EC releases its Proposal for the Joint Report on Social Protection and Social Inclusion 2009

The European Commission has communicated to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions, on February 13th, 2009, its Proposal for the Joint Report on Social Protection and Social Inclusion of year 2009, COM(2009) 58 final.

Between 2001 and 2007 average economic growth in EU-27 was 2.1% per year. The  employment rate in 2007 had risen to 65.4%, mainly thanks to higher employment of women  and older workers. New jobs helped reduce the share of jobless households from 10.2% in 2005 to 9.3% in 2007, but only marginally benefited jobless families with children.

However, the latest data show that 16% of Europeans are still living at risk of poverty. While there is no better safeguard for avoiding poverty than a quality job, in-work poverty at 8% illustrates that not all jobs provide this assurance. At the same time, data shows that in several Member States high growth improved the absolute living standards of the poor while their relative situation improved or remained the same.

Furthermore, the economic outlook has changed fundamentally and while in some Member Stated the labour market has shown resilience, unemployment has risen substantially in some of them, and forecasts point to further job losses ahead.

Appropriate social policies will not only mitigate adverse social impact on the most vulnerable but also cushion the impact of the crisis on the economy as a whole. Social protection is a major countercyclical and automatic stabilising element in public expenditure. Well-functioning systems in a framework of continued sustainability-reinforcing reforms can help stabilise aggregate demand, underpin consumer confidence and contribute to job creation.

Appropriate flexicurity measures will use active labour market policies to ease transitions, avoid people becoming long-term unemployed, resist using early retirement to regulate labour supply, enhance skills and secure transition periods. Comprehensive active inclusion measures are needed to address the situation of those furthest from the labour market.

This also implies adjusting benefits, when needed, to safeguard appropriate support for recipients. Member States are already acting to maintain the purchasing power of minimum benefits and basic pensions. The severe nature of the recession entails a need for closer monitoring of social impacts.

As referred by the commission, the most badly hit victims of the crisis will be those households where breadwinners are at a disadvantage in the labour market and in society. Hence the need for social safety nets which are tight enough to prevent people from falling through and effective enough to launch them back into active social and labour market participation.

Main elements of Commission's Communication

  • Fighting poverty and social exclusion
  • Adequate and sustainable pensions
  • Healthcare and long-term care

The proposal for report addressed some of key issues related to social inclusion such as child poverty, minorities inclusion as it is the case for Roma people, inclusion of migrants, disabled people difficulties. The European Commission also points out homelessness as one of the most severe forms of exclusion. Education and active inclusion policies must therefore be at the core of social policies in all Member States.

Guaranteeing pensions and addressing inequalities in health status and in life expectancy between different socio-economic groups and different regions, are also key issues.

Alongside the general analysis, there is a further developed one in country profiles and supporting documents annexed to Commission's recommendation.

Within this same framework, the European Commission published in November 2008 its recommendations regarding the inclusion of people excluded from labour market, also recommending the design and implementation of an integrated comprehensive strategy for the active inclusion of people excluded from the labour market.