C 184/66
EN
Official Journal of the European Union
25.5.2023
— The European Semester which offers a framework for the relevant monitoring of policy coordination activities based on the benchmarking framework of the Council’s social protection committee, — The Council’s conclusions from 2020 on strengthening minimum income protection during the COVID-19 pandemic and beyond inviting Member States to review their national minimum income schemes (3), — Employment guidelines 2022.
3.
General comments 3.1.
Poverty is multidimensional and it manifests in all areas of life.
Poverty reflects failures in the systems for redistributing resources and opportunities in a fair and equitable manner.
Thus a minimum income scheme is a necessary, although not sufficient, condition to enable a dignified life and a viable road out of poverty.
Poverty intersects with other forms of social injustice.
Gender and racial inequalities exacerbate the risk of poverty while poverty increases the risk of exclusion and discrimination, manifesting especially in terms of health, education and training and exposure to financial dependency and violence. 3.2.
The EESC welcomes the content of the recommendation, especially the implementation of realistic and sufficient criteria for the level and accessibility of minimum income, its legal guarantee and the reporting system, further recognition by the European Commission of the need for an active social policy at EU level and further actions to combat poverty across the EU.
The recommendation is a step towards implementing Principle 14 of the EPSR, which states that ‘everyone lacking sufficient resources has the right to adequate minimum income benefits ensuring a life in dignity at all stages of life’. 3.3.
Following Russia’s illegal and barbarous aggression against Ukraine, the current context for the Council’s political agreement is even more challenging given the sharp increase in energy prices and high rate of inflation affecting households, especially low-income families.
Against the backdrop of megatrends such as globalisation, digital and green transition and demographic change, the European labour markets are in the process of major transitions.
Minimum income systems play a key role in providing support and incentives to (re)integrate people into the labour market. 3.4.
There is a need for a rights-based approach for all to an adequate minimum income which leaves no one behind, does not have overly restrictive criteria, is based on transparent and non-discriminatory requirements and is accurately measured to ensure its effectiveness.
An inclusive society should cater for all sectors of society and Member States should introduce robust monitoring mechanisms to follow up on the minimum income and its take-up without further delays. 3.5.
Effective minimum income schemes can help to guarantee that human rights are respected, ensure that people live in dignity, help them remain active and included in society, and help integrate people into sustainable and good quality employment.
The EESC also highlights the importance of minimum income schemes for self-employed people in Europe, who should be fully entitled to the same support and benefits as other groups. 3.6.
Addressing poverty and income inequalities is important not only for fairness reasons but also to support economic growth.
As stated in the OECD report from 2021 (4), well-designed tax policies can support inclusive and sustainable growth and address the distribution of income and wealth.
Inclusive growth should in this context aim at fairness of sharing the benefits of growth as well as promoting the inclusiveness of labour markets.
The overall stabilising effect of minimum income systems for the economy should also be noted in this context. 3.7.
Minimum income schemes should be part of national strategies to combat poverty which effectively integrate measures to achieve fair wages and decent work, access to affordable and good quality essential services, access to basic social security and adequate income support, person-centred social services and active inclusion policies. 3.8.
The EESC stresses the aim of a Europe-wide methodology supported by a European analysis to help Member States define adequacy of minimum income through an appropriate method such as the agreed EU at risk of poverty (AROP) indicator of 60 % of equalised disposable income or/and underpinned by a reference budget (including food, housing, water, electricity, heating, telecommunications, health, transport, leisure and culture).
(3)
(4)
The EESC has discussed the minimum income in its opinions: For a European Framework Directive on a Minimum Income (own-initiative opinion) (OJ C 190, 5.6.2019, p. 1); Decent minimum wages across Europe (exploratory opinion requested by the European Parliament/Council) (europa.eu) — para.
1.6, 3.3.7 (OJ C 429, 11.12.2020, p. 159); European minimum income and poverty indicators (own-initiative opinion) (europa.eu) (OJ C 170, 5.6.2014, p. 23).
OECD (2021): Tax and fiscal policies after the COVID-19 crisis.