Guide answers to questions for study and review
Chapter 16
Social and employment policies
1.What do we mean by the term ‘social policy’?
Guide answer
The term ‘social policy’ covers a wide range of issues whose boundaries are at times indistinct. Social policies include the various measures to regulate the labour market, but also measures to combat poverty and social exclusion, and to improve education, training, housing and health care.
- What do we mean by ‘social dumping’? To what extent do you think that it poses the risk of a ‘race to the bottom’?
Guide answer
Social dumping may arise because firms may have an incentive to locate in countries where wages and the cost of social protection are lower (usually the poorer member states). To counter this tendency countries with higher social standards may be forced to reduce social standards giving rise to the risk of a ‘race to the bottom’. One way of tackling the risk of social dumping is by setting certain minimum standards for working conditions, health and safety in all member states.
- What are the obstacles to developing a fully-fledged EU social policy?
Guide answer
There are several obstacles to developing a fully-fledged EU social policy:
- differences in the demographic and socio-economic conditions of the member states;
- the contentious nature of social policy issues, with strong ideological differences about what the role of the state should be;
- the diversity of national social policy regimes;
- the reluctance of member states to give up control of social policy;
- the scale of budgetary transfers necessary for an extensive EU social policy, and
- the even greater diversity of social policy requirements and regimes after the 2004 and 2007 enlargements.
- How has EU social policy evolved over the years?
Guide answer
The evolution of EU social policy can be divided into four main periods: 1958-73 (a low profile for the Community), 1974-85 (piecemeal intervention), 1985-92 (the evolution of policy and the Social Charter in 1989) and since 1993. The Social Chapter was introduced with the Treaty of Maastricht in 1993. The Amsterdam Treaty added three new objectives to EU social policy: proper social protection, social dialogue between management and labour, and the development of human resources. In 2005 the EU agreed the Social Agenda covering the 2005-2010 period, which aims at providing jobs, fighting poverty and promoting equal opportunities for all, including for workers who move around so that they have the same social security and pension rights throughout the EU. See the textbook for a more detailed description of the stages of EU social policy.
- What do we mean by the ‘social dimension’ of the Single Market Programme?
Guide answer
During the late 1980s there was intense debate about a ‘social dimension’ to the Single Market. Proponents of a more active EC social policy argued that this was necessary to correct the possible negative impact of increased competition as a result of the Single Market on the weaker and more vulnerable regions and sections of the population. Minimum social standards were favoured to prevent the risk of social dumping. Increased participation of the workers in the decisions of the firm, and of the so-called social partners in EC decision-making were considered ways of achieving consensus. Delors, centre-left members of the European Parliament, and the Socialist governments in France and some of the Southern EC countries favoured this type of approach. Those against a greater role for the EU in social policy (such as the British Conservative Party, and Margaret Thatcher) thought that increased regulation of working conditions would add to labour market rigidities, reducing competitiveness and increasing unemployment. The attempt to strengthen the Community role in this area was considered an attack on national sovereignty and a violation of the principle of subsidiarity.
- Indicate the main features of EU employment policy. What do the Luxembourg and Lisbon processes entail?
Guide answer
It was not until the Amsterdam Treaty that the legal basis of employment as a major area of EU policy was established. The Treaty sets out the main features of EU employment policy, which include: developing a co-ordinated strategy of the member states toward unemployment, taking the objective of high employment into account in the formulation of EU policies and strategies, and introducing multilateral surveillance. In 1997 the Luxembourg Process to launch the European Employment Strategy (EES) was set up and entails: improving ‘employability’, encouraging the adaptability of businesses and their employees; strengthening policies for equal opportunities, and developing entrepreneurship. The Lisbon Strategy for economic, social and environmental renewal of the EU by 2010 aims inter alia at achieving higher employment rates (rather than lower unemployment rates), increasing the rate of participation in the labour force to 70 per cent by 2010 (60 per cent for women). Major challenges also included addressing skill shortages, and improving the quality of work (through ‘more and better jobs’).
- What policies do you think the EU should use to increase employment?
Guide answer
Employment can be increased by reducing unemployment and by raising participation in the labour force. Aside from the need to ensure an appropriate macroeconomic framework, measures could aim at enabling people to take up employment opportunities, and to acquire and renew skills. This would involve training schemes and the provision of information. It is also necessary to keep the unemployed in touch with the labour market. Measures could also be taken to develop entrepreneurship, and encourage the adaptability of firms. Additional policies could be directed at encouraging the participation of older workers and women in the labour force, and improving the reconciliation of work and the family.
8.What policies do you think the EU should use to reduce poverty?
Guide answer
With regard to poverty-reduction, the role of the EU has always been secondary to that of the member states. Poverty tends to be linked with unemployment, so one way of tackling poverty is through employment policy. The risk of poverty is also higher for single parents and old people living alone, so specific measures could be targeted at vulnerable groups. Healthcare and pension systems may also play a key role.
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