GENERAL REPORT Social Progress Watch 2015 This report presents the main findings and general recommendations of the 2015 SOLIDAR Social Progress Watch. Based on an extensive consultation with SOLIDAR members and partners, this initiative evaluates progress towards a more social Europe.This year’s report concludes that the European and national policy response to the economic crisis continues to erode the social safeguards that are part of the European social model and its national variations. Rather than ensuring this model’s capacity for upward social convergence, the European Semester’s one-sided austerity measures are found to have a negative impact on our social benchmarks. As such, SOLIDAR advo- cates strengthening the social dimension of the Semester and safe- guarding its capacity for upward social convergence. Published in November 2015 © SOLIDAR SOCIAL PROGRESS WATCH 2015 This report presents the main findings and posed by the European Commission and adop- general recommendations of the 2015 SOLI- ted by the Council of the European Union ( ‘the DAR Social Progress Watch (SPWI). Based on an Council’). 1 extensive consultation with SOLIDAR members and partners, this initiative evaluates the social In particular, this monitoring effort and our dimension of the 2014 European Semester. Spe- network’s findings and recommendations are cifically, this assessment is based on 14 country shaped by six social benchmarks (cf. Box 1). These studies, where national policies are evaluated benchmarks represent the six fronts on which against six social benchmarks. This year’s report SOLIDAR believes progress should be made in concludes that the European and national poli- order to strengthen upward social convergence in cy response to the economic crisis continues to Europe. erode the social safeguards that are part of the European social model and its national varia- • Fighting unemployment through the promo- tions. Rather than ensuring this model’s capacity tion of inclusive and quality employment and for upward social convergence, the Semester’s decent work as well as fair mobility one-sided austerity measures are found to have • Improving access to healthcare and quality a negative impact on our social benchmarks. As social services for all as well as quality em- such, SOLIDAR advocates strengthening the so- ployment in the healthcare and social sector cial dimension of the Semester and safeguarding • Promoting access to and participation in its capacity for upward social convergence. Our lifelong learning with a particular focus on recently launched Social Progress Lab is set to non-formal and informal learning develop alternative progressive reforms to make • Strengthening active citizenship and vo- this a reality. lunteering for social cohesion • Fighting discrimination and social exclusion 1. INTRODUCTION • Promoting, reinforcing, and supporting social The SPWI is a monitoring tool used by civil society economy organisations from across the European Union (EU), allowing them to speak up together against Box 1 – The social benchmarks of the SOLIDAR Social Pro- Europe’s growing inequalities and the high social gress Watch Initiative cost of the economic crisis. SOLIDAR brings these voices to Brussels to advocate their recommen- This year’s report is published against the back- dations on their behalf and to give voice to their ground of a slow and disappointingly weak call to put upward social convergence back at the recovery of the European labour market. The heart of EU and national policies. Commission’s Annual Growth Survey 2015 reports that the ‘[…] ongoing social crisis and the slow re- Through the SPWI, SOLIDAR every year monitors covery [are] hampering efforts to reduce the high 2 the commitment and progress made by national levels of unemployment.’ While the EU average governments towards a more social and cohesive shows a slight improvement, the unemployment Europe within the framework of the European rate in most countries remains high at best and Semester, i.e. the economic governance process unsustainably high at worst. More troublesome set up by the European Commission (hereinafter still is the even higher youth unemployment rate, ‘the Commission’) to foster growth and prevent and ever-increasing long term unemployment. excessive macro-economic imbalances. This 1 For an overview of the 2014 governance cycle of the Euro- pean Semester and all relevant documents, including the CSRs, please year’s findings and recommendations are based see: http://ec.europa.eu/europe2020/making-it-happen/country-speci- on the 2014 cycle of the Semester, notably the fic-recommendations/2014/index_en.htm (retrieved August 28, 2015). Country-Specific Recommendations (CSRs) pro- 2 European Commission (2014). Annual Growth Survey 2015, COM (2014) 902 final, 28 November 2014, p. 3. GENERAL REPORT | 2 SOCIAL PROGRESS WATCH 2015 2.1. Fighting unemployment Moreover, the number of European citizens that The European labour market continues to be find themselves at risk of poverty and social ex- plagued by high levels of unemployment, despite clusion continues to grow. showing a slight improvement on average (i.e. 10.2% EU28 in 2014, down from the record high The ongoing social crisis confronts the European of 10.9% in 2013). It varies widely between EU Institutions and national governments with the Member States (e.g. 5.0% in Germany and 5.6% in Austria up to as high as 24.5% in Spain and effects of their policy response to the economic 4 crisis, which has so far focused on one-sided aus- 26.5% in Greece). Moreover, unemployment is terity measures. These policies have also eroded becoming entrenched as the long term unem- the social safeguards offered by the European ployment rate continues its gradual increase and social model. The structural reforms pursued takes up an ever larger share of the total rate, des- within the European Semester have been about pite similarly ranging from high (19.5% in Greece achieving budgetary and fiscal consolidation, and 12.9% in Spain) to low (2.2% in Germany and the United Kingdom and 1.5% in Austria) across while the social dimension has either been absent 5 or forced to take a backseat to other priorities. the continent. While the Juncker Commission has recently given earning a ‘social triple A’ as its ambition, it remains The country studies of the 2015 SOLIDAR SPWI to be seen whether this ambition will materialise provide a tangible insight in the relation between in a meaningful shift in policy.3 this state of play and the policy response within the 2014 European Semester. The high levels of Against this background, this year’s SPWI report unemployment continue to trigger a one-sided presents a timely evaluation of the extent to policy response aimed at more flexible labour which the social dimension is found in the de- market rules and wage setting, despite inter- sign and implementation of the 2014 European national institutions such as the International Semester. Firstly, this report presents the main Labour Office (ILO Office) clearly stating ‘[…] that reducing protection for workers does not lower findings and overall trends found in this year’s 6 country studies. Secondly, it presents SOLIDAR’s unemployment.’ For example, the governments general recommendations for each of our so- of Croatia, France, Greece, Hungary, the Nether- cial benchmarks and it introduces our recently lands, and Slovakia are in the process of develo- launched Social Progress Lab. ping and implementing comprehensive measures and reforms on these lines, thereby doing away 2. MAIN FINDINGS AND OVERALL TRENDS with social safeguards and further amplifying This year’s SPWI report first presents the main fin- the downward pressure on social standards and dings and the overall trends found in the country protection in their labour markets. studies. The country studies firstly provide infor- mation about the national state of play of social, In addition to the high levels of (long term) employment, and educational development, unemployment, the country studies of the 2015 secondly they present the main structural obsta- SOLIDAR SPWI show that a broad spectrum of cles to the improvement of upward social conver- 4 Eurostat (2015, July 31). Unemployment rate by sex and age gence, and thirdly they propose specific recom- groups – annual average. Retrieved August 4, 2015, from http://ec.eu- ropa.eu/eurostat. mendations on how to overcome those obstacles 5 Eurostat (2015, July 9). Long-term unemployment by sex and how to implement the necessary policy - annual average. Retrieved August 4, 2015, from http://ec.europa.eu/ reforms to stimulate social progress, inclusive and eurostat. 6 International Labour Office (2015). World Employment sustainable growth, and wellbeing. Social Outlook: The Changing Nature of Jobs. Geneva: ILO Office, p. 15. 3 European Commission (2015). Completing Europe’s Econo- mic and Monetary Union, 22 June 2015, p. 8. GENERAL REPORT | 3 SOCIAL PROGRESS WATCH 2015 employment model. The SOLIDAR EU Strategy vulnerable groups is being pushed to the fringes Groups in Austria, France, Italy, and Spain ex- of the European labour market. First and fore- plicitly highlight the rising phenomenon of the most, the youth unemployment rate remains so-called ‘working poor’ in their countries, while worryingly high throughout the Union, although our Strategy Groups in Spain and the United it too varies wildly and ranges from high (52.4% Kingdom more generally highlight the increase of in Greece and 53.2% in Spain) to low (7.7% in inequality and the decrease of job quality which Germany and 10.3% in Austria).7 Furthermore, the can be consequence of the rise of non-standard disadvantaged position of women, older workers, or a-typical employment contracts. Moreover, people with disabilities, and people from a mi- disadvantaged groups in the labour market are grant background are highlighted by our Strategy disproportionately affected by the negative ef- Groups, regardless of whether they operate in fects of the changing nature of jobs.