Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions -  Social reality stocktaking - Interim Report to the 2007 Spring European Council
Date: 2007-02-26
Institutions: European Commission
Subjects: report, social change, social policy, social situation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 26.2.2007 
COM(2007) 63 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

SOCIAL REALITY STOCKTAKING 
Interim report to the 2007 Spring European Council 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

SOCIAL REALITY STOCKTAKING 
Interim report to the 2007 Spring European Council 

(Text with EEA relevance) 

Dramatic changes are underway in European societies: in the nature of work; modern family 
life; the position of women in society; and social mobility. Values are changing. Societies are 
becoming increasingly multicultural. Mass affluence has widened horizons and expanded life 
choices. and the Member States of the European Union belong to the wealthiest countries in 
the  world.  At  the  same  time,  new  patterns  of  poverty  and  inequality  are  emerging.  New 
problems such as the rise in obesity and an increasing number of factors impinging on mental 
health are affecting the health of Europeans. 

Globalisation  and  demography  are  the  two  main  driving  forces  shaping  the  development  of 
European  societies.  Both  offer  opportunities  but  present  challenges.  Demographic  trends 
mean longer and healthier lives and raise issues such as the new costs of an ageing society, 
intergenerational  equity,  the  increasing  importance  of  childcare  and  work/life  balance  in 
sustaining  family  life,  the  relationship  between  generations  and  new  risks  of  poverty. 
Globalisation, in conjunction with new technology, offers enormous potential for growth. But 
people  need  to  be  equipped  through  education  and  training  to  take  advantage  of  these 
opportunities and adapt to the disappearance of traditional industrial jobs. 

These  changes  present  challenges  for  the  European  Union.  An  open  Europe  based  on  free 
movement and free trade has helped to create the jobs and prosperity on which well-being and 
a better quality of  life  ultimately depend. However,  in recent  years it has become clear that 
many Europeans question whether the net effect of globalisation, liberalisation and the drive 
for greater competitiveness adds to their well-being. To better understand why this is the case 
and examine the dynamics of current social changes, the Commission suggested in 2006 that a 
Social  Reality  Stocktaking  be  done,  in  view  of  launching  an  agenda  on  access  and 
opportunity,  a  social  dimension  closely  linked  to  the  Single  Market  Review.  The  European 
Council supported that approach, asking the Commission to take stock of the social situation 
in the Union. 

In  line  with  the  request  of  the  European  Council,  the  following  interim  report  reporting  on 
progress to date in the stocktaking exercised has been prepared for submission to the Spring 
Council. 

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AIMS OF THE SOCIAL REALITY STOCKTAKING 

The  aim  of  the  exercise  in  exploring  Europe’s  social  reality  is  to  build  a  consensus  on  the 
common social challenges facing Europeans. The question of what role, EU policies should 
play  in  responding  to  changing  social  realities,  or  how  EU  policies  should  adapt,  is  left 
entirely open at this stage. 

A  new  consensus  will  naturally  build  on  past  experience.  The  EU  has  always  had  a  “social 
dimension”. The Treaty of Rome contained a far-sighted commitment to gender equality and 
Article 13 of the Amsterdam Treaty conferred legislative competence on the Union to fight all 
forms of discrimination. The Union’s Social Agenda, originally developed in the 1980s as a 
social  counterpoint  to  the  creation  of  the  Single  Market,  focused  on  employment  protection 
and social partnership. It resulted in legislation on minimum employment, health and safety 
standards and securing cross border social security rights for mobile workers. The Union has 
also played an important role in reinforcing social cohesion, tackling regional inequalities and 
assisting  adjustment  to  economic  change,  including  the  work  of  cohesion  policy  and  recent 
initiatives such as the European Globalisation adjustment Fund. 

These  elements  have  carried  through  to  the  renewed  Lisbon  strategy  for  growth  and  jobs 
which  focuses  not  only  on  economic  performance  and  competitiveness  but  also  on  the 
creation  of  greater  social  cohesion  and  the  social  dimension  of  sustainability.  Within  the 
renewed  Lisbon  strategy,  the  EU  engages  with  Member  States  –  who  continue  to  hold  the 
primary  competence  to  frame  their  own  policies  -  to  identify  collectively  the  policy 
approaches which will best deliver the combination of prosperity and solidarity which lies at 
the  heart  of  the  Lisbon  vision,  and  to  promote  their  take-up.  The  Lisbon  strategy  has  thus 
opened  up  a  collective  reflection  on  social  issues  in  a  very  wide  sense,  covering  traditional 
questions  of  labour  market  flexibility  and  welfare  state  reform  as  well  as  issues  relating  to 
education and training systems. 

Many social policy initiatives in the past were conceived for an industrial society, where the 
nature  of  work  was  characterised  by  a  mass  manufacturing  economy,  large  firms,  and  high 
levels of union membership and density. Today, Europe has an increasingly knowledge based 
and services oriented society. Whilst the economic dynamics underlying the emergence of the 
'new  economy'  in  a  globalised  world  have  received  attention,  the  social  situation  and  social 
challenges are less well understood and analysed. There is no shared diagnosis of these social 
challenges and how they should be met. 

The social reality stocktaking exercise aims at developing that diagnosis, generating a debate 
on Europe's social situation, which will also feed into the mid term review of the social policy 
agenda. It recognises that there is great diversity, often as much within  as between Member 
States.  However,  there  are  shared,  common  challenges-demography,  increased  ethnic  and 
cultural diversity and an individualisation of values. All EU Member States are open societies 
shaped  by  the  global  forces  of  modern  capitalism  and  worldwide  cultural  trends.  Some  of 
their  citizens  have  prospered  from  globalisation,  transition  and  social  and  cultural  trends; 
some  have  been  left  behind  by  economic  change  and  industrial  restructuring  and  perceive 
their traditional communities, values and ways of life as under threat. 

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AN OPEN DISCUSSION 

The Commission is launching a wide consultation on the social issues and challenges facing 
Europe.  The  aim  is  to  reach  out  to  different  constituencies  to  discuss  what  constitutes 
Europe’s ‘social reality’. The Commission is in 'listening' mode, not testing policy options. 

Views  are  being  sought  on  social  trends,  the  main  factors  driving  Europe's  social 
transformation, 'well being' and what contributes to it. The consultation is underpinned by a 
background  document  prepared  by  the  Bureau  of  European  Policy  Advisers  which  looks  at 
common patterns and how social changes can be assessed against benchmarks of well-being. 
It  then  attempts  to  open  a  debate  about  some  of  the  key  issues  affecting  well-being  – 
economic opportunity, the nature of work, new patterns of family life, poverty and inequality, 
the barriers to good health and social mobility, quality of life, cultural diversity and obstacles 
to  integration,  crime  and  anti-social  behaviour.  The  document  raises  questions  in  order 
stimulate a wide ranging discussion. 

The consultation will involve the organisation of different events, a Eurobarometer focused on 
issues  of  well-being  and  various  types  of  consultation,  including  an  internet  consultation 
http://ec.europa.eu/citizens_agenda/index_en.htm.  It  will  canvas  views  from  a  range  of 
stakeholders  at  national  and  local  level.  The  European  Commission  representations  in  the 
Member States are participating in the exercise. 

NEXT STEPS 

Taking on board the results of the consultation exercise which will be completed by the end of 
2007, the Commission will issue a report. The report will be a snapshot of Europe’s changing 
social reality, examining social trends and their implications and drawing out key issues and 
challenges  for  Europe  at  all  levels  of  governance.  It  will  set  out  ideas  as  to  how  best  to 
promote access and opportunity in Europe and will also contribute to the mid term review of 
the social policy agenda. 

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