Communiqué October 2006
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Director’s diary
Social policy – a tool for productivity and competitiveness
Social cohesion has been a founding principle of the European Union since its inception. Over the past 50 years, Member States have strived to reconcile economic and social goals – with varying degrees of success. However, over the same period, the global economic environment in which Europe operates has changed dramatically: the Union’s global competitiveness depends more than ever on a highly motivated and well-educated labour force. In such an environment, the potential for policy to promote greater productivity and competitiveness has never been greater.
But is a highly developed social model a luxury that only affluent nations can afford, and only when times are good? Or is it a vital element in a well-functioning, competitive market economy? Research suggests that a high degree of competitiveness is compatible with an extensive (even an expensive) social model. Most of the new EU Member States cannot currently afford to adopt the extensive social models of the Nordic countries or Germany; they can, however, make choices according to their own strengths and limitations. The challenge is to apply the principles of the European social model to their individual social, economic and institutional circumstances. We hope that the work of the Foundation and the discussions at the upcoming Foundation Forum 2006 in November can provide some guidelines and recommendations as to how this be can achieved.
This month, the Foundation’s Governing Board will meet to adopt its programme of work for 2007. On 17 October, in a joint initiative with the European Parliament, the Foundation will present its qualitative and quantitative research on working time and work–life balance to high-level policymakers in Brussels.
Jorma Karppinen
Director