Is there a European social model OR What way forward?

The inconsistencies inherent in the contemporary narratives on the European ‘social model’ are well exemplified by the debate that took place in the framework of the Working Group ‘Social Europe’ of the European Convention.

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Finding a way outside of this dilemma will necessitate developing strategies at different levels albeit in a coordinated and consistent way. The following four areas appear to us of particular relevance:

• Fighting unemployment is closely linked with the creation of employment.

- Traditionally the growth of the labour market is seen to be closely linked with economic growth. The stagnation of the European labour markets at present is, therefore, attributed to the low levels of economic growth.

- This might be true in the short-term but it would be short-sighted to see the solution of the problem alone in economic growth. Longer-term trends rather speak for a gradual de-coupling of labour market growth from economic growth. Over the last couple of decades, the labour market has been growing slower than the economy. Hence in the medium-term the key challenge is formulating responses to this process of de-coupling.

Questions:

(1) What are suitable strategies to stimulate the economy and the labour market in the short-term?
(2) How to address the trend of de-coupling between economic and labour market growth?

• The active unemployment policy paradigm and related institutional practices point towards the disengagement of the state from social and welfare policy.

- This approach has been successful in bringing about a flexibilization of the labour market but much less in terms of containing expenditures and least with regard to fighting social exclusion. The role of the state in social policy needs to be re-considered.

- Key in this respect is the relation between economic and social policies also at the macro-level.

Questions:

(1) What should be the role of the state in the social policy of the 21st century?
(2) How is the modern social market economy to be defined?
(3) What type of coordination is required between economic and social policies?

• The growing inter-dependences between states and economies speaks in favour of trans-national cooperation also in the social policy field. Within the European Union, the key question is that of

- the division or sharing of competences between Member States, hence subsidiarity, as well as
- the division of competences between supra-national European institutions, hence accountability.

Questions:

(1) How should competences shared between Member States on matters of social policy;
(2) How should competences be shared between European institutions?
(3) Is there any meaning to the notion of a European welfare state from an institutional perspective?

• Unemployment is a structural characteristic of modern societies. This has been known for some time. What is new is perhaps the persistence and growth of long-term unemployment and in parallel to this the ‘chronic’ patterns of under-employment.

- Unemployment policy has still an income replacement function to fulfil. The effectiveness of ever-restrictive eligibility criteria must be questioned. Their impact on poverty and social exclusion must also be taken into account.

- There is a necessity to re-think the effectiveness of workfare policies as currently practiced, i.e. not accompanied by more systemic or structural reforms.

Questions:

(1) For what groups are workfare policies particularly of relevance and in what format / institutional setting?
(2) What should training and life-long learning measures developed in the framework of workfare policies aim to impart upon targeted population?
(3) How to best deal with long-term unemployed?
(4) Is the merging of unemployment and social assistance – either in contents or in form – the right approach to the problem of marginalization;
(5) What is an appropriate institutional / management model for an active unemployment policy?

Identifying comprehensive and consistent answers to the above questions represents an important milestone for the positive development of the national and European social agendas.

 

Overview