Policy Briefing

POLICY BRIEFING

DEAR EAPN MEMBERS,

This policy briefing comes at a time of change, as the EU prepares for the upcoming European Parliament Elections in May 2014 and the election of the new President of the Commission. But it’s also a time of change for EAPN, with Fintan Farrell leaving as Director and moving into a new post working on fund-raising and projects, our new Director Barbara Helfferich taking up post in August, just in time to contribute to our new funding application to the Commission. The budget cuts inflicted with the new round of funding, has already meant that EAPN has said goodbye to 3 of its very skilled staff: Micheline Gerondal, Claire Champeix, and Leticia Gomez. We will all miss them and their important contributions to EAPN members and work and wish them well for their futures.

For the Commission and Parliament the mood is one of ‘finishing’ off priorities – with no expectations of new big initiatives. However this is unlikely to help build support for the EU in the elections, as unemployment and poverty continuing to rise, together with the democratic deficit, despite the assertions that the crisis is over and that austerity has worked..Fears are growing of a high no vote, and a shift to the right and to the Eurosceptics.

The European Semester/Europe 2020 continued its cycle with the presentations of the NRPs in May and the Country –Specific Recommendations in May, finally agreed by the Council at the June Council. Interestingly, the Social Ministries, organized more effectively this year to get some changes in the more punitive CSRs, particularly on rejecting de-indexing of pensions. The awareness about the implications of the ‘two-pack’ however is growing, as MS have had to deliver their budgets for scrutiny this week to the Commission – expecting pressure to reduce deficits harshly through austerity and other measures. There are some signs of resistance from countries who start to question the right of the Commission to ‘tell them what to do’.

Surprisingly high expectations were raised by the launching of the Commission’s new Communication on the Social Dimension of the EMU, on the 2nd October, with hopes of a new impulse to a fairer, more balanced economic and social governance agenda – at least in the Eurozone. However, partly due to the pressure from Member States and ECFIN the end result is rather weak and difficult to see what impact it can have.

Finally, negotiations on Structural Funds, particularly ESF and the 20% priority on poverty have continued to rumble on, within a reduced overall EU budget, although news from the ground highlights some MS already integrating this concern more strongly in their priorities. The strengthened partnership principle however gets little priority.

Good news for EAPN is the successful achievement of 2 million signatures for the ECI on the Right to Water, coordinated by EPSU with EAPN support. This makes it the first ECI to be successful! doubling the required amount.. We’ll be closely following what happens next..

Best regards from Sian Jones, Policy Coordinator, with the Policy Team: Amana Ferro, Vincent Caron, Tanya Basarab (Development Officer), and with Admin/communication support from Rebecca Lee.

NOTE: Policy Briefings/Updates give EAPN members the latest information on policy developments and EAPN Actions on each area of EAPN policy work.

All EAPN documents, reports, position papers can be accessed on the EAPN website > Publications section, and in the EAPN Members’ Room.

CONTENTS

EUROPE 2020 AND ECONOMIC GOVERNANCE......

EU Policy developments

EAPN activities

OMC ON SOCIAL PROTECTION AND SOCIAL INCLUSION / EUROPEAN PLATFORM AGAINST POVERTY

EU Policy developments......

EAPN activities

ACTIVE INCLUSION......

EU Policy developments

EAPN activities

EMPLOYMENT......

EU Policy developments

EAPN activities

STRUCTURAL FUNDS......

EU Policy developments

EAPN activities

EU PROGRAMME FOR SOCIAL CHANGE AND INNOVATION (EUPSCI)......

EU Policy developments

EAPN activities

SERVICES OF GENERAL INTEREST......

EU Policy developments

EAPN activities

EUROPEAN YEAR OF CITIZENS 2013......

Latest EU developments......

PARTICIPATION AND CIVIL DIALOGUE......

Latest developments
EUROPE 2020 AND ECONOMIC GOVERNANCE

Contact person in the secretariat:

Sian Jones + 32 2 226 58 59

The policy team: (Amana Ferro and Vincent Caron), contribute to this work, through the EU Inclusion Strategies group, coordinated by Sian Jones, policy coordinator.

EU Policy developments

Eurocrisis: June to October – latest developments

The overarching policy driver continues to be stricter economic governance requiring Eurozone MS to conform to EU requirements on deficits and harsh surveillance mechanisms, balanced with moves toward banking union and some increased financial instruments to support the reforms. The key document currently is the Blueprint for a deep and genuine Economic and Monetary Union (See here). The priorities in the short term has been to implement the six pack and two pack, as well as a single supervisory mechanisms for banks and a single resolution mechanisms to deal with banks in difficulties. A new competiveness and convergence financial instrument was created. On the 1st January 2013, the new legislation on fiscal and microeconomic surveillance of MS by the EU came into force (the Two pack see here) which provides strict ex-ante coordination of the required reductions. The longer term vision is strengthening common tax and employment policy with greater independent fiscal capacity with EU own resources. This will probably involve Treaty changes.

May/June: Commission CSRs presented and Excessive Deficit

On 29th May the Commission adopted their proposals for Country Specific Recommendations continuing to prioritize fiscal consolidation but highlighting need to challenge rising unemployment, particularly youth. CSRs were adopted for 24 MS, excluding Greece, Ireland, Portugal and Cyprus who are under Troika arrangements. In parallel Commission issued warning of the start of excessive-deficit procedures against several MS for failing to respond to the Commission deficit requirements sufficiently quickly (to 3%) . (See here). The CSRs are backed by detailed analysis in the SWD (Staff Working Documents – see here). An overarching Communication highlighted: the renewed focus on unemployment and Youth Guarantee, with 19 MS receiving CSRs on this. 9 MS received poverty related CSRs, but in the Communication poverty beyond employment gets little focus, with some reference to strengthening safety nets, and adequacy of support, but through increased efficiencies, and strengthening the links to the Labour market.

The Council slightly changed some CSRs due to resistance from social ministries, including Belgium over Pension Reform and Hungary.

27-28 June European Council Conclusions

Strong focus on Youth Employment, and agreement to implement the ‘Youth Guarantee’, mobilising all instruments including Structural Funds particularly unspent money and preparing for the Youth Employment Initiative (YEI), operational by Jan 2014 giving the first advantage to the most disadvantaged regions. The main macroeconomic message is that ‘growth and fiscal consolidation are mutually reinforcing’. The Council welcomed the agreement on the EU’s multiannual Financial Framework, although the details are still unconfirmed on the 25% on ESF or 20% on poverty. The Council called for more efforts to deliver the Compact for Growth and Jobs agreed last year, and underpinned by 120 billion euros.

In terms of completing the EMU, the new priority was highlighted to complete the Banking Union, but underlined their concern to more strictly control and coordinate economic mpolicies, through the new ex-ante coordination of major economic reforms (ie deficit reduction etc) in the autumn

See here

15th October: National Budgets presented to Commission for surveillance

On the 15th October, MS were required to present their budgets to the Commission, for the surveillance procedure. If MS haven’t respond to the Recommendations, sanctions could be put into place. The Troika countries are not required to present their budgets.

2nd October- New Social Dimension of the EMU launched

The new Communication was adopted on the 2nd October. (See Press Release here and Communication here) It doesn’t provide an ambitious agenda for restoring the balance in the economic and social objectives but focuses on the need to restrict social imbalances (like unemployment and poverty) which are threatening the financial and economic stability of the EMU. It proposes actions under 3 pillars:

1) Reinforced surveillance of employment and social challenges and policy coordination

2) Enhanced solidarity and action on employment and labour mobility.

3) Strengthened social dialogue.

The key proposals include: the introduction of new social indicators into the Macroeconomic Imbalances Procedure (MIP) as part of macroeconomic surveillance and the development of a key employment and social indicators scoreboard to strengthen coordination of social policies. These latter key indicators are: unemployment, NEETs, disposable income, at risk of poverty and inequalities. Greater use of EU financial instruments like ESF and encouragement of mobility. A proposal is made for a new EU financial instrument ‘Convergence and Competiveness Instrument (CCI), which could provide financial support beyond the MAFF. Social dialogue with social partners will also be strengthened including through the European Semester and Europe 2020, particularly on the CSRs. A proposal to develop an EU wide unemployment benefit is presented, but underlines the need for Treaty changes.

Whilst reactions to the idea of the initiative have been mainly positive, however the much weakened l proposals raise more questions and answers. How will it be implemented and what impact will it have? The lack of operational detail or triggers or thresholds around the use of the indicators, or link to any ex-ante social conditionality on the macroeconomic objectives gives little confidence of a strong balance to the current macroeconomic dominant agenda focussed on austerity and privatisation. Whilst welcoming the key indicators, particularly inequality, concerns are raised about missing priorities like in-work poverty and quality work, as well as adequacy of social protection levels and spending. The complete absence of reference to civil society in the context of strengthened dialogue is a huge set back. The full set of indicators will be presented in the draft joint Employment Report with the AGS in mid-November, but the current rumours are that the scoreboard will not be put in place until 2015.

See also Van Rompuy’s Speech in opening the Commission conference ‘On restoring socio-economic convergence in Europe – 10 October 2013. (EAPN attended)

(See here). Van Rompuy emphasized that stability and fiscal consolidation is not an end in itself but instruments to ‘create well-being and jobs’ ‘our objective is in essence social’, although it’s clear that his main concern is employment. He highlights growing poverty and inequality, and says that the EU cannot just wait for ‘a slow trickle down from growth to jobs and from jobs to overall improvements in social conditions. ‘Growth is a necessity, but not sufficient condition for job creation’. He calls for a job rich recovery and to recognize ‘our social interdependence’ and the risks posed by social divergence. He called for progress on 3 fronts: better analytical tools to monitor the social and employment situation, ensuring that policy coordination is really used to improve coordination of economic, employment and social policies and finally expanding social dialogue.

See here for details on the conference

European Elections and New Commission

Growing tensions over the European Parliament elections and over the nominations for the Commission’s President. In July, the EP adopted a resolution from Andrew Duff (LIB) called on all European Political parties to put forward candidates for the Presidency early so as to have a Europe-wide debate. Some much vaunted candidates include: Daliea Grybauskaite, Lithuanian President (EPP), Ollie Rehn (current Commissioner for economic and monetary affairs (LIB), Martin Schulz (current President of the EP/Socialists).

The schedule:

14-17 April – last plenary session in the current EP

22-25 May – Elections of the EP

June: formation of the political groups

26-27 June: European Council nominates the president of the European Commission

1-3 July: first plenary of new EP and election of president and chairs etc.

14-17 July: 2nd plenary of new EP and election of the President of the European Commission.

July to September: New college of European Commissioners

1-11 September: Hearings of nominees in EP.

October: EP confirms new Commissioners that take office from 1 November.

First Lithuania Presidency launched – 1st July to 31st December

The Lithuanian Presidency’s launched its first presidency of the EU with the slogan ‘For a credible, growing and open Europe’. The priorities for the programme however are strongly dominated by the existing agenda – stabilizing the banking sector and public finances, economic governance with a stronger social dimension; investing more in research and technological development and deepening the internal market and promoting external priorities. The social priorities are fairly reduced, focused on the youth guarantee and investing in children.

See Presidency website here and Presidency Programme here

EAPN activities

EAPN Engagement in Europe 2020 and European Semester

10-11 May EUISG Meeting in Brussels

The EUISG meeting carried out a workshop exchange on the National Reform Programmes (NRPs), in preparation for answering the on-line questionnaire developed by Graciela Malgesini from EAPN ES. Feedback was also given on the work of the CSR Alliance which would be holding a cross-party hearing in the European Parliament to present the joint shadow proposals on CSRs from the Alliance that EAPN is coordinating.

14th May: Adhoc CSR Coalition: Alternative CSR Proposals and Cross-Party Hearing

EAPN is coordinating a informal coalition on CSRs with European Women’s Lobby, involving other European NGOs and organisations who have engaged their national members in proposing alternative CSRs: Eurochild, Eurodiaconia, Caritas, EASPD, Green Budget with the backing of the Greens/EFA Group. Together they are preparing a combined proposal on alternative CSRs. The Group has invited the Commision to hold talks with it, and is holding a cross-party hearing, with the support of 4 political groups on the 14th May, to which Commissioner Rehn and Andor, together with representatives of the Council have been invited. See here for more details.

20th June EAPN sends letter to European Council on social dimension of EMU

EAPN wrote to the Council prior to its meeting on the 25 and 26th June, highlighting concerns about the proposed debate on the social dimension on the EMU – calling for a democratic debate to launch an ambitious social dimension that can really balance macroeconomic priorities and for the EU to become a beacon of hope not despair. In the letter EAPN calls for: Ambitious objectives for the EMU – rebalancing economic and social objectives, that ensure economic priorities support rather than attack social goals. The Council to launch a democratic debate to develop an ambitious social dimension– through consultation with national and European Parliaments and engaging civil society and social partners.

EAPN sets out 5 key elements for an ambitious Social Dimension of the EMU:

Set an ambitious coherent social vision for the EU , as well as the EMU
Ensure that economic policies contribute to social goals, stop current austerity measures which are undermining social rights and carry outex-ante coordination, going beyond the proposed social scoreboard.
Ensure a coherent, social approach is mainstreamed through the European Semester – in all its elements, with the Europe 2020 targets at the centre of the process.
Pro-active visible EU measures to promote social standards across the EU – i.e. a Framework Directive on the adequacy of Minimum Income Schemes.
Social Investment and Employment Pact to drive recovery through investing in social protection, public services and quality employment.

See Press Release and Letter to the European Council here

30th September EAPN 2013 NRP Assessment: Widening the Gap launched in EAPN Europe 2020 conference

On the 30th September EAPN held a well-attended seminar to launch the 2013 NRP assessment in Brussels, and to review the progress made on poverty and participation in the European Semester and Europe 2020. Around 80 EAPN national and EU members attended as well as external guests. 4 workshops explored national and EU experience of engaging in the Semester and proposed key messages. A final plenary with key EU decision-makers explored the potential for progress. The conference concluded with a debate with the audience, where it was made clear that a major shift was needed to ensure that social objectives were included in economic governance and not undermined, with a new priority to the poverty target, an EU and national integrated antipoverty strategy to deliver on it, with adequate funding, and revitalised democratic and participative dialogue.

On the 1st October EAPN held a further event launching its manifesto and actions related to the European Elections – Champions for a Social Europe. This included inspiring presentations from other NGOs activities on the campaign and a round table debate with representative from nearly all European Political Parties, followed by a lively debate from the audience. EAPN members had a participated in a capacity building exchange on the am of the 30th to prepare their activities during the Elections.

See here for the EAPN 2013 NRP Report: Widening the Gap

See here for the Programme and Report of the Conference on Europe 2020 and the Elections and the Press Release

4th October: EAPN sends letter to President Barroso on AGS

Following the conference, EAPN sent a letter to President Barroso with its Key Messages for the Annual Growth Survey building on the findings from the NRP Report.

In its letter, EAPN strongly recommends that the Annual Growth Survey should re-focus on Europe 2020 and require an integrated strategy to fight poverty and exclusion for all groups, backed by Country-Specific Recommendations (CSRs); explicit commitment to Social Investment and Social Protection as essential pre-requisites for inclusive growth and recovery and with a strong and also strategic support of the Structural Funds; new priority to increasing accountability and legitimacy of the Semester Process through Guidelines for Parliament and grassroots Stakeholder Engagement.