Toespraak eurocommissaris Andor over sociale investeringen voor duurzame groei in Europa (en)

Distinguished guests,

Ladies and gentlemen,

Let me start by thanking the European Social Network for the invitation and congratulate them with this 20th edition of the Annual European Social Services Conference.

Especially in the current challenging times, we should ensure that social services continue to fulfil their crucial role in society.

They are essential to allow people to live in dignity, to take part in society, in helping them to learn, to work, to produce and so realise their social and economic potential.

Four years after the start of the financial and economic crisis the newspapers and airwaves are still full of dire warnings about the economy, about double-dip recessions and tax hikes, credit squeezes and company closures.

About instability on the financial markets, sovereign debt crises and bank runs.

All this is having an impact on the physical and mental wellbeing of individuals and families, on children and old people, and on society as a whole.

Problems include widespread joblessness in some countries, cuts in welfare services and benefits, and restrictions on school and tertiary education spending.

The figures speak for themselves.

Around 24.7 million people are out of work across the EU — nearly two million more than a year ago.

The rates for unemployed young people — those under 25 — are even more worrying.

In April this year they averaged over 22% both for the EU and for the euro area, ranging from 7.9% in Germany to 51.5% in Spain and 52.7% in Greece.

Meanwhile, almost one in every four people in the EU are at risk of poverty or social exclusion — though there is great diversity across the Union.

For instance, more than 40% of people in Bulgaria and Romania are at risk of poverty or social exclusion, while the figure falls to around 15% in the Czech Republic, Sweden and The Netherlands.

It is hardly surprising, therefore, that eight out of 10 respondents in a Eurobarometer survey last December felt that poverty had increased over the previous 12 months.

And over one in every three expected the situation of their households would deteriorate over the next 12 months.

Over time, the increase in unemployment will translate into higher long-term joblessness. Currently, 43% of our unemployed have been jobless for over a year.

And long-term unemployment entails a significant loss of human capital as their skills depreciate and their motivation wanes.

This affects their earnings, their employability, their career prospects. They may grow discouraged from looking for work and simply drop out of the labour market.

Long-term unemployment carries a high risk of poverty and associated social failure, and it foreshadows the erosion of our future economic potential.

In these circumstances, people are understandably worried about their jobs, their future, and that of their children.

Lack of confidence in the future undermines trust in our democratic institutions, and feeds populism and extremism — with all the attendant dangers for our social model and our hopes of forging an inclusive European Union.

What this means, ladies and gentlemen, is that the 2020 targets the EU has set itself for increasing employment to 75% and reducing the number of those at risk of poverty by 20 million will be harder to meet, while meeting them is all the more urgent.

Yet the signs are that the Member States lack the determination to set high national targets and meet them.

As things stand, current commitments indicate that both the employment and poverty-reduction targets will be missed.

In April, the Commission adopted an Employment Package to better support the efforts of Member States in reforming their labour markets.

This package puts a strong emphasis on the demand side of the labour market and support to job creation.

Particularly relevant for social services is the attention paid to supporting and developing the employment potential of the healthcare sector.

The healthcare workforce plays an important role in the EU economy, accounting for over 17 million jobs across the EU.

Population ageing and the increasing healthcare and personal care demand that comes with it make the health and care sector a key driver of jobs in the future.

Yet there is a critical shortage of healthcare workers, which the Commission is tackling through the Action Plan for the EU Health Workforce.

At the same time the Commission has launched a broad consultation on exploiting the employment potential of personal and household services. The deadline for the consultation is set on 15 July and I trust that the European Social Network and its members will actively contribute to it.

In May, as part of the so-called European Semester, the Commission adopted Country Specific Recommendations addressed to Member States and building upon the Europe 2020 targets.

These Recommendations focus on employment among young people, skills, women’s participation in the labour market and the need to extend working life.

They also state that reducing poverty, social exclusion and inequality calls for a comprehensive strategy to ensure that income support is adequate, the labour market is inclusive and people have access to quality services - the main ones being healthcare, childcare and housing.

For instance, access to quality early-childhood education and care is crucial if children are to have the best chance in life — regardless of their social background.

Secondly, investing in health for all and reducing inequality in access to healthcare is vital if people are to be able to work and contribute to the economy.

Thirdly, the Recommendations stress the need to provide individualised reintegration services for jobless people, and especially the long-term unemployed, and vulnerable groups.

With the upcoming report on the implementation of the 2008 Recommendation on active inclusion, the Commission will give a renewed incentive to Member States to ensure quality, affordability and accessibility of social services. I strongly hope that Member States will pay more attention to this crucial sector in their next national reform programmes.

In addition to encouraging the Member States to provide social services, we help the public authorities to organise and finance high-quality social services.

In 2011 we reformed the state aid rules on services of general economic interest and we proposed new Directives on public procurement and concessions.

These reforms will help public authorities across the EU to design and provide social services that are more efficient and more effective, and to ensure that the decision-making process is more transparent, for the benefit of the users benefit.

We are also helping the Member States to provide services of better quality by encouraging the application of the quality principles and criteria adopted by the Social Protection Committee in 2010.

Social protection policy in the Member States is at a turning point as it comes up against the dual challenges of addressing immediate needs as a consequence of the crisis and responding to structural change in a climate of severe budget constraint.

Tackling those challenges calls for policies that are innovative.

Social innovation is a way to find and spread new solutions for the area of social policy.

Social innovation relies on the inventiveness of the individual, of civil society organisations, local communities but clearly also social services to find new answers to social needs.

To make social spending more effective and more efficient, the Commission provides financial support for the testing of reforms through social policy experiments under Progress, the EU's employment and social solidarity programme which also lends operational support to the European Social Network.

The Commission is convinced that there is a strong potential for social innovation and social policy experimentation and has therefore proposed to increase its support during the period 2014-2020 as part of the new European Programme for Social Chance and Innovation.

Ladies and gentlemen,

Let me now turn again to the broader picture affecting social services.

The question of growth is clearly back at the top of the political agenda across Europe.

There is now a widespread recognition that that austerity alone cannot solve the crisis.

Without reforming Economic and Monetary Union by better governance and a fairer burden-sharing, we will not find a way out of stagnation and division.

We have to seek new paths to growth that do not involve spending more, but also find ways to spend more effectively — alongside better governance and greater competitiveness.

To that extent, I do believe that lasting, sustainable growth needs to be grounded in sound public finances, thorough structural reforms and careful but sustained investment in our greatest asset, our human capital and skills.

This means we must look beyond the current crisis and tackle the long-term challenges comprehensively.

For example, population ageing will have an impact on our policies — irrespective of the crisis.

Low fertility, longer life expectancy and increasing economic dependency ratios are clearly a challenge.

Our approach needs to be valid both for the crisis and for the longer term.

Smart social investment that tackles current challenges and prevents long-term risks is part of the solution.

In particular, it means investing in active labour market policy, education and lifelong learning, social inclusion and active ageing, as well as fighting against discrimination and poverty.

Investing now will avert a huge cost in terms of missed opportunities and wasted human and economic potential.

For instance, lifting at least 20 million people out of poverty would not only improve the lives of the individuals concerned, but would also bring huge economic benefit for society as a whole.

To support the Member States, we need to make maximum use of the EU budget, and in particular the European Social Fund, for social investment.

The European Social Fund is the EU’s main financial instrument for investing in people. It finances active labour market policies, adaptability, education, social inclusion and institutional capacity-building.

The Commission proposal for a Multiannual Financial Framework for 2014-2020 has a strong social investment approach.

It proposes to allocate at least 25% of Cohesion Policy funding to the Social Fund.

And 20% of the Social Fund in each Member State is to be concentrated on promoting social inclusion and combating poverty.

The Commission proposal to amend the Regulation on the European Social Fund identifies "access to affordable, sustainable and high quality services, including health care and social services of general interest" as one of the six investment priorities for achieving the objective of promoting social inclusion and combating poverty.

Conclusion

Ladies and gentlemen,

In the short term we need to show people that a better future — a future that is inclusive, smart and sustainable — depends on better cooperation and more solidarity.

That means building a consensus on the need for change and on the choices to be made.

Otherwise, the political and social difficulties we face will only increase.

Europe 2020 is our overarching strategy for restoring confidence and competitiveness, giving fresh impetus to the economy, fostering growth and bolstering social cohesion and inclusion.

Sound dialogue with civil society and the social partners is crucial to its success.

The European social model — adjusted to meet the specific needs and traditions of each Member State — has brought our fellow Europeans well-being in the past and safeguards their well-being in the present.

But let us not be complacent. Our social model needs to be adapted to meet tomorrow’s challenges.

Social policy and social services are an investment in society that will pay off in the longer term — by helping build a more inclusive and more prosperous society.

We are reflecting on developing further tangible policy actions at the European level to encourage the Member States to design efficient and effective social systems for the future and support these through a targeted use of the structural funds.

By offering guidance and a means of assessing the Member States' progress in the social field, the measures and principles which could possibly become part of a 'Social Investment Package' should be an integral part of the Europe 2020 process and build upon a reinforced open method of coordination and a real implementation of the active inclusion principles.

If we do not take the initiative, we will face increasing political and social difficulties in making the necessary reforms to safeguard and develop our European Social Model.

Social service providers are important allies in this process and I count on their help in ensuring the successful implementation of the policies needed.

I wish you a very successful conference.

Thank you.