Mid-term review conference addresses social policy agenda

Representatives from the EU Member States and candidate countries gathered in Brussels in March 2003 for a large-scale conference to review the progress of the EU five-year social policy agenda since its launch in 2000. Wide-ranging debates were held on the themes of employment, social protection, industrial relations and equal opportunities.

A major conference took place in Brussels on 19-20 March 2003 to examine the achievements of the five-year social policy agenda launched by the European Commission in June 2000 (EU0007266F). This social policy agenda sets out the Commission’s social policy objectives and actions over the five-year period from the beginning of 2001 to the end of 2005. All the main social policy issues are covered, including gender equality, discrimination, the new work environment and fundamental rights. The agenda also calls on the social partners to play an active role in the development of policy.

This five-year agenda is now nearing its mid-point and, in order to monitor progress towards the objectives it sets out (EU0302205F), representatives from all interested parties, including EU institutions, national governments, employer and employee representative bodies and non-governmental organisations (NGOs), gathered in Brussels to review progress and achievements over the time since the launch of the agenda and to look forward to the next few years, including the time beyond the expiry of the agenda. The conference was also attended by a large number of participants from the countries due to join the EU from 1 May 2004.

Overall assessment

The employment and social affairs Commissioner Anna Diamantopoulou opened the conference by reminding delegates that the social policy agenda was conceived in order to the aims agreed at the Lisbon European Council in March 2000 (EU0004241F) into concrete action. Reviewing the past few years, she noted that social policy has changed considerably - since the launch of the European employment strategy (EES) in 1997 (EU9711168F), there are now concrete targets in the employment field for the first time. In addition, the focus of employment policy has widened in the past few years to include issues such as social inclusion, social protection and the fight against poverty. There is now also a strong link between employment and social policy on the one hand and economic and financial policy on the other.

Commissioner Diamantopoulou pointed to a study recently carried out by the Commission on the cost of not having a social policy, stating that 'I can assure you that this cost is huge'– between EUR 1,000 billion and EUR 2,000 billion each year in terms of lost output by not using all the available human resources. It is also estimated that a total of 3% of GNP and some 500 million working days are lost each year in the EU through industrial accidents.

Making reference to the 'European social model' as a whole, the Commissioner stressed that the aim of the social policy agenda is not to create identical national systems or build one whole system for the EU, but rather to create minimum social standards, which are seen as particularly important in view of the impending enlargement of the EU. She added, however, that there is a need for modernisation and a need to promote market efficiency rather than merely correcting perceived inefficiencies: 'Modernisation must be the order of the day if we are going to continue with this model.' She stressed, however, that any change must be effected by means of partnership, consensus, networking and the involvement of all actors.

The rich diversity of the European social model was also highlighted by Pat Cox, President of the European Parliament. He stressed that, despite progress over the past few years, much more needs to be done to safeguard the EU’s welfare and social system. He added that that the EU’s potential for economic growth needs to be raised as it is only through economic growth that money can be spent on improving healthcare, education and pension systems. Mr Cox warned that public spending in the EU will increase by between 4% and 8% of GDP over the medium term, due solely to the effects of an ageing population. Therefore, it is essential that economic growth be stimulated. Without this, he warned, intergenerational conflicts may arise as the ever-diminishing workforce is forced to pay for the upkeep of the growing number of retired people.

Dimitrios Reppas, the Greek minister for employment and social security, asserted that one of the priorities of the Greek Presidency of the Council of Ministers (whose term runs for the first six months of 2003) is to carry forward the Lisbon strategy and to fine-tune the EES in order to achieve a more effective policy in the context of change and demographic change (EU0301202N).

Maria João Rodrigues, president of the Commission's advisory group for social sciences, noted that the primary aim of the EES at the moment is to create more and better jobs, a goal which, in her view, should be obtainable if there is a focus on knowledge-intensive services.

The conference was then divided into five sessions containing speeches followed by debate as follows:

• full employment, quality in work and mobility;

• modernising social protection and promoting social inclusion;

• managing change and quality in industrial relations;

• equal opportunities and non-discrimination; and

• the next steps.

Full employment, quality in work and mobility

A range of speakers discussed the issue of how to increase employment and to improve both the quality of the work available and increase the mobility of workers. Graham Lowe, professor at the University of Alberta, Canada, stated that there was untapped skills potential in terms of a large number of employees not contributing all their skills to their employers. He also stressed that assessments and indicators need to be developed in this areas, maintaining that 'what gets measured gets managed'.

It was generally agreed that economic growth was needed to increase employment. There is also a need to invest in people through lifelong learning and a need to extend this principle to the candidate countries.

Modernising social protection and promoting social inclusion

A lively debate was held on the general issue of social protections systems in Europe and how to prevent social exclusion. Iain Begg from the London School of Economics stated that, although debate often refers to the cost of social policy, there is also a cost associated with not having a social policy, both in terms of effects on the individual (eg lack of access to the labour market for groups such as women, immigrants, older workers and people with disabilities) and effects on society as a whole (eg social tensions, lack of social cohesiveness and more crime).

Pensions were singled out as an issue which needs a strong focus over the coming years. Theo Langejan, chair of the EU Social Protection Committee, stressed that pension systems must be financially sustainable if they are to provide adequate protection in the future. More broadly, he also maintained that consideration should be given to adapting social security systems so that they encourage people to accept employment. Moreover, there is a need to increase the employment rate of people over the age of 55.

Managing change and quality in industrial relations

Participants and speakers discussed the issue of how to manage change and quality in industrial relations, with a focus on the role of the social dialogue. It was noted that collective bargaining has traditionally been a tool to improve the legal status of employees in the EU, with a particular focus on working time and pay. The focus of collective bargaining is now widening, however, to include areas such as implementing legislation, promoting adaptability and involving employees in economic decision-making at company level. It was agreed that the social dialogue process can promote stability in an ever-changing environment, which will have a positive effect on both the economic and social framework in the EU.

Equal opportunities and non-discrimination

The debate in this session focused on a number of issues, including the implementation of the two anti-discrimination EU Directives based on Article 13 of the Treaty establishing the European Community- Directive 2000/43/EC implementing the principle of equal treatment between persons irrespective of racial or ethnic origin (EU0006256F) and Directive 2000/78/EC establishing a general framework for equal treatment in employment and occupation (EU0102295F). These were characterised by speakers as 'major advances' in terms of non-discrimination.

There was also discussion about the work of the European Convention which is considering reforms to the EU’s institutions and processes (EU0201231N). A number of NGOs are currently lobbying the Convention to try to change the voting procedure for measures based on Article 13 of the Treaty from unanimity to qualified majority voting in the Council, which would make it easier for such measures to be adopted.

The next steps

The conference ended with a session on the next steps in terms of social policy. Delegates and speakers expressed a willingness to develop a social model which is concrete, sustainable and exportable outside the EU, maintaining that the current social policy agenda is the first attempt to redefine social strategy in the EU. There was also a feeling that significant achievements have been made over the past few years in terms of employment and social policy. It was noted, however, that more work needs to be done in the area of social exclusion and the fight against discrimination.

Summing up the debates, Odile Quintin, director-general for employment and social affairs at the European Commission, stated that the discussions had helped to identify the challenges which are still to be met by the social agenda and will feed into a formal review of progress, to be published by the Commission in the near future. The priorities of full employment, quality of employment and equality of opportunity remain valid for the rest of the term of the social policy agenda.

Commentary

This was clearly an important conference in terms of the direction of the EU’s social policy. It brought together key actors from all interested and involved parties and promoted a frank exchange of views, in terms of both the progress already made over the past few years and the key challenges which must still be faced by the EU. Keeping in mind the fact that the EU will, from 2004, enlarge from 15 to 25 Member States, all debates included discussions, involving both speakers and participants, on how the EU candidate countries are facing up to the reform of their systems and structures, so as to bring their policies in line with the practices current in EU Member States, and on what an enlarged EU will mean for all Member States.

The next few years will be crucial in terms of social policy development, particularly in the area of pensions and social welfare, a fact which was recognised by all participants. It is clear from the discussions held that the European social model must submit to a number of changes and reforms if it is to survive in the evolving and uncertain times which lie ahead. (Andrea Broughton, IRS)