Welcome to the 4th conference of Alliances to fight poverty

2. Welcome to the 4th conference of Alliances to fight poverty

4. All documents you will find on alliancestofightpoverty.wordpress.com

5. Welcome by Joyce Loughnan Focus Ireland and Ann Demeulemeester ACW

6. The state of play of the European socio-economic and poverty police by Hugh Frazer Maynooth, National University of Ireland

7. A torn Europe? Europe on two tracks The state of play of the European socio- economic and poverty policy HUGH FRAZER National University of Ireland (Maynooth) EU Network of Independent Experts on Social Inclusion

8. Declaration by delegates to the 11th EU Meeting of People Experiencing PovertyBrussels - today “But this year, more than ever before, we feel abandoned by those who declare they stand at our side, working for us and with us. Ever greater numbers of people are homeless and living in precarious conditions, ever greater numbers are losing their home because they can’t afford to pay their rent or their mortgage, ever greater numbers are without a home because they are discriminated against. Everywhere unemployment is mounting, workers are increasingly insecure, young people cannot imagine a future. As a 17- year-old girl has said, “Right now I have no dreams”. Can there be anything worse than not having a dream when you are 17 years old?”

9. European Commission viewAnnual Growth Survey 2012 “In addition to economic realities, the social tissue of the EU is being put to the test. The crisis has disproportionately hit those who were already vulnerable and has created new categories of people at risk of poverty. There are also clear signs of increases in the number of people at risk of income poverty, notably child poverty, and social exclusion, with acute health problems and homelessness in the most extreme cases. People with no or limited links to the labour market – such as pensioners or vulnerable people dependent on social benefits, for instance single parents – are also exposed to changes affecting the calculation and eligibility of their source of income.”

10. Lisbon Treaty and Europe 2020What is meant to happen? • Put poverty reduction at heart of EU policy agenda • Better integrate and mainstream social objectives at heart of EU policy making • More systematic reporting & monitoring • Better governance • More funds for social inclusion

11. What has happened? • Implementation inadequate and often very limited? • Impact on poverty and social exclusion negligible so far • Overall situation of poverty and social exclusion is getting worse

12. Put poverty reduction at heart of EU policy agenda • Europe 2020 - 5 headline targets • to be translated into national targets (to be reached by 2020) • The targets “constitute shared objectives guiding the action of Member States and the Union” (European Council Conclusions): • Employment: 75% of men/women 20-64 to be employed • R&D/innovation: 3% of EU's GDP • Climate change/ energy (20/20/20): 20% lower than 1990 for greenhouse gas emissions (30% if…), 20% of energy from renewables, 20% increase in energy efficiency • Education: Reduce school drop-out below 10% & Ensure that at least 40% of 30-34s complete third level education • Social inclusion: reduce by 20 million the number of people in EU “at risk of poverty or social exclusion”

13. Poverty targets inadequate • Most countries have set targets but targets insufficient • School drop-out • EU target under 10% • MS commitment (2011 NRPs) 11.3% • Social inclusion and fight against poverty • EU target 20 million people out of poverty • MS commitment (2011 NRPs) 12-15 M • EU Network of Independent Experts 2011 assessment • lack of sub-targets for groups at high risk or for specific policy domains not already covered by the employment and education targets • some targets too ambitious; others lack sufficient ambition • link between national indicator & achievement of the overall EU target not clear • lack of any justification or clarity about the criteria underpinning choice of target • lack of detail in many NRPs on how the targets are to be met • risk of focussing on just one aspect of poverty and • social exclusion • danger of not focussing sufficiently on those in severe poverty & social exclusion • EU 2012 – initial assessment of NRPs • little change in targets set

14. Poverty getting worseRising Unemployment • EU Network of Independent Experts – January 2012 (+ 2012 NRPs) & Eurostat May 2012 • rise in unemployment • 10.2% in March 2012 from 9.4% in March 2011 • fell in 8 Member States; increased in 19 • less than 6% (AT, NL, LU, DE) to more than 21% (EL, ES) • rise in young unemployed • 22.6% in March 2012 from 21% in March 2011 • growing proportion of long-term unemployed • 4.3% (last qtr 2011) • in 2011 43% of total unemployment against 40% in 2010 • growing labour market inequality • increase in insecure and part-time work • low skilled most at risk • increasing discrimination & rising risk for immigrants/ethnic minorities • rise in jobless households particularly hitting families with children

15. High unemployment (Nov. 2011)

16. High unemployment: in particular for youth

17. Jobless households on the rise Increase in total population (0-59) living in jobless households • Greatest impact of the crisis on jobless households in the Baltic States, Spain and Ireland. • Some population subgroups more severely hit, even in MS apparently less impacted (children, lone parents…). Increase in children (0-17) living in jobless households Source: Eurostat SILC IE= data for 2008 and 2009 17

18. Poverty getting worseDepth and intensity increasing • Lack of up-to-date data • situation probably a lot worse • Misleading data • in some MS downward trend result from fall in median income but severity gets worse • Alternative data • Increasing number of recipients of social assistance benefits • growing demands on frontline services & NGOs

20. Poverty getting worseIncome poverty and deprivation Bad in 2011 and getting worse in 2012 (Evidence from EU Network of Independent Experts on Social Inclusion) • Increasing depth and intensity – but v. wide variation across MS • Increasing difficulty in paying bills & rise in indebtedness (esp. re housing loans) • fall in wages + rising cost of living (esp. energy, housing and food) + cut backs & increased conditionality in income support systems • Rise in inequality (even in MS which are doing better) • Increasing geographic disparities • Rise in in-work poverty • Increasing material deprivation • Rise in child poverty • Compounded by cut backs in key services • Rise in housing exclusion & homelessness • impact of increasing costs: housing, water, electricity, gas and other fuels is the single most important item in household's expenditure corresponding to 27.7% of household consumption • Some groups especially hard hit • immigrants & people from a migrant background, some ethnic minorities [esp. Roma], people with a disability • in some MS older people, homeless and higher risk for women • Rising trend likely to continue

21. Better integrate and mainstream social objectives in EU policy making • Lisbon Treaty - Horizontal Social Clause • It shall combat social exclusion and discrimination, and shall promote social justice and protection, equality between women and men, solidarity between generations and protection of the rights of the child. (Article 3) • The clause provides a more solid basis for requiring both COM and EU countries to mainstream EU social objectives more systematically and thus to carry out social impact assessments • over time, it might also be taken into account in decisions of the ECJ leading to a stronger social dimension to the Court’s decisions

22. Europe 2020 objectives smart growth “strengthening knowledge and innovation as drivers of our future growth” sustainable growth “promoting a more resource efficient, greener and more competitive economy” inclusive growth “fostering a high-employment economy delivering social and territorial cohesion” Hope that this would lead to: more balanced approach that better integrate economic & social policy so that mutually reinforcing mainstream social policies at heart of EU policy making

23. Is more mainstreaming happening? So far not to any great extent • National Reform Programmes & Commission assessment largely dominated by economic issues and austerity measures – still are • Political debate dominated by financial crisis and financial consolidation • Unbalanced Stability Treaty (Treaty on Stability, Coordination and Governance in the Economic and Monetary Union) • No social impact assessments of measures in: • NRPs • financial consolidation packages • bail out packages (EL, IE, PT, RO) • Contrary to spirit (& law?) of Lisbon Treaty

24. NRPs – not mainstreaming poverty and social exclusion • National Reform Programmes (NRPs) • means by which MS translate Europe 2020 objectives into national policies • Dominant theme in many 2011 NRPs was to diminish public finance deficit and support economic growth • social inclusion a very subsidiary or minor role • Narrow approach • Labour market inclusion and addressing educational disadvantage • Very limited efforts to address income adequacy (esp. adequacy of social benefits and low wage and insecure employment) • “key role played by social protection systems (and particularly the level of minimum payments) in reducing poverty and social exclusion goes largely unaddressed” • Very limited attention to access to high quality services: health, social services, housing and environment • Lack of a comprehensive & active inclusion approach • Stability and Convergence Programmes (set out medium term budgetary plans) get greater attention than NRPs

25. 2012 NRPs • MS asked to make “Tackling unemployment and the social consequences of the crisis” one of 5 priorities • mobilising labour for growth & supporting employment (esp.young) • further improving effectiveness of social protection systems • implementation of active inclusion strategies • ensuring access to services supporting integration in the labour market and in society (incl. access to affordable housing) • 2012 NRPs continue same pattern (initial impression) • too much focus on financial consolidation and competitiveness to the detriment of tackling (increasing) poverty and social exclusion • More focus on tackling unemployment than social consequences • narrow labour market approach to inclusion • labour market measures often not sufficiently multi-dimensional • Social protection and access to services largely ignored (often worse) • very limited attention to those in most extreme situations

26. More systematic reporting & monitoring • European semester • Annual growth survey (AGS) (Nov/Dec) • a review/forecast (macroeconomic/thematic/fiscal surveillance) ↓ • Spring European Council • takes stock: (overall macroeconomic situation; progress towards 5 EU targets & flagships) • agrees policy orientations ↓ • Stability and Convergence Programmes & National Reform Programmes ↓ • Commission assessment ↓ • Country Specific Recommendations

27. What has happened? • Social inclusion still fairly peripheral • Slightly more in 2012 Semester • Some recognition in 2012 AGS and Council Conclusions • Few Country Specific Recommendations • 2: poverty/social exclusion (BG and EE) • 7: integration of vulnerable people into the labour market (BE, CY, DE, DK, FR, MT and PL) • 2012??? • Data limitations for poverty and social exclusion limits monitoring

28. Better governance • European Platform Against Poverty and Social Exclusion • one of 7 Europe 2020 flagship initiatives • set out actions to reach the EU social inclusion target. but • Still VERY vague • Involvement of actors • in preparing their NRPs (and NSRs) Member States have been urged to involve concerned parties: • “Social partners and representatives of civil society shall also be consulted in the preparation of the NRPs and involved in the follow up, as relevant and in line with national practices”. but • disappointing – less than with previous NRSPSI • Stronger links across policy areas • Starting to happen (Roma – educational disadvantage – health - employment) • Long way to go • Enhanced exchange and innovation • continuing exchange (Peer Reviews, Networks, Reports) • initiative on social experimentation (but rather unclear)

29. More funds for social inclusion • Commission’s draft legislative package for the EU Cohesion Policy 2014-2020 • increased ESF role in reducing poverty and social exclusion through an increased budget and a ring-fenced allocation of 20% to poverty and social exclusion reduction • promotion of a more bottom-up approach in the delivery of the Structural Funds, through community-led initiatives and simplified and more NGO-friendly delivery mechanisms but • opposed by many Member States

30. Some positive developments • Reinvigorated Social OMC and reaffirming common objectives on social protection & social inclusion (EPSCO – June 2011) • National Strategy Reports to underpin NRPs • Increased effort by Commission (DG EMPL) & SPC to use new social inclusion tools • closer monitoring of social dimension of NRPs • Joint Assessment Framework for monitoring the Employment guidelines under Europe 2020 • SPC February Opinion on 2012 Annual Growth Survey & key messages to February EPSCO Council • Improved resilience of social protection systems needed to withstand prolonged economic shocks • Maintaining income support at adequate level is effective in offsetting worst effects of the crisis and in spurring aggregate demand • Fighting unemployment through activation measures challenged by low job creation and insufficient implementation of active inclusion measures • proposal for Social Performance Monitor (to parallel Employment Performance Monitor)

31. Some positive developments (cont) • National Roma Integration Strategies • EU Agenda for the Rights of the Child • Evaluation of Active Inclusion in 2012 • Recommendation on child poverty & well-being in 2012 • Call for tender on Minimum Income • Continuation of peer reviews, support for networks & thematic approach (incl. homelessness) • Stakeholders group (EU Networks, Civil Society) • European Commission’s Conference on Inequalities in Europe and the Future of the Welfare State (December 2011)

32. Conclusions • Economic crisis and financial consolidation (austerity) is increasing poverty, increasing racism and extremism, destroying people’s lives and destroying social Europe • Social dimension of Europe 2020 still to be fully implemented and integrated into EU policy making • has potential but needs active implementation but • Social dimension of Europe 2020 although useful is insufficient • EU economic policy needs to be balanced by a real EU social policy • a guaranteed European minimum income for all • economic policy must take on goals of equality and social inclusion • fiscal consolidation without protection of the vulnerable, without protection of social infrastructure and without parallel investment in (environmentally sustainable) jobs is counter productive thus • Activate horizontal social clause to mainstream social inclusion objectives & insist on social impact assessments for all policies • Put equality (tackling inequality and fostering redistribution) and solidarity at heart of European political debate • Democratise EU policy making through increased openness, accountability and participation

33. As a 17- year-old girl has said, “Right now I have no dreams”. Give her back the right to dream

34. The consequences of the EU and national economic and social policy Ireland Mike Allen Focus Ireland

35. The consequences of the EU and national economic and social policy Italy Nicoletta Teodosi CILAP

36. The consequences of the EU and Italian economic and social policy By Nicoletta Teodosi CilapEapn Italy Dublin, 10° may 2012

37. Welfare is essential for the democracy • Assuring social security and freedom of choice to citizens • Pushing for a development • Pushing for the economic growth (but what?) • It is a social investment, not a burden • It is a cultural evolution

38. Who would benefit from the welfare • Market at large • Public and private sector, profit and non-profit organization • People of all ages, status, cultural origins without any difference

39. Something’s not working • We have European chart of fundamental rights • We have Lisbon Treaty • We have European strategies (both political and economic policy) Why they are not working • Inequalities are growing between classes and between the haves and the have not

40. Life as it is now • Less consumism (we have need to rethink about) • Increasing discomfort • Tragic consequences: over 30 suicides to date from small medium entrepreneurs • Impoverishment of middle class • Employees and jobless alike under growing instability • Unemployment is 9,8% up 1,7% (2011) of which > 35% of active youth between the age of 15 – 24 (40% in the South of Italy)

41. The national situation in Italy 2008-2011 • Denial of the crisis by former Government (as of first half of 2011) • Second half of 2011 two laws (Financial stability I july 2011 n. 111 –and Financial stability II sept. 2011 n 148) + Stability law for 2012 for a balanced budget in 2013 (December 2011) • Fiscal compact march 2012

42. National reform program 2012regarding combating poverty 1/3 • Europe 2020: 20 million of people less at risk of poverty or of social exclusion (115 million in 2010) • Italy 2020: 2,2 million less poor (material deprivation or living in lower job family), were 14.742.000 (2010) = 12.9% respect to EU rate

43. National reform program 2012regarding combating poverty 2/3 • 3 european indicators: 1 = % of people at poverty risk (- 60% lower than median income) after the social transfer = 18,2% (I), 16.1% (EU) 2 = % of people in severe material deprivation = 7% (I), 8,1% (EU) 3 = % of people living in lower job family = 10,2% (I), 10% (EU)

44. National reform program 2012regarding combating poverty 3/3 • 2012 objectives = people in severe material deprivation (2) and people living in lower occupational family (3) • How to reach this target will be reconsidered during the mid term Europe Strategy 2020  • Before that, Italy will need to build a national data system to monitor and plan the social actions to cross social data bases, fiscal, and social security • And so on

45. Where to find the resources • Tax and welfare reform (pension and labour market) • Tax evasion • House (IMU) • Free market • Taxes at local level • And so on

46. European level • Economic Stability • Fiscal compact

47. The consequences • Reducing role of European Parliament • Reducing role of National Parliaments = • Less participation of citizens and reduced capacity of intervention by elective Istitutions = LESS DEMOCRACY

48. What’s happening in Italy • Let’s push “declare illegal poverty” Campaign • Welfare grows, Italy grows (network) • ECI on European minimum income

49. Thanks for your attentionMerçì à touteset à tous

50. The consequences of the EU and national economic and social policy Italy Mauro Giacosa CNCA