Economic, employment and social policies in t he new EU 2020 strategy

1. Economic, employment and social policies in the new EU 2020 strategy EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities Social protection and inclusion policies Walter WOLF

2. 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’

3. EU 2020 integrated guidelinesadopted in July 2010 (1) ensuring the quality and the sustainability of public finances; (2) addressing macroeconomic imbalances; (3) reducing imbalances in the euro area; (4) research, development and innovation, digital economy; (5) improving resource efficiency and reducing greenhouse gases; (6) improving the business and consumer environment, modernising the industrial base;

4. EU 2020 integrated guidelinescontinued (7) increasing labour market participation and reducing structural unemployment; (8) developing a skilled workforce responding to labour market needs, promoting job quality and lifelong learning; (9) improving the performance of education and training systems at all levels and increasing participation in tertiary education; (10) promoting social inclusionand combating poverty.

5. 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

6. Europe 2020 An integrated strategy • Recognising that the success of the Strategy relies on all its goals being achieved together • Reducing poverty through active social security will help sustaining demand • Reinforcing labour supply and better employment opportunities for all • Reducing poverty will enhance children’s chances to do well at school • Reducing poverty will enhance participation of all in society

7. EU Framework for National Roma Integration Strategies in April 2011 • Commission decision of September 29 • Based on the ten basic principles for Roma inclusion • The EU Framework will seek to ensure a more efficient monitoring of and support to national and European efforts with regard to Roma integration • To that end, and in the frame of the Europe 2020 Strategy, the Commission will invite Member States to present their own national strategies for the inclusion of Roma which could feature in their national reform programmes. • The forthcoming flagship initiative on a "Platform against poverty" will constitute an integrated framework of actions to support horizontal priorities • The European Commission also expects Member States to be explicit and ambitious about Roma when setting their national Europe 2020 targets in the fields of poverty reduction, employment and education.

8. ‘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

9. 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

10. 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

11. 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.

12. Trends on jobless households • Staying around 10%... • Data from before the crisis… Source: Labour Force Survey. (All figures in percent)

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

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

15. Impact of the crisis • Economic recovery hampered by the sovereign debt crisis. • Fiscal consolidation stepped up in several countries • expected GDP growth for 2010 remains modest (1.2%) + increasing fears of a “double dip” recession. • Unemployment > 10% and expected to stay high • Social expenditure (social protection, education and health) ~ 70% of public expenditure in the 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.

16. Commission original proposal • Reducing poverty by one fourth by 2020, lifting 20 million of people out of poverty • People at risk of poverty are those who live with less than 60% of the median income in their country • Poverty line varies from less than 100€ to more than 1000€ across EU countries • 80 Million people at risk of poverty in the EU • Varies from 9.1% to 25.6% • Headline indicator used to measure and monitor poverty in the EU and in most MS • It reflects the role of work, education and social protection in preventing and alleviating poverty

17. Target adopted in June 2010 • EU level target • “Lifting 20 millions people out of poverty or exclusion by 2020” • Based on 3 existing EU social inclusion indicators: • At-risk-of-poverty, • (severe) material deprivation (adopted in February 2009), • people living in jobless households (just in time agreement on new definition) • National targets • 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

18. Past trends (2005-2008) Source EU-SILC(2008); % of total population

19. 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

20. People in workless households • Definition: 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%

21. 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

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

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

24. Next steps • National targets • Member States free to set their targets on the most appropriate indicators, given national circumstances and priorities • Bilateral dialogues between Commission and each Member State to establish the link between national target and EU target • 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

25. 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