FACED WITH AN ENDURING CRISIS: ACTIONS, PROPOSALS AND SOLUTIONS

- Munich, June 27. and 28., 2013

The Institute for European Social Protection – Ipse – and the Deutsche Rentenversicherung – DRV – Bayern Süd, invite you to participate in the 39^th Ipse Meeting to be held in Munich on June 27 and 28, 2013.

Download :

-  The program and the presentation of the Meeting: french; german; english

-  The registration form with the conditions of participation: french; english

The choice of Munich to host this year’s Ipse meeting represents an exception to the general rule of holding these events in the country serving as President of the European Union. The choice aims to be a tribute to the 50^th anniversary of the Elysée Treaty, which sealed the Franco-German reconciliation, the basis of the European construction.

Last fall in Dublin, we saw how Member States where austerity measures are most fiercely imposed suffer from drastic cuts to their healthcare and pension systems.

This year, we chose to view these realities from the standpoint of countries that seem to fare better, even if they as well are facing crises that know no borders. Indeed, Germany and other European nations such as the Nordic and Scandinavian countries, Austria (lowest level of unemployment) and Poland (growth as far as the eye can see), seem to enjoy favorable indicators.

In our search for solutions to bring the current crisis to a faster end throughout Europe, must we therefore take inspiration from these countries and the measures they have adopted. Do other powerful actors – social partners, civil society – have yet insufficiently explored alternatives to offer in the quest for recovery? Finally, what can social protection do – and what must it do – to help resolve the crises and guarantee the well-being of populations, adjusting current models as necessary, once clearer skies appear?

With the aim of providing answers to these crucial questions, the 39^th Ipse Meeting will be organized around four sessions:

1. Enduring crisis or foreseeable end?
2. Certain countries seem to fare better, under what conditions?  
3. Contribution of social dialogue, citizen-based initiatives and alternative measures
4. New jobs and new versatility for a new form of social protection

Cet article 39th Ipse Meeting in Munich est apparu en premier sur Institut de la Protection Sociale Européenne.

Cet article European Parliament: work longer, pay into solidarity est apparu en premier sur Institut de la Protection Sociale Européenne.

The report, introduced by MEP and Legal Affairs Committee member Luigi Berlinguer (S&D, IT) and widely supported by the Committee on Employment and Social Affairs, explicitly requests that the European Commission draw up a draft statute for European mutuals. “In the current crisis environment, it is important to promote mutual societies’ role as a social buffer. This initiative is all the more urgent as the crisis threatens social cohesion and political stability in the European Union. With their alternative form of governance and democratic decision-making bodies, it is no coincidence that mutual societies have so far exhibited a remarkable ability to withstand the crisis. That is why we are calling for swift adoption of a statute for European mutuals,” concluded Pervenche Berès (S&D, FR), Chair of the Committee on Employment and Social Affairs, during the plenary session of the European Parliament. 

The Berlinguer report acknowledges that mutuals play an important role in the EU economy by providing healthcare, social services and affordable insurance services to more than 230 million European citizens, as well as by employing over 350,000 people in Europe. However, current legal instruments make it impossible for mutual societies to develop at the European level while maintaining their specificities, particularly in terms of democratic governance.

At the same time, the European Commission has just opened a public consultation regarding the study it carried out on the current situation and prospects for mutuals in Europe. Ipse welcomes this initiative and intends to participate in the consultation very soon, with the support of its members and partners.

Cet article MEPs vote for a statute for European mutuals est apparu en premier sur Institut de la Protection Sociale Européenne.

The European Parliament supports its position by referencing a European added value assessment study (EAVA) conducted by the Secretariat of the European Parliament. This study highlights the true added value such a statute would generate, first and foremost by offering greater visibility to the mutualist model, founded on the principles of solidarity and democracy. It would also ensure economies of scale for mutuals and allow them to contribute to effective implementation of the Single Market by strengthening cross-border services and promoting pooling of resources. Finally, the EMS would guarantee greater legal certainty for mutual societies by imposing a consistent set of rules.

The European Commission is expected to open a public consultation on the issue of a statute for European mutuals in the near future. Such a conference has been anticipated for several months.

Cet article The Legal Affairs Committee of the European Parliament comes out in favor of a statute for European mutuals est apparu en premier sur Institut de la Protection Sociale Européenne.

The annual meeting of the American Economic Association in January gave rise to a groundbreaking communication by two “chief economists.” Olivier Blanchard and Daniel Leigh brought to light an error in the mathematical formula used to calculate the impact of austerity policies imposed on national economies, particularly in Europe, in 2012.

These forecasts were based on a multiplier effect (initially estimated at 0.5) to assess the impact of public spending reductions on a country’s GDP. However, the report by the two economists points out that this impact is actually 1.6, i.e., three times greater. The result is a drop in economic output of more than one euro for each euro of deficit reduction. Several factors can explain this error, including the fact that this multiplier tends to be higher in periods of recession.

In practice, each euro of austerity-based spending cuts should have generated a reduction of only €1 in the country’s wealth (GDP). In the end, however, the result was €3: a triple recession. The negative effects of austerity policies were thus unduly underestimated.

This state of affairs had been criticized by veteran economists, countries such as Greece, and even the President of Portugal, Aníbal Cavaco Silva. After a heartfelt mea culpa and acknowledgement that Nobel Prize laureate Paul Krugman’s repeated criticisms were justified, the IMF continues to follow a chaotic and contradictory path. On the one hand, the organization’s aid remains subject to continual assaults on social protection, while on the other hand it recognizes the negative effects of excessive austerity. In November 2012, it even went so far as to warn against the social and political risks inherent to its own policies.

Cet article IMF and Austerity est apparu en premier sur Institut de la Protection Sociale Européenne.

On January 1, 2013, Ireland assumed the six-month rotating presidency of the Council of the European Union, succeeding Cyprus. With its comprehensive program entitled “

Ireland is seen as a model student in the EU among Member States hit hard by the crisis. The Celtic Tiger intends to offer its “national experience in securing fiscal and economic stability aimed at restoring jobs and strengthening social cohesion,” and to focus particularly on youth unemployment.

Ireland is no amateur when it comes to hosting the presidency of the Council of the European Union: the current presidency marks the country’s seventh term in this capacity since joining the EU forty years ago, in 1973. The previous tripartite presidency (Poland, Denmark, Cyprus) having come to an end, Ireland is now initiating a new alliance with the two countries that will follow at the helm of the EU: Lithuania (July-December 2013) and Greece (January-June 2014).

The Irish presidency’s overall program is organized around three main initiatives:

-          Ensure stability: Ireland intends to implement long-lasting tools and systems to ensure a stable Economic and Monetary Union (Banking Union, European Semester, etc.)

-          Invest in employment and sustainable growth: Ireland wants to guide the development and adjustment of the Single Market, particularly the Digital Single Market, while strengthening labor and educational mobility. In addition, one of this presidency’s greatest challenges will be to garner support for the multiannual financial framework setting out the 2014-2020 EU budget, for which negotiations are currently at a standstill.

-          Europe and the world: aside from its ambition to make Europe a leading actor in the realms of worldwide peacekeeping and the fight against poverty and climate change, Ireland plans to pursue its objective of stability, employment and growth by strengthening bilateral trade agreements with third-party countries.

The Irish presidency’s social program

The Employment, Social Policy, Health and Consumer Affairs (EPSCO) Council, chaired over these six months by the Irish Ministers of Employment, Social Protection and Health, will address the following priorities:

1. Take up the problem of youth unemployment, particularly by furthering the proposals included in the European Commission’s “Youth Employment Package,” which aim to promote education, training and skills development, among other areas.

2. Enhance job creation and social cohesion through programs and structural funds, especially through proposals to the European Social Fund (ESF), the European Union Program for Social Change and Innovation (PSCI) and the European Globalization Adjustment Fund (EGF). This targeted support for job creation will be included in the multiannual financial framework for which the Irish presidency will strive to reach an agreement.

3. Facilitate worker mobility by putting forth proposals on key issues such as portability of pension rights and employee secondment.

4. Make progress on healthcare policy issues, particularly with regard to cross-border health threats, the directive on tobacco products, proposals on pharmaceutical products and medical devices.

Cet article Ireland takes the reins of the EU est apparu en premier sur Institut de la Protection Sociale Européenne.

Cet article Best wishes for 2013 est apparu en premier sur Institut de la Protection Sociale Européenne.

On November 28, the European Commission released its “Annual Growth Survey” with the aim of setting out the EU’s social and economic priorities for 2013. The Commission emphasized the importance of adopting measures to restore growth and competitiveness, as well as the critical imperative of dealing with the social consequences of the crisis.

In its communication, intended to chart a “smart, sustainable and inclusive” course for renewed growth and competitiveness, the Commission first describes the context of a European economic situation that “remained fragile in 2012,” admitting that “it will take time to move towards a sustainable recovery.” It praises the EU and Member States’ many efforts and recognizes social protection systems’ role as “social shock absorbers” during these early years of the crisis.

Although the communication considers budget consolidation essential in the long run – despite its negative short-term impact on growth – measures designed to fight against unemployment and address the social consequences of the crisis receive their share of consideration as well. To embark upon this course, the communication presents a number of recommendations tending towards “flexicurity”: extensive flexibility in the labor market complete with compliant dismissal rules; a generous system of benefits for unemployed workers; and active employment policies meant to prevent long-term unemployment.

Fighting unemployment with labor flexibility, training and social protection

The Commission first addresses the issue of labor market flexibility, expressing its approval of certain measures adopted by Member States to promote flexible employment arrangements in the workplace (partial unemployment, etc.). It recommends limiting the tax burden on labor, continuing to modernize labor markets by simplifying employment legislation and even monitoring the effects of wage-setting systems.

At the same time, the Commission wants to keep long-term unemployment in check by implementing processes to boost jobseeking assistance and facilitate access to the labor market. Well aware that certain countries are experiencing youth unemployment rates in excess of 50%, it recommends creating “youth guarantee” schemes to provide continued education, apprenticeships or traineeships, thereby enhancing the employability of young jobseekers. More generally, the Commission is looking to encourage lifelong learning and worker mobility.

Finally, the Commission wants to implement one last component of “flexicurity” intended to “ensure the effectiveness of social protection systems in countering the effects of the crisis.” It thus calls for exceptional measures to address the crisis, in the form of “active inclusion strategies” encompassing income support initiatives, measures to tackle poverty and “broad access to affordable and high-quality services, such as social and health services, childcare and housing.” The Commission also recommends implementing “more personalized services (‘one-stop shop’).” Strengthening safety nets stands out as an essential factor to “promote social inclusion and to prevent poverty”… provided that modernization of social protection systems continues.

In conclusion, the Commission calls to mind two elementary principles to drive these reforms: “solidarity and fairness” as “essential elements in ensuring that the efforts undertaken will be politically and socially acceptable and of benefit to all.”

These guidelines should allow the Commission and the March 2013 European Council to prepare recommendations to be conveyed to Member States in the coming months.

Cet article The Commission Sets Guidelines in the Face of the Economic and Social Crisis est apparu en premier sur Institut de la Protection Sociale Européenne.

Since 2007, the European directive on the posting of workers has become increasingly unclear following a series of rulings by the European Court of Justice. In March of 2012, the European Commission presented a rewritten text in an attempt to clarify the content of the directive. Social partners have identified a few praiseworthy advances, but several points remain vague.

A new text to be polished

 On March 21, 2012, the Commission presented a reworked version of the directive, to be submitted to the Council and the European Parliament before the end of this year. According to the Commission’s estimate in the revised draft, there are some one million workers posted among EU Member States. To reconcile the need for social cohesion with the workings of the Single Market, the new text stresses that administrative cooperation among Member States must be improved. The idea is to guarantee posted workers’ fundamental rights while respecting the needs of businesses.

Progress was made regarding workers’ legal protection by instituting the principle of “joint and several liability” in cases where a posted worker’s salary is not paid. This new provision penalizes companies whose subcontractors fail to guarantee the rights of posted workers.

The new directive seems to invoke a spirit of compromise between the positions of European labor unions and business leaders. Nonetheless, MEPs and social partners have pointed to certain limits in the text, particularly with regard to establishing criteria to delineate instances of posting. Fear of “social dumping” remains tangible as well. The fact that the draft establishes no maximum duration of posting abroad for the workers concerned portends future imbalances, as employers could derive long-term benefits from lower labor costs by using workers from countries with the lowest minimum wage standards.

It is with this in mind that the European Economic and Social Committee (EESC) called upon the Commission to clarify certain provisions of the directive. In an opinion adopted on September 19, the EESC also urged Member States to adopt identical minimum working conditions to prevent unfair competition among workers. Involved in the Commission’s prescriptive process, the European Parliament is currently unable to reach a consensus regarding the content of the directive. MEPs representing countries with strong economic attractiveness, starting with Danuta Jazlowiecka (EPP), Polish MEP and rapporteur for this matter, seem to be focused mainly on defending their populations’ employability rate throughout the EU.

These varied approaches to the topic punctuated the recent meeting of the EU Council of Employment and Social Policy. Gathered in Brussels on December 6, Member States’ Social Affairs ministers clashed over topics ranging from national control measures for businesses to the principle of “joint and several liability.” Once again, a divide seems to be forming among countries with conflicting views on labor market flexibility. The United Kingdom, the Czech Republic and Hungary thus expressed their thorough opposition to including this measure in the directive, a position that puts these countries at odds with a coalition led by France and Germany. The prospect of a compromise on this topic is waning. This is especially true as Ireland, which will assume the rotating Council Presidency in January, has displayed “very great prudence” regarding all provisions in the text.  

Cet article Directive on the Posting of Workers: We Can Do Better! est apparu en premier sur Institut de la Protection Sociale Européenne.

Called up on to decide a controversial issue raised by the Employment Tribunal of Barcelona, the Europe an Court of Justice ruled that Spanish legislation regarding contributory pensions discriminated against part-time workers.

On November 22, the Court addressed the question of whether Spanish legislation complies with the European directive on equal treatment for men and women (79/7/CEE). In Spain as in the rest of Europe, part-time positions are predominantly filled by women. In its latest study on the subject, Eurostat estimated that 80% of precarious workers in Spain were women.

To be eligible for a contributory retirement pension, Spanish employees must assert their rights at a minimum age of 65 and after no fewer than 15 years of social security contributions. Despite a higher adjustment factor to calculate theoretical work days, precarious workers are required to pay considerably greater contributions than other employees on qualifying periods.

The Court thus denounced current legislation, citing its discriminatory nature for women, who account for the clear majority of precarious workers. Among other observations, the Chamber stressed that the many obligations imposed on part-time workers in order to be eligible for a retirement pension were excessively abundant and restrictive. In addition to this finding, the Court refuted the argument that eliminating precarious workers from pension schemes would safeguard the social security system. The conservative government’s defense thus clashed with the obligation of equal treatment of employees, regardless of gender or status within the company. 

Cet article The European Court of Justice Finds Against Spain on the Question of Precarious Workers est apparu en premier sur Institut de la Protection Sociale Européenne.