From a fragmented Social Dimension to a Social Union Gabriele Bischoff

Context Years of Crisis European Parliament (EP) elections, renewal of the European Commission. Key moment in the history of the EU. Sense of urgency to find ways forward.

Goals Citizen voice for a competitive social and fair European Union. Five years to save and rebuild the Union by learning from the financial crisis that has led to a social and a political crisis. The answer is not nationalism and populism but a European response: economy and society to be resource-efficient, efficient, sustainable, innovative inclusive and responsive to the needs of an ageing European society. The 2014 European elections can help the European Union to recast itself by consolidating Economic Union, Social Union and Democratic and Civic Union, increase participation and rebuild trust among citizens.

A Community of values not only “muddling through” Europe has been capable of bold and far-reaching democratic and institutional innovation. A reinvention of the Community method envisaged by Jean Monnet. A vision of real dialogue with major social and economic players, a dialogue with direct impact on Union policies. The year 2015 – organization of a European Convention on of Participatory Democracy and Active Citizenship.

A Community of values Build up a true citizen agenda to be addressed by the Union and it member states. December 2013 Eurobarometer : EU citizens’ trust in the EU - a historical low of 31%; two-thirds of Europeans - their voice does not count in the EU; unemployment (51%) and the economic situation (33%) – biggest concerns. Protect fundamental rights; foster democratic resilience - the capacity of political institutions and social organisations to promote fundamental rights, democratic values, pluralism and tolerance; strengthen the institutions involved in civil dialogue at all levels; promote solidarity.

Social Dimension The European Union is based on the concept of a social market economy. Full employment, social progress, social inclusion, social protection, solidarity and social cohesion are included in the EU Treaty among its priority objectives. Indeed, the Treaty states that a high level of employment, adequate social protection and the fight against social exclusion should be taken into account when developing and implementing all EU policies.

Social Realities Long-term unemployment rising - to an all-time high in the EU. Net job destruction has been coinciding with an increase in precarious work. Part-time, especially involuntary part-time, jobs have been increasing. Youth unemployment rate of 23 %, in some MS over 50% Increasing hardship - a quarter of EU population at risk of poverty or exclusion. In-work poverty has also risen Growing social distress in employment and poverty are the result of the crisis and the lack of resilience of the labour market and social institutions. Situation has worsened in many Member States. Divergences between countries have been growing, especially within the euro area. Southern EU Member States have been particularly hard hit. High unemployment, low employment, rising poverty and social exclusion, and declining household incomes in several Member States reduced aggregate demand and eroded confidence throughout the currency union and the EU as a whole.

EP-Report on Employment and social aspects of the role and operations of the Troika Regrets that the conditionality imposed in return for the financial assistance has threatened the EU’s social objectives for several reasons: the EU was ill-prepared and ill-equipped to deal with the problems that arose, not least the immense sovereign debt crisis, a situation that demanded an immediate response in order to avoid bankruptcy; the measures are particularly burdensome, mainly because the worsening of the economic and social situation was not noticed in time, because little time was allowed to implement them, and because proper impact assessments were not made of their distributional impact on different groups of society;

EP-Report on Employment and social aspects of the role and operations of the Troika Measures could have been accompanied by better efforts to protect vulnerable groups, such as measures to prevent high levels of poverty, deprivation and health inequalities resulting from the fact that low income groups are especially dependant on public health systems; Deplores the fact that it is young people who are suffering the highest levels of unemployment, with the situation in countries such as Greece (where the rate is over 50 %), Portugal and Ireland (where it was in excess of 30 % in 2012) and Cyprus (where it is about 26,4 %) being particularly serious;

EP calls... for compliance with legal obligations laid down in the Treaties, and in the Charter of Fundamental Rights, as failure to comply constitutes an infringement of EU primary law; on the EU Agency for Fundamental Rights to assess thoroughly the impact of the measures on human rights and to issue recommendations in case of breaches of the Charter; on the Troika and MS concerned to end the programmes as soon as possible and to put in place crisis management mechanisms enabling all EU institutions, including Parliament, to achieve the social goals and policies on Commission and Council to give the same attention to social imbalances, and to correcting them, as it does to macroeconomic imbalances, and to see to it that adjustment measures seek to ensure social justice and enable a balance between economic growth and employment, the implementation of structural reforms and budget consolidation;

AP: Building a fair Europe by creating a Social Union A Social Union is the glue that holds Europe together. It does not only need a “social dimension”, it has to become a Social Union. A more integrated Economic and Monetary Union has to be connected with a strong Social Union. Strengthening the ‘European Social Model’ – thorough content and procedures Use the new possibilities of the Lisbon Treaty for strengthening the social aspects of Europe and improve the treaties

AP: Social Union – key proposals 1. Commitment & visibility: a new European Social Action Program or a new Social Agenda. 2. A strong social fundamental rights agenda and better monitoring. 3. A social progress protocol in the Treaties. 4. Initiatives to reinforce social cohesion between and in countries. 5. Social indicators in the European Semester on equal footing with economic indicators. 6. European standards for a minimum income. 7. A future for young people: quick and efficient implementation of the youth (employment) guarantee - sufficient ressources. 8. A guarantee for the autonomy of collective bargaining in the treaties and strengthening of social dialogue. 9. Strong workers' rights and health and safety provisions in the EU for a competetive and fair economy. 10. Good anti-discrimination and equal opportunities legislation in Europe

AP: Building a democratic and social Europe through the emergence of a public European space The economic crisis has shown how interconnected European society is and that the EU was not prepared for such a crisis. It needs to be better prepared/equipped for the future. The decision-making process at European level cannot be legitimate and effective if it is not supported by proper governance arrangements. The EU cannot survive the economic and institutional crisis if it does not take bold steps towards becoming a democratic and social political community.