European Parliament resolution on the Commission communication on The Future Evolution of Social Protection from a Long-Term Point of View: Safe and Sustainable Pensions (COM(2000) 622 — C5-0011/2001 — 2001/2003(COS))
Date: 2001-05-17
Institutions: Committee on Employment and Social Affairs, European Parliament
Subjects: European social policy, pension scheme, public financing, social security

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Climate change

21.
Deplores the US Administration(cid:146)s unilateral announcement in March 2001 that the USA would not
implement the Kyoto Protocol; recalls that the United States is the world(cid:146)s biggest polluter and single
biggest contributor to climate change and that an overwhelming consensus of international scientific
opinion has identified climate change as the gravest environmental threat facing the world;

22.
Calls on President George W. Bush(cid:146)s Administration to reaffirm the commitments made by the USA
under the Kyoto Protocol and on the USA to abandon its isolationist position with regard to the global
challenge of climate change;

Legal issues

Calls on the USA to ratify the Treaty on the establishment of an International Criminal Court, and

23.
to take no action which would prejudice its ratification by other countries;

Considers it necessary, in the context of the transatlantic dialogue, to call on the various States of

24.
the USA where the death penalty exists to abolish it;

The (cid:145)Echelon(cid:146) system

25.
Regrets the conduct of the US State and Trade Departments, which have refused to hold important
talks on which an agreement in principle had been given at preparatory meetings, and their unreadiness to
meet the delegation from Parliament(cid:146)s temporary committee on the Echelon system, when it visited Wash-
ington last week; considers that this both gives the impression and provides evidence of a lack of will-
ingness to engage in dialogue and a lack of the trust which should guide relations between the European
Union and its American partners, especially on such a delicate issue; welcomes, however, the spirit of
openness and availability shown by the US Congress towards the European Parliament(cid:146)s delegation;

*

*

*

Instructs its President to forward this resolution to the Commission, the Council and to the Presi-

26.
dent and Congress of the United States of America.

8. Safe and sustainable pensions

A5-0147/2001

European Parliament resolution on the Commission communication on The Future Evolution of
Social Protection from a Long-Term Point of View: Safe and Sustainable Pensions (COM(2000) 622
(cid:129) C5-0011/2001 (cid:129) 2001/2003(COS))

The European Parliament,

(cid:129) having regard to the Commission communication (COM(2000) 622 (cid:129) C5-0011/2001),

(cid:129) having regard to the progress report from the High-Level Working Party on Social Protection on the

above communication from the Commission (14055/00) of 30 November 2000,

(cid:129) having regard to the progress report from the Economic Policy Committee on the impact of ageing

populations on public pension systems (12791/00) of 26 October 2000,

(cid:129) having regard to the conclusions of the Santa Maria da Feira, Lisbon and Nice European Councils of

19/20 June 2000, 23/24 March 2000 and 7-10 December 2000,

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(cid:129) having regard to the Council Recommendation of 27 July 1992 on the convergence of social protec-

tion objectives and policies (1),

(cid:129) having regard to the Council conclusions of 17 December 1999 on the strengthening of cooperation

for modernising and improving social protection (2),

(cid:129) having regard to Rule 47(1) of its Rules of Procedure,

(cid:129) having regard to the report of the Committee on Employment and Social Affairs and the opinions of
the Committee on Economic and Monetary Affairs and the Committee on Woman(cid:146)s Rights and Equal
Opportunities (A5-0147/2001),

A. whereas the increase in the life expectancy of the population and in healthier lives constitute one of

the greatest achievements of our age,

B. whereas increased life expectancy will translate (cid:129) according to some estimates (cid:129) into a doubling of
the demographic old-age dependency ratio by 2050, without prejudice to changes given by legal
immigration into Europe; whereas, however, forecasts of future social developments should be treated
with caution, taking into account the economic dependency ratio, and standardised criteria for moni-
toring purposes and for the recording of statistics are needed,

C. whereas the sustainability of pensions is not only a problem of (cid:145)finding the means(cid:146) but also a matter of
the EU to achieve many of its objectives, particularly with regard to a high level of social security
provisions, sustainable non-inflationary growth and social cohesion; whereas not only demographic
trends but also technological developments, particularly in medicine, and the position of families,
especially the financial risks of single people, present a challenge to the role of pensions,

D. whereas strategies for organising and financing social protection so as to enable the future challenges
posed by the greater longevity and the ageing of the population to be met and the profound changes
occurring in economic activities and the employment market to be accommodated should be set in
train now both in the present Member States and in the candidate states,

E. whereas social protection in the Member States of the European Union is based both on solidarity and
on insurance and is a productive factor contributing to sustainable economic growth, employment,
social peace and security of livelihood,

F. whereas policies capable of creating a virtuous circle of economic and social progress should be put in

place with a view to their reinforcing each other to optimum effect,

G. whereas (cid:129) although the subsidiarity principle applies as regards social security schemes (cid:129) the com-
pletion of the internal market and of economic and monetary union, the forthcoming enlargement of
the European Union and the European employment strategy will
in future make some degree of
cooperation between Member States in the area of social protection and social policies in general
desirable,

H. whereas the Union, in order to bring about closer cooperation, making use of the open coordination
including common, quantifiable
method, should introduce convergence criteria for pensions too,
objectives applicable to all the Member States, with common indicators, guidelines, national action
plans, reporting and recommendations, as well as initiatives on the exchange of data, experience and
models, in order to improve social protection in Europe and to ensure pensions for all while main-
taining a standard of living with dignity;

1. Welcomes the Commission communication and the initial results of the work begun by the High-
Level Working Party on Social Protection and the Economic Policy Committee following the request by the
Lisbon European Council to examine the future evolution of social protection; welcomes the trans-
formation of the High-Level Working Party on Social Protection to the Committee on Social Protection
and the legal basis for this change provided for in the Treaty of Nice;

(1) OJ L 245, 26.8.1992, p. 49.
(2) OJ C 8, 12.1.2000, p. 7.

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2.
Stresses that the reform measures to be taken must not only address the structure of the pension
schemes but must also introduce a successful growth strategy and active employment policy; in this way
the pressure on public finances could be reduced and painful benefit cuts or higher contributions and taxes
would be necessary only to a limited extent.

3.
Urges the Swedish presidency to put the debate on the old age provisions and pensions high on the
agenda of the European Council in G(cid:246)teborg, and to provide for progress in the coordination of the
different aspects of the European debate linking the budgetary/financial aspects of the costs of ageing, the
debate on the future of social protection, the proposals concerning financial markets access, the problems
of the barriers to free movement that are dealt with inter alia in the Pensions Forum, and taxation on
pensions;

Expresses the hope that the work undertaken will be pursued in greater depth still under the Swedish
4.
Presidency with the objective of arriving under the Belgian Presidency at European cooperation on pen-
sions, which, starting from a number of common objectives, should lead to an open coordination strategy
covering the entire area of social protection; calls, therefore, on the Commission, basing itself both on this
communication and on the reports, to propose draft guidelines on social protection, including pensions;

5.
Considers, moreover, that the strategy of mutual reinforcement of economic and social policies as
laid down by the Lisbon European Council should lead to convergence of macro-economic, employment
and social protection policies at the European level;

6.
Stresses that, above all in view of the ageing of the population, the necessary financial scope for
reform of pension schemes must be created; points out that, to date, such reforms have been put off in
many Member States;

7.
Emphasises the fact that safe and sustainable pensions contribute to interregional social equity within
Europe and to macro-economic stability by creating an actual demand within the internal markets, which
is independent of economic swings and which by itself is capable of creating jobs which will reduce
unemployment as the number of retired people grows;

8.
Endorses the opinion of the Committee on Social Protection that the analysis of pension systems in
the light of the demographic challenge they face cannot be confined merely to the financial dimension, but
should also take account of the contribution to social harmony and intra- and inter-generational solidarity;

9. Welcomes, in this connection, the ten principles set out by the Commission in its communication,
and takes the view that indicators should be established on the basis of these principles as part of open
coordination;

10.
Considers, in the context of achieving Europe-wide coordination of pensions policy, that studies
should be carried out on the initiatives which might be taken to apply the 1992 recommendation on the
minimum income to be guaranteed by the social protection systems;

11.
Agrees with the Commission that the reform of pension systems should not only meet demographic
demands but should also, above all, be based on social justice and the fight against poverty and insecurity;
notes that the poverty rate is higher among households composed of older people, particularly elderly
women, and takes the view that reducing this poverty rate should be one of the priority objectives of the
reforms; points out that old age and ill health combined with low pensions are the major cause of poverty
and social exclusion in a number of Member States; calls on the Member States to make sure that widow(cid:146)s
pensions are maintained at a reasonable level;

12.
Stresses that a sensible economic policy and growth-oriented structural reforms which will create a
favourable economic and business environment are extremely important. An adaptation and modernisation
of the labour market is urgently needed, particularly in the light of the integrated strategy decided in
Lisbon to increase the working population and raise its productivity;

13.
Agrees with the Commission that an increase in the employment rate is particularly liable to secure
safe and sustainable pensions as it has a dual effect on the revenue and expenditure of pension schemes;

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14.
Takes the view that, notwithstanding mobilisation of all available labour resources, some increase in
the level of pension expenditure in relation to GDP is inevitable; stresses that economic growth and sus-
tained productivity gains will be decisive factors in meeting this challenge with regard to public budgets;
welcomes, in this connection, the strategy laid down at the Lisbon European Council summit aimed at
sustainable economic growth with more and better jobs and greater social cohesion;

15.
Reiterates, therefore, its opinion that it is necessary to step up the fight against all forms of dis-
crimination on the labour market, in particular discrimination against women and older workers, and to
encourage, through refresher and vocational retraining measures, and through changes in the organisation
of the work and working hours and industrial safety and health protection in keeping with the needs of
women and the elderly, the re-entry of persons excluded from the labour market into working life and the
training and preparation of young people so as to enable them to become part of the active population,
avoiding at the same time competition between generations;

16.
Is opposed to compulsory early retirement and favours gradual or partial voluntary retirement,
taking into account justified and/or justifiable objective circumstances such as the difficult or dangerous
nature, or the risks to health, of the work and the age of entry into working life;

17.
Recalls the objective of the Lisbon Process to increase the percentage of resident women in paid
employment; calls therefore, on the Member States to promote women(cid:146)s full access to employment in all
sectors and at all levels, inter alia by means of positive action;

18.
Takes the view that the implementation of coherent social and fiscal policies making it easier to
combine work and family life is the precondition for greater participation by women in employment;
draws attention to the interdependence between the level of social protection for families and the avail-
ability of public services, on the one hand, and birth rates and participation rates by women, on the other;

Considers that families which take direct responsibility for sick and elderly relatives should be sup-
19.
ported by means of fiscal, social and employment benefits and calls on all the Member States to take
appropriate action in the light of the successes achieved in the Member States which have already launched
such initiatives, which have proved to be a particularly human and effective form of welfare provision;

20.
Stresses that women and men endeavour to balance their working lives with their roles as parents
and considers therefore that both male and female employees who make use of parental leave arrange-
ments should be able to acquire pension rights in respect of such periods of parental leave; considers also
that leave arrangements for caring for sick or disabled children and relatives should also be pensionable;

21.
Calls on the Commission to examine what reform of pension systems need to be undertaken in
order to ensure pensions which enable men and women to live decently in cases of atypical and precarious
work, part-time work, in the case of self-employment, or in the case of career interruption in order to have
children, to take care of family members or for the sake of further education or sabbaticals;

22.
Points to the equal opportunities problem associated with the fact that many women in the EU
work part time or have no income from work and, therefore, often have no right or only partial entitle-
ment to supplementary pension protection;

23.
Points out that this problem should chiefly be resolved by means of a fairer division between men
and women of paid employment and unpaid work caring for family members, so that women would
become less dependent on derived pension rights and more women would be able to acquire their own,
individual pension rights;

Stresses that in order to secure pensions in the long term, it is essential that comprehensive reform
24.
strategies should be drawn up before acute financing problems arise. The Member States are therefore
urged to take appropriate steps to meet these challenges. The aim of this reform process should be to
find a new balance between an adequate, secure income for the older generation and the long-term sol-
vency of the systems, in the process of which a fair distribution of burdens between the generations must
be ensured;

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Advocates an appropriate balance between, on the one hand, proportional contributions and bene-

25.
fits and, on the other, the principle of solidarity in order to prevent poverty and social exclusion;

Notes that the sustainability of pension provision is also dependent on measures to maintain a
26.
financial balance in the pension schemes, and therefore recommends that the government debt be reduced,
alternative sources of funding tapped, reserves built up and excessive taxation burdens, particularly on
labour, avoided;

27.
Stresses the essential importance of a broad public consensus on the organisation and financing and
scope of social protection; calls on the Commission to launch and support information and education
campaigns on the importance of solidarity between the generations and solidarity with dependent persons;
also emphasises the importance of a broad partnership embracing civil society and the two sides of indus-
try in the context of the debate on the modernisation of social protection at the European level;

Focuses attention to the problems of crossborder participation or continuation in pension schemes,
28.
that are major barriers for labour mobility in the EU; emphasises in that context particularly the necessity
of proposals to coordinate and regulate at European level the systems of taxation of pension schemes in
the Member States; urges the Member States to continue with the harmonisation of fiscal systems in
respect of supplementary pension schemes by reaching agreements on the tax deductibility of pension
contributions and taxation of the final pension and urges the Commission to put forward as soon as
possible a proposal for a directive concerning the taxation of pensions;

Agrees that it is useful to present all retirement schemes within Europe as a combination of the
29.
three (cid:145)pillars(cid:146) (state schemes, occupational schemes and individual pension plans) but points out that, in
certain countries, this classification is an artificial one;

Considers that pension funds and private, public or mutual-benefit supplementary funded schemes
30.
can play a useful role in supplementing public PAYG schemes in order to meet the challenges posed by the
ageing of the population, particularly capitalisation-based pension funds that are collectively agreed by
social partners, accessible for all employees concerned, based on solidarity and equal treatment and, to a
lesser degree, individual private pension arrangements offered on the basis of annuity; recognises, however,
that public schemes based on solidarity are essential on account of their basic social purpose and warns,
therefore, against any attempt to weaken or replace them;

Calls on Member States to sort out their tax-and-spend policies to make sure the funding of their

31.
PAYG aspirations is realistic;

32. Welcomes the planned exchange of views on experiences with supplementary pensions, as dis-
cussed at the Stockholm summit, but urges the Member States actually to implement the reform of
national pension systems and to talk to each other on this subject;

Reiterates its call to be fully involved in the process of European social convergence and condemns,
33.
in this connection, the fact that the progress report from the Committee on Social Protection was not
officially forwarded to the European Parliament; welcomes, on the other hand, the intention of the Com-
mittee on Social Protection to enhance its dialogue with Parliament;

Asks to be consulted on the report of the Committee on Social Protection and will give its full

34.
assessment on the future of pensions schemes in the EU later on;

35.
Instructs its President to forward this resolution to the Council, the Commission, the Committee on
Social Protection, the Economic Policy Committee, the Employment Committee and the European social
partners.