SLIDE 1
A European Social Union
A Social Union would
- support national welfare states on a systemic level in some of their
key functions
- guide the substantive development of national welfare states – via
The case for a European Social Union. From muddling through to a - - PowerPoint PPT Presentation
The case for a European Social Union. From muddling through to a - - PowerPoint PPT Presentation
The case for a European Social Union. From muddling through to a sense of common purpose. Frank Vandenbroucke EIB Institute Luxembourg, 5 March 2015 A European Social Union A Social Union would support national welfare states on a
SLIDE 2
SLIDE 3
A European Social Union
- Why?
– Eurozone – EU28
- Which solidarity?
- Social investment as a common ambition
- Conclusion
SLIDE 4
The consequences of monetary unification
SLIDE 5
Transfers might mitigate the symmetry/flexibility trade-off
SLIDE 6
The EU’s way: more symmetry, more flexibility
Flexibility determines social order EMU’s fragility No lender of last resort (=> Draghi) Intensification of national booms and busts & divergence in competitiveness Institutional advantage of coordinated bargaining Competitiveness: symmetrical approach necessary => convergence
SLIDE 7
Defining the EMU’s social objective is a necessity rather than a luxury
- Basic consensus on social model is necessary for the long-term sustainability
- f EMU
– short term: stabilisation – mid term: a symmetric guideline on wage cost competitiveness & institutions that can deliver – long term: sustainability of pensions
- Symmetry => convergence w.r.t. fundamental parameters => shared objectives
- Legitimacy => convergence in prosperity
‘excessive social imbalances’ associated with inadequate and disparate investment in human capital
- Social investment
SLIDE 8
The human capital asymmetry: employment and formal educational attainment
EU28 BE BG CZ DK DE EE IE GR ES FR CR IT CY LV LT LU HU MT NL AT PL PT RO SI SK FI SE UK
45.0 50.0 55.0 60.0 65.0 70.0 75.0 80.0 85.0 .0 10.0 20.0 30.0 40.0 50.0 60.0
Employment rate 15-64, 2012 % of population (15-64) with lower secondary education attainment, 2012
Many low-skilled Low employment rate Few low-skilled High employment rate Few low-skilled Low employment rate
SLIDE 9
Why a ‘European Social Union’?
- an inevitability of European Monetary Union
- integration and social regulation in EU28
– Social dumping? – Social sovereignty?
- the very core of the European project.
SLIDE 10
Why a ‘European Social Union’?
- an inevitability of European Monetary Union;
- integration and social regulation in EU28: ‘balancing’
– Social dumping => subsidiarity & proportionality (Viking, Laval) – Social sovereignty => horizontal social clause?
- the very core of the European project.
SLIDE 11
Why a ‘European Social Union’?
- an inevitability of European Monetary Union
- integration and social regulation in EU28: balancing
– Social dumping => subsidiarity & proportionality (Viking, Laval) – Social sovereignty => horizontal social clause?
- a dual perspective on solidarity: pan-European and domestic
SLIDE 12
Convergence in prosperity: the social investment imperative
- A social investment agenda (cf. Europe 2020, SIP)
– Child-centred social investment strategy – Human capital investment push – Reconciling work and family life – Later and flexible retirement – Migration and integration through education and participation – Minimum income support and capacitating service provision
- The political deal the EU needs is one wherein all governments pursue
budgetary discipline and social investment, and are supported therein in a tangible way by the EU.
SLIDE 13
Spending on education 2004-2008-2012
- 40%
- 30%
- 20%
- 10%
0% 10% 20% 30% 40% Real public spending on education, 2012 vs. 2004-08 Spending % GDP, 2008, vs. average
SLIDE 14
Spending on education 2004-2008-2012 and PISA results
- 40%
- 30%
- 20%
- 10%
0% 10% 20% 30% 40%
Real public spending on education, 2012 vs. 2004-08 PISA 2012 (Math, Science, Reading) vs. average Spending % GDP, 2008, vs. average
SLIDE 15
Convergence in prosperity: the social investment imperative
- A social investment agenda (cf. Europe 2020, SIP)
– Child-centred social investment strategy – Human capital investment push – Reconciling work and family life – Later and flexible retirement – Migration and integration through education and participation – Minimum income support and capacitating service provision
- The political deal the EU needs is one wherein all governments pursue
budgetary discipline and social investment, and are supported therein in a tangible way by the EU.
SLIDE 16
The case for a European Social Union
- support national welfare states on a systemic level in key functions
(e.g. stabilization)
- guide the substantive development of national welfare states
– via general social standards and objectives symmetric w.r.t. to competiveness (wage policy & capacity to deliver) social investment minimum wages and minimum income protection solidarity in reform – leaving ways and means of social policy to Member States
SLIDE 17
The case for a European Social Union
- support national welfare states on a systemic level in key functions
(e.g. stabilization)
- guide the substantive development of national welfare states
– via general social standards and objectives symmetric w.r.t. to competiveness (wage policy & capacity to deliver) social investment minimum wages and minimum income protection solidarity in reform – leaving ways and means of social policy to Member States
SLIDE 18
The case for a European Social Union
- support national welfare states on a systemic level in key functions
(e.g. stabilization)
- guide the substantive development of national welfare states
– via general social standards and objectives symmetric w.r.t. to competiveness (wage policy & capacity to deliver) social investment minimum wages and minimum income protection solidarity in reform – leaving ways and means of social policy to Member States
SLIDE 19
The case for a European Social Union
- support national welfare states on a systemic level in key functions
(e.g. stabilization)
- guide the substantive development of national welfare states
– via general social standards and objectives symmetric w.r.t. to competiveness (wage policy & capacity to deliver) social investment minimum wages and minimum income protection solidarity in reform – leaving ways and means of social policy to Member States
SLIDE 20
Thank you!
1.
- F. Vandenbroucke, The Case for a European Social Union. From
muddling through to a sense of common purpose, Euroforum Policy Paper, Sept. 2014 www.kuleuven.be/euroforum/papers 2.
- F. Vandenbroucke, with B. Vanhercke, A European Social Union. 10