ANNEX

The following amendment, which received at least a quarter of the votes cast, was rejected in the course of the debate (Rule 39(2) of the Rules of Procedure):

Replace the title and the whole opinion with the following text (justification at the end of the document):

A European Framework on a Minimum Income

Conclusions and proposals

The EESC has been an active contributor in the European debate on reduction of poverty. Notably the idea of a European level minimum income has been much debated in some of the previous opinions of the EESC, as well as in the opinion of the Section for Employment, Social Affairs and Citizenship ‘For a European Framework Directive on Minimum Income’. The EESC is convinced that it is necessary to continue the fight against poverty. There are, however, strongly diverging views about the choice of the right instruments. While sincerely appreciating the compromise-seeking efforts of the Rapporteur, his vision of a binding instrument for a minimum income at European level cannot be shared.

This counter-opinion aims at presenting a constructive and comprehensive approach to reduce poverty in Member States. It is based on the fact that the principle of subsidiarity and the division of responsibilities as enshrined in the Treaties of the EU clearly define the Member States as sole actors in designing social security systems. Hence, European level actions should be based on the Open Method of Coordination being the main method to support Member States and a mutual learning of the best national approaches. This counter-opinion suggests a comprehensive approach aiming at maximising the scope of EU level actions in this regard.

Fighting against poverty should be a shared commitment of the European Union and Member States. According to the Joint Employment Report 2019, the household incomes continue to rise in almost all Member States. The total number of people at risk of poverty or social exclusion, at 113 million people or 22,5 % of total population, even if it is now below the pre-crisis levels, is unacceptable and in the longer run unaffordable. The current economic upswing provides an opportunity for stepping up reforms aiming at improving inclusiveness, resilience and fairness of labour markets and social protection systems. However, there are also downside risks to the recovery, which make it urgent for the Member States to seize this opportunity.

While the Europe 2020 strategy to reduce the number of people at risk of poverty has brought up positive results, especially on the back of robust economic and labour market recovery, more needs to be done to sustain the positive trend.

This counter opinion recommends the following elements:

1. The focus of EU and Member State policies should be in continuing their reform efforts and creating favourable conditions for job creation. This is the basis of all actions also to reduce poverty. In the second quarter of 2018, 239 million persons were in employment in the EU, the highest level since beginning of the century. With the current trend the EU is well on track to reach the Europe 2020 target of a 75 % employment rate in 2020. This positive trend should also contribute to achieving the Europe 2020 target of alleviating poverty. Sound economic policies together with continuous structural reforms notably in labour markets and social protection systems in Member States are the prerequisite for sustainable economic growth, employment and wellbeing of people.

2. On top of the key role of sound economic and labour market policies in fight against poverty an integrated approach with a targeted policy mix is needed. Minimum income plays an important role in this approach but it should be seen against the backdrop of integrated employment policies and services, notably social and health services as well as housing policies. In fact, in all EU countries, minimum income support has been transformed from a mere economic support to an active measure intended to accompany the beneficiaries in moving from social exclusion to active life. As such, it should be seen as a temporary solution supporting individuals in a transition period as long as they are in need. This kind of inclusive integration based on activation policies is a step in the right direction.

3. In the light of the subsidiarity principle, the best level at which to tackle minimum income and implement measures aimed at reducing poverty is the national level. In line with this, all EU countries have introduced minimum income mechanisms according their national practices and economic performance. The definitions, conditions and levels of application in Member States are different, for obvious reasons.

4. There is scope for EU level action to support the Member States in their endeavours. The EESC recommends a pragmatic approach, which respects the principle of subsidiarity while maximizing the effect of European level activities in support of and guidance for developing minimum income systems in Member States. The European Union and notably the European Commission should play a more active part by supporting the efforts of Member States. Therefore, there is a need for developing within the European Semester a coordinated strategy at national and European level focusing on broad actions and specific measures, taking into account the role of national reference budgets. The way in which Member States meet the objectives of poverty reduction should be subject to the follow-up in the framework of the European Semester, which presupposes greater coordination. Progress could be supported and monitored via jointly agreed indicators/benchmarks. The Employment Committee (EMCO) and the Social Protection Committee (SPC) are in the process of reinforcing the role of benchmarks, and a specific benchmark on minimum incomes already exists in the Social Protection Committee. This is the right vehicle to achieve progress.

5. In the light of ‘the Declaration on a new start on a stronger social dialogue’, signed by the European Social Partners 26-27 January 2016, the role and capacity of the social partners – as the main actors at the labour markets – should continue to be strengthened both at European and national level in the policy-making and structural reform process. There is also a role for the civil society organisations to contribute to this process creating a Europe closer to its citizens.

6. Finally, the approach of this counter-opinion is in line with the European Pillar of Social Rights which ’should be implemented at both Union level and Member State level within their respective competences, taking due account of different socio-economic environments and the diversity of national systems, including the role of social partners, and in accordance with the principles of subsidiarity and proportionality’ (1) .

Outcome of the vote:

In favour: 92

Against: 142

Abstentions: 8

(1) Interinstitutional Proclamation on the European Pillar of Social Rights: Preamble (17).