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With most of the EU still stuck in the economic doldrums and approaching 19 million people without work, leaders and analysts are searching for a way forward. While the cry goes up for further deregulation and the end of the European Social Model, we investigate how to keep it and what it was in the first place.
AFTER EARLIER REPORTS THAT THE UK Prime Minister had asked what the European Social Model was when it was mentioned at an EU summit, Mr.Blair made its modernisation the central question for consideration of the EU's future during the British presidency.
Perhaps his original query was understandable as each group of Member States seems to have a different idea of its operation. What does the Scandinavian combination of high tax and social welfare with technological innovation have in common with the more free market economies of Britain and Ireland or the centrally directed, 'statist' French way?
Well the European Commission has come up with some principles which bind us all together. It says that Europeans have greater expectations of their governments than in other parts of their world. On average, the 25 EU Member States devote 27% of GDP to public spending on social protection, compared to 15% in the United States and 17% in Japan. It describes the national social and economic policies of EU governments as 'built on shared values such as solidarity and cohesion, equal opportunities and the fight against all forms of discrimination, adequate health and safety in the workplace {and] universal access to education and healthcare'. Thirdly comes the tradition of social dialogue between employers, trade unions and governments which is reflected at European level by EU institutions which themselves are unique to our corner of the globe.
If the European Social Model has all these advantages, why is it threatened? In one word: the economy. As well as the 19 million unemployed, millions more workers fear globalisation will make the jobs they do disappear. Europe is also handicapping itself in this world competition by not spending enough on training, education and research. It is thus very difficult for young and unemployed people to enter the job market and the gap between rich and poor widens as a result. However these people will be needed as part of the labour force as falling birth rates lead to comparatively fewer EU citizens of working age and greater numbers of pensioners.
How can these problems be attacked to restore the social model to health? Examining the ideas of the Commission and the European unions (ETUC) differences of emphasis can be seen but certain common themes shine through. Both bodies want the European economy to grow more quickly and both see the completion of the internal market as helpful but the ETUC stresses 'a level playing field that does not undermine workers' rights and working conditions'. To get excluded people into the labour force both recommend lifelong learning while the unions add implementation of anti-discrimination measures and the Commission favours state top-ups for low wage earners. On population ageing the ETUC wants to 'enhance the quality of working life and training so that older people can stay in employment' as compared to the Commission's 'family friendly policies which address the low birth rates' which it recommends to Member States.
According to General Secretary John Monks the European Social Model is vital to the EU: 'If Social Europe is "parked", then the remaining popular support for Europe will shrink even further'.
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