EIRC Foundation European Integration and Regional Competitiveness

1. EIRC Foundation European Integration and Regional Competitiveness European Union Experts EUE - AISBL Social Economy as a way to social inclusion; status of play in Bulgaria, the Italian Experience and the European Social Policy: ideas for the new programming period 2014-2020 The European Social Policywithin the perspectives of the EU 2020 Strategy Sofia 5 October 2010 Technical University Filippo Strati - Studio Ricerche Sociali Italy (member of the EU Network of Independent Experts on Social Inclusion) Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

2. The presentation foci: A) Important changes in the EU institutional, strategic and governance architecture B) Progress in the EU social policies since 2000 C) Critical points of the past and current debate and challenges in the near future Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

3. A) Important changes in the EU institutional, strategic and governance architecture The new “Lisbon” Treaties with the associated Charter of Fundamental Rigths (1/12/2009) The new Strategy (EU 2020) compared with the past Lisbon Strategy Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

4. The New Treaty on European Union Founding Values (Art. 2) Respect for human dignity, freedom, democracy, equality and human rights, including the rights of persons belonging to minorities. “These values are common to the Member States in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail”. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

5. The New Treaty on European Union Overarching Objectives (Art. 3) Peace and well-being; sustainable development; a highly competitive social market economy; economic, social and territorial cohesion; full employment and social progress; a high protection and improvement of the quality of the environment; scientific and technological advancement; social justice and protection; equality between women and men; solidarity between generations and among Member States. The Union “shall contribute to peace, security, the sustainable development of the Earth, solidarity and mutual respect among peoples, free and fair trade, eradication of poverty and the protection of human rights, in particular the rights of the child”. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

6. The New Treaty on the Functioning of European Union Five important “Horizontal Clauses” in defining and implementing policies and activities Equality Clause (Art. 8) to eliminate inequalities, and to promote equality, between men and women. Social Clause (Art. 9) to guarantee adequate social protection, to fight against social exclusion, to promote high level of employment, education and training, to protect human health Anti-discrimination Clause (Art. 10) to fight against discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation Environmental Clause (Art. 11) to promote sustainable development and environmental protection (Art. 11) Consumer Clause (Art. 12) to protect consumer rights Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

7. The New Treaty on the Functioning of European Union Three important “Governance pillars” in defining and implementing policies and activities Broadguidelines of the economic policies adopted by the EU Council in agreement with the Member States (Art. 121) to achieve the EU Objectives (as defined in Art. 3 of the Treaty on European Union) (Art. 120). Employmentguidelines consistent with the broad guidelines and adopted by the EU Council in agreement with the State Members (Art. 148). Recommendations concerning each Member State, proposed by the EU Commission, adopted by the EU Council and communicated to the EU Parliament, through a regular overall assessment and monitoring of economic and employment developments (Art. 121.2 and Art. 148). Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

8. The Charter of Fundamental Rights of the European Union The same legal value as the Treaties The Charter places the principle of humandignity as its first Article and Title, through which all other rights are formulated and pursued: freedom, equality, solidarity, citizenship and justice. Human dignity includes also the right to: - Social security benefits, social protection and services, social and housing assistance, sufficient resources for a decent existence in order to combat risks of social exclusion and poverty (Art. 34). - A high level of environmentalquality and protection (Art. 37). Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

9. The EUROPE 2020 Strategy and the previous Lisbon Strategy The EU 2020 Strategy was designed as the successor of the Lisbon Strategy Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

10. The Lisbon Strategy and the EU 2020 Strategy Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

11. Public consultation on the EU 2020 Strategy Between November 2009 and January 2010. Background considerations included the following ones: 1- The conservation and a more efficient utilisation of energy, natural resources and raw materials are key drivers of economic competitiveness and productivity. 2- The application of greener technologies constitutes new sources of employment. 3- Growth and jobs alone do not secure a reduction in poverty and social exclusion. 4- Gender equality, social cohesion and solidarity, integration of immigrant population, lifelong learning and education, income support, social services and pension systems are effective ways to fight inequality, poverty and child poverty with a close attention to vulnerable groups in an ageing society. The EU Commission received nearly 1,400 contributions from a wide range of stakeholders (e.g. EU-level bodies, NGOs, experts, trade unions, employers and professional associations, political parties, consumer organisations, citizens). Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

12. EU 2020 Strategy: Five Headline Targets and Seven Flagship Initiatives 5 Headline Targets on: employment rate; Research and Development (R&D); climate change and energy; education. 7 Flagship Initiatives linked to the Headline Targets: - social and territorial cohesion to allow people to live in dignity and to take part actively in society (European platform against poverty - EPAP) - decarbonisation of the economy and the decoupling of economic growth from the use of natural resources (Resource efficient Europe) - research and innovation (Innovation Union); support to business, especially SMEs, to compete globally (An industrial policy for the globalisation era); high-speed internet for households and firms (A digital agenda for Europe); - modernisation of labour markets to increase labour participation throughout the lifecycle (An agenda for new skills and jobs);   - education systems (Youth on the move) Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

13. The European Platform against Poverty (EPAP) To ensure that the benefits of growth and jobs are widely shared and people experiencing poverty and social exclusion To increase visibility, improve communication and dissemination, enhance mutual learning processes To improve quality and continuous involvement of relevant stakeholders To develop the Open Method of Coordination and to benefit from the experience, instruments and activities in the field of social protection (pensions, health and long-term care) and social inclusion To enhance capacity and quality of initiatives and measures at both EU and national level to deliver the social dimension of the Europe 2020 strategy To foster the social impact assessment of policies according to the horizontal “social clause” To develop indicators that reflect the multidimensional nature of poverty and social exclusion Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

14. The European Councils of March and June 2010: 1) Agreed on Five Headline Targets of the EU 2020 Strategy - Member States should, in close dialogue with the Commission, rapidly finalise their national targets, taking account of their relative starting positions and national circumstances, and according to their national decision-making procedures. 2) Gave its political endorsement to the Integrated Guidelines for economic and employment policies, which will be formally adopted after the European Parliament's opinion. 3) Defined a governanceframework between the EU and the Member States Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

15. EU 2020 Strategy: Five Headline Targets 2020 Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

16. EU 2020 Strategy: Poverty Targets 2020 Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

17. EU 2020 Poverty Targets: some estimates (1) Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

18. Integrated Guidelines (IGs) in the Lisbon Strategy and in the EU 2020 Strategy Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

19. EU 2020: Draft Integrated Guidelines for economic policies of the Member States and the Union 1) Ensuring the quality and the sustainability of public finances 2) Addressing macroeconomic imbalances 3) Reducing imbalances in the euro area 4) Optimising support for R&D and innovation, strengthening knowledge and unleashing the potential of the digital economy 5) Improving resource efficiency and reducing greenhouse gases emissions 6) Improving the business and consumer environment and modernising the industrial base Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

20. EU 2020: Draft Integrated Guidelines for employment policies of the Member States 7) Increasing labour market participation and reducing structural unemployment 8) Developing a skilled workforce responding to labour market needs, promoting quality and lifelong training 9) Improving the performance of education and training systems at all levels and increasing participation in tertiary education 10) Promoting social inclusion and combating poverty Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

21. Ingredients of the draft Integrated Guidelines 10: Promoting social inclusion and combating poverty 1) equal opportunities, anti-discrimination, gender equality, people empowerment, opportunities at different stages of people’s lives 2) close attention to vulnerable groups, e.g. one-parent families, minorities, including the Roma, people with disabilities, children and young people, elderly women and men, legal migrants, homeless 3) access for all to high quality and affordable services (e.g. social field, housing and health care) 4) labour market participation and lifelong learning to prevent in-work poverty 5) benefit systems to ensure income security during transitions and to reduce poverty 6) social protection systems (pensions, health and long-term care) to ensure adequate income support, access to quality services, while encouraging participation in society and in the labour market 7) full use of the European Social Fund (ESF) and promotion of social economy and social innovation Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

22. The EU 2020 Governance Framework • - The strategy implementation is based on a thematic approach and country surveillance. • Thematic approach reflects the EU dimension, showing the interdependence of Member States economies. It refers to the 3 mutually reinforcing priorities and the deliver of the 5 headline targets also by means of the 7 flagship initiatives; • Country surveillance is based on country reporting to achieve the EU 2020 in the EU Member State. • The Member States prepare National Reform Programmes to identify the main bottlenecks to growth and to indicate how they intend to tackle them. • The Integrated Guidelines (IGs) will continue to be the basis for policy recommendations that the Council may address to Member States both for the thematic approach and the country reporting. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

23. The EU 2020 Governance Framework • Recommendations shall be fully in line with relevant Treaty provisions and EU rules and shall not alter Member States' competences. • Recommendations regarding the thematic approach would provide detailed advice on micro-economic and employment challenges. • Recommendations under the country surveillance would address issues with significant macroeconomic and public finance implications. • Recommendations would be sufficiently precise and provide s time-frame within which the Member States are expected to act (e.g. two years). • Progress towards the headline targets will be regularlyreviewed by the EU Commission through an annual report and issuing policy recommendations and warnings. If a Member State has not adequately responded to a policy recommendation of the Council or develops policies going against the advice, the Commission could issue a policy warning. • The EU Council provide overall guidance and steering for the strategy to foster inter alia horizontal (between different policy sectors) and vertical (between different levels of government). Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

24. The EU 2020 Governance Framework • The EU Parliament has a co-legislator role and is “a driving driving force for mobilising citizens and their national parliaments”. • All national, regional and localauthorities should implement the partnership, closely associating parliaments, as well as social partners and representatives of civil society, contributing to the elaboration of National Reform Programmes as well as to its implementation. • The EU Economic and Social Committee as well as the Committee of Regions should also be more closely associated in the strategy process. • Exchange of good practices, benchmarking and networking - as promoted by several Member States – are recognised as another useful tool to forge ownership and dynamism around the need for reform. • - The Open Method of Coordination (OMC) on social exclusion and social protection (Social OMC) is reaffirmed as a platform for cooperation, peer-review and exchange of good practice, and as an instrument to foster commitment by public and private players to reduce social exclusion, and take concrete action, including targeted support from the structural funds, notably the ESF. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

25. B) Progress in the EU social policies since 2000 The Open Method of Coordination (OMC) The Social OMC Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

26. The Open Method of Coordination “The OMC is a mutual feedback process of planning, monitoring, examination, comparison and adjustment of national (and subnational) policies, all of this on the basis of common objectives agreed for the EU as a whole. Through this peer review exercise (which involves the European Commission and all Member States), and thus the sharing of experience and good practices, all the countries can learn from one another and are therefore all in a position to improve their policies.” (Marlier E. et al., 2007) OMC-type processes have interested several policy fields, e.g.: employment, education, training, immigration, asylum, disability, health and safety, youth policies, environmental protection, research, innovation, information society, enterprise promotion, structural economic reform, fundamental rights. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

27. The Open Method of Coordination and the Community Method OMC: a main instrument of “soft law” to orient governance mechanisms and planning development according to common guidelines, objectives, indicators and mutual learning processes (e.g. peer reviews) throughout the EU territory. CommunityMethod: the main instrument of “hard law” (e.g. the Treaty, the Charter of Fundamental Rights and all the other acts of EU legislation) OMC and Community Method are complementary and mutually reinforcing. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

28. OMC processes after the 2005 revised Lisbon Strategy The revision of the Lisbon Strategy (2005) and Sustainable Development Strategy (2006) streamlined OMC processes (e.g. rationalisation, simplification, integration and synchronisation). Three main documents: Lisbon Strategy “Growth & Jobs” = National Reform Programme (NRP); integrating the employment, economic, social and environmental strands Social Protection and Social Inclusion = National Strategy Report (NSR) integrating social inclusion, pensions, health care and long-term care policies Sustainable Development Strategy = National Progress Report on the European Sustainable Development Strategy (NSDS); integrating environmental policies, public health, social inclusion and poverty, demography and migration policies. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

29. The Social OMC Provides a framework for national strategy development, as well as for coordinating policies between EU countries on issues relating to poverty and social exclusion, health care and long-term care as well as pensions.  The open method of coordination is a voluntary process for political cooperation between the EU Member States. OMC is formed by 5 main elements (strengthened since 2006): 1) Common Objectives  2) Common Indicators, which show how progress towards these goals can be measured.  3) National policies, through which National governments translate the common objectives into national plans (National Strategic Reports, NSR).   4) Joint Reports (EU JR), through which the national reports are assessed by the Commission and Council; EU JR reflect what EU-level initiatives have achieved in individual countries. 5) Mutual learning process and dialogue between the EU Member States to stimulate innovation and the sharing of good practices (e.g. the Peer Review seminars). Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

30. The Social OMC Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

31. EU commonly agreed Objectives for Social Inclusion Social policy: a “dual role” as productive factor for economic performance and key instrument to reduce inequalities and promote social cohesion. Employment policy: the best safeguard against social exclusion. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

32. Social OMC: key phases and main documents Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

33. OMC processes The OMC process was more effective in the Lisbon Strategy (NRP) with respect to the social inclusion and social protection policies (NSR), while it remained substantially voluntary in sustainable development (NSDS). E.g.: EU country-specific recommendations and “points to watch” for the NRP; only general comments for the Social OMC in terms of country-challenges; no comments on NSDS. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

34. Most evident weaknesses of OMC processes • official documents (NRP, NSR and NSDS) often considered as a reporting exercise, to be submitted to the EU Commission, rather than strategic action plans • a pervading bureaucratic and administrativeattitude (e.g. “copy and paste") instead of a coherent and constructive integration of the documents • general objectives and guidelines rather than precise qualitative and quantitative targets. • a substantial lack of analysis on the “feeding in” and “feeding out” interrelationships between different policies; in Social OMC “feeding in” is the contribution of social protection and social inclusion policies to employment and economic policies, while the contribution of the latter to social policies is called “feeding out”. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

35. Most evident weaknesses of OMC processes • lack of Environmental and SocialImpactAssessment of strategies and national plans • scarce improvement in horizontal (between policy fields and the relevant departments / ministries) and vertical (between different level of government, e.g. national and sub-national) co-ordination • mere consultation of stakeholders rather than an effective participation in decision-making processes • small circles of policy makers, practitioners and experts involved in the preparation of the documents Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

36. Reasons why of weak Social OMC • economic and employment matters considered more important than environmental, poverty and social exclusion issues • as a consequence, a deeper imbalance between policy pillars, for which growth and jobs (a cornerstone of the Lisbon Strategy) are seen as prevalent instruments to fight against poverty and social exclusion • unfortunately these instruments are necessary but not sufficient to tackle income disparities, regional disparities, gender and ethnic disparities, household hardships, environmental degradation and quality of life as a whole. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

37. C) Critical points of the past and current debate and challenges in the near future From Lisbon Strategy to EU 2020 Strategy Challenges of the EU 2020 Strategy Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

38. Critical points of the past and current debate: from Lisbon Strategy to EU 2020 Strategy According to the UN 1992 Rio Declaration on Sustainable Development and the associated Agenda 21, an effective strategy to fight against poverty and social exclusion must take into account: - the impact of environmental conservation and protection on those who depend on natural resources for their livelihoods - the impact of economic growth policies on the environment and consequently on poverty due to depletion of the natural resources and of their quality. In other words, the right to the environmental quality cannot be divorced from those to social inclusion and human health. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

39. Critical points of the past and current debate: from Lisbon Strategy to EU 2020 Strategy The Göteborg Strategy for Sustainable Development of 2001 was more in line with the principles stated in the UN 1992 Rio Declaration and the associated Agenda 21. The Lisbon Strategy of 2000 was purely focused on economic issues; the social pillar was an additional component depending on “Growth & Jobs”; the environmental pillar was based on techno-optimism associated with “Growth”; no linkages were defined between environmental degradation, poverty and social exclusion. The re-launched Lisbon Strategy of 2005 attempted to identify and analyse the interrelationships between economic, employment and social pillars (e.g. “feeding-in” and “feeding-out”) while only general reference were made to environmental issues and limited institutional interfaces were defined with the sustainable development strategy. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

40. Critical points of the past and current debate: from Lisbon Strategy to EU 2020 Strategy The EU 2020 Strategy was conceived by the EU Commission as “a European strategy for smart, sustainable and inclusive growth”, but it was approved by the EU Council in June 2010 as “a new strategy for jobs and growth” closely in line with the previous Lisbon Strategy. The word, and the concept, of sustainable development, progressively disappeared in the key official documents, while being replaced by sustainable growth, sustainability of public finances and so on. The meaning of sustainability become that of “continuity” at same or higher rates or levels of any type of activity (economic, financial and so on). The original meaning of sustainability was instead “reconciliation between humanity and nature” through the wise use of natural resources at a level that is not likely to damage the environment. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

41. Critical points of the past and current debate: from Lisbon Strategy to EU 2020 Strategy • Sustainable Development was universally recognised in 1987 by the Brundtland Commission (United Nation) as • a development that meets the needs of the present without compromising the ability of future generations to meet their own needs • a process in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony, and enhance both current and future potential to meet human needs and aspirations. • Following these definitions and the scientific debate, development cannot be confused with growth. • Development consists in the pursuit of values and beliefs necessary for life (e.g. equity and social inclusion, unity and diversity, democracy and justice, freedom and solidarity, environmental integrity and diversity) through norms and ways of acting. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

42. Critical points of the past and current debate: from Lisbon Strategy to EU 2020 Strategy Considering a wide range of concepts, development can be defined as the process whereby human beings use their knowledge, understanding and capacity to improve the quality of the ecosystems with which they interact, including the other components of nature. Growth consists in the increase of goods and services (e.g. environmental, productive, technological, social, cultural and health) through human activities. Growth is quantitative as it takes into account the amount of goods and services over a given time and from a specific ecosystem. It is therefore possible to measure their increase or reduction over time. The general belief in a linear and continuous growth without limits is the highest risk to natural ecosystems, which have exhaustible resources and services. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

43. Critical points of the past and current debate: from Lisbon Strategy to EU 2020 Strategy Growth may occur (e.g. income and consumption) without development (e.g. unequal income distribution, poverty and pollution). Likewise, development may occur (e.g. better environmental and health conditions) without growth or with de-growth (e.g. absence of or reduction in production and consumption that are harmful to the environment and living beings). As a result: sustainable (continuous) growth is an oxymoron, having the exact opposite meaning of sustainable (wise and fair) development based on social, economic and environmental justice. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

44. Challenges of the EU 2020 Strategy The public consultation on EU 2020 strategy underlined key challenges that still remain to be addressed: - more holistic approach with an equal weight assigned to social, environmental, employment and economic dimensions - strengthening the social dimension and its links with the environmental, employment and economic pillars - strengthening gender equality as an inherent pillar of the new strategy - linking the fight against climate change and environmental degradation with the fight against poverty and social exclusion, inequality, insecurity and all types of discrimination - better integrating the EU 2020 Strategy with the Sustainable Development strategy, Social Agenda, Cohesion Pact, Energy and Climate Change, Stability and Growth Pact. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu

45. Challenges of the EU 2020 Strategy • - pursuing effective monitoring and benchmarking systems concerning the Headline Targets (and Integrated Guidelines) both at EU, national and sub-national levels • developing indicators “beyond GDP” (gross domestic product) to assess progress • developing Social Impact Assessment of any policy in close relation with Environmental Impact Assessment • - providing more binding recommendations and arrangements while strengthening the open method of coordination (OMC) processes • - enhancing a full and equal partnership between different levels of government (multi-level governance) and between different policies (multi-dimensional approach) • - reinforcing participation of and ownership by stakeholders • - improving communication. Filippo Strati - Studio Ricerche Sociali - www.srseuropa.eu