Europe 2020 and European Semester Policy Update October 2017 Sian Jones Policy Coordinator European Anti Poverty Network Eapn.eu

Outline Reminder of the cycle and key new developments EAPN Action: CSR Assessment NRP Report: Social Rights or Social Plight? Letter to Juncker on AGS 2018 EP Event Focus in this meeting: how to get more impact!

The European Semester Cycle Annual Growth Survey (AGS) 2017 – November 2016 Country Reports / Winter Package – February 2017 National Reform Programmes (NRP) and Stability or Convergence Programmes (SCP) – Mid April 2017 Country Specific Recommendations (CSRs) – May 2017 Revision of MS budgets from Euro area (Mid Oct) Bilateral meetings – COM and MS on implementation – all year Annual Growth Survey (AGS) 2018 – November 2017

4a EAPN assessment of CSRs 2017 – More Social Europe in European Semester? Welcome increased focus on Social Europe: “ Tackling income inequality and poverty requires a comprehensive set of preventative and mitigating policies. These include equal access to education and health, improved labour market opportunities and earnings prospects, affordable quality services and well-designed tax and benefit systems. Tax and benefit systems combined, through the progressiveness of tax system, good tax collection and the provision of adequate social benefits, can contribute to steering employment and reducing income inequalities and poverty” (EC Communication on CSRs) But not sufficiently mainstreamed in CSRs Main focus on ‘more jobs and faster growth ‘whilst taking account of social fairness”, but prioritising efficiency over effectiveness in welfare systems.

EAPN assessment of CSRs 2017 – Main Messages Welcome 11 ‘poverty’ CSRs but lack consistency and integrated approach, rooted in social rights Deficit reductions undermining policy coherence to reduce some progress on tax Adequacy and coverage of minimum income more highlighted, but social protection is still viewed as a cost. Cost efficiency in health / care underlined, rather than affordable access to key services, some improvements in social housing. Inclusive labour markets and quality work get limited support, still too narrow focus on getting people into any job Some positive proposals on inclusiveness and quality of education, but still mainly seen as a labour market tool

EAPN assessment of CSRs 2017 – Some progress? Some MS encouraged to do more investment (LU, NL, RO and UK) with 3 on social investment (BE, DE and IE) but sustainability of public finances and reducing deficits still CSRs for nearly all. 13 MS on tax on compliance and broadening tax base, reducing tax for low earners. Reference to progressive taxation in preamble of LV and EE, but also increasing VAT, cutting corporation taxes. 5 get CSRs on housing (IE, FR, NL, SE, UK) but supporting housing market, with little focus on affordability or rights, but IE – social housing highlighted 11 MS receive supposed CSRs on poverty (AT, BG, EE, ES, HR, IT, LT, LV, RO, SI), but not integrated approach. Inequality highlighted in 5 (BG, DE, EE, IT, LV) – but weak on solutions 6 MS get CSRs on minimum income, (BG, EE, ES, LV, LT, HU) with 5 on adequacy (not ES) and to underspend safety nets (LV), social protection (HR) 10 MS receive Recommendations regarding quality of work, although not specifically mentioned – eg, duration of contracts. But downward pressure on wages for most. 13 MS get CSR on education, but mainly related to labour market. Quality is mentioned in 6 (BE, BG, LT, RO, SK, UK) and greater inclusion (BE, HU, RO, SK)

EAPN 2017 NRP Assessment Social Rights or Social Plight? 20 national networks responded (BE, CY, CZ, DK, EE, FI, FR, DE, IE, IT, LV, LT, LU, NL, PL, PT, RO, ES, SE, UK) Despite some increased focus on poverty, still overwhelmingly macreconomic focus on stability/growth with social issues sidelined. Employment, with activation main focus, with a concern about ‘whitewashing the extent and causes of poverty’ Clear policy gaps with failures to address growing inequality, address human rights, including of migrants, propose integrated approach to social inclusion, to discuss demographic change and adequate financing of universal welfare states Mixed results on NGO engagement, with few positive examples of meaningful, structured engagement.

EAPN NRP Assessment 2017 Social Rights or Social Plight? 70 % NRPs are primarily aimed at macroeconomic and financial management not on Europe 2020 targets. (40% strongly agree + 30% partly agree) 55 % Austerity is generating more poverty and social exclusion and is still the dominant focus of NRPs. (40% strongly agree + 15% partly agree) 60% The NRPs are more focused on investment, but not on social investment. (40% strongly agree + 20% partly agree) 75 % The burden of the crisis is NOT being equally distributed and reducing inequality is NOT a priority. (55% strongly disagree + 20% partly disagree) The NRPs does not have poverty as a main priority, and employment (with increased conditionality) is seen as the only solution to fight against poverty. (50% strongly agree + 20% partly agree) The NRPs lack an integrated strategy on poverty, supporting active inclusion – access to quality jobs, services and adequate minimum income. (40% strongly disagree + 15% partly disagree) 60 % No progress has been made on implementing key EU social investment priorities – particularly investing in children and tackling homelessness. (30% strongly disagree + 30% partly disagree) 50% There are signs of an increased concern about social rights and standards. (15% strongly agree + 35% partly agree) 85% Increasing quality jobs and tackling in-work poverty are not key priorities in the NRPs. (55% strongly disagree + 30% partly disagree) The employment measures proposed in the NRPs are not the right ones to ensure access to quality jobs for all. (20% strongly disagree + 35% partly) The education and training measures are primarily aimed at increasing skills not at ensuring an inclusive quality education system. (40% strongly agree + 30% partly agree) Social protection is seen as a cost, not a benefit, nor a social investment. (40% strongly agree + 30% partly agree) 40% Structural Funds are NOT being used effectively to reduce poverty and to deliver on the 20% ear-marking of ESF. (20% strongly disagree + 20% partly disagree) Anti-poverty NGOs were NOT consulted in the development of the NRPs. (40% strongly disagree + 20% partly disagree) 70% Antipoverty NGOs views were NOT taken seriously into account in the NRPs. (55% strongly disagree + 15 % partly disagree)

EAPN 2017 NRP Assessment Key Messages Make macroeconomic policies coherent with social rights Prioritize social rights and an integrated strategy to effectively reduce poverty Make the employment target deliver on poverty reduction and social inclusion Foster equal access to education and lifelong learning Ensure ESF 20% has an impact on poverty! Make the NRPs a true and participatory driver of positive social change

Letter to President Juncker on the AGS 2017 1. Use AGS to launch a coherent, balanced EU Economic and Social strategy Confirm that economic goals must defend social rights and contribute to Europe 2020 poverty reduction goals. Consider renaming the AGS. Embed participative ex-ante distributional impact assessment of tax/benefit policies, to prevent negative social consequences of macroeconomic policies. Allow Member States fiscal flexibility to count social investment in social rights/ standards as a benefit not a cost, rather than further damaging austerity cuts. 2.  Make Social Rights and Social Standards a priority in the AGS! Make delivering on Social Rights and poverty target, one of the key priorities in the AGS. Set out a roadmap for implementing EPSR. Give attention to how the principles will contribute to the poverty target, particularly integrated antipoverty strategy. Support thematic strategies. Underline importance of progressing towards a European Social Standards Union, starting with agreed benchmarks to ensure the adequacy of minimum income, living wages, and universal social protection throughout the life cycle. Ensure that ESF 20% earmarking is used effectively to fight poverty, .  

Letter to President Juncker on the AGS 2017 3. Give equal weight to civil society actors engagement in the European Semester Establish clear, compulsory, common guidelines on the Semester governance processes, involving civil society and all stakeholders, and improve the transparency. Ensure full and meaningful participation of civil society organisations, and people experiencing poverty in particular, on a par with social partners and with equal resources. Improve the effectiveness and impact of the NRPs, by taking contributions of policy beneficiaries on board and incorporating them as solutions.

Summary of EAPN Action June to October Disseminated and presented EAPN position on CSRs to the Social Protection Committee (31 May) Dialogue meeting on CSRs/Semester with European Commission: DG Employment / ECFIN, Sec Gen, EAPN PL (18 July) Fed in proposals to Semester Alliance exchange (July-September) Finalized and disseminated EAPN NRP Assessment – Social Rights or Social Plight? (Sept) Meeting with Thyssen’s Head of Cabinet (4 October) Finalized and disseminated letter to President Juncker for AGS 2018 (17 October 2017) Commission Stakeholder Dialogue meeting on engagement in the European Semester (26 October 2017)

4a What’s coming up? Lobbying around our messages on the NRP report and AGS 2018, then checking to see outcome (22 November) Providing a response to AGS 2018 and draft Joint Employment Report Making inputs to the Commission for the Country Reports (NRP report and Poverty Watch reports!) Providing inputs to Member States and European Semester Officers (NRP report and Poverty Watch reports) and asking for partnership status in national dialogue. Meeting ECFIN: 25 Oct and speaking at ECFIN event: 20 November EAPN EP event 7 December: Building a European Social Standards Union – what role for the European Semester, hosted by Sergio Gutiérrez Prieto (S+D) and Jean Lambert (Greens/EFA): Highlight NRP report and findings and response to the AGS 2018

4a Useful EAPN Documents 2017 Toolkit for engagement in Europe 2020 and European Semester, includes updated contact list. EAPN Country Reports Assessment and Country Annex EAPN CSR assessment and Country Annex EAPN NRP report: Social Rights or Social Plight EAPN letter to President Juncker on AGS 2018.

Thank you for your attention! For more information, please contact Sian Jones EAPN Policy Coordinator sian.jones@eapn.eu