1. Unequal Europe Presentation by Frank Vandenbroucke Réunion des Présidents des Commissions des Affaires Sociales Chambre de Commerce, Kirchberg, Luxembourg 19 October 2015

2. A Social Triple A Europe? The EU deserves a Social Triple A, if it actively supports both: convergence towards higher levels of prosperity and well- being between the Member States and convergence towards more equality within the Member States.

3. Europe is becoming more unequal, within and between MS

6. Divergence & risk of vicious circles

7. Policy packages for convergence ‘between’ and cohesion ‘within’ do exist… Example: child care and education The EU is deeply affected by a human capital divide, both between and within the Member States. Reducing background inequalities between families with children and investing in child care and education contribute both to national cohesion and to long-term EU-wide convergence (cf. OECD).

8. If we believe that human capital is key to long-term growth… more economic divergence to come?

9. The need for a comprehensive social agenda The social investment imperative Design flaws of the Eurozone Cross-border mobility and domestic social cohesion: a ‘balancing act’ is possible An EU framework on employment quality, => e.g. role of minimum wages Scope for industrial action to safeguard minimum standards The tax basis of welfare states: taxation of mobile factors

10. A European Social Union A Social Union would support national welfare states on a systemic level in some of their key functions guide the substantive development of national welfare states – via general social standards and objectives, leaving ways and means of social policy to Member States – on the basis of an operational definition of ‘the European social model’.  European countries would cooperate in a union with an explicit social purpose, pursuing both national and pan-European social cohesion

11. Thank you Vandenbroucke-Rinaldi (Delors Institute), Social inequalities in Europe. The challenge of convergence and cohesion, paper for the Vision Europe Summit, 17-18 November 2015 Vandenbroucke, A European Social Union: Unduly Idealistic or Inevitable?, European Debates, 7, European Investment Bank Institute, September 2015. (http://institute.eib.org/wp- content/uploads/2015/09/A-European-Social-Union-Unduly-Idealistic-or-Inevitable.pdf)http://institute.eib.org/wp- content/uploads/2015/09/A-European-Social-Union-Unduly-Idealistic-or-Inevitable.pdf Unequal Europe. Recommendations for a more caring EU. Final report of the High-Level Group on ‘Social Union’, Friends of Europe, Brussels, Spring 2015 (http://www.friendsofeurope.org)http://www.friendsofeurope.org Vandenbroucke-Vanhercke, A European Social Union. 10 Tough nuts to crack, Friends of Europe, Spring 2014 (http://www.friendsofeurope.org)http://www.friendsofeurope.org Vandenbroucke, The Case of a European Social Union. From Muddling Through to a Sense of Common Purpose, in Marin, B. (Ed.) (2015), The Future of Welfare in a Global Europe, Ashgate: Aldershot UK, pp. 489-520. www.econ.kuleuven.be/frankvandenbroucke