Variety in unemployment rates between Member States

Impact of the crisis Expected GDP growth for 2011 remains modest Unemployment > 9% and expected to stay high Social protection around 30% GDP (EU 27) Fiscal consolidation will affect social expenditure: a challenge for social polices aimed at addressing poverty and exclusion Consolidation must be designed to minimise short-turn costs and maximise long-turn benefits to prevent that social protection deteriorates and poverty increases.

At-risk-of poverty rates by groups, EU, 2005-2008 Despite economic and employment growth poverty was not reduced before the crisis At-risk-of poverty rates by groups, EU, 2005-2008 In-work poverty also remained stable at 8%. The risk of poverty of the unemployed is much higher and was even on the rise, highlighting concerns about the adequacy of safety nets.

120 Million people at risk of poverty or exclusion 40 Mio people materially deprived 80 Mio people at risk of poverty 40 Mio people in workless households Million people People at-risk-of-poverty 80 + Those materially deprived, not at-risk-of-poverty 22 + Those living in a workless household, not at-risk-of-poverty, not deprived 18 Total: People at-risk-of poverty or exclusion 120

GUIDELINES to orientate Member States’ policies The ‘Europe 2020’ strategy for jobs and for smart, inclusive and sustainable growth Inclusive growth GUIDELINES to orientate Member States’ policies FLAGSHIP INITIATIVES EU HEADLINE TARGETS AN AGENDA FOR NEW SKILLS AND JOBS 75% employment rate for the 20-64 YOUTH ON THE MOVE 10% early school leavers 40% of the 30-34 with tertiary education Current figures: 69% employment rates 30-34 tertiary edcuation 31% early school levares 15% To be completed by national targets

EU tools in support of the Europe 2020 strategy EU monitoring and guidance Macro, thematic and fiscal surveillance Annual Growth Survey Annual policy guidance EU flagship initiatives Digital Agenda (May 2010) Youth on the Move (Sept. 2010) Innovation Union (Sept. 2010) New Industrial Policy (Oct. 2010) New Skills and Jobs (Nov. 2010) Platform against Poverty (Dec. 2010) Resource Efficiency (Early 2011) EU levers for growth and jobs Single market relaunch Trade and external policies EU financial support

Current estimation based on draft NRPs Targets EU headline target Current estimation based on draft NRPs Employment (20-64) 75% 72.8-73.8% R&D (% EU GDP) 3% 2.7-2.8% Tertiary achievement (30-34) School drop-out at least 40% under 10% 38.1% 11.3% Social inclusion/fight against poverty 20 million people out of poverty Target will not be met, but exact calculation N/A Energy efficiency increase 20% 10%

Governance of the Europe 2020 strategy Europe 2020 five headline targets Stability and Growth Pact Europe 2020 Integrated Guidelines (IG) Macro-economic surveillance Thematic surveillance Fiscal surveillance National Reform Programmes Stability and Convergence Programmes National level Commission’s Annual Growth Survey EU annual policy guidance and recommendations EU flagship initiatives and levers EU level

Decisions at national level The European semester January March April February May June July European Commission Annual Growth Survey Policy guidance including possible recommendations Autumn: Peer review at EU level Council of Ministers Debate & orientations Finalisation & adoption of guidance Debate & orientations European Parliament European Council Annual economic & social summit Endorsement of guidance Adoption of National Reform Programmes (NRPs) & Stability and Convergence Programmes (SCPs) Autumn: Decisions at national level Member States

Stepping up efforts to combat poverty: a priority within Europe 2020 Most vulnerable hit hardest by the crisis, yet poverty and social exclusion already major concern in Europe beforehand One of seven flagship initiatives within the Europe 2020 strategy for smart, sustainable and inclusive growth Ultimate objective: lifting at least 20 million people out of poverty and social exclusion by 2020

Challenges and priorities Impact on multiple dimensions of poverty through action across the whole policy spectrum Address needs of groups particularly at risk, tackle severe exclusion and new vulnerabilities Break the cycle of disadvantage and step up prevention efforts Do better and more efficiently in times of budget constraints A framework for action, building on 10 years of cooperation and finding new, participative approaches

Five areas for action Delivering action across the policy spectrum Making EU funds deliver on the social inclusion and social cohesion objectives Developing an evidence-based approach to social innovation and reforms Promoting a partnership approach and the social economy Stepping up policy coordination between the Member States

Delivering action across the policy spectrum (1) Enhancing access to employment and active inclusion of vulnerable groups Communication on active inclusion, 2012 Making social protection and services more responsive to new social needs White paper on Pensions, 2011 Further develop quality framework on social services (sectoral approach on homelessness) Follow-up to communication on health inequalities Breaking the cycle of disadvantage Recommendation on early school leaving, 2011 Recommendation on child poverty, 2012

Delivering action across the policy spectrum (2) Promoting the inclusion of disadvantaged groups EU framework for national Roma Integration Strategies , 2011 Follow-up to 2010 consensus conference on homelessness and housing exclusion Tackling poverty beyond social policies Implementation of energy internal market legislation Combating digital divide (implementation of Digital Agenda) Legislative initiative on access to basic bank services, 2011 Social impact assessment Refining methodology, improving cooperation with EU institutions and Member States

Making EU funds deliver on social inclusion objectives 2010 Budget review stresses need to linking more directly structural funds and ESF to Europe 2020 headline targets (including poverty target) Commission Proposals for next Multi-Annual Financial Framework (2011) will explore following options: Enhancing ESF contribution to achievement of poverty target Devoting necessary resources to social inclusion Reinforcing support to disadvantaged groups Simplified access and tailored made grant schemes for local partnerships Greater synergies and complementarities between EU funds

Promoting evidence based social innovation Build on existing tools (peer reviews, mutual learning…) to guide structural reforms, promote more effective and efficient interventions Major social experimentation initiative, possibly focusing on social assistance (2011): Pooling resources from various EU funds Fine-tuning methodology Development of wider scale experiment Communication and dissemination

Promoting partnership and the social economy Strengthening existing partnerships and involving new actors (social partners, regional/local authorities, NGOs…) Voluntary guidelines on stakeholders’ involvement and participation of people experiencing poverty (2012) Regular dialogue on thematic priorities Harnessing the potential of the social economy Improving legal structures (e.g. foundations) Social Business Initiative (2011) to support socially innovative corporate projects (Single Market Act)

Stepping up coordination between Member States Strong social dimension within Europe 2020 National Reform Programmes to define national target, strategies, stakeholder involvement Commission will work with Member States and stakeholders to adapt working methods of the OMC to governance of Europe 2020 and best combine: Integration and focus Continuity and innovation Simplification and accountability Coordination and subsidiarity Report presented by the end of 2011 following discussion with involved actors on the basis of the experience of the first European semester

Further information http://ec.europa.eu/employmentstrategy General Europe 2020 http://ec.europa.eu/news/economy/index_de.htm Employment policies http://ec.europa.eu/employmentstrategy DG EMPL’s ‘flexicurity’ site: http://ec.europa.eu/social/main.jsp?catId=102&langId=en