July Sian Jones, Policy Coordinator, European Anti Poverty Network EU Policy Update What way forward? 2a

Outline  The Context – The EU in crisis  The new policy drivers: 5 Presidents Report Investment package. Social Dimension and Employment Package EU Migration Agenda  Developments on Europe 2020 and the Semester  EAPN ACTION

The Context: EU in Crisis New Juncker Team faces new threats to EU future :  GREXIT: Breakdown of negotiations with Greece, requiring unacceptable price for debt support. Greece calling referendum.  MIGRATION: EU Migration Agenda proposals of obligatory sharing of quotas on refugees rejected, while 2000 drown in Med.  BREXIT: New Conservative Government gets absolute majority in UK elections. Will have referendum on EU membership in  CLOSER ECONOMIC UNION FOR THE EURO ZONE: New proposals under the 5 Presidents report, aims to move to joint economic decision-making, leaving non Euro zone in 2 nd tier.  AUSTERITY, RESTRUCTURING, INVESTMENT, BUT NOT SOCIAL: Main focus is Investment package and economic governance.  WHERE DOES EAPN STAND?

Main Policy Drivers: EU Investment Package  Juncker’s Investment Plan for Europe (Nov 2014) aims at 3 strands: 1) mobiliizing 315 bn investment; 2) targeted initiatives 3) Measures to provide regulatory predictability/ tackle barriers to investment (ie single market).  European Fund for Strategic Investments (EFSI) (Jan 2015) –Sets framework and money for 1 and 2 and provides guarantee of 16 bn to support the 315 bn fund – mainly private leverage. –Establishes a governance framework with Steering Board, investment committee and accountabilty to EP. –Main projects funded: infrastructure, transport, energy, digital, with some investment in education, health, research and development  Strengths: Could provide a bigger returns for public money, contributions will be deducted from deficit, complement EU initatives eg HORIZON also EaSI – microcredit.  Weaknesses: Focus on infrastructure, not social or people; mainly private financing with little public money, no priority to poorer MS  WHAT BENEFITS FOR ANTI-POVERTY POLICY OR NGOs ?

5 Presidents’ Report: Completing the EMU  5 President’s Report builds on ‘Towards a Genuine Economic and Monetary Union/Commission’s Blue print for a deep and genuine EMU (June 2015)  Aims to strengthen the Euro area and increase convergence and joint decisions through economic governance of fiscal and economic policies  3 stage timeline: 1st stage to 2017, using existing instruments and treaty, then white paper in Spring 2017 with legal common standards.  Competitivness priority and new Competiveness Authorities, stronger macroeconomic imbalance with coordination through European Semester.  EU to earn a Social Triple A? – unemployment, but support every citizen to access adequate education and an effective social protection system, …..including a social protection floor », but no concrete measures.  Simplifying the Semester – fewer CSRs, and EURO zone first (Nov –March), followed by Country level.  Increasing democratic accountability : more role for Parliament, but no mention of stakeholders..

Progress on Social Triple A ?  Commissioners Social Orientation Debate June 9 led by Commissioners Thyssen and Dombrovskis.  Economic policy on a par with social, with more focus on social dimension and impact but no SIA proposed.  Goal is social convergence : job creation, updating employment rules, and sustainable social protection, but not AI  Back EU Minimum standards – ie unemployment benefit, minimum income access to child/health care  Social partners not NGOs - to get balance between competiveness and fairness.  Timmermans focus on fundamental rights backed by new Ombudswomen, but contradictions of Austerity/Greece?

European Employment Strategy – EAPN’s Work on Employment  Employability Package: Scheduled to come out over the summer, but not sure what it will contain; job creation initiative scrapped. EAPN contributed to a public consultation on Long-Term Unemployment (see here), as an initiative on this will be part of the Packagehere  Mobility Package: Scheduled to come out in December EAPN attended a consultation meeting with the European Commission, about cross-border coordination (portability) of social security and the revision of the Posted Workers Directive ; a public consultation will follow.  Employment Guidelines: New proposal for revised Guidelines put forward by the Commission in the Spring, now discussed in Parliament and Council EAPN prepared it own position on the Guidelines and sent a letter to MEPs ahead of the EMPL Committee vote (see here), also sent by UK, IE, PT, EShere  Action on Living Wage: Simplified proposal for action September – December  Inclusive Labour Markets: Position paper – draft before the end of the year

EU Migration Agenda  5 Pillar EU Agenda (23 April 2015). 1)Common European Asylum System – proposing quotas for different EU countries. 2)Increased Practical Assistence for MS facing brunt. 3)Increase cooperation with 3rd Countries – particularly N. Africa – ie investment, but also repatriation. 4)Encouraging legal migration for people with skills ie Blue Card scheme. 5)Secure Europe’s Borders: ie increase FRONTEX (90 ml EU) and to penalize traffickers.  June European Council : Reject quotas, temporary relocation of , (not UK, IE and DK and financial support to ‘hotspots’; Return Directive; cooperation with countries of origin.

Europe 2020 – Timeline European Semester in the driving seat Nov: Annual Growth Survey sets key priorities March: Country Reports – Commission reviews progress March: Spring European Council key messages Mid April – MS present National Reform Programme (NRP) and Stability and Convergence Programme(SCP) May – Commission review NRPs and SCPs End May/June – Country-specific recommendations to June European Council – mainly focussed on macro-economic. Autumn – MS implement NRP/Recommendations 15 th October – Eurozone present budgets for approval On-going- Multi-lateral surveillance and exchange

New developments on Europe 2020 and the Semester.  Changes to timing/process of Semester : with Country Reports in Feb – help MS to consult?  Focus on investment, restructuring and reducing deficits from AGS 2015  Mid-Term Review postponed until end of year, with no justification offered..  Change in Integrated Guidelines from EU2020 to Juncker’s priorities.  New slimmer CSRs reduced on poverty from 12 to 6, lack of coherence with mainly Employment.

EAPN Action and Approach  Feb/March: Report: Members proposals on CSRs  March: PR/ Letters to Spring EPSCO and Council  May: Quick PR response to the CSRs  June: More detailed response to CSRs sent with letter to EPSCO (May/June)  April: Briefing on Investment Package and support to Social Platform  May-June: Lobbying action on Integrated Guidelines with EP  Continued work with Semester Alliance on CSRs and Investment Package

EAPN Main Messages  Put social on a par with economic goals, backing a Europe 2020 vision of inclusive and sustainable growth and targets at heart.  Move from austerity to social investment, backing access to quality jobs, social protection and services (integrated Active inclusion) financed by fair taxation.  Give CSRs on poverty to all MS, and require an integrated antipoverty strategy  Ensure that 20% of ESF is used effectively to support social inclusion beyond employment

Some steps forward ?  Increase in recognition of EAPN/NGO engagement in Semester from Commission and Council  EAPN President speaks to SPC - EAPN CSR  National Bilateral meetings with EC on recommendations (PT, IE, ES)  Invitation to participate in first ECFIN dialogue with national NGOs organized through European Semester Officers – (ES, PT, BE, DK, LT)  Meetings with Commissioner Dombrovskis, Cabinets of Thyssen/Junker; Timmermans on fundamental rights/Semester  But approach to Greece, shows that the EU agenda remains the same..

What way forward?  What should our response be to the current crisis situation ?  Are there new opportunities we can seize? Investment and Employment package? Structural Funds?  Can we capitalize on increased support for stakeholder engagement to get more impact in the Semester/Europe 2020?

Thank you for your attention! For more information contact Sian Jones, EAPN Policy Coordinator