Thoughts on Social Policy from the European Greens Foreword by Jean Lambert, Green MEP for London Jean Lambert MEP , London www.jeanlambertmep.org.uk

Every day, newspapers from around has stopped decision-makers from equality and strengthened welfare the world dedicate untold column seeing society as a whole and rights across Europe. The essays inches to the global economic crisis from realising that for many, this is contained in this pamphlet, contri- that has gripped much of the inter- a social crisis, brought to life by buted by Green/EFA Members of national community. Buried deep the fear of losing their jobs or their the Employ- beneath the jargon, you could ability to house and feed their ment and Social Affairs Committee, almost be forgiven for thinking that families. For , this is a offer just a taste of this vision and social concerns have disappeared problem — austerity measures give examples of the work in which from the political agenda. must never come at the expense the Green/EFA Group is currently of social investment. engaged in. It is clear that for some governments the crisis is being used as an excuse There is no doubt that the crisis The response to the current economic to attack long established rights, presents a real challenge, but it is climate can also be the beginning such as the right to strike, collective also an opportunity to make the of a more inclusive society, where agreements and social security transition to the green, sustainable market rules are never allowed to systems. Across Europe, govern- society that we so urgently need: override fundamental social rights. ments are implementing draconian a future which guarantees equal Quite simply, no other approach spending cuts; gutting essential opportunities, equal rights and will do. services, increasing unemployment robust social protection for all. and disproportionately hitting those A future which guarantees invest- most in need in a vain attempt to ment in both people and society. satisfy the markets that they were unwilling to control. The Green sets out a strategy to overcome the crisis We are running the risk of developing whilst transforming the economic a severe case of tunnel vision. Our and industrial framework to pro- overwhelming preoccupation with vide decent employment, high the financial dimension of the crisis quality public services, gender Treaty on the Functioning of the , Social Funds — tackling poverty and exclusion 2 Article 9: “…That in defining and implementing its Elisabeth Schroedter MEP policies and activities, the Union shall take into account Securing Europe’s future —why young people matter 4 requirements linked to the promotion of a high level of Emilie Turunen MEP employment, the guarantee of adequate social protection, A minimum income for all 6 the fight against social exclusion, and a high level of Jean Lambert MEP education, training and protection Making homelessness a priority 8 of human health.” Karima Delli MEP National Reform Plans —wanted: audience for 10 a greener and more social Europe Marije Cornelissen MEP Women in the economic crisis— 12 progress not setbacks for gender equality Raül Romeva i Rueda MEP Strengthening the social economy— 14 a vital role for co–ops, mutuals and Fair Trade MEP Linking bailouts to social guarantees 16 Tatjana Ždanoka MEP Social Funds— tackling poverty and exclusion

Elisabeth Schroedter MEP Bündnis 90/Die Grünen, Germany [email protected] 2

The number of people at risk of the financing of new and integrated Social Entrepreneurship Programme’ However, if we are to take the fight poverty in the EU is on the rise, strategies which reach beyond which provides micro-credit to against social exclusion and poverty currently amounting to 84 million traditional labour market policies and people who want to set up a small in the EU seriously, we must back people or 17 per cent of the EU help prevent the passing down of business but would not be granted up these warm words with funding population. Austerity measures poverty from generation to generation. credit in the traditional banking and action. adopted throughout the EU are sector; ‘Progress’, which finances disproportionately hitting the most The proposal also states that 20 per EU-wide pilot projects in the area of deprived, yet the EU 2020 strategy cent of the ESF should be earmark- employment and social policy; and sets the target of lifting 20 million ed for the fight against poverty. Over EURES, which promotes workers’ people out of poverty by 2020. the last few years, Member States mobility to better match job opportu- What action is the EU taking to reduced the share of the ESF in the nities and job seekers across the EU. ensure that Member States live Structural Funds budget from 40 The draft of the EPSCI programme, up to this commitment? per cent to 22 per cent. Therefore, however, over-emphasises employ- the Greens in the European Parlia- ment as the primary answer to social The regulations governing the ment welcome the Commission’s exclusion and poverty. ¹ The EU Structural Funds are designed to narrow the Structural Funds¹ set out eleven proposal to introduce a minimum gap between the rich and poor parts of Europe priorities, including the fight against share for the ESF of the overall The Greens in the European Parlia- by reducing the differences in development between poverty. Two instruments are budget, namely 52 per cent for more ment will take a clear line in the regions. The majority of spending is allocated to three funds: The European Regional Development Fund, particularly important in achieving developed regions, 40 per cent for negotiations on the Structural Funds the European Social Fund and the Cohesion Fund. this goal. transition regions and 25 per cent and the ESF. Some Member States, for deprived regions. as well as other Groups in the Euro- The European Social Fund (ESF) is pean Parliament, have already crucial in bringing about investment The European Programme for voiced their opposition against the in people. For the funding period Social Change and Social Innovation courageous Commission proposal 2014—2020, the Commission added (EPSCI) is the second programme, to earmark 20 per cent of the ESF two priorities to the ESF, namely consisting of three strands aimed at for the fight against poverty, stating the fight against poverty and early helping people out of social exclus- that they will not accept such inter- school drop–out. This allows for ion: the ‘Microfinance Facility and ference by the Commission. Securing Europe’s future— why young people matter

Emilie Turunen MEP Socialistisk Folkeparti, Denmark [email protected] 4

Youth unemployment is one of the bargaining power. The trend is simi- which gives every young person in major challenges for Europe. It is lar across Europe: labour market the EU the right to a job, an appren- not without reason that the current organisation is falling apart, as well ticeship, further training or employ- generation of young Europeans are as wages and working conditions ment if they have been out of work known as the “the lost generation”. for the newcomers. for four months. Other measures in the Youth on the Move initiative The economic crisis has triggered There is an urgent need to act. We include a call for better regulation of a sudden and dramatic increase in need to find solutions that not only apprenticeships and internships and unemployment, particularly amongst provide more jobs for young people, EU funding for young entrepreneurs. the young. More than one in five but which also ensure that those young Europeans are unemployed, jobs are secure and long–term. The EU has shown willing in coming creating tremendous pressure on together to combat youth unemploy- wages and working conditions. In A report adopted by the European ment. What we need now is for Spain, for example, young people Parliament in July 2010 proposed governments to take action. Member often end up in temporary positions a number of suggestions on how to States must make youth unemploy- ¹ ‘On promoting youth access to the labour with little protection, while millions tackle youth unemployment.¹ Fortu- ment a political priority. Austerity market, strengthening trainee, internship and of young graduates in Italy, , nately, it seems that the work of alone cannot save Europe alone apprenticeship status’ Emilie Turunen MEP, 14th June 2010: Germany and the UK are working the Parliament has had an impact. — it is time to stand up for Europe’s for free as interns. young people. The Commission has included a http://www.europarl.europa.eu/sides/getDoc. number of the Parliament’s sugg- do?pubRef=–//EP//TEXT+REPORT+A7–2010– It is also a fact that young people estions in its flagship initiative 0197+0+DOC+XML+V0//EN&language=EN don’t tend to join trade unions, ‘Youth on the Move’,² which aims ²‘Youth on the Move: An initiative to unleash which is not only a crisis for the at equipping Europe’s youth for the potential of young people to achieve unions but a crisis for the new the future. smart, sustainable and inclusive growth in generation in the labour market, the European Union’ too. Without organisation, young European Commission, 15th September 2010: Most notably, the scheme includes people are left alone with no strong the European Youth Guarantee, http://ec.europa.eu/education/yom/com_en.pdf A minimum income for all

Jean Lambert MEP Green Party, UK [email protected] 6

Currently, 24 out of 27 countries in The European Greens want to see people into poverty, not least when Human dignity is inviolable. It must the EU have what could be descr- minimum income schemes set at a we have an EU strategy to raise at be respected and protected. ibed as a minimum income scheme level which guarantees that people least 20 million people out of poverty — a core payment made for people will not live in poverty and will be by 2020. We should therefore collab- who have no other income and which able to live a dignified life. We there- orate on ways to prevent this, as we provides an essential buffer against fore supported the European Anti- know the high personal and social destitution. For some of the most Poverty Network call for an EU costs of poverty. vulnerable in society, this acts as Framework Directive on Minimum a crucial life-line. Greens believe that Income, which would set out the Some Greens argue for a basic in- all Member States should have such principles for such schemes and come; a universal scheme where a system in place: no-one should the basis on which they would people are paid a basic amount as be left to a life of poverty in one of be set. of right, rather than dependent the world’s richest regions. on need, with tax paid on any addit- I first introduced the proposal in my ional income. However, not all agree However, in its report on minimum 2009 report,¹ but it did not gain on this approach. income, the Social Protection Com- a majority in Parliament. It was the ¹ ‘On the active inclusion of people excluded from the labour market’ mittee found that: same story when Greens tabled What we do agree on is that no-one Jean Lambert MEP, 8th April 2009: this as an amendment to the 2010 should live in poverty and a mini- — There is not always a firm basis report on the role of minimum in- mum income guarantee addresses http://www.europarl.europa.eu/sides/getDoc as to why the level of payment is come in combating poverty by the this for those not in work, just as a .do?pubRef=-//EP/NONSGML+REPORT+A6- 2009-0263+0+DOC+PDF+V0//EN set as it is; United Left’s Ilda Figueredo in 2010.² living wage commitment aims to address the problem of the working ²‘On the role of minimum income in combating — Many do not keep pace with the Some in Parliament see the proposal poor. A Directive is important in gett- poverty and promoting an inclusive society cost of living; as the EU stepping on the toes of ing the basics right and ensuring in Europe’ Member States by interfering in their that Member States don’t design Ilda Figueiredo MEP, 16th July 2010:

— Some schemes are so complex welfare arrangements. Greens, how- poverty into their benefit system but http://www.europarl.europa.eu/sides/getDoc that take-up becomes a problem. ever, are committed to the principle instead aim to deliver on Article 1 of .do?type=REPORT&reference=A7-2010-0233 that these schemes should not put the Charter of Fundamental Rights. &language=EN Making homelessness a priority

Karima Delli MEP Europe Écologie — Les Verts, France

[email protected] Photo: Joëlle Dollé 8

Housing is a basic right, recognised States to undertake specific object- homelessness in the transition bet- by the European Union in its Charter ives in tackling the problem with ween home and independent living. of Fundamental Rights. It is also a the aim of eradicating street home- prerequisite for social inclusion. lessness by 2015. The European funds have a role Finding a job, studying, or raising to play in helping those who find children cannot be done without MEPs supported five major priorities themselves homeless. The social adequate housing. for action: funds can support social innovat- ion and data collection to learn from The economic crisis and growing 1. No-one should be forced to sleep EU-wide best practice. For example, social insecurity are creating a new rough due to a lack of inappro- the ‘Housing First’ model currently category of people, the ‘working priate services; being tested in France provides poor’, which account for three out housing as a first step towards re- of ten classed as homeless. The 2. No-one should stay in emerg- habilitation. Similarly, the European composition of this group is chang- ency accommodation longer than Regional Development Fund¹ can ing — increasingly, it is young people, necessary; now be used for the construction of families, migrants and vulnerable housing for marginalised commun- ¹The European Regional Development Fund is a EU Structural Fund which is predominantly workers who find themselves with- 3. No-one should stay in transitional ities, including homeless people. intended to support infrastructure projects and out a home. At a time when the accommodation longer than is to invest in companies, in particular small European Union aims to lift more required for a successful move to For too long, housing has been the and medium enterprises. than 20 million people out of poverty long-term housing; forgotten element in the fight against by 2020, the fight against one of poverty, exclusion and deprivation. the most extreme forms of depri- 4. A person in a hospital, clinic, The EU homeless strategy presents vation should be a priority. prison or other institution should us with an opportunity to change never be left without support and this, and the current economic crisis In September 2011, following a Green an adequate housing solution; must be no excuse for inaction. initiative, Parliament adopted supp- ort for an integrated EU homeless 5. Special attention should be paid strategy. The plan requires Member to young people, who are at risk of National Reform Plans — wanted: audience for a greener and more social Europe

Marije Cornelissen MEP Groenlinks, [email protected] 10

By 2020, 75 per cent of 20—64 year is that the European Commission clearly the results of heavy lobbying olds in the EU will be employed. presents the priorities for the behind the scenes by Member 20 million people will be removed coming budget year in January, after States. Yet because nobody knows, from poverty. School drop-out rates which Member States make their nobody is held accountable. We will be reduced to 10 per cent; 3 per National Reform Plans, which trans- are never going to reach these vital cent of GDP will be spent on innov- late these priorities into concrete goals by 2020 if this continues to ation; greenhouse gases will be 20 policies. The European Commiss- go on. per cent lower than in 1990 and ion then gives each country specific 20 per cent of energy will be gener- recommendations to improve the We must strive to make the EU 2020 ated from renewable sources. plans for the national budgets. goals as widely known as possible to prevent governments from mak- This may read like a Green Party This sounds marvellous in theory, yet ing cuts to vital services which are campaign pamphlet, but in fact they there is little public awareness of contrary to the targets of employ- are the goals that the EU has set the EU 2020 goals or the European ment, innovation, climate change, itself for 2020. The EU has recognis- Semester. Governments have no education and poverty. The EU 2020 ed that the policies of all 27 Member interest in informing the public for strategy and the European Semester ¹‘The First European Semester and its contri-bution to the EU2020 Strategy’ States must point in the same direct- fear that the press might publicise could do great things for reform in Oliver Durrine and Anne Tiedemann, ion if Europe is to emerge from the Commission’s criticism of their Europe, but they desperately need 19th October 2010: the economic crisis with a greener, policy plans. As long as the Parlia- an audience. smarter and inclusive economy. ment, press and voters aren’t aware http://www.jeanlambertmep.org.uk/Docum entStore/EUROPEAN%20SEMESTER%20 of the criticism, it’s no big deal. STUDY%20oct2010.pdf Under the European Semester¹, Member States have committed The result is that the Member States’ themselves to the scrutiny of their combined national targets fall far National Reform Plans for employ- short of reaching the EU 2020 goals ment and the economy before for Europe as a whole. The recom- they draw up next year’s budget, mendations for the National Reform as opposed to afterwards. The idea Plans lack consistency and are Women in the economic crisis — progress not setbacks for gender equality

Raül Romeva i Rueda MEP Iniciativa per Catalunya–Verds, Spain

[email protected] Photo: 12

If Lehman Brothers had been Leh- The first wave of the crisis hit the Without gender equality, there will man Sisters, ran by women instead male dominated financial sector, as not be an end to the crisis. We must of men, would the credit crunch have well as the construction and car involve a gender perspective in happened? Economists pointed out industries. The second wave of the the reform of the financial sector that the credit crisis was literally crisis equally affected female domin- and in business, industry and emp- caused by men, simply because ated sectors such as retailing, the loyment policies, making sure that they are in the highest economic, public services sector and tourism these policies redress the balance. financial and political decision mak- and the care services. Social expen- We also need specific goals in the ing bodies. Indeed, only 5 per cent diture cuts means more unpaid macroeconomic and employment of those with decision-making work for women since, according guidelines and with concrete responsibilities in the EU financial to the European Foundation for budget lines. institutions are women and all 27 the Improvement of Living and Work- EU Central Bank governors are men. ing Conditions, women spend We need political will, imagination three times as much time as men and concrete, binding policies. For We cannot say for certain that if caring for children, dealing with example, by 2020, we need to ensure more women had occupied these domestic issues and looking after that 75 per cent of women are positions that the crisis would dependent relatives. participating in the labour market not have happened, but we can say and we need to narrow the wage that it would not have been the Austerity measures have not rec- gap. There also needs to be a clear same. Recent studies show that ognized, analyzed or corrected the sanctions system. Now is the time organisations with higher female impact of the crisis on gender equ- to act in a clear, credible and comm- representation on their boards have ality. The Greens must ensure that itted way to stop the 'pink crisis'. been much less affected by the the economic crisis does not be crisis. The financial downturn should come a ‘pink crisis’ and that the road therefore be seen as an opportun- to recovery does not jeopardize ity to increase the female presence the gains made in gender equality. in financial institutions. Strengthening the social economy —a vital role for co–ops, mutuals and Fair Trade

Sven Giegold MEP Bündnis 90/Die Grünen, Germany [email protected] 14

The Greens at the European Parlia- paper ‘The Social and Solidarity of co-operatives in 2004. My initial ment support enterprise in the social Economy and the European Union report points out that this is partly and solidarity economy because – A Green Programme beyond the due to a lack of dedicatedresources they tackle social challenges in a Crisis’. In the paper we present Green in the Commission administration, very productive manner — through positions on issues ranging from and calls for the introduction of poli- economic activity. social criteria in public procurement cies to improve the legislative frame- to state aid to mutual societies in work for cooperatives as well as a Social enterprises come in very diff- financial regulation. We also suggest European Year for the Social and erent forms, but what they all have in that the Commission co-ordinates Solidarity Economy. common is that they are more benef- the exchange of best practice amongst icial for society than capital-based Member States concerning taxation The Greens will ensure continuous enterprises could ever be. For and co-operative business support. action in this field, establishing our example, worker co-operatives tend selves as the key partner for social to provide healthier, more resilient Secondly, I have recently written the and solidarity economy actors.With working environments. Co-operative Parliament’s draft initiative on emp- the aim of cross-cutting recognition banks are weathering the economic oyee participation in co-operatives for the social and solidarity economy crisis better than high street banks. using the European Co-operative at the European level, we will deepen Community based farming is slowly Statute (SCE). After consultation with our networks and push for legislative becoming an alternative for buying representatives of the main co-ope- improvements wherever possible. and producing organic, regional food. rative organisations, we have decided With this, we also hope to inspire Fair Trade contributes to producer to use the report to reaffirm and Green programmes at both the local and worker wellbeing both inside and strengthen the Parliament’s position and national level. outside the EU. on co-operatives and the social and solidarity economy as a whole. During this year, the European Greens This is urgent, for the Commission have focussed on two priorities. has yet to produce any concrete Firstly, we are in the process of com- results, years after announcing the pleting the comprehensive position need to improve the legal situation Linking bailouts to social guarantees

Tatjana Ždanoka Par Cilveka Tiesibam Vieneta, Latvia [email protected] 16

In the midst of the current economic which those responsible for the provided for serious cuts in the social of things to come. The European turmoil, it might be easy for some debt crisis have been bailed out. It is sphere, including 10 per cent cuts Commission has a moral obligation to forget the bailout given to Latvia, fundamentally unjust that reckless in pensions, 70 per cent cuts in pen- to use the mechanisms at its dispo- Hungary and Romania in June 2009. financial institutions should be bailed sions for working pensioners, and sal to ensure social justice and other To help these countries balance the out at the expense of workers who 50 per cent cuts in parental allow- European values are not sacrificed books, the EU loaned billions of Euros now face an uncertain future. ances for working parents. These in these difficult times. Further bail- with strict conditions attached for the measures touched a large part of outs may be required, but that does reform of public finances, resulting Bailouts should have strings attach- the population whose income was not have to mean driving vast num- in massive cuts in public spending ed, but these should be ‘social already below the poverty line. bers of totally blameless Europeans and deep economic hardship. strings’; in a socially-just Europe, below the poverty line, to pay for a ‘austerity’ can and should be imp- With colleagues from four centre- crisis that was not of their making. We may not have thought so at the lemented without driving millions left groups, I sought answers from time, but the EU’s treatment of of our most vulnerable people into the European Commission on the Latvia, Hungary and Romania was deep, long-term poverty. kinds of commitments that should in many ways a taste of things be sought from Member States who to come. The Commission ignored the public are in need of financial help for bal- reaction to measures aimed at ance of payment difficulties. We Over the past two years, economic fighting the economic crisis in Latvia, also asked whether Member States stagnation and a growing debt crisis Hungary and Romania. The Comm- would be required to evaluate the have seen the introduction of ission also failed to demand that social impact of fulfilling the austerity ‘austerity’ measures across Europe. government spending cuts should obligations attached to bailouts, In practice this has meant cuts to include a reduction in spending on and whether this would be taken into public services, fewer jobs and state bureaucracy rather than cuts account in deciding future financial tough economic times for families, in the income of pensioners, school- aid. Unfortunately, we are still wait- as we saw in Latvia in 2009. teachers, doctors and policemen. ing for an adequate response.

What has angered millions across The fiscal package approved in June Two years have passed since my Europe is the apparent impunity with 2009 by the Latvian Parliament country, Latvia, got a bitter foretaste Design Ultimate Holding Company www.uhc.org.uk