Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Modernising social protection for greater social justice and economic cohesion: taking forward the active inclusion of people furthest from the labour market
Date: 2007-10-17
Institutions: European Commission
Subjects: European social policy, aid to disadvantaged groups, consultation procedure, marginalisation, poverty, social integration, social security

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.10.2007 
COM(2007) 620 final 

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

Modernising social protection for greater social justice and economic cohesion: taking 
forward the active inclusion of people furthest from the labour market 

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1. 

Introduction 

The EU strategy for growth and jobs1 is showing results: growth has picked up, employment 
is rising and unemployment is falling across Europe. Yet there is little doubt that much more 
is  needed  for  Europe  to  realise  all  its  potential  and  fully  achieve  the  Lisbon  objectives  for 
economic and social development. 

A  sizable  part  of  the  Union’s  population  remains  socially  excluded,  since  16%  of  Europe’s 
population is at risk of financial poverty, one in five lives in sub-standard housing, 10% live 
in  households  where  nobody  works,  long-term  unemployment  approaches  4%  and  the 
proportion of early school leavers is over 15%. Another dimension of social exclusion that is 
gaining importance is lack of access to information technologies2.  

Despite  being  one  of  the  richest  regions  in  the  world,  the  European  Union  and  its  Member 
States are still far away from the objective, set by the European Council at the launch of the 
Lisbon  strategy  in  March  2000,  of  making  a  decisive  impact  on  the  eradication  of  poverty. 
Although  the  situations  in  the  Member  States  vary  considerably,  the  extent  of  multiple 
disadvantage  and  deprivation  still  found  in  the  EU  is  widely  perceived  as  socially,  morally 
and economically unsustainable. 

Reaching out to those at the margins of society and the labour market is an economic priority 
as much as it is a social priority. Far from there being any contradiction between an efficient 
dynamic  economy  and  one  that  places  social  justice  at  its  core,  these  elements  are  closely 
interdependent. On the one hand, economic development is necessary to sustain the provision 
of social support. On the other hand, bringing back to work the most excluded from the labour 
market, provided that they can work, and supporting their social integration is an integral part 
of the Lisbon strategy, which aims to mobilise the full potential of our human resources. 

In order to help Member States mobilise those who can work and provide adequate support to 
those who cannot, the Commission has proposed a holistic strategy that can be termed active 
inclusion3. It combines income support at a level sufficient for people to have a dignified life 
with a link to the labour market through job opportunities or vocational training and through 
better access to enabling social services. Active inclusion in this sense is fully complementary 
to  the  “flexicurity”  approach,  while  targeting  those  at  the  margins  of  the  labour  market.  It 
shapes an “active welfare state” by providing personalised pathways towards employment and 
ensuring that those who cannot work can live in dignity and contribute as much as possible to 
society.  Therefore,  active  inclusion  contributes  to  the  Lisbon  strategy  and  is also  a  building 
block of the social dimension of the EU’s Sustainable Development Strategy.  

In  the  spring  of  2006,  the  Commission  launched  a  public  consultation4  which  included  a 
consultation under article 138 of the EC Treaty on the need for action at EU level to promote 
the  active  inclusion  of  people  furthest  from  the  labour  market.  Based  on  the  results  of  this 
consultation  and  the  initiatives  that  followed,  including  the  in-depth  review  by  the  Social 
Protection  Committee of  the National Action Plans to combat poverty  and social exclusion, 
the  sixth  conference  of  people  experiencing  poverty  (4-5  May  2007)  and  the  stakeholders’ 

1 
2 
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4 

Presidency Conclusions Lisbon European Council 23-24 March 2000 and COM(2005)24. 
In particular, 44% of Europeans do not have any degree of Internet and computer skills. 
COM(2006)44 of 8.2.2006. 
COM(2006)44. 

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conference on active inclusion (15 June 2007), the Commission has elaborated the proposals 
presented  in  this  Communication,  including  the  launching  of  the  second-stage  consultation 
under article 138(3) of the EC Treaty. 

2. 

Responses to the consultations 

2.1 

Overall support for renewed EU efforts towards active inclusion 

The  responses  to  the  2006  consultation  highlighted  that  the  1992  Council  Recommendation 
on  “Common  criteria  concerning  sufficient  resources  and  social  assistance  in  social 
protection systems"5 was still considered a reference instrument for EU policy in relation to 
poverty  and  social  exclusion.  They  stressed  that  the  Recommendation  had  lost  none  of  its 
relevance  but  that  more  needed  to  be  done  for  its  full  implementation,  in  particular  in 
clarifying  the  criteria  and  statistical  tools  that  can  be  used  as  a  benchmark  to  define  the 
adequacy level of minimum income schemes. 

The responses also acknowledged that the adequacy of minimum income schemes had to be 
assessed in the broader context of access to employment. Therefore, the majority welcomed 
the comprehensive approach taken by the Commission6. While wary about prescriptive rules 
at  EU  level,  not  considered  appropriate  in  the  light  of  the  diversity  of  situations  across 
Europe,  most  respondents  expressed  support  for  a renewed  effort  at  EU  level.  In  particular, 
the formulation of common principles at EU level, together with reinforcement of the Open 
Method of Coordination (OMC), received strong support. 

2.2 

Need for a more holistic approach 

The  various  responses  emphasised,  moreover,  that  successful  implementation  of  the  active 
inclusion  approach  depends  on  the  synergies  between  its  different  components.  Adequate 
income support needs to be combined with labour market opportunities and better access to 
quality services.  

Social  inclusion  and  labour  market  participation  go  hand-in-hand.  For  labour  market 
integration to be sustainable, disadvantaged people need first to be supported with sufficient 
resources  and  personalised  employment  and  social  services  to  enhance  their  social 
participation and employability. If they succeed in finding employment, job retention should 
be promoted to avoid a “revolving door" situation, where people are forced to leave the job 
due  to  inadequate  employment  skills  or  because  the  personal  and  social  hurdles  are  not 
sufficiently  addressed.  Furthermore,  employment  per  se  is  not  always  a  guarantee  against 
poverty, as 8% of workers in the EU are at risk of poverty: this explains the strong plea from 
civil society organisations and trade unions for the creation of quality jobs. 

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6 

Council  Recommendation  of  24  June  1992  (92/441/EEC).  See  also  Council  Recommendation  of 
27 July 1992 (92/442/EEC). 
For the results of the consultation: 
http://ec.europa.eu/employment_social/social_inclusion/active_inclusion_en.htm.  

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Social  assistance  and  social  services  need  to  support  the  labour  market  integration  of 
individuals, to increase their earnings capacity and to reduce benefit dependency and the risk 
of intergenerational transmission of poverty. But several respondents stressed that the impact 
of  conditionality  rules  on  the  most  vulnerable  people  must  be  carefully  monitored,  in 
particular  as  social  assistance  levels  are  already  below  the  at-risk-of-poverty  line  in  most 
Member States. 

2.3 

Responses from the social partners  

The communication launching the first-stage consultation already stressed the role played by 
the  social  partners  in  many  Member  States  in  the  design  and  monitoring  of  active  labour 
market policies, and in the negotiations on minimum wages. In their response to the Article 
138 first-stage consultation, the social partners did not support any legislative options at EU 
level for active inclusion, but rather favoured a strengthening of the existing Open Method of 
Coordination as well as a more integrated approach. They also made clear that they had a key 
role to play in improving the availability of jobs for disadvantaged people and in putting in 
place suitable recruitment procedures, as also shown by recent tripartite agreements.  

In particular, the social partners recalled that their work programme for 2006-2008 highlights 
how they can deal with the issue of disadvantaged groups. They committed themselves to do 
so  by  undertaking  to  make  a  joint  analysis  on  the  key  challenges  facing  Europe’s  labour 
markets,  looking  at  issues  such  as  the  integration  of  disadvantaged  people  in  the  labour 
market, by defining priorities to be included in a framework of actions on employment and by 
negotiating an autonomous framework agreement on either the integration of disadvantaged 
groups in the labour market or lifelong learning.  

In the debate following the presentation of the consultation results, it was clearly evident that 
social partners  have a pivotal role in promoting job retention: disadvantaged people, having 
found  a  job,  may  need  continued  support,  e.g.  in  terms  of  on-the-job  training  and  lifelong 
learning opportunities as well as suitable and flexible work arrangements to help marginalised 
people reconcile work with their efforts in dealing with social disadvantage (such as lack of 
appropriate accommodation, caring responsibilities and health problems). In other words, the 
process of social reintegration does not end at the doors of the enterprise. 

2.4 

Participation and integration of all relevant actors 

Responses  to  the  consultation  also  stressed  that  the  success  of  active  inclusion  policies 
depends  upon  the  involvement  and  cooperation  of  several  actors.  Local  and  national 
governments  have  a  fundamental  responsibility  for  designing,  funding  and  administering 
policies to secure the integration of people furthest from the labour market. Service providers 
- private, public or mixed - play a key role in implementing these policies at local level. Civil 
society organisations represent and assist the beneficiaries of such measures. Disadvantaged 
people  themselves  must  be  involved,  consulted  and  empowered  in  order  to  improve  the 
effectiveness of public policies. 

Too frequently, these actors operate in disconnected fields of social and employment policies. 
To  be  successful,  the  active  inclusion  approach  must  promote  an  integrated  implementation 
process,  among  the  local,  regional,  national  and  EU  policy  levels  and  across  the  three 
provision strands: minimum income, active labour market measures and social services. 

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A  better  understanding  of  poverty  and  social  exclusion:  recent  policy 

3. 
developments 

The  messages  received  from  the  consultations  should  also  be  considered  in  the  light  of  the 
various policy developments in the EU since the launch of the Lisbon strategy. 

The Open Method of Coordination on social protection and social inclusion and the European 
Employment Strategy have contributed to a better understanding of the complex phenomena 
of  poverty  and  social  exclusion  and  are  powerful  instruments  in  promoting  a  more  holistic 
approach, integrating the three main strands of active inclusion.  

The  2007  Joint  Report  on  social  protection  and  social  inclusion  acknowledges  that  more 
attention  should  be  paid  to  minimum  resources,  so  that  nobody  is  “left  behind”.  In  this 
respect,  the  adequacy  of  minimum  income  schemes  is  essential  to  tackle  the  underlying 
social problems and to promote the full social integration of all EU citizens, helping them to 
develop  their  full  potential.  But  multiple  disadvantages  require  multiple  and  integrated 
solutions, including inclusive labour markets and enabling social support.  

Realising the potential of inclusive labour markets in the fight against poverty and exclusion 
has been a major concern of Members states under the European Employment Strategy. They 
have agreed to offer a new start to every unemployed person by six months of unemployment 
in the case of young people and twelve months in the case of adults. By the year 2010, 25% of 
the  long-term  unemployed  should  be  participating  in  an  active  measure.  The  Employment 
Guidelines7 2005-2008 recognise that efforts to raise employment rates go hand in hand with 
improving  the  attractiveness  of  jobs,  quality  at  work  and  labour  productivity  growth,  and 
reducing  the  share  of  working  poor.  The  importance  of  inclusive  labour  markets  was  again 
highlighted  in  the  2007  Joint  Employment  Report8  which  states  that  “…Member  States  are 
devoting  more  attention  to  labour  market  reforms  that  have  an  impact  on  poverty  and 
exclusion and which encourage longer working lives. They are converging in efforts to offer 
active support to the most disadvantaged…”. Balancing the two goals of alleviating poverty 
and at the same time increase labour supply incentives is a challenge for policy-makers, who 
also have to take account of the budgetary costs that any tax and benefit reform may involve.  

Social  services  are  now  considered  as  key  pillars  of  European  society  and  the  European 
economy,  and  improving  access  to  quality  social  services  has  become  one  of  the  key 
priorities  set  by  Member  States  for  tackling  poverty  and  social  exclusion9.  The  1992 
Recommendation  already  called  on  Member  States  to  take  every  measure  to  enable  those 
concerned  to  receive  appropriate  social  support.  Since  then,  new  social  risks  have  emerged, 
linked to the transition to a post-industrial knowledge and service economy, to demographic 
change and to social trends such as a greater individualisation. These new risks make the need 
for quality social services and personalised support even more pressing.  

7 

8 
9 

See “Guidelines for the employment policies of the Member States (2005-2008)” OJ L 205 of 6.8.2005, 
p. 21. 
Council of the European Union (6706/07). 
Council of the European Union (7341/05).  

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Information  technologies  also  have  an  important  role  to  play  in  this  context  and  the 
Commission has recently launched initiatives for improving the delivery of social and health 
care services through the use of information society technologies10.  

4. 

Envisaged EU action 

Guided  by  the  results  of  this  consultation  and  by  the  developments  mentioned  above,  the 
Commission proposes to deepen the Open Method of Coordination in this area through the 
adoption of common principles and their subsequent monitoring and evaluation, respecting 
fully  the  principle  of  subsidiarity  as  well  as  the  autonomy  and  the  different  situations  and 
needs of the Member States. 

The Open Method of Coordination has become an essential tool in promoting best practices 
and ensuring the continuous monitoring of objectives at EU level. In the National Reports that 
Member  States  submitted  under  the  OMC  in  2006,  active  inclusion  was  highlighted  and 
analysed  as  one  of  the  key  priorities.  The  OMC  will  continue,  on  the  basis  of  common 
principles, to monitor and evaluate all aspects of the active inclusion approach. The specific 
modalities will be agreed in the Social Protection Committee. 

In  the  framework  of  the  OMC,  Member  States  will,  of  course,  retain  the  responsibility  for 
defining  levels  of  income  support  and  for  establishing  the  appropriate  mix  between  social 
assistance, social services provision, and making work pay, an equilibrium which depends on 
social and political preferences, social and cultural traditions and considerations of equity and 
effectiveness in tackling different types of disadvantage. 

The common principles on each of the three strands of active inclusion will stress the need for 
a holistic approach and provide a concrete and integrated framework for their implementation. 
This structured process is instrumental to the identification of the best policy responses to the 
common  social  challenge  of  guaranteeing  the  fundamental  right  of  all  EU  citizens  to  social 
and housing assistance as to ensure a decent existence for all11.  

In order to promote the identification and adoption of the common principles and to detail the 
elements  of 
issue  a 
Recommendation, which would constitute the basis for Council conclusions and a European 
Parliament resolution. 

inclusion  strategy, 

the  Commission 

the  active 

intends 

to 

The  common  principles  for  the  three  strands  will  be  developed  along  the  lines  described 
below. 

4.1 

Income support sufficient to avoid social exclusion 

The  main  elements  of  the  1992  Recommendation  concerning  income  support  enshrined  in 
sections  A  to  C(3)  remain  entirely  relevant  for  the  envisaged  strategy.  They  concern  in 
particular: 

the  recognition  of  the  basic  right  of  a  person  to  sufficient  resources  and  social 

(1) 
assistance to live in a manner compatible with human dignity; 

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11 

COM(2007)332 of 14.6.2007.  
Charter of Fundamental Rights of the European Union, art. 34 §3. 

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(2) 
making  the  recognition  of  this  right  subject  to  general  principles  including  active 
availability  for  work  or  for  vocational  training  for  those  whose  age,  health  and  family 
situation permits such active availability or, where appropriate, subject to economic and social 
integration measures in the case of other persons; 

(3) 
the implementation of this right according to practical guidelines, in particular that the 
definition  of  the  amounts  of  resources  considered  sufficient  to  cover  essential  needs  with 
regard  to  respect  for  human  dignity  should  refer  to  appropriate  indicators,  such  as,  for 
example, statistical data on the average disposable income, household consumption, the legal 
minimum  wage,  or  the  level  of  prices.  Arrangements  should  be  established  for  periodic 
review of these amounts, based on these indicators, in order that needs continue to be covered. 

4.2 

Link to the labour market 

In line with the Employment Guidelines, the common principles will stress the importance of 
breaking  down  barriers  to  the  labour  market  with  active  and  preventive  labour  market 
measures, including early identification of needs, job search assistance, guidance and training 
as part of personalised action plans.  

In  order  to  make  work  pay  for  job  seekers,  it  is  also  necessary  to  continue  reviewing  the 
incentives  and  disincentives  resulting  from  tax  and  benefit  systems,  including  the 
management  and  conditionality  of  benefits,  while  ensuring  adequate  levels  of  social 
protection.  

To support the inclusion of disadvantaged people, relevant policies on the demand side of the 
labour market include the expansion of the social economy, the development of new sources 
of  jobs  in  response  to  collective  needs,  financial  incentives  for  employers  to  hire,  anti-
discrimination law and labour law12. 

4.3 

Link to better access to quality services 

The common principles will focus on the two concepts identified as crucial in the OMC and 
the ongoing dialogue with civil society organisations13, i.e. 

•  Accessibility  of  services,  comprising  both  availability  (including  spatial  and  physical 

accessibility) and affordability; 

•  Quality  of  services,  comprising:  user  involvement;  monitoring,  performance  evaluation 
and sharing of best practice; investment in human capital; working conditions; framework 
for  equality  both  in  recruitment  policies  and  in  service  provision;  coordination  and 
integration of services; and adequate physical infrastructure, especially in relation to social 
housing14.  

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SEC(2007)329 of 6.3.2007, pp. 51-58. 
See  http://www.peer-review-social-inclusion.net/key-issues/quality-and-accessibility-of-social-services/ 
in particular Halloran J. and K. Calderon-Vera (2007) “Access to quality social services – A strategy 
paper”. 
The forthcoming Communication on SSGI will address the uncertainties concerning the application of 
Community rules. Inter alia, it will explore how to better apply public procurement rules to the field of 
SSGI. Moreover, it will complement this clarification exercise with further initiatives on the definition 
and assessment of quality. 

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All  services  of  general  interest,  including  network  industries  such  as  transport  and  public 
utilities as well as financial services, play an important role in ensuring social and territorial 
cohesion. Universal access to essential services should be guaranteed, and the Commission is 
committed to promoting this across all its policies15. Nevertheless, from the active inclusion 
perspective, the common principles will focus on social services of general interest. 

Apart  from  statutory  and  complementary social security schemes and health services, social 
services  of  general  interest  include  other  essential  services  provided  directly  to  the  person, 
which  play  a  preventive  and  socially  cohesive  role,  facilitate  social  inclusion  and  safeguard 
fundamental rights16. They include: 

Assistance for persons faced by personal challenges or crises (such as unemployment, 

(1) 
over-indebtedness, drug addition or family breakdown); 

(2) 
Activities to ensure that the persons concerned are able to completely reintegrate into 
society and into the labour market (such as rehabilitation, language training for immigrants, 
occupational training and reintegration) and to ensure access to affordable child care; 

(3) 

Activities to integrate persons with long-term health or disability problems; 

(4) 

Social housing. 

5. 

A supporting EU framework 

The implementation of the common principles will be supported, at EU level, by a systematic 
monitoring and evaluation exercise and by other initiatives or instruments complementing the 
efforts of Member States. 

the  active 

Recalling  the  importance  of  the  role  of  European  social  partners  for  the  successful 
implementation  of 
their 
commitments  in  the  work  programme  2006-2008.  The  Commission  will  examine  with  the 
social  partners  how  they  might  further  develop  autonomous  initiatives  to  enhance  the 
synergies  with  the  other  policy  strands  and  actors  in  the  active  inclusion  approach,  such  as 
public  authorities  -  including  those  most  active  in  the  field,  i.e.  often  regional  and  local 
authorities - service providers and NGOs. 

the  Commission  welcomes 

inclusion  approach, 

EU  financial  instruments  already  play  a  key  role  in  encouraging  the  development  of 
inclusion policies based on access to the labour market. The European Social Fund provides a 
long-term  financial  framework  complementing  national  and  other  sources  of  finance.  The 
Commission will encourage use of the provisions of the new ESF regulation to support active 
inclusion  measures,  namely:  a)  developing  and  testing  integrated  pathways  to  active  social 
and economic inclusion; b) mainstreaming innovative integration approaches that have a clear 
advantage  over  current  practices;  and  c)  disseminating  and  transferring  good  practice  in 
promoting social inclusion across all Member States. 

15 
16 

COM(2004)374 of 12.5.2004. 
COM(2006)177 of 26.4.2006. 

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The success of the envisaged approach depends on the commitment and full involvement of 
national,  regional  and  local  actors.  They  must  play  a  central  role  in  the  development  and 
implementation of active inclusion policies at EU level. Their best practices currently do not 
receive the visibility they deserve. The Commission will therefore support, including with the 
resources available in the framework of the PROGRESS programme, the establishment of a 
Network  of  Local  Observatories,  in  partnership  with  EU  networks  of  local  authorities, 
service providers and NGOs, to monitor and promote best practices, especially in relation to 
access to quality services. 

6. 

Conclusions and next steps  

6.1 

Consultation of social partners 

In accordance with Article 138(3) of the EC treaty, social partners are invited to express their 
views on the approach outlined in this Communication and in particular on: 

•  The proposed instrument, namely deepening the OMC in this area through the adoption of 

common principles and their subsequent monitoring and evaluation. 

•  The  content  of  the  common  principles  on  sufficient  resources,  inclusive  labour  markets 
and access to quality services as outlined in sections 4.1 to 4.3 of this Communication. 

•  The supporting EU framework as outlined in section 5 of this Communication. 

Social  partners  are  also  invited  to  add  further  comments,  and  examine  the  possibility  of 
further  initiatives,  on  the  subjects  they  addressed  in  the  first  stage  of  the  consultation  with 
regard to their specific role in promoting job retention (cf. section 2.3 above) and the possible 
synergies of their actions with the other strands of the active inclusion approach. 

6.2 

Consultation of all stakeholders 

Given  the  subject  matter  of  this  initiative,  and  the  need  for  the  involvement  of  all  relevant 
actors  (cf.  section  2.4),  the  Commission  also  invites  all  stakeholders,  including  public 
authorities  at  all  levels,  civil  society  organisations  and  service  providers,  to  express  their 
views  on  the  content  of  this  Communication.  In  particular,  the  Commission  requests  their 
opinions  on  the  effectiveness  and  comprehensiveness  of  its  proposals  to  promote  active 
inclusion. 

This Communication is also addressed to the European Parliament, the Council, the European 
Economic and Social Committee and the Committee of the Regions.  

6.3 

Next steps 

In order to involve all interested institutions and organisations at EU and national level, the 
communication  will  be  made  available  on  the  internet  site  of  the  Directorate-General  for 
Employment, Social Affairs and Equal Opportunities at: 
http://ec.europa.eu/employment_social/consultation_en.html. 
All  interested  parties  should  send  their  comments  or  suggestions  to  the  following  e-mail 
address only: 
empl-active-inclusion@ec.europa.eu. 
Comments should be sent in no later than 28 February 2008. The Commission will conduct a 
detailed examination of the contributions received, will make public its conclusions and will 
ensure their consistent follow-up. 

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