Debate: Follow-up of the Porto Social Summit of May
Date: WEDNESDAY, 9 JUNE 2021
Speaker: Nicolas Schmit
Language: EN

I would like once again to praise the Portuguese Presidency and particularly Prime Minister Costa and yourself, Secretary of State, for putting the strengthening of the social dimension high in the European agenda and providing steer, vision and determination.  It is safe to say that the Porto Social Summit is a major achievement. EU institutions, Member States, social partners and civil society have rallied around the common aim of further deepening the implementation of the European pillar of social rights as a fundamental element of the recovery, contributing to fair transitions and upward social and economic convergence.  I came before Parliament in March to present the social pillar action plan and the Parliament’s contribution has played in this respect a very decisive role. Based on your input and concrete proposals for the implementation of the social pillar, including on key targets, we have designed a long-term vision and a coherent and ambitious roadmap to shape our post-pandemic economies and societies in a fairer, more inclusive and sustainable manner so as to improve the well-being of our citizens.  It was an urgent step to take in the face of the digital and green transitions. Those are necessary transformations, just as it is necessary to make them work for everyone, especially for the most vulnerable or those exposed to the fundamental changes we are heading for in terms of their jobs and their income.  As stated in the Porto declaration, the pillar of social rights is a fundamental element of the recovery, but also of the Union’s drive towards a digital, green and fair transition. It was also an urgent step to take because this pandemic risks leaving permanent scars and throwing millions of Europeans into poverty, and among them a lot of young people.  It was the right step to take after a decade of growing inequalities, low wages, low pensions, which also led to political distrust. Since March we have taken a major leap forward, from the leap of faith of Gothenburg, Porto marked the moment to turn words into action and rally around a different message and a different project. The Porto Social Summit has resulted in the commitment that our citizens expect, a commitment to a fairer and better future for all.  Porto is a collective pledge from Member States, social partners, civil society and the EU institutions, that people can count on us to deliver concrete solutions for the challenges they face in their daily lives. Having all these stakeholders committing to implement the pillar is an important political novelty brought by this summit. It reinforces the notion enshrined in the social market economy: all actors have a role to play in keeping with their sphere of competence.  Altogether, Porto sent a strong signal and marked a shift with respect to our European social model. This is not simply seen as a feature that we need to protect, this is considered as the engine of our future prosperity and well—being. To make sure that this time is different, to make sure that we indeed reinforce the European social model, Member States have agreed to three new social targets set by the European Commission. By 2030, we will need to reach an employment rate of 78%. We need to target women and young people. This also means we have to remain ambitious with our proposals on minimum wage and pay transparency, but also for people with disability.  By 2030, we will also have developed adult training, aiming to achieve the objective of at least 60% of adults participating in training every year, to ensure everyone remains relevant and seizes the opportunities that tomorrow’s world of work will offer.  And by 2030, we will have to double down on our efforts to lift at least 15 million Europeans out of poverty. It is the focus of our Child Guarantee Initiative, which aims at supporting children at risk of poverty and social exclusion and providing equal opportunities, as well as of our proposal on minimum wage to combat in-work poverty. It will remain the focus of our upcoming initiative on homelessness and our proposal on minimum income.  What are the next steps? Implementing the action plan and achieving its new targets by 2030. Member States have committed to this. The governance of the implementation of the pillar action plan is the key to success.  First, we will have to follow up with Member States and stimulate the adoption of national targets. We will miss our objective if some make considerable progress, while others stagnate. We have to improve life opportunities, working conditions and social protection for all in all Member States.  Second, we will have to report on our progress towards reaching the targets, firmly anchoring the social pillar in the European Semester process. We have proposed a revised social scoreboard that is currently being discussed with Member States. This is a tool that helps measure social progress in this regard.  I also welcome the initiative taken by social partners on the ongoing reflection on alternative measures to GDP. As stated in the Porto declaration, we will also have to regularly take stock of our progress at the highest level. We will have to be ambitious and I would call on the European Parliament to support, and I would say to stimulate, this ambition. This means that we have to strengthen our social economic governance.  Finally, we want to track the impact of future social investments under the Recovery and Resilience Facility so we make sure this recovery is job-rich and fair. We have to look into the distributional effect of investments and reforms. We cannot claim to help the most vulnerable and then only look at the big picture. In this context we have to ensure a just transition. We have to measure the impact of our policies on people’s lives. Together with Member States, we have to set up adequate coordination mechanisms to deliver concrete progress for the European people.  I am looking forward to having the Parliament’s views, not only on the result of Porto, but also precisely on the follow-up. And you have been a driving force since Gothenburg to the summit of Porto, to build this social Europe which is so important for our Union.