Abstract
The fight against poverty is a long-term commitment of the member states of the European Union and an essential element of the recent European 2020 strategy. The latter, which explicitly adopts a poverty target, aims to ensure that “benefits of growth are widely shared and that people experiencing poverty and social exclusion are enabled to live in dignity and take an active part in society”. This chapter reviews how the monitoring and the analysis of poverty and exclusion have evolved over time at European level, paying particular attention to the Europe 2020 poverty and social inclusion target to which EU heads of state committed themselves in 2010. Finally, this chapter reviews the main policy lessons drawn from the EU level analysis of poverty and exclusion, as useful pointers for policy priorities also in future member states.
This chapter has been drafted by a staff member of the European Commission. It does not constitute an official position of the Commission on this subject nor in any way prejudges one. Neither the Commission nor any person acting on behalf of the Commission may be held responsible for the use that may be made of the information contained in this publication.
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Notes
- 1.
Social inclusion—defined as a process to prevent and tackle poverty and social exclusion—is a concept mainly used at EU level and less in national policy-making. The UK and Ireland are notable exceptions. Social policy is a shared competence of the member states and of the EU, and its main instruments (e.g. social protection) are in the hands of member states.
- 2.
As social policy remains under the full competency of member states, to coordinate their action, they agree on common goals (e.g. making a decisive impact on the eradication of poverty) and on common indicators used to monitor progress and compare best practices. Member states translate the common goals into their own strategic objectives and regularly report on the policies they put in place to reach these objectives. The National Strategy Reports are analysed and assessed at EU level, and common policy conclusions drawn from this analysis are jointly adopted by the European Commission and member states in the yearly Joint Report on Social Protection and Social Inclusion. The EU runs an action programme to support mutual learning through a variety of instruments: financing of EU stakeholder networks, peer reviews on specific policy issues, independent experts network, round table, EU meeting of people experiencing poverty, transnational and awareness-raising projects, studies, data collection, etc.
Action at European level has increased political awareness of poverty and exclusion and placed the fight against poverty higher on national political agendas. It encouraged member states to critically examine their policies. It highlighted how countries perform well in certain areas, spurring on other member states to perform better. It also created a better basis for policy-making by involving a range of actors such as NGOs, social partners, local and regional authorities and those working with people in poverty. The method also allowed creating a clear consensus about a number of common key priorities in the fight against poverty and social exclusion: child poverty, active inclusion, decent housing for all, etc.
- 3.
Between 1975 and today, socio-economic disparities between EU member states have increased dramatically. In 1975, GDP per capita varied from 92 to 113 of EC-9 average (excl. Ireland), against a variation from 45 to 131 of EU-27 average today. In 1975, social expenditure varied from 20 to 29% of GDP (excl. Ireland), against a variation from 11 to 30% of GDP today.
- 4.
In the UK, a heated debate took place in the late 1980s around the issue of relative vs. absolute poverty, and John Moore Thatcher, secretary of state, even argued that (absolute) poverty was largely a thing of the past in the UK.
- 5.
The most adamant negotiators (DE, NL, DK, SE, CZ), insisting on the social exclusion dimension of the target, were those for which reintegration on the labour market of the welfare dependants, rather than redistributive policies, is the priority. On the other hand, the countries that insisted on defining the target on the basis of relative poverty and deprivation indicators only were those for which social integration requires access to both monetary and nonmonetary resources.
- 6.
Atkinson A.B., Cantillon B., Marlier E., Nolan B. (2001). Social Indicators: the EU and Social Inclusion. Oxford University Press.
Atkinson A.B., Cantillon B., Marlier E., Nolan B. (2007). The EU and social inclusion: facing the challenges. The Policy Press.
- 7.
Comparable statistics on income and social inclusion became available at EU level before the mid-1990s, with the first results of the European Community Household Panel (1994–2001).
- 8.
Broken down by socio-economic status if available at national level. Comparable data on socio-economic disparities in health status are unfortunately technically difficult to obtain, and despite efforts to improve statistical availability, they are still not available at EU level.
- 9.
The deprivation indicator measures the enforced lack of at least four items from a list of nine (which include being able to pay one’s rent and utility bills, facing unexpected expenses, being able to afford adequate heating and having a car, a telephone, etc.).
- 10.
EU-SILC Framework Regulation of the European Parliament and the Council (N°1177/2003).
- 11.
United Nations (2001) or http://www.lisproject.org/links/canberra/finalreport.pdf.
- 12.
Imputed rent is an estimate of the economic advantage of home ownership, compared to renters.
- 13.
European Statistical System represents Eurostat and the National Statistical Offices of the EU member states.
- 14.
“The measurement of extreme poverty”—Bradshaw et al. on behalf of European Commission (2011).
- 15.
- 16.
This target is one of three integrated objectives (with employment and education) to contribute to inclusive growth, defined as “building a cohesive society in which people are empowered to anticipate and manage change and consequently to actively participate in society and the economy”.
- 17.
The indicator jobless households refers to the number of people, aged 0–59, not students, who live in a household where all adults did not work or worked less than 1 day per week in average over 12 months. This indicator is also referred to as “people living households with zero or very low work intensity”.
- 18.
The severe material deprivation rate provides a headcount of the number of people who cannot afford to pay their rent, mortgage or utility bills; keep their home adequately warm; face unexpected expenses; eat meat or proteins regularly; go on holiday; or afford to buy a television, a fridge, a car or a telephone. The indicator measures the percentage of the population that cannot afford at least 4 of the 9 items quoted above.
- 19.
By relying on definitions anchored in each country’s median income, there are broad variations in the poverty lines adopted in different countries. Even if the values are expressed in purchasing power standards (PPS) to take account of the differences in the cost of living across countries, and even excluding Luxembourg as an outlier, the value of the poverty threshold in the richest countries is nearly five times higher than in the poorest.
- 20.
For a more detailed presentation of the new target and the diversity of populations and forms of poverty it represents, see Chap. 3 of Employment and Social Developments in Europe 2011 (http://ec.europa.eu/social/main.jsp?catId=113&langId=en&pubId=6176&type=2&furtherPubs=yes).
- 21.
Council Decision of 21 October 2010 on guidelines for the employment policies of the member states (doc 2010/707/EU).
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Appendix 1. Current Formulation of the EU Policy Objectives on Social Inclusion
Appendix 1. Current Formulation of the EU Policy Objectives on Social Inclusion
A.1. The Open Method of Coordination for Social Protection and Social Inclusion
The overarching objectives are to promote:
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(a)
Social cohesion, equality between men and women and equal opportunities for all through adequate, accessible, financially sustainable, adaptable and efficient social protection systems and social inclusion policies
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(b)
Effective and mutual interaction between the Lisbon objectives of greater economic growth, more and better jobs and greater social cohesion, and with the EU’s Sustainable Development Strategy
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(c)
Good governance, transparency and the involvement of stakeholders in the design, implementation and monitoring of policy
The social inclusion objectives:
Among the 2006 streamlined objectives of the social OMC, the specific objective applying to the social inclusion strand is to have a decisive impact on the eradication of poverty and social exclusion by ensuring:
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(d)
Access for all to the resources, rights and services needed for participation in society, preventing and addressing exclusion and fighting all forms of discrimination leading to exclusion
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(e)
The active social inclusion of all, both by promoting participation in the labour market and by fighting poverty and exclusion
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(f)
That social inclusion policies are well coordinated and involve all levels of government and relevant actors, including people experiencing poverty, that they are efficient and effective and mainstreamed into all relevant public policies, including economic, budgetary, education and training policies and structural fund (notably ESF) programmes.
Europe 2020: A Broad Definition, with a Strong Focus on Labour Market Integration
Guideline 10: Promoting social inclusion and combating poverty
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The extension of employment opportunities is an essential aspect of member states’ integrated strategies to prevent and reduce poverty and to promote full participation in society and economy. Appropriate use of the European Social Fund and other EU funds should be made to that end. Efforts should concentrate on ensuring equal opportunities, including access for all to high-quality, affordable and sustainable services, in particular in the social field. Public services (including online services, in line with guideline 4) play an important role in this respect. Member states should put in place effective anti-discrimination measures. Empowering people and promoting labour market participation for those furthest away from the labour market while preventing in-work poverty will help fight social exclusion. This would require enhancing social protection systems, lifelong learning and comprehensive active inclusion policies to create opportunities at different stages of people’s lives and shield them from the risk of exclusion, with special attention to women. Social protection systems, including pensions and access to health care, should be modernised and fully deployed to ensure adequate income support and services—thus providing social cohesion—whilst remaining financially sustainable and encouraging participation in society and in the labour market.
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Benefit systems should focus on ensuring income security during transitions and reducing poverty, in particular among groups most at risk from social exclusion, such as one-parent families, minorities including the Roma, people with disabilities, children and young people, elderly women and men, legal migrants and the homeless. Member states should also actively promote the social economy and social innovation in support of the most vulnerable. All measures should also aim at promoting gender equality.
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Engsted, I.M. (2013). The European Context: Measuring Social Inclusion in the European Union. In: Ruggeri Laderchi, C., Savastano, S. (eds) Poverty and Exclusion in the Western Balkans. Economic Studies in Inequality, Social Exclusion and Well-Being, vol 8. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-4945-4_2
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