Brussels, 20 February 2013
Social investment: Commission urges Member States to focus on growth and social cohesion
The European Commission has called on Member States to prioritise social investment and to modernise their welfare states. This means better performing active inclusion strategies and a more efficient and more effective use of social budgets. The call features in a Communication on Social Investment for Growth and Cohesion just adopted by the Commission.
The Communication also offers guidance to Member States on how best to use EU financial support, notably from the European Social Fund, to implement the outlined objectives. The Commission will closely monitor the performance of individual Member States' social protection systems through the European Semester and formulate, where necessary, Country Specific Recommendations.
“Social investment is key if we want to emerge from the crisis stronger, more cohesive and more competitive. Within existing budget constraints, Member States need to shift their focus to investment in human capital and social cohesion. This can make a real difference if we want to make real progress towards the objectives of the Europe 2020 strategy. Social Investment today helps to prevent Member States having to pay much higher financial and social bills tomorrow" declared László Andor, Commissioner for Employment, Social Affairs and Social Inclusion.
The social consequences of the current financial crisis are very serious. The Social Investment Package, just presented by the Commission, gives guidance to Member States on more efficient and effective social policies in response to the significant challenges they currently face. These include high levels of financial distress, increasing poverty and social exclusion, as well as record unemployment, especially among young people. These are combined with the challenge of ageing societies and smaller working age populations, which test the sustainability and adequacy of national social systems.
The Social Investment Package includes a Commission Recommendation against child poverty, calling for an integrated approach to child-friendly social investment. Investing in children and young people is especially effective in breaking intergenerational cycles of poverty and social exclusion and improving people's opportunities later in life.
The Social Investment Package is an integrated policy framework which takes account of the social, economic and budgetary divergences between Member States. It focusses on:
The Social Investment Package is based on an analysis of data (e.g. the 2012 Employment and Social Developments in Europe Review – see IP/5/13) and existing good practices which demonstrate that Member States with a firm commitment to social investment – that is, benefits and services that strengthen people's skills and capabilities – have lower rates of people at risk of poverty or social exclusion, higher educational attainment, higher employment, lower deficits and higher GDP per capita.
The Social Investment Package consists of a Communication setting out the policy framework, concrete actions to be taken by Member States and the Commission and guidance on the use of EU funds to support reforms. It is accompanied by:
The Social Investment Package builds upon the European Platform against Poverty and Social Exclusion and complements other recent Commission initiatives to address Europe's social and economic challenges, namely the Employment Package, Youth Employment Package and the White Paper on Pensions. These initiatives have given Member States additional guidance on national reforms needed to honour commitments to the agreed Europe 2020 targets.
For more information
News item on DG Employment website:
László Andor's website:
Follow László Andor on Twitter: https://twitter.com/LaszloAndorEU
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