EESC hearing on the OMC and the Social Clause

Brussels, 13 April 2011

Antonia Carparelli, Acting Director, Europe 2020 Social Policies

DG Employment, Social Affairs & Inclusion

Social inclusion in European perspective

• 2000 - The Lisbon Strategy and the EU social inclusion Strategy:– “to make a decisive impact on the eradication of

poverty”– a method: the Open Method of Coordination– “Programmes to fight social exclusion” (PROGRESS

as of 2007)• 2006 - The EU Social Protection and Social

Inclusion Process: a modernisation agenda– Integrating 3 policy strands: social inclusion, pension

reforms, health care• 2010 - Europe 2020: a strategy for smart,

sustainable and inclusive growth

2009: The Lisbon Treaty

• The Union’s objectives include: “a highly competitive social market economy, full employment and social progress”.

• Art 5 - The coordination of Member States’ economic policies and employment policies is now within the sphere of competence of the Union, which can also extend to coordination of social policies.

• Art 9 ( “social clause”) - Social goals such as the promotion of a high level of employment, adequate social protection, the fight against social exclusion, and a high level of education, training and health must be taken into account when defining and implementing all policies.

• Two other “horizontal clauses” (art. 8 and 10) extend the scope of “social mainstreaming” to the reduction of inequality and the fight against discrimination.

• Incorporation of a legally binding reference to the Nice Charter of fundamental rights.

• Protocol 26 on Services of General Interest.

Social clause: Article 9 TFEU

Paves the way for:

• Better mainstreaming of social protection and inclusion objectives in all EU initiatives and policies

• A more balanced development of economic integration and the social dimension of the EU

To be implemented by:

• Assessing employment and social impacts of EU initatives• Promoting integrated impact assessment at national level

However….

The new provisions of the Lisbon Treaty will require time, intellectual and political mobilization, litigation and jurisprudence in order to become effective as re-balancing tools.

(Maurizio Ferrera, 2010)

Governance of the Europe 2020 strategy

Fiscal surveillance

Macro-economicsurveillance

Thematic surveillance

Europe 2020 Integrated Guidelines (IG)

Europe 2020 five headline targets

Stability and Growth Pact

National Reform

Programmes

Stability and Convergence Programmes

Commission’s Annual Growth Survey EU annual policy guidance and recommendations

EU flagship initiatives and levers

National level

EU level

TargetsEU headline target Current estimation

based on draft NRPs

Employment (20-64) 75% 72.8-73.8%

R&D (% EU GDP) 3% 2.7-2.8%

-Tertiary achievement (30-34)- School drop-out

at least 40%

under 10%

38.1%11.3%

Social inclusion/fight against poverty

20 million people out of poverty

Target will not be met, but exact calculation N/A

Energy efficiency increase

20% 10%

114 Million people at risk of poverty or exclusion

80 Mio people at risk of poverty

40 Mio people materially deprived

40 Mio people in workless households

Million people

People at-risk-of-poverty 78

+ Those materially deprived, not at-risk-of-poverty 20

+ Those living in a workless household, not at-risk-of-poverty, not deprived

16

Total: People at-risk-of poverty or exclusion 114

Instruments available: overview

• Social policy is still and will remain to a large extent national competence competence but a number of instruments are available at EU level: – Laws on social and employment standards– Charter of fundamental rights– Anti-discrimination directives EU Funds (ESF,

European Globalisation Adjustment Fund, PROGRESS)

• Open Method of Coordination – Policy coordination between MS based on common

objectives, indicators, regular reporting, joint assessment and mutual learning

European Platform against Poverty and Exclusion

• Delivering actions across the policy spectrum • Greater and more effective use of EU funds to

support social inclusion • Promoting evidence-based social innovation• Working in partnership and harnessing the

potential of social economy• Enhanced policy coordination among

Member States

OMC key lessons learned

• Evaluation study of the Social OMC– Interviews, case studies and content analysis

• Main results– A driver of policy change in all MSs – Governance changes at the domestic level– Objectives: broad but useful – Indicators: the basis for comparison

OMC key lessons learned (2)

• Reporting: administrative burden with positive effects

• Joint assessments: useful but little known• Thematic approach had more substantive effects • Mutual learning exercises: sources of ideas for

insiders • Involvement of stakeholders: a mixed picture

The future of the social OMC

• Commission to work with Member States and stakeholders to adapt working methods of the OMC to governance of Europe 2020 and best combine: – Integration and focus– Continuity and innovation– Simplification and accountability– Coordination and subsidiarity

• Strengthening existing partnerships and involving new actors (institutional actors, social partners, regional/local authorities, NGOs…)– Voluntary guidelines on stakeholders’ involvement and participation of

people experiencing poverty (2012)– Regular dialogue on thematic priorities– Social experimentation and innovation to enhance mutual learning

CESE Recommendations• "The EC should systematically strengthen the role of

social evaluation within its Impact Assessment (IA) system.

• “It is important to promote the involvement of stakeholders in the IA process”

• "The SPC has a potentially major role to play in ensuring a strong social dimension for the Europe 2020 Strategy and, more generally, in implementing a more Social EU".

• “Use SPC annual report covering an assessment of progress towards the EU headline target on social inclusion and poverty reduction to feed into EC Annual Growth Survey and EU policy guidance and possible "social recommendations" to Member States on their NRPs”.

Further information

General Europe 2020

http://ec.europa.eu/news/economy/index_de.htm

Social protection & social inclusion

http://ec.europa.eu/social/main.jsp?langId=en&catId=750