The Malta Independent 28 April 2024, Sunday
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Our Social model – today and tomorrow

Malta Independent Tuesday, 1 May 2012, 00:00 Last update: about 12 years ago

Since World War II, Europe’s social model has allowed generations to grow up with the safe promise of being better off than their parents. Against today’s economic background this promise is not at all obvious, and some have even concluded that our social model is dead. I consider this an irresponsible statement. Laszlo Andor, EU Commissioner for Employment Social affairs and Inclusion writes

The discourse about the decline of our social model is not entirely new. It had already featured in the context of globalisation and demographic change. Neither of these three should be allowed to undermine our commitment to equality and social justice, or our capacity to combine economic openness and dynamism with social fairness. Today our efforts must focus on modernising that model so that it can continue to function in a new global environment.

Perhaps the most important example of such modernisation is the reform of pension systems. Creating social security and preventing old age poverty has been a success in post-war Europe. Without reforms, however, we cannot ensure that pensions remain adequate, sustainable and safe in the long run. That is why the European Commission recently produced a White Paper on Pensions, which guides member states in their reform efforts, and outlines EU level legislative initiatives.

In tough economic times, we have to be sure that the most vulnerable social groups are better protected at a time of national budget cuts, and civil society organisations can play their role in this effort. Beyond this, it also has to be ensured that austerity does not undermine growth-enhancing measures, and weaker regions are supported to follow the same direction.

All these concerns, principles and objectives drive us towards more EU level coordination of employment and social policies. Without stabilising the European peripheries, from an economic and social point of view at the same time, their continuing crisis will undermine the prosperity as well as the social achievement of the countries of the European core too.

Ministers have already expressed their views that there is an urgent need for a fresh look at social Europe. EU leaders also made a clear case for resolute action on employment and stronger social dimension when they last met in March. So there is, I believe, a realisation that a policy of fiscal discipline alone may prove self-defeating. A similar European effort has to be made for solidarity, cohesion and investment.

Our short-term stabilisation measures have to be better coordinated with the Europe 2020 strategy, the framework for long-term economic and social development in the EU. And all this will ring hollow without ensuring that the new long-term budget of the EU (the Multiannual Financial Framework) also has a strong social dimension, with a robust European Social Fund.

There is probably no need for further explanation why I presented, with the full support of President Barroso, on 18 April, a package of employment measures to identify opportunities in the EU that will support job creation (for example green jobs, white jobs, ICT sector) and set out how EU funds can be used to help member states make long-term investments in human capital. The package is about laying the ground for a genuine European labour market where workers can move confidently between and within jobs across the EU and progress in their career.

Crucially, the new package is also about the social partners and their role in employment policy but also their increased involvement in EU governance and EU decision-making. Employers’ and employees’ organisations need to be on board for any long-term recovery plan and any labour market reform.

On Labour Day, I cannot emphasise enough that we need to emerge from this crisis with more, not less, social dialogue. Investing in robust social dialogue between employers, workers and governments is essential, and we need to highlight the importance of this particularly for the so-called new member states, where recent institutional developments have gone to the opposite direction.

The essence of the European social model is that we do not allow economic policies and activities to disconnect from social values and rights. We also believe that a civilised society always responds to a crisis with more solidarity. What is therefore the most important in order to secure the future of the European social model is to redefine solidarity on the EU level, and to reinforce our alliance with social partners and civil society organisations.

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