite economic and employment growth poverty was not reduced before the crisis At-risk-of poverty rates by groups, EU, 2005-2008 In-work poverty also remained stable at 8%. The risk of poverty of the unemployed is much higher and was even on the rise, highlighting concerns about the adequacy of safety nets.

8. Possible gains in the efficiency of social transfers Source: SILC 2008 & ESSPROS 2007

9. Gaps in social safety nets • In some countries 80% of longer term unemployed do not get any benefitspoverty rate for unemployed is 44%

10. Impact of the crisis • Expected GDP growth for 2010 remains modest • Unemployment > 10% and expected to stay high • Social expenditure (social protection, education and health) ~ 70% of public expenditure in EU • Social protection > 40% of public expenditure • Fiscal consolidation will affect social expenditure: a challenge for social polices aimed at addressing poverty and exclusion • The social situation is likely to further deteriorate and poverty is likely to increase.

11. Poverty reduction Target • EU level • “Lifting 20 millions people out of poverty or exclusion by 2020” • Based on 3 existing EU social inclusion indicators: • At-risk-of-poverty rate • severe material deprivation • people living in jobless households • National level • Member States are free to chose the most appropriate indicator to set their national target • Member States to show how they will contribute to meeting the EU level target, in dialogue with the Commission

12. Severe material deprivation • Definition: People whose living conditions are severely constrained by a lack of resources: They experience at least 4 out of 9 deprivations: people cannot afford i) to pay their rent or utility bills, ii) keep their home adequately warm, iii) face unexpected expenses, iv) eat meat, fish, or a protein equivalent every second day, v) a week of holiday away from home once a year, vi) a car, vii) a washing machine, viii) a colour TV, or ix) a telephone • A non monetary measure of poverty • Based on a single European threshold – reflecting the disparities across the EU It concerns 8.3% of the EU population varying from 1% in LU to 33% in RO • List of items to be reviewed in 2015

13. People in workless households • People (aged 0-59, not students) living in a family where no one works (or very little) • Reflects long-term exclusion from the labour market, for individual workers and the family members who depend on them • Strong link to child poverty and intergenerational transmission of poverty • It concerns approx. 8% of the total EU population, varying from 4% to 14%

14. 40 Mio peoplematerially deprived 40 Mio peoplein workless households 120 Million people at risk of poverty or exclusion 80 Mio people at risk of poverty

15. People materially deprived People in workless households Country A focusing on raising living standards People at risk of poverty

16. People materially deprived people in workless households Country B focusing on labour market inclusion People at risk of poverty

17. Next steps • National targets • Member States set their targets on the most appropriate indicators, given national circumstances and priorities • Monitoring of the target at EU level • Part of the monitoring of the 5 headline targets • Eurostat website • http://epp.eurostat.ec.europa.eu/portal/page/portal/europe_2020_indicators/headline_indicators

18. Candidate Countries • Expressed their interest to be associated to EU2020 • Could serve as source of inspiration • Setting their own targets on the most appropriate indicators, given national circumstances and priorities • The Joint Social Protection and Social Inclusion Memorandum Process will prepare CC for their full participation in EU2020 upon accession

19. European Platform Against Poverty and Social Exclusion • Adopted on December 17, 2010 • To support concrete and innovative actions and a broader involvement of stakeholders Four main pillars: • Stepping-up Member States coordination to address common challenges • Promoting effective partnerships and the social economy • The fight against poverty beyond social policy • Community Funding in support of social inclusion

20. Five areas for action • Delivering action across the policy spectrum • Making EU funds deliver on the social inclusion and social cohesion objectives • Developing an evidence-based approach to social innovation and reforms • Promoting a partnership approach and the social economy • Stepping up policy coordination between the Member States

21. Delivering action across the policy spectrum (1) • Enhancing access to employment and active inclusion of vulnerable groups • Communication on active inclusion, 2012 • Making social protection and services more responsive to new social needs • White paper on Pensions, 2011 • Further develop quality framework on social services • Follow-up to communication on health inequalities • Breaking the cycle of disadvantage • Recommendation on early school leaving, 2011 • Recommendation on child poverty, 2012

22. Delivering action across the policy spectrum (2) • Promoting the inclusion of disadvantaged groups • EU framework for national Roma Integration Strategies , 2011 • Follow-up to 2010 consensus conference on homelessness • Tackling poverty beyond social policies • Implementation of energy internal market legislation • Combating digital divide (implementation of Digital Agenda) • Legislative initiative on access to basic bank services, 2011 • Social impact assessment • improving cooperation with EU institutions and Member States

23. Making EU funds deliver on social inclusion objectives • 2010 Budget review stresses need to linking more directly structural funds and ESF to Europe 2020 headline targets (incl. poverty target) • Commission Proposals for next Multi-Annual Financial Framework (2011) will explore following options: • Enhancing ESF contribution to achievement of poverty target • Devoting necessary resources to social inclusion • Reinforcing support to disadvantaged groups • Simplified access grant schemes for local partnerships • Greater synergies and complementarities between EU funds

24. Promoting evidence based social innovation • Build on existing tools to guide structural reforms peer reviews, mutual learning… • Major social experimentation initiative • Pooling resources from various EU funds • Fine-tuning methodology • Development of wider scale experiment • Communication and dissemination

25. Promoting partnership and the social economy • Strengthening existing partnerships and involving new actors (social partners, regional/local authorities, NGOs) • Voluntary guidelines on stakeholders’ involvement and participation of people experiencing poverty (2012) • Regular dialogue on thematic priorities • Harnessing the potential of the social economy • Improving legal structures (e.g. foundations) • Social Business Initiative (2011) to support socially innovative corporate projects (Single Market Act)

26. Implementation and next steps • Regular reporting within Europe 2020 (e.g. Annual Growth Survey) • Poverty Round Table to be transformed into an Annual Platform Convention: • Bring together key actors • Take stock of progress made towards headline target • Review implementation of activities • Suggestions for future action • Implementation reviewed in 2014

27. Further Information DG Employment, Social Affairs and Equal Opportunities‘Social Inclusion’ website http://ec.europa.eu/social/main.jsp?catId=751&langId=en EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities