Opinion of the Committee of the Regions on Active inclusion
Date: 2008-06-18
Institutions: European Committee of the Regions
Subjects: aid to disadvantaged groups, labour market, poverty, social integration, social participation, social policy

9.10.2008

EN

Official Journal of the European Union

C 257/1

III

(Preparatory Acts)

COMMITTEE OF THE REGIONS

75TH PLENARY SESSION, HELD ON 18 AND 19 JUNE 2008

Opinion of the Committee of the Regions on Active inclusion

(2008/C 257/01)

THE COMMITTEE OF THE REGIONS considers that:

— For an optimal policy of active inclusion a fourth, cross-cutting pillar is needed: social participation.

— Active integration is the most important element of active inclusion. Active inclusion relies on the

‘Work First Principle’: every citizen without work should be integrated into work or education.

— A coherent policy mix should be primarily developed and carried out at regional and local level. The
main responsibility for creating jobs lies with enterprises and social partners, as key players in the
field, in cooperation with local and regional authorities.

— What is meant by sufficient income is different in each country, region or local community. Income
support should be seen as adequate if structural poverty could be combated. This level can be defined
as ‘sufficient’. It is impossible to formulate a general rule about the financial level that constitutes suffi-
ciency for the EU as a whole. National, regional and local authorities are together responsible for a
policy which has adequate income support. At EU level this should be discussed within the Open
Method of Coordination.

— For socially and economically deprived regions and cities in Europe, the implementation of best prac-
tice active inclusion policy mixes for the citizens furthest removed from the labour market requires
financial support from the EU. The ESF's budget for local and regional authorities must therefore be
directly accessible for active inclusion policies.

— Social, subsidised or sheltered employment, social enterprises and cooperatives are instruments that
can play an important role in the policy mix at the local and regional level. These enterprises should
not be judged by the normal competitive European market rules (for example less rigid rules regarding
public procurement and state aid are needed).

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Official Journal of the European Union

9.10.2008

Rapporteur: Henk KOOL (NL/PES), Deputy Mayor of The Hague, the Netherlands

Reference document

Communication from the Commission to the Council, the European Parliament, the European Economic
and Social Committee and the Committee of the Regions on Modernising social protection for greater social
justice and economic cohesion: taking forward the active inclusion of people furthest from the labour market

COM(2007) 620 final

POLICY RECOMMENDATIONS

General remarks

1.
In 2006 in the 25 countries of the European Community,
80 million people (16 percent of the population) are at risk of
poverty. Active inclusion and the fight against poverty rely
heavily on the integration of people furthest from the labour
market. The persistence of large numbers of people at risk of
poverty and excluded from the labour market represents an
inescapable challenge to the objective of social cohesion in the
European Union Treaty.

2.
The European Commission put forward three pillars to
enhance the active inclusion of people furthest from the labour
market: 1) adequate and sufficient income support, 2) active
integration, 3) social services of high quality.

For an optimal policy of active inclusion a fourth, cross-

3.
cutting pillar is needed: social participation.

Active inclusion calls for an integrated and comprehensive

4.
approach to the four pillars.

5.
Active integration (the second pillar) is the most important
element of active inclusion. Active inclusion relies on the ‘Work
First Principle’: every citizen without work should be integrated
into work or education. The first
(adequate and sufficient
income support) and third pillar (social services of high quality)
are supporting elements. The fourth pillar (social participation)
is the last resort in the policy of active inclusion. Citizens who
are not able to work should be helped with income and other
measures to participate in society. We agree with the Commis-
sion that
form an integrated, comprehensive
approach. Each authority should therefore strive for the right
balance between social welfare, social services, community
services as well as financial and non-financial
incentives to
work.

these pillars

7.
The main actors to develop and implement policies are
the local and regional authorities. The EU's role is supportive.
This definition of a comprehensive policy of active inclusion is
proportional and based on the principle of subsidiarity.

8.
The four pillars (income support, active inclusion policy,
access to high quality social services and social participation) are
interlinked and should reinforce each other. For each region,
target group and individual person concerned, an optimal policy
mix between these four pillars is required. Policies of active
inclusion are tailor-made to allow for the differences between
target groups and individual persons. Depending on the national
economic model, the relative importance of these four pillars
and the policy instruments selected in each pillar may differ
among the Member States and the local and regional authori-
ties.

9.
The results of policies to integrate people furthest from
the labour market are most clearly felt by regional and local
governments. They also bear the consequences of weaknesses in
these policies at local, regional, national or European level. A
coherent policy mix should therefore be primarily developed
and carried out at regional and local level. Local and regional
authorities know the local circumstances, the characteristics of
the labour market and the many actors that can play a key role
in implementing a comprehensive approach to active integra-
tion.

10.
Local and regional authorities should therefore create
effective partnerships with other public authorities, private
enterprises, social partners, NGOs and representatives of clients
to implement a coherent policy mix.

6.
The Member States and their local and regional authorities
are primarily responsible for active inclusion strategy and policy.
But to stimulate the development and exchange of these poli-
cies, common principles are put forward in line with the EU
objective of social cohesion.

11.
Local and regional authorities need a large degree of
policy freedom to develop and implement such policies, which
should be designed and implemented in cooperation with other
public and private bodies. European and national policies (fiscal,
immigration, education,
labour contracting, etc.) should be
tailored to and consistent with the needs of local and regional
policy development and implementation.

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Hindrances

12.
European,
national, regional and local legislation and practices should be
eliminated.

and bottlenecks

caused by

Active integration

13.
The most important instrument of active inclusion is
individuals, a
improving active integration. To include all
comprehensive approach to active integration is needed. For
each region, target group and individual an integrated policy
mix is also needed. Regional and local governments are the
main actors to develop and implement these coherent policy
mixes with their partners (e.g. national government, employers,
other public authorities, NGOs). The essence of a comprehensive
and integrated policy mix lies in eliminating bottlenecks for as
many people as possible in order to integrate them into the
labour market. This can be done by providing advice, guidance
and training for paid work and by creating employment for
sheltered groups. Sheltered employment means employment for
those who are not yet fit to enter into regular work at once.

An optimal policy and a comprehensive approach to

14.
active inclusion include the following elements:

— the encouragement for young people and creation of oppor-
tunities for them to obtain an initial qualification to enhance
their chances in the labour market;

— the reintegration of people without a job into the workplace
(Work First principle). At the same time, they should be
offered education, training, counselling, access to childcare
facilities etc.;

— the use of social, sheltered, subsidised work for the people

further away from the labour market;

— the use of instruments of social participation (for instance
voluntary work or sports activities) for those who, because
of psychological and/or physical handicaps, are not fit for
regular work or sheltered employment. At the same time,
the socio-economic situation of those who need to be inte-
grated into the labour market, should be improved, through
income-support and access to social services of high quality;

— the central principle is that each person should have the

possibility to participate in society.

The use of intensive personalised action plans helps to

15.
improve active integration.

16.
Target groups are an important element of the compre-
hensive, integrated policy mix. At regional and local level public
authorities should design and implement policies that are most
effective for actively including all individuals regardless of their
backgrounds, but tackling the specific barriers they face.

17.
The main responsibility for creating jobs lies with enter-
prises and social partners, as key players in the field, in coopera-
tion with local and regional authorities. At national and regional
level, the central government has a facilitating responsibility for
creating optimal economic conditions such as good education,
effective job placement,
tax measures and flexicurity (social
security and flexible labour options). Local and regional authori-
ties, social services and NGOs are the final link in the chain,
particularly for those furthest away from the labour market.
Naturally, individuals also have their own personal responsibil-
ities.

18.
Public, social and private employers should be strongly
encouraged to improve existing jobs and create new quality jobs
(offering sufficient income levels, good labour conditions and
training/education). Practical
jobs are particularly
needed. Private employers can be stimulated by national, local
and regional authorities to create jobs by optimising the entre-
preneurial climate for them.

(low-skilled)

Local and regional authorities are important employers
19.
themselves. As employers they should also implement the prin-
cipals laid out in this document.

20.
In the case of people who are far removed from the
labour market because of physical or psychological disability,
there may also be a need to create and fund social and subsi-
dised work and work for sheltered groups. Local and regional
authorities can play an important role here by stimulating social
enterprises.

21.
The coexistence of all kinds of jobs (temporary, flexible,
part-time and full-time, as well as homeworking) can help those
furthest away from the labour market to enter employment.

All kinds of formal and informal means of education and
22.
training, partial training schemes, accreditation of prior learning
(APL) and a focus on lifelong learning,
including further
training, should be part of the coordinated effort to improve the
qualifications of the people furthest removed from the labour
market as well.

23. More efforts are needed by national, regional and local
governments to improve the quality of education in line with
the needs of the labour market. The local authorities should
have a more active employment policy and the needs of the
local market should best be considered. In Member States in
which labour market policy is a local responsibility, local autho-
rities should be encouraged by national governments, with help
of the EU, to monitor the local labour market.

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24.
The comprehensive, integrated policy mix of active inte-
gration should include incentives to facilitate entrepreneurship
among those furthest removed from the labour market them-
selves.

education, housing and healthcare, income support to supple-
ment labour income (if income is based on low productivity
income support to overcome high costs of mobility,
levels),
to increase one's qualifications and compe-
income support
tences, support to start one's own business.

Income support

Social participation

25.
people furthest removed from the labour market need a
sufficient level of income support and other forms of assistance
to live a dignified life and to maintain a certain level of fitness
to be able to reintegrate into the labour market. It is correct to
underline that this is a fundamental principle in the European
Union.

26. What is meant by sufficient income is different in each
country, region or local community. Sufficiency is influenced by
the level of income support, price levels, the characteristics of
the household, taxes, duration of exclusion, cultural, social and
historic factors, etc. Income support should be seen as adequate
if structural poverty could be combated. This level can be
defined as ‘sufficient’. It is impossible to formulate a general rule
about the financial level that constitutes sufficiency for the EU as
a whole. National, regional and local authorities are together
responsible for a policy which has adequate income support. At
EU level this should be discussed within the Open Method of
Coordination.

27.
A common principle could be formulated at EU level
stating that the difference between minimum incomes earned in
the labour market and the level of income support should be
large enough to encourage individuals and target groups to
work. This difference is an important financial incentive in the
comprehensive policy mix.
is an important
the Commission, many Member States and
principle for
regional and local governments. National,
local and regional
authorities should therefore take into account the risk of the
poverty trap when developing and applying income support
measures.

‘Make work pay’

Income support should be provided only to those who
28.
are unable to earn a labour market income or who are only
able to earn an income below subsistence level (e.g. because of
their low productivity or their need to accept low income jobs).
National, local and regional authorities should not hinder the
functioning of the labour market and should engage in tight
monitoring and serious claim assessment, acting as a strict gate-
keeper for those seeking income support. At the same time,
active policies should exist to reach all those in need of social
insurance, income support and social participation.

Income support could take many forms and is ideally
29.
level. Examples of income
tailor-made at local and individual
support could be:
for
members of the labour force who are neither in employment
in-kind support to improve nutrition, clothing,
nor studying,

income support at subsistence level

Some of those furthest from the labour market suffer
30.
from multiple personal and physical handicaps. Integration into
the labour market and even sheltered work is not a realistic
option for them. Part of the comprehensive approach is that
local and regional authorities also care for these citizens. Several
instruments should be used to stimulate their social participa-
tion.

31.
Local and regional authorities should use all kinds of
financial and in-kind instruments to facilitate the social partici-
pation of those who are not working. These instruments stimu-
late social, cultural, sports, welfare and voluntary activities for
those who would otherwise be at risk of social isolation.

Access to high quality social services

32.
To make income support, active integration and social
participation as effective as possible personalised action plans
are needed. These ensure that the necessary supportive measures
for an individual client are planned in time and guaranteed.
Local and regional authorities need the means to create an infra-
structure of quality services and to make personalised action
plans.

The need for and characteristics of personalised action
instruments for local and

for a wide variety of

33.
plans call
regional authorities.

34.
Local and regional authorities should stimulate the use of
instruments and management practices that can improve the
quality of social services (for instance universal access to the
Internet, one-stop front office, lex silentio, binding and appro-
priate deadlines for taking a decision on income or in-kind
support).

Facilitating guidelines

35.
To be successful, active inclusion policies must integrate
local, regional, national and EU policies. They must include and
combine minimum income, active labour market measures,
education and social services. There are many pitfalls that can
hinder the implementation of comprehensive, integrated policies
at local and regional level. National, local and regional govern-
ments
should stimulate the implementation of a
together
comprehensive approach.

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36.
For socially and economically deprived regions and cities
in Europe, the implementation of best practice active inclusion
policy mixes for the citizens furthest removed from the labour
market requires financial support from the EU. The ESF's budget
for local and regional authorities must therefore be directly
accessible for active inclusion policies. A European budget to
finance
Interreg
approach is a good example of effective support from the Euro-
pean Union.

social participation is

also needed. The

37.
Social, subsidised or sheltered employment, social enter-
prises and cooperatives are instruments that can play an impor-
tant role in the policy mix at the local and regional level. These
enterprises should not be judged by the normal competitive
European market rules (for example less rigid rules regarding
public procurement and state aid are needed).

38.
The comprehensive approach is mainly carried out by
local and regional authorities for the local population. It should
be legally possible for these authorities to focus their policies of
active inclusion on the local population.

39.
Local and regional authorities should play a leading role
in implementing active inclusion policy measures. According to
the EU principle of subsidiarity a common EU principle could
be formulated stating that national and EU legislation and prac-
tices should follow the needs formulated at local and regional
level
for lifelong
labour law, anti-
incentives for employers,
learning, financial
discrimination law, differentiation of minimum wage levels etc.).

taxes, benefit structures, stimuli

(marginal

Open Method of Coordination

The Open Method of Coordination provides a framework
40.
of political coordination without legal constraints. In such a

Brussels, 18 June 2008.

framework the Member States agree to identify and promote
their most effective policies in the field of active inclusion with
the aim of learning from each other's experiences. The following
policy recommendations are formulated to strengthen the Open
Method of Coordination.

41. Many policies aimed at improving active inclusion and
income support for people furthest removed from the labour
market are not effective enough. High quality comparative
studies and evaluations of regional and local policies of active
inclusion are needed to improve the efficiency and effectiveness
of these policies. The European Commission could stimulate
such high quality studies.

Peer

42.
review by local and regional authorities and a
network of regional and local observers (Progress) can enforce
learning processes. The quality of the reviews and the quality
and activities of the network of regional and local observers
should be clearly defined from the start.

43.
Differences in labour supply and demand, variations in
pay levels and in income support across Europe create labour
movements that can hinder the active inclusion of local people
furthest from the labour market. OMC can be used to discuss
the influence of these movements on the question of active
inclusion.

44.
The development and dissemination of best practices can
be stimulated by annually selecting the best local and regional
authorities for active inclusion and rewarding them with a Euro-
pean award. Examples of good practice could be systematised
along the lines of the work carried out by ESF's thematic work
groups.

The President

of the Committee of the Regions

Luc VAN DEN BRANDE