Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of  the Regions - "A renewed commitment to social Europe: Reinforcing the Open Method of Coordination for Social Protection and Social Inclusion" {SEC(2008) 2153} {SEC(2008) 2169} {SEC(2008) 2170} {SEC(2008) 2179}
Date: 2008-07-02
Institutions: European Commission
Subjects: European social policy, cooperation policy, economic and social cohesion, evaluation method, health care, pension scheme, poverty, social integration, social security

EN 

EN 

   EN 

 
 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.7.2008 
COM(2008) 418 final 

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

"A renewed commitment to social Europe: Reinforcing the Open Method of 
Coordination for Social Protection and Social Inclusion" 

{SEC(2008) 2153} 
{SEC(2008) 2169} 
{SEC(2008) 2170} 
{SEC(2008) 2179} 

EN 

   EN 

 
 
 
  
1. 

INTRODUCTION 

This  Communication  is  part  of  the  Commission's  Communication  on  a  "Renewed  Social 
Agenda:  Opportunities,  access  and  solidarity  in  21st  century  Europe".  It  proposes  the 
reinforcement of one of the most important instruments in support of social development in 
the  EU  and  the  Member  States,  i.e.  the  Open  Method  of  Coordination  in  the  field  of  social 
protection and social inclusion (hereinafter, "Social OMC"). This method, launched in 2000 
as  voluntary  self-evaluating  process,  based  on  common  objectives,  complements  a 
comprehensive mix of legislation, financial instruments (including the European Social Fund) 
and  coordination  processes  (particularly  the  Lisbon  Strategy)  that  have  supported  social 
cohesion and solidarity within the EU. 

Over the last eight years, Member States have used the Social OMC to coordinate their efforts 
to  address  old  and  new  social  challenges  and  to  adapt  their  social  protection  systems  to  the 
new social realities. They have defined common objectives and agreed on indicators to orient 
their  policies  for  social  inclusion,  for  the  reform  of  pension  systems  and  in  the  field  of 
healthcare and long-tem care. Throughout this period the Social OMC has proved its worth by 
supporting  mutual  learning,  by  promoting  wider  involvement  of  stakeholders,  by  giving 
impulse  to  the  modernisation  of  social  protection  systems,  by  increasing  awareness  of  the 
multi-dimensional nature of poverty and social exclusion, by forging a shared approach to the 
common challenges and by bringing to the fore emerging common issues.  

However,  delivery  on  common  objectives  -  fighting  poverty  and  social  exclusion,  ensuring 
pension adequacy and sustainability, ensuring equitable access to health and long-term care – 
remains a challenge. An open coordination process, based on voluntary cooperation between 
numerous and diverse Member States, cannot, by definition, produce large-scale results in a 
limited period of time. Yet, there is a broad consensus – as illustrated by a large number of 
written and oral exchanges in the Social Protection Committee (SPC) and among all relevant 
stakeholders1  -  that  more  can  and  should  be  done  to  make  full  use  of  the  potential  of  the 
Social OMC.  

This Communication proposes to strengthen the Social OMC by improving its visibility and 
working  methods,  strengthening  its  interaction  with  other  policies,  reinforcing  its  analytical 
tools  and  evidence  base,  and  enhancing  ownership  in  Member  States  through  peer  review, 
mutual learning and involvement of all relevant actors. The reinforcement will in particular be 
achieved  by  adopting  progressively,  in  agreement  with  the  Member  States,  some  of  the 
successful methods applied under the Lisbon strategy. This approach, respecting the principle 
of  subsidiarity  and  the  voluntary  nature  of  the  OMC,  will  create  a  new  stimulus  in  the 
development of national policy analysis and definition. At the same time, it will improve the 
efficiency  and  the  visibility  of  the  EU's  social  dimension  as  an  integral  part  of  the  Lisbon 
Strategy  and  ensure  better  integration  of  economic,  employment  and  social  policies,  as 
requested by the European Council in March 2008.  

1 

See the Impact Assessment for details. 

EN 

2 

   EN 

 
                                                 
2. 

EVOLUTION AND MAIN ACHIEVEMENTS OF THE SOCIAL OMC 

The overall assessment of the Social OMC among Member States and stakeholders is largely 
positive.  It  is  recognized  as  a  tool  to  promote  progress  in  the  social  sphere  and  as  an 
innovative  instrument  in  European  governance2.  It  has  furthered  reform,  fostered  a 
willingness  to  cooperate  and  learn  from  each  other  in  the  search  for  the  best  solutions  to 
achieve social progress, without the obligation to define a “minimum common denominator”. 
Regular  reviews  of  its  policy  impact  and  of  the  effectiveness  of  its  working  methods  are 
conducted  within  the  Social  Protection  Committee  (SPC),  in  the  dialogue  with  civil  society 
stakeholders and social partners and in the regular reports of independent experts. 

The Social OMC has undergone substantial reform since its launch in 2000. In 2005, the three 
coordination processes (social inclusion, adequate and sustainable pensions and high quality 
and  sustainable  healthcare  and  long-term  care)  were  merged  into  one  single  Social  OMC3. 
Common objectives were established and updated by the European Council, which confirmed 
their validity during its 2008 spring session (see Annex 1). The Social Protection Committee 
(SPC)  agreed  indicators,  both  overarching  and  specific  for  the  three  strands  to  monitor 
progress towards the commonly agreed objectives (see Annex 2).  

In  addition,  the  process  was  structured  as  a  three-year  cycle  with  simplified  reporting. 
Member States submit National Strategic Reports in the first year, which are synthesised in a 
Joint Council and Commission Report on Social Protection and Social Inclusion. This "Joint 
Report"  includes  separate  country  profiles  highlighting  the  priority  themes  and  national 
challenges.  The  intervening  years,  without  reporting,  are  dedicated  to  in-depth  analysis  and 
mutual learning on priority themes.  

The streamlining of the social OMC has led to a stronger focus on policy implementation and 
a  positive  interaction  with  the  renewed  Lisbon  Strategy  for  Growth  and  Jobs.  The  2006 
national reports were more strategic, focusing on a limited selection of priorities and coherent 
approaches for achieving the common objectives. The 2007 Joint Report concluded that joint 
consideration  of  the  full  set  of  common  social  objectives  was  helping  to  improve  policy 
consistency  and  effectiveness.  Moreover,  the  new  cycle  contributed  to  deeper  analysis  and 
boosted  the  learning  process  on  key  priorities.  The  2008  Joint  Report,  focusing  on  child 
poverty,  access  to  health  care,  evolving  long-term  care  needs,  longer  working  lives  and 
privately managed pensions, confirmed the richness of the new approach. 

3. 

THE NEED TO STRENGTHEN THE SOCIAL OMC 

These  positive  results  of  the  OMC  don't  take  away  the  necessity  to  strengthen  the  method, 
especially in order to improve delivery on the agreed common objectives and make a better 
use  of  the  commonly  agreed  indicators.  In  spite  of  the  European  Council's  commitment  in 
2000  "to  make  a  decisive  impact  on  the  eradication  of  poverty",  there  are  no  signs  of  an 
overall  reduction  in  poverty  rates  in  the  EU.  16%  of  EU  citizens  (78  million)  are  at  risk  of 
poverty.  Among  them,  children  are  at  even  greater  risk:  19%.  Pension  reforms  have  not 
removed  the  risk  of  inadequate  pension  provisions  for  future  generations,  and  health 
inequalities (shorter lives, worse health status in disadvantaged groups) persist.  

2 
3 

The Impact Assessment gives large account of the scientific and public debate on the Social OMC.  
Working together, working better: A new framework for the open coordination of social protection and 
inclusion policies in the European Union, COM(2005) 706 final. 

EN 

3 

   EN 

 
                                                 
Finding  solutions  to  these  problems  is  in  the  first  place  the  responsibility  of  national 
authorities, in line with the principle of subsidiarity. As shown by its achievements, the OMC 
has  been  a  catalyst  for  reform  in  the  Member  States;  it  can  be  even  more  effective  by 
following the approach outlined below.  

3.1. 

Increasing political commitment and visibility 

The Lisbon Strategy model 

The renewed Lisbon Strategy for Growth and Jobs, with its focus on implementation and 
with its advanced governance arrangements, involving Member States, the Commission, the 
Council of Ministers and the European Parliament in a partnership approach, provides both a 
model  and  a  key  reference  for  the  reinforcement  of  the  Social  OMC.  The  success  of  the 
Lisbon Strategy in terms of economic and employment performances over the last few years 
show that strong political commitment at the highest level, coordinated efforts for reform and 
peer review can produce concrete and visible results.  

One  of  the  strengths  of  the  Growth  and  Jobs  Strategy  lies  in  the  fact  that  it  is  based  on  a 
partnership approach and driven by a commonly agreed policy agenda. At the same time, its 
sophisticated  methodological  framework  is  supplemented  by  a  combination  of  selected 
indicators  and  quantitative  targets,  which  makes  policy  scrutiny  more  effective,  transparent 
and credible. On this basis, the Commission provides a systematic assessment of the progress 
achieved  by  each  country  and  proposes  country-specific  recommendations  and/or  points  to 
watch.  These  proposals  allow  Member  States,  in  the  European  Council  and  the  Council  of 
Ministers, to reach consensus on the best policies to pursue at the European and national level. 
Moreover, the emphasis on easily understandable targets facilitates comprehension and public 
awareness of the process.  

The importance of positive interaction between the Social OMC and the Lisbon Strategy was 
highlighted  in  the  Commission  Communication  on  the  OMC  of  2005:  "the  OMC  should 
parallel  and  interact  closely  with  revised  Lisbon,  "feeding-in"  to  growth  and  employment 
objectives,  while  Lisbon  programmes  “feed  out”  to  advance  social  cohesion  goals".  Higher 
growth and more jobs have in themselves not been sufficient to achieve the hoped-for results 
in terms of poverty reduction and improvement of the circumstances of the most vulnerable. 
Consequently,  the  European  Council  reconfirmed,  in  March  2008,  "the  importance  of  the 
social dimension of the EU as an integral part of the Lisbon Strategy" and stressed the need 
further to integrate economic, employment and social policies4.  

It  seems  therefore  logical  to  progressively  adopt  some  of  the  methods  and  the  approaches, 
which are used under the renewed Lisbon Strategy for Growth and Jobs for the Social OMC. 
It would strengthen the effectiveness of the Social OMC. It would enhance implementation of 
national  policies  towards  the  achievement  of  common  social  objectives  and  increase  the 
commitment  and  visibility.  It  would  produce  a  more  substantial  input  into  the  Lisbon 
Strategy,  in  line  with  the  European  Council's  conclusions,  and  ensure  optimal  interaction 
between  jobs,  growth  and  social  policy.  At  the  same  time,  this  approach  would  be  fully 
compatible  with  the  principle  of  subsidiarity  and  the  voluntary  nature  the  Open  Method  of 
Coordination.  This  is  illustrated  in  other  areas  of  open  coordination  (education  and 

4 

The Single Market Review of November 2007 also called for such an integrated approach, highlighting 
that market opening and social reforms can and should go hand in hand. See: A single market for 21st 
century Europe. COM(2007) 724 final, 20.11.2007. 

EN 

4 

   EN 

 
                                                 
employment)  for  which  EU  targets  have  been  set,  such  as  employment  rates,  school  drop-
outs, lifelong learning, and which add substantially to the dynamism of the Lisbon Strategy. 

Setting targets 

A number of indicators have already been agreed among Member States in the areas of social 
protection and social inclusion (see annex 2), and they are sufficiently robust as a basis for the 
introduction  of  quantitative  targets.  This  could  in  particular  be  considered  for  "making  a 
decisive impact on poverty eradication". In spite of this commitment, taken by the European 
Council  in  2000,  there  is  still  a  long  way  to  go.  Targets  would  introduce  a  new  dynamism; 
they  could  be  set  for  the  reduction  of  poverty  in  general  as  well  as  for  specific  forms  of 
poverty, such as child poverty which is currently three points higher than the poverty rate for 
the total population (19 against 16%), and concerns one child in four in some countries; in-
work  poverty  which  hits  8%  of  the  working  population  and  is  on  the  increase;  persistent, 
long-term  poverty,  for  which  robust  indicators  will  be  available  soon;  and  poverty  of  older 
people (65+), which is also an indicator of pension adequacy. 

Since  there  is  a  need  to  monitor  carefully  the  adequacy  of  future  pensions,  a  target  for  the 
reform of pension systems could be related to a minimum level of income provided through 
pensions, whether publicly or privately provided. The implementation of the objectives in the 
field of healthcare and long-term care could be supported by targets related to access and 
quality of healthcare and social care. In addition, there could be health-status related targets, 
for example on increasing life expectancy (differing among Members States by as much as 13 
years  for  men  and  7  years  for  women)  and  healthy  life  years,  and  reducing  infant  mortality 
(still around 10 per thousand live births in some Member States). Health status is decisive for 
active participation in the labour market, longer working lives and for reducing poverty. 

The  introduction  of  these  quantified  targets,  supported  by  the  commonly  agreed  indicators, 
based  on  robust  analytical  tools,  will  help  Member  States  to  sustain  commitment  and  work 
more concretely towards the achievement of common objectives. In order to take account of 
their  diversity,  particular  national  context  and  different  points  of  departure,  Member  States 
could define national targets.  

The national targets could be part of a differentiation along pathways, making it possible for 
groups  of  countries  with  a  similar  situation  or  problems,  to  work  together.  This  method  is 
already being implemented for flexicurity within the Lisbon Strategy and was to some extent 
used  in  a  thematic  analysis  of  child  poverty  in  2007.  The  experience  so  far,  although  still 
limited, suggests that it is a good basis for more tailor-made policy analysis and advice and 
can  realistically  connect  individual  Member  States  to  common  objectives.  The  Commission 
will  explore  the  development,  in  the  OMC  context,  of  pathways  as  well  as  of  common 
principles on the analogy of its proposals on flexicurity endorsed by the European Council in 
December 2007. 

Commission Recommendations 

Discussions  in  the  Social  Protection  Committee  cover  a  wide  range  of  subjects  related  to 
social protection and social inclusion. The subjects that are part of the OMC could be further 
consolidated by formalising convergence of views whenever it arises. The Commission will 
contribute to this by making, where appropriate, use of Recommendations based on Article 
211 of the Treaty, setting out common principles, providing a basis for monitoring and peer 
review.  Political  endorsement  from  the  other  Institutions  will  give  strength  and  visibility  to 
such  common  principles.  The  Commission  intends  to  develop  this  approach  gradually, 
building  on  the  experience  of  the  Recommendation  on  Active  Inclusion  which  the 

EN 

5 

   EN 

 
Commission envisages presenting in October 2008 as a basis for Council Conclusions and a 
European Parliament Resolution. 

Better reporting, communication and dissemination 

On the basis of the approach outlined above, the Commission will enhance its capacity to 
assess and monitor progress both at EU and at national level. Reinforced monitoring should 
be reflected in the periodical Joint Council and Commission Report on Social Protection and 
Social Inclusion, which constitutes the basis for the contribution of the EPSSCO Council to 
the Spring European Council. The European Parliament will be informed on a regular basis. 
Moreover,  the  Commission  will  use  the  Social  Situation  Report,  prepared  each  year  under 
Treaty  Article  143,  to  present  its  own  assessment  of  current  trends  and  of  progress  towards 
the  common  objectives  to  the  other  institutions,  with  a  view  to  broaden  and  enrich  the 
political debate. Member States are invited to continue to report every third year on progress 
achieved within the OMC in an integrated way, subject to future discussions on the future of 
the Lisbon Strategy. 

Communication  and  dissemination  of  results  will  be  made  more  effective  through  the 
continuous  development  of  a  proactive  communication  strategy  drawing  on  all  possibilities 
provided by the PROGRESS programme. This is part and parcel of the Social OMC as a way 
to  share  knowledge,  to  stimulate  "positive  competition"  among  peers  and  to  contribute  to 
sustained mobilisation and commitment. In particular, the Commission will increase its efforts 
to  make  information  related  to  the  achievements  of  the  Social  OMC  widely  accessible, 
comprehensible and useful. The renewed web-site on social protection and  social inclusion5 
will be an important tool in this regard.  

3.2. 

Strengthening the positive interaction with other EU policies 

Mainstreaming  

As  underlined  in  the  Commission's  Communication  on  a  holistic,  cross-cutting  Renewed 
Social  Agenda,  it  is  generally  recognized  that  social  policy  considerations  must  also  be 
mainstreamed throughout EU policies (e.g. competition, internal market, economic policy, 
health, immigration, trade, agriculture, etc.). The Commission will pursue its  own  efforts to 
produce  robust  impact  assessments  on  each  new  policy  initiative,  and  in  this  context  pay 
particular  attention  to  social  impacts.  The  Social  Protection  Committee  has  already  paid 
increasing  attention  to  mainstreaming  of  social  objectives,  also  drawing  on  the  specific 
experience already gained in the EU on gender mainstreaming6. The Commission will further 
work  with  the  Social  Protection  Committee  in  order  to  strengthen  the  shared  impact 
assessment capacity.  

Horizontal coordination 

The Social OMC has increasingly become a reference point for a wide range of social issues 
that  are  high  on  Member  States'  agendas  and  cut  across  different  policy  areas,  such  as  the 
social  impact  of  migration;  the  social  inclusion  of  ethnic  or  disadvantaged  minorities, 
including  Roma  communities;  poverty  in  rural  areas;  long-term care  and  social  inclusion  of 
the disabled; social consequences of climate change, environmental degradation and trends in 
energy  prices;  educational  disadvantage  and  unequal  access  to  continuous  training  and 

5 
6 

http://ec.europa.eu/employment_social/spsi/social_protection_en.htm 
Article  3(2)  of  the  EC  Treaty  requires  the  EU  to  eliminate  inequalities,  and  to  promote  equality, 
between women and men in all its activities. 

EN 

6 

   EN 

 
                                                 
lifelong learning; financial education and access to basic financial services; digital divide and 
social exclusion; active ageing and intergenerational solidarity.  

The opening of the Social OMC to cross-cutting issues has visibly increased its relevance and 
impact, and paved the way to better horizontal coordination. Fruitful cooperation between the 
Social  Protection  Committee  and  other  relevant  Committees,  including  the  Employment 
Committee and the Economic Policy Committee, has been established and should be further 
strengthened. The same is true for the ongoing process of developing synergies with closely 
related  policy  areas,  such  as  the  OMC  on  Education  and  Training,  the  EU  Health  Strategy7 
and  the  European  Agenda  for  the  Integration  of  Migrants.  The  Commission  will  further 
explore ways to reinforce the coordination between the SPC and other Committees and 
High-Level groups; it will also ensure the efficiency of its own permanent inter-service group 
for mainstreaming social inclusion and social protection. 

3.3. 

Reinforcing the analytical tools 

The PROGRESS programme will support the enhancement of statistical capacity and data 
collection,  particularly  in  areas  where  comparable  data  are  lacking  or  insufficient.  For 
example,  existing  EU-wide  surveys  must  be  reviewed  in  order  better  to  cover  material 
deprivation  (including  digital  exclusion),  household  wealth,  the  situation  of  migrants,  the 
transition  from  work  to  retirement;  to  collect  data  on  life  expectancy  by  socio-economic 
status; and to improve the availability and analysis of data disaggregated by gender.  

The PROGRESS programme will also support the Survey on Health, Ageing and Retirement 
and  the  new  European  Household  Survey,  as  well  as  in-depth  analysis  of  specific  subjects, 
helping  Member  States  improve  their  policies  in  particularly  critical  areas.  Greater 
involvement of the scientific community and stronger links with other ongoing research 
activities,  within  the  Commission  and  international  organisations,  will  further  contribute  to 
developing knowledge- and evidence-based policies. 

3.4. 

Better ownership through peer reviews, mutual learning and involvement of all 
relevant actors  

Peer reviews 

Peer reviews have proved to be useful and enriching exercises for enhancing mutual learning. 
They  should  be  used  more  extensively  in  the  Social  OMC  and  in  a  more  strategic  manner. 
Better context information, a stronger analytical base and broader dissemination of the results 
would contribute to the identification of good practices and facilitate policy transfer. Ensuring 
greater  involvement  in  peer  reviews  of  officials  at  local  and  regional  levels  will  also  be 
important.  The  Commission,  together  with  the  Social  Protection  Committee,  will  examine 
how to upgrade the modalities of the 2009 round of peer reviews.  

New tools for mutual learning 

The PROGRESS programme offers support for the testing of new tools for mutual learning 
and exchange of best practices, e.g. projects for temporary pooling and  transfer of expertise 
between  Member  States;  training  on  strategic  planning,  mainstreaming,  coordination, 

7 

The healthy life years indicator in the Lisbon strategy is an example of the integration of the social and 
economic dimensions of better health. 

EN 

7 

   EN 

 
                                                 
involvement  of  stakeholders,  monitoring  and  evaluation  in  the  Social  OMC  process. 
PROGRESS  can  also  help  the  development  of  "social  experimentation"  as  a  way  to  test 
innovative ideas before engaging in large-scale social programmes, for example in the field of 
minimum income, child benefits, or long-term care; the programme will support the study, the 
dissemination and the evaluation of social experimentation projects.  

Involvement of all relevant actors 

Regional  and  local  authorities  should  be  better  involved  in  the  EU  process  for  social 
protection and social inclusion. At present their involvement remains limited in most Member 
States. Several countries have made considerable progress in involving civil society and other 
relevant  stakeholders  in  the  policy  planning  phase,  but  this  is  rarely  continued  into  the 
implementation phase. Experience shows that coordination and participation of relevant actors 
throughout the full policy cycle are essential for effective implementation. The Commission 
proposes to make these governance aspects increasingly the subject of mutual learning efforts 
within the Social OMC. On this basis the Commission will develop voluntary guidelines for 
Member States.  

4. 

SUMMARY AND CONCLUSION 

In order to make full use of the potential of the Social OMC, the present Communication has 
set out a number of areas where the method can be improved, reinforced or further developed. 
These measures revolve around four objectives: first, increasing political commitment and the 
visibility of the process; second, strengthening the positive interaction with other EU policies; 
third,  reinforcing  the  analytical  tools  underpinning  the  process,  with  a  view  to  moving 
towards  the  definition  of  quantified  targets  and  enhancing  evidence-based  policymaking; 
fourth,  increasing  ownership  in  Member  States,  by  boosting  implementation  and  enhancing 
mutual learning. 

Some  of  the  measures  amount  to  a  consolidation  of  existing  practices.  Others,  in  particular 
target  setting,  imply  more  substantial  changes  and  will  require  consensus-building  among 
Member States and stakeholders. Therefore, the Commission envisages a gradual approach of 
which the sequencing and the necessary prioritisation will be discussed with Member States 
and other key stakeholders. 

A  reinforced  OMC  in  the  field  of  social  protection  and  social  inclusion  will  provide  an 
important  contribution  to  the  implementation  of  the  Renewed  Social  Agenda  and  will 
underpin the renewed commitment to social Europe. 

EN 

8 

   EN 

 
ANNEX 1 

OBJECTIVES OF THE OMC FOR SOCIAL PROTECION  

AND SOCIAL INCLUSION 

The overarching objectives of the OMC for social protection and social inclusion are to 
promote: 

–  (a)  social  cohesion,  equality  between  men  and  women  and  equal  opportunities  for  all 
through  adequate,  accessible,  financially  sustainable,  adaptable  and  efficient  social 
protection systems and social inclusion policies; 

–  (b)  effective  and  mutual  interaction  between  the  Lisbon  objectives  of  greater  economic 
growth,  more  and  better  jobs  and  greater  social  cohesion,  and  with  the  EU's  Sustainable 
Development Strategy; 

–  (c)  good  governance,  transparency  and  the  involvement  of  stakeholders  in  the  design, 

implementation and monitoring of policy. 

The following objectives apply to the different strands of work: 

A decisive impact on the eradication of poverty and social exclusion by ensuring: 

–  (d) access for all to the resources, rights and services needed for participation in society, 
preventing  and  addressing  exclusion,  and  fighting  all  forms  of  discrimination  leading  to 
exclusion; 

–  (e) the active social inclusion of all, both by promoting participation in the labour market 

and by fighting poverty and exclusion; 

–  (f) that social inclusion policies are well-coordinated and involve all levels of government 
and  relevant  actors,  including  people  experiencing  poverty,  that  they  are  efficient  and 
effective  and  mainstreamed  into  all  relevant  public  policies,  including  economic, 
budgetary, education and training policies and structural fund (notably ESF) programmes. 

Adequate and sustainable pensions by ensuring: 

–  (g)  adequate  retirement  incomes  for  all  and  access  to  pensions  which  allow  people  to 
maintain,  to  a  reasonable  degree,  their  living  standard  after  retirement,  in  the  spirit  of 
solidarity and fairness between and within generations; 

–  (h)  the  financial  sustainability  of  public  and  private  pension  schemes,  bearing  in  mind 
pressures on public finances and the ageing of populations, and in the context of the three-
pronged strategy for tackling the budgetary implications of ageing, notably by: supporting 
longer  working  lives  and  active  ageing;  by  balancing  contributions  and  benefits  in  an 
appropriate and socially fair manner; and by promoting the affordability and the security of 
funded and private schemes; 

–  (i)  that  pension  systems  are  transparent,  well  adapted  to  the  needs  and  aspirations  of 
women  and  men  and  the  requirements  of  modern  societies,  demographic  ageing  and 
structural change; that people receive the information they need to plan their retirement and 
that 

EN 

9 

   EN 

 
–  reforms are conducted on the basis of the broadest possible consensus. 

Accessible, high-quality and sustainable healthcare and long-term care by 
ensuring: 

–  (j) access for all to adequate health and long-term care and that the need for care does not 
lead to poverty and financial dependency; and that inequities in access to care and in health 
outcomes are addressed; 

–  (k)  quality  in  health  and  long-term  care  and  by  adapting  care,  including  developing 
preventive care, to the changing needs and preferences of society and individuals, notably 
by developing quality standards reflecting best international practice and by strengthening 
the responsibility of health professionals and of patients and care recipients; 

–  (l)  that  adequate  and  high  quality  health  and  long-term  care  remains  affordable  and 
financially  sustainable  by  promoting  a  rational  use  of  resources,  notably  through 
appropriate incentives for users and providers, good governance and coordination between 
care  systems  and  public  and  private  institutions.  Long-term  sustainability  and  quality 
require the promotion of healthy and active life styles and good human resources for the 
care sector. 

EN 

10 

   EN 

 
OVERARCHING INDICATORS FOR MONITORING THE SOCIAL OMC 

ANNEX 2 

1a - At-risk-of-poverty rate (total, children and elderly) + Illustrative threshold value – EU 
Share of people with an income below 60% of the national median income8. 

1b - Relative median poverty risk gap – EU 
Difference between the median income of people living below the at-risk-of poverty threshold and the 
threshold itself, expressed as a percentage of the at-risk-of poverty threshold. 

1c - Persistent at-risk-of poverty rate (only available from 2010 onwards) – EU 
Persons at-risk-of poverty in the current year and at least 2 years during the previous 3 years.  

2 - Inequality of income distribution (S80/S20) – EU 
Ratio of the total income received by the 20% of the country's population with the highest income to 
that received by the 20% of the country's population with the lowest income.  

3 - Healthy life expectancy – NAT 
Number of years that a person at birth, at 45, at 65 is still expected to live in a healthy condition (not 
hampered in activities of daily living).To be interpreted jointly with life expectancy  

4 - Early school leavers – EU 
Share of persons aged 18 to 24 who have only lower secondary education and have not received 
education or training in the four weeks preceding the survey. 

5 - People living in jobless households – EU 
Share of adults (18-59 and not student) and children living in households where no one works 

6 - Projected Total Public Social expenditures – NAT 
Age-related projections of total public social expenditures (pensions, health care, long-term care, 
education and unemployment transfers), current level and projected change in share of GDP 

7a - Median relative income of elderly people – EU 
Median income of people aged 65+ as a ratio of median income of people aged 0-64 

7b - Aggregate replacement ratio – EU 
Median individual pensions of 65-74 relative to median individual earnings of 50-59, excluding other 
social benefits  

8 - Self reported unmet need for medical care – NAT + Care utilisation – NAT 
Total self-reported unmet need for medical care due to "financial barriers" or "waiting times" or "too 
far to travel", by income quintile. To be analysed together with the number of visits to a GP or 
specialist during the last 12 months. 

9 - At-risk-of-poverty rate anchored at a fixed moment in time – EU 
Share of people with an income below the at-risk-of-poverty threshold calculated in income year 2004, 
adjusted for inflation over the years. 

8 

Unless otherwise specified, poverty indicators in this list relate to the equivalised disposable income of 
households defined as the household's total disposable income (after benefits and taxes) adjusted to take 
account of its size and composition. See full list of indicators at: 
http://ec.europa.eu/employment_social/spsi/common_indicators_en.htm  

EN 

11 

   EN 

 
 
                                                 
 
10 - Employment rate of older workers – EU 
Persons in employment in age groups 55 - 59 and 60 – 64 as a share of the same age group 

11 - In-work poverty risk – EU 
Individuals who are classified as employed and who are at risk of poverty. 

12 - Activity rate – EU 
Share of employed and unemployed people in total population of working age 15-64 

13 - Regional disparities – coefficient of variation of employment rates – NAT 
Standard deviation of regional employment rates divided by the weighted national average.  

14 - Total health expenditure per capita – NAT 
Total health expenditure per capita in PPP 

EN 

12 

   EN