European Semester 2018

Employment and social aspects

with a focus on Portugal

Federico LUCIDI

DG Employment, Social Affairs and Inclusion

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'Chapeau' Communication: Key messages and overview of country-specific recommendations

Country-specific recommendations for 27 Member States (all except Greece)

Governance decisions under the Stability and Growth Pact

A Communication on the review of the flexibility under the Stability and Growth Pact

2018 Convergence Report

The "spring package" 2018

Chapeau communication

• « Europe’s economy is growing at its fastest pace in a decade »

• « Europe needs to fix its roof while the sun is shining »

• « This year’s country-specific recommendations dedicate special attention to social challenges, building on the European Pillar of Social Rights »

• The package seeks to move away from « legacy » recommendations… and to promote a more forward looking approach…

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2018 CSRs: an overview

The 2018 CSRs reflect the priorities of the Annual Growth Survey

• Boosting investment

• Pursuing structural reforms

• Ensuring responsible fiscal policies

They take into account the recommendations for the

euro area (Autumn package)

They integrate the European Pillar of Social Rights

They draw on the multiannual assessment of CSRs

implementation since 2011

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2018 CSRs: an overview

Focus on social priorities and challenges:

• Well-functioning labour markets

• Adequate welfare systems, social safety nets

• Quality education and training, provision of relevant skills

• Accessible and quality healthcare

• Social dialogue

-> Share “social” sub-parts from 41% to 44%

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CSRs implementation

Source: Commission

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 CSRs 2012 CSRs 2013 CSRs 2014 CSRs 2015 CSRs 2016 CSRs 2017 CSRs

% o

f C

SR

s w

ith

at

least

"so

me p

ro

gress"

Annual CSR assessment

Multiannual CSR assessment to date

Average of annual assessment

Current level of implementation of 2011-2017 CSRs:

Annual assessment versus implementation to date:

Overview of the issues covered in the 2018 CSRs

Source: European Commission

Broad Category Policy areas AT BE BG CY CZ DE DK EE ES FI FR HR HU IE IT LT LU LV MT NL PL PT RO SE SI SK UK

Fiscal policy & fiscal governance

Long-term sustainability of public finances, inc. pensions

Reduce the tax burden on labour

Broaden tax bases

Reduce the debt bias

Fight against tax evasion, improve tax administration & tackle tax avoidance

Financial services

Housing market

Access to finance

Private indebtedness

Employment protection legislation & framework for labour contracts

Unemployment benefits

Active labour market policies

Incentives to work, job creation, labour market participation

Wages & wage setting

Childcare

Health & long-term care

Poverty reduction & social inclusion

Education

Skills & life-long learning

Research & innovation

Competition & regulatory framework

Competition in services

Telecom, postal services & local public services

Energy, resources & climate change

Transport

Business environment

Insolvency framework

Public administration

State-owned enterprises

Civil justice

Shadow economy & corruption

Public finances &

taxation

Financial sector

Labour market,

education &

social policies

Structural policies

Public

administration &

business

environment

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Employment, social and education CSRs, 2018 vs 2017

Implementation

• Ownership on the ground and dialogue with key stakeholders important:

European Semester visits to MS

Bilateral meetings

Social partners

Civil Society

• Reinforced technical assistance to reform implementation

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The case of Portugal

• CSR 2: Promote an environment conducive to hiring on open-ended contracts, including by reviewing the legal framework in consultation with social partners.

• Increase the skills level of the adult population, including digital literacy, by strengthening and broadening the coverage of the training component in adult qualification programmes.

• Improve higher education uptake, namely in science and technology fields.

The European Pillar of Social Rights and the Social Scoreboard

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Equal opportunities and access to the labour

market

• Education, training and life-long learning

•Gender equality

• Equal opportunities

•Active support to employment

•Secure and adaptable employment

Fair working conditions

•Wages

• Information about employment conditions and protection in case of dismissals

•Social dialogue and involvement of workers

•Work-life balance

•Healthy, safe and well-adapted work environment

Adequate and sustainable social protection

•Childcare and support to children

•Social Protection

•Unemployment benefits

•Minimum income

•Old age income and pensions

•Health care

• Inclusion of people with disabilities

• Long-term care

•Housing and assistance for the homeless

•Access to essential services

What is the European Pillar of Social Rights?

20 principles and rights

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Putting the Pillar into action: a joint effort

Update EU legislation,

step up enforcement

Funding European Semester

Social dialogue

Civil Society

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Monitoring the implementation of the EPSR

• Communication of 13th March 2018

• European Semester is an appropriate monitoring tool:

o In-depth analysis

o Transparent reporting throughout the year

o Involvement of social partners and other stakeholders

• Three new elements :

o Mainstreaming the priorities of the EPSR in the Semester, with focus on annual themes

o Technical assistance, benchmarking and good practices

o Social Scoreboard

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Social scoreboard

• Main monitoring tool for the Social Pillar

Aims at identifying main employment and societal challenges

• 14 headline indicators

Broad coverage of 20 principles

Not a legal instrument – no “imbalances” , no formal obligations

Qualitative approach, exclude automatic reading

• Discussions in EMCO and SPC ongoing on 2 remaining indicators

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Social Scoreboard revised and adopted by EPSCO (as part of the Joint Employment Report 2018)

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Social Scoreboard - how it works

The Social Scoreboard for PT

Thank you!

Political context

• Social Fairness Package – 13 March 2018 • European Labour Authority

• Recommendation on access to social protection

• Communication on the monitoring of the implementation of the European Pillar of Social Rights

• Other relevant initiatives • Predictable & Transparent Working Conditions, December 2017

• Work-Life Balance, April 2017

• Multiannual financial framework

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Recommendation to close excessive deficit procedure (EDP) for FR

(-> only ES to remain in corrective arm of Pact)

For BE and IT review of compliance with debt rule concludes:

• IT compliant

• BE no conclusion possible on compliance

• Both countries to be reassessed in spring 2019

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Economic governance decisions (SGP)

HU and RO: significant deviation from adjustment to their medium-term budgetary objectives (MTO)

For HU COM proposed Council recommendation to take measures in 2018 to correct significant deviation

For RO (already in significant deviation procedure) COM recommends Council to issue:

a decision on non-effective action;

a recommendation to take measures in 2018 and 2019 to correct significant deviation.

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Economic governance decisions (SGP)

Review of the flexibility under the SGP

• Following 2015 communication

• Striking right balance between objectives of ensuring prudent fiscal policy and stabilising the economy

• Communication encourages MSs to build up fiscal buffers in good times to make economies more resilient

-> mitigating employment and social impact!

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Flexibility Communication

Social Dialogue in CSRs

• 2 explicit CSRs on social dialogue (HU, RO)

• 4 CSRs emphasising the importance of social partners involvement (DE, HR, NL, PT)

• 8 recitals on social dialogue

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Employment Guidelines 2018

• (…) Member States should ensure the timely and meaningful involvement of social partners in the design and implementation of, employment, social and, where relevant, economic reforms and policies, including through support for increased capacity of social partners.

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Involvement of Social Partners in the Semester

• European level

• AGS

• Informal consultations

• High-level discussion – TSS

• National level

• Missions (political and technical) and European Semester Officers

• EMCO review

• ESF support

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