Annexes to COM(2018)130 - Monitoring the implementation of the European Pillar of Social Rights

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agreements along with economic, human rights and environmental impacts;

‣the new European Solidarity Corps is enabling young people, with a particular focus on less privileged young persons, to take part in solidarity activities and help address societal needs across Europe, which also allows them to develop their own competences and skills;

‣in the event of Stability Support Programmes, the practice has been established since the case of Greece in 2015 to make sure that these are accompanied by a social impact assessment.

Moreover, convergence towards better socio-economic outcomes, social resilience and fairness, as promoted by the European Pillar of Social Rights, is an essential part of the efforts to strengthen and complete the Economic and Monetary Union, as recalled in the Five Presidents Report of June 2015 15 and subsequent Commission proposals. 16

Graph 1 below gives an overview of the various ways in which the Commission has been mainstreaming social priorities across the board:

Graph 1. Key initiatives under this Commission in the employment and social field


In this context, the establishment of the Pillar has been a key driver to update and complement EU legislation, wherever necessary. In addition to what has been done so far, the Commission is presenting another set of initiatives alongside today's Communication, as summarised in box 1.


Box 1. The new "Social Fairness Package" presented on 13 March 2018

The present Communication is accompanied by a new Social Fairness Package, adopted by the Commission on 13 March 2018.

First, the Commission is proposing to establish a European Labour Authority, complementing previous initiatives to improve the rules for the posting of workers and the coordination of social security systems. Free movement is one of the most cherished freedoms of the internal market, benefitting individuals, economies and societies as a whole. Today, an extensive body of EU legislation is in place to ensure fair mobility but what matters is that these rules are effectively applied on the ground. In this context, the role and added value of the Authority will be to:

(a) facilitate access for individuals and employers to information on their rights and obligations as well as to relevant services;

(b) support cooperation between Member States in the cross-border enforcement of relevant Union law, including facilitating joint inspections;

(c)     mediate and facilitate a solution in cases of cross-border disputes between national authorities or labour market disruptions.

To assist with the preparation and establishment of the Authority, the Commission is also setting up an advisory group, bringing together key stakeholders.

Second, the Commission is proposing a Council Recommendation on access to social protection for workers and self-employed, which builds on a consultation of EU Social Partners and aims to encourage Member States to ensure that everyone who works can contribute and have adequate access to social protection, such as unemployment or sickness benefits. Today, about 60% of people work on full-time, permanent contracts. However, an increasing share of people work on other types of contracts, including part-time or temporary contracts, or are self-employed. This trend may give rise to inequalities and social risks if these workers do not have sufficient access to social protection. The Commission examined the option of proposing a Directive to address this issue but, given the diversity of situations and limitations of the legal framework to take action at EU level, it considers that a Council Recommendation is the appropriate way forward to steer progress at national level, ensure a level-playing field, and support upward convergence.

Finally, the Commission is working on developing a European Social Security Number, which is meant as a digital identifier to make existing systems interoperable. Millions of tourists and persons who travel, live and work in another EU country could prove easily that they are covered at home, and get quicker and easier access to the benefits to which they are entitled, knowing that their personal data will be fully protected. This would facilitate the portability of rights across borders, allow for real-time identification and verification of coverage, and also reduce risks of errors and fraud resulting from the use of paper documents. It would simplify the work of administrations at all levels. This initiative is part of the 2018 Commission Work Programme: in line with Better Regulation principles, the Commission is engaging with Member States and stakeholders and will come forward with an initiative later this year.


For the further implementation of the Pillar at EU level, the Commission will continue to make full use of all existing tools at its disposal. The use of these tools will vary, depending on the policy area and the principles of the Pillar and reflecting the nature and extent of competences at EU level. They include updating and complementing existing legislation, as set out above, improving the enforcement of EU law in the Member States, and supporting social dialogue across the EU, in addition to monitoring progress under the European Semester.

This also applies to relevant financial support through EU funds, notably the European Structural and Investment Funds, Erasmus+ and other relevant programmes. In its recent Communication on "A new, modern Multiannual Financial Framework for a European Union that delivers efficiently on its priorities post-2020" 17 , the Commission calls for the EU budget to deliver on the promises made by Leaders at the Gothenburg Social Summit and further develop the social dimension of the Union, including through the full implementation of the European Pillar of Social Rights. 18 The Commission underlined that adequate resources will be required to improve employment opportunities and address skills challenges, including those linked to digitisation. Detailed proposals for the post-2020 EU Multiannual Financial Framework will follow in spring 2018.


4. Implementing the Pillar at national level

Most of the competences and tools required to deliver on the European Pillar of Social Rights are in the hands of local, regional and national authorities, social partners as well as civil society. While the EU has an important role to play in supporting Member States, the responsibility for implementing the Pillar lies - to a very large extent - with the Member States, at various levels of government and administration. Moreover, social partners at all levels have a crucial role to play in implementing the Pillar in accordance with their autonomy in negotiating and concluding agreements. 19 Respect for the diversity of national industrial relations systems as well as the autonomy of social partners is explicitly recognised by the TFEU. Over the years the Commission has invited Member States to give social partners a greater role in the employment and social field, as their involvement is instrumental for the ownership of reforms. Non-governmental organisations, notably when they provide social services, are also of critical importance to mobilise and deliver on the Pillar.

By expressing essential principles and rights, the European Pillar of Social Rights serves as a guide towards efficient outcomes in the employment and social field. There are no one-size-fit-all solutions and the Pillar captures the diversity of national situations. Although Member States often face common challenges and share similar problems, the solutions they need to develop are bound to vary. This is due to the diversity of their national systems, traditions, different starting points and their specific socio-economic situations.

The current economic context provides a window of opportunity to promote inclusive growth, to modernise the EU social market economy and to invest in people, in line with the European Pillar of Social Rights. The EU's economy is continuing its expansion at a robust pace. 20 More than 9 million additional jobs have been created since the start of the autumn of 2014, when this Commission started its mandate. 21 The unemployment rate is steadily decreasing and at its lowest level since 2008. The number of people employed has reached 236.3 million in the EU, the highest level ever recorded. However, there are still 18 million people unemployed in the EU, household income is still below the 2008 level in a number of Member States and many social challenges remain, particularly when considering the pace and scope of ongoing developments – from digitisation to ageing. There are also still large disparities in situations among and within Member States.

Priorities will necessarily vary and the European Semester is an opportunity for Member States to make progress with and report on the delivery of the Pillar. The Country Reports published recently in the context of the 2018 European Semester cycle 22 outline the nature and extent of challenges at national level to work towards better working and living conditions, fairer and better-functioning labour markets, improved education and training systems to equip people with appropriate and relevant skills, and social welfare systems that are both sustainable and adequate. The National Reform Programmes, expected from Member States in April, will set out renewed priorities and further concrete actions at national level. These programmes will be the basis for Country-Specific Recommendations that the Commission will propose later in spring 2018. In parallel, the Commission will continue to work with Member States to ensure that available EU funding is well used in support of structural reforms or to invest in people, in line with the priorities identified in the Country Reports and Country-Specific Recommendations.


5. Monitoring the implementation of the Pillar

The European Semester of policy coordination provides an appropriate tool for monitoring progress in key areas covered by the European Pillar of Social Rights.
The European Semester is based on in-depth analysis, specific to the situation of each country: it acknowledges the diversity of challenges and the need to prioritise in the light of different starting points and available means across countries. The European Semester is also the way to structure collective efforts over time: it builds on in-depth dialogue and reporting throughout the year, which is transparent and open to all actors, and it is used in particular to structure peer reviews and benchmarking among Member States. Building on the progress achieved in recent years to strengthen the social dimension of the European Semester, the Commission has started to fine-tune existing tools and working methods to reflect the European Pillar of Social Rights since it was proclaimed. This does not require fundamental changes or the creation of new instruments, or additional administrative burden on the side of Member States.

A more thematic follow-up will also be required to cover the depth of the various principles of the Pillar and to review effective follow-up and take-up on the ground. Regular EU publications – such as the annual Joint Employment Report and the Report on Employment and Social Developments – will be used to study specific issues in-depth. EU agencies active in the field 23 will also be tasked with developing in-depth reporting for the principles falling more squarely within their responsibilities. In turn, EU-level social partners and civil society organisations may decide to focus more deeply on certain principles of particular interest to them.

As part of the European Semester, three new elements will be added to help monitor the implementation of the European Pillar of Social Rights:

‣Mainstreaming the priorities of the Pillar in the European Semester while selecting themes for detailed reporting on an annual basis: the principles and rights enshrined in the Pillar will be taken into account throughout the European Semester in monitoring, comparing and assessing the progress made. At the same time, some specific themes pertaining to the Pillar will be highlighted for a detailed assessment every year. This applies notably to the Annual Growth Survey (issued in November), which sets out economic and social priorities at EU level, and the Country Reports (issued in February/March), which form the basis for further country-specific guidance. The choice of themes will be made in consultation with all actors, and notably the relevant committees representing the Member States.


‣Providing technical assistance, promoting benchmarking and exchanging good practices: the European Semester offers a forum for dialogue with stakeholders, exchanging experience and strengthening mutual learning among Member States,
with a view to supporting upward convergence towards the best performers. The bodies that deal with employment and social policy issues under the European Semester, such as the Employment Committee and the Social Protection Committee, have already started work on the benchmarking of policy convergence. In addition, in its Communication on "Further steps towards completing Europe's Economic and Monetary Union: a Roadmap" 24 , the Commission suggested that ongoing work in the Council and in the Eurogroup on the benchmarking of policies should be reinforced. Moreover, in addition to the financial support provided through the European Structural and Investment Funds, the Commission's Structural Reform Support Service has stepped up its offer of tailor-made support for institutional, administrative and policy reforms. 25  


‣Assessing and monitoring performances with the help of the new Social Scoreboard: together with its proposal for the Pillar, the Commission presented a new Social Scoreboard. Its role is to help screen the performances of Member States in the employment and social field along the various dimensions of the Pillar. It was used,
for the first time, to help inform and deepen the analysis in the 2018 Joint Employment Report and the indicators were used to back up the analysis of the 2018 Country Reports. While they do not exhaust the discussion on the monitoring on the Pillar, they shed useful light on the situation on the ground, allowing for comparisons over time and across countries. The Scoreboard and its statistical underpinnings will be further developed with the support of Member States.


Box 2. The new EU Social Scoreboard 26


6. Conclusions

For decades, the European Union has helped deliver increasing prosperity and social fairness. Today, Europe is one of the most attractive places to live in the world. However, the economic and social crisis of the last decade has had a far-reaching impact on our social fabric, which questioned the essence of our social market economy.

As Europe has turned the page of the crisis, it is time to look to the future, to match the speed of changing realities and to tackle the broader socio-economic challenges confronting Europe, so as to renew and sustain our economic and social models.

By making clear what Europe stands for, the European Pillar of Social Rights expresses principles and rights that are essential for social progress for the benefit of citizens and societies alike, and which provides a compass for further action.

The commitments taken by EU Leaders at the Gothenburg Social Summit are part of a broader agenda to build the future of the European Union at 27. Delivering on the European Pillar of Social Rights and making it a reality for all Europeans is a shared responsibility. Governments, social partners and non-governmental organisations, local, regional and European Institutions are ready and committed to contribute to this endeavour.


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  https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-pillar-social-rights/european-pillar-social-rights-20-principles_en

(2)

On 8 March 2016, the Commission presented a first outline of the European Pillar of Social Rights and launched a public consultation. The Commission received more than 16,500 online replies and nearly 200 position papers. The consultation culminated in a concluding Conference "Going Forward Together" on
23 January 2017. As part of the consultation, the European Parliament adopted a Resolution on the Pillar on
19 January 2017 (2016/2095(INI). The European Economic and Social Committee adopted an opinion on
25 January 2017 (SOC/542-01902-00-01-ac). The Committee of the Regions adopted an Opinion on 11 October 2016 (CDR 2868/2016).

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  http://www.socialsummit17.se/

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 The European Council of 14 December 2017 underlined the following: "The Social Summit in Gothenburg recalled the need to put people first, to further develop the social dimension of the Union based on a shared commitment and established competences, and to promote convergence through efforts at all levels, including
by social partners. As a first step the following should be taken forward: implementing the European Pillar of Social Rights at Union and Member State level, with due regard to their respective competences;
the Commission is invited to propose appropriate monitoring (…)."

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COM(2017) 2025.

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COM(2017) 206.

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COM(2017)240.

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In the Rome Declaration, on 25 March 2017, EU Leaders declared: "In these times of change, and aware of the concerns of our citizens, we commit to the Rome Agenda, and pledge to work towards: … A social Europe: a Union which, based on sustainable growth, promotes economic and social progress as well as cohesion and convergence, while upholding the integrity of the internal market; a Union taking into account the diversity of national systems and the key role of social partners; a Union which promotes equality between women and men as well as rights and equal opportunities for all; a Union which fights unemployment, discrimination, social exclusion and poverty; a Union where young people receive the best education and training and can study and find jobs across the continent; a Union which preserves our cultural heritage and promotes cultural diversity."

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SWD (2018) 67..

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https://ec.europa.eu/commission/sites/betapolitical/files/social_dimension_of_europe_overview_of_initiatives_en.pdf  

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COM (2017) 673 final.

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Cf. 2018 Annual Growth Survey (COM(2017) 690 final) and the Communication on the assessment of progress on structural reforms, prevention and correction of macroeconomic imbalances, and results of in-depth reviews (COM(2018) 120).

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 The EFSI already supported such projects for an expected total investment value of over EUR 10.5 billion. In the EFSI infrastructure and innovation window, 18 social infrastructure projects have already been approved and are expected to mobilise a total of over EUR 6 billion in investments. These include the construction, expansion or refurbishment of schools and universities, clinics and hospitals, and affordable social housing in the community. In the EFSI small and medium-sized enterprises window, the total expected investment mobilised in the social sector amounts to EUR 4.5 billion. Recently, the EFSI doubled the firepower of the European Programme for Employment and Social Innovation for microfinance and social entrepreneurship.


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Examples are the Anti-Tax Avoidance Directive, the Directive on the automatic exchange of information on tax rulings and advance pricing arrangements, the Directive on country-by-country reporting concerning multinationals and the proposal to re-launch the Common Consolidated Corporate Tax Base.

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  https://ec.europa.eu/commission/publications/five-presidents-report-completing-europes-economic-and-monetary-union_en

(16)

On 6 December 2017 the Commission presented a Communication on "Further Steps Towards Completing Europe's Economic and Monetary Union: A Roadmap" (COM(2017)821).

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COM(2018) 98 final.

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The Commission stressed in the Communication: "The next Multiannual Financial Framework should better align available financing with our political priorities. It should build on what works well today while also anticipating the challenges of tomorrow. In line with the Rome Declaration, the budget should enable a Europe that is safe and secure. A Europe that is prosperous and sustainable. A Europe that is social. And a Europe that is stronger on the global scene." The Commission also underlined: "The EU budget will need to deliver on the promises made by Leaders at the Gothenburg Social Summit. This means further developing the social dimension of the Union, including through the full implementation of the European Pillar of Social Rights, and supporting young people and the mobility of European citizens".

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A recent example for social partner action is the Autonomous Framework Agreement they agreed on 8 March 2017 on Active Ageing and the Inter-generational Approach. An example for a Social Partners Agreement, which has been implemented in EU law is the Council Directive (EU) 2018/131 of 23 January 2018 implementing the Agreement concluded by the European Community Shipowners' Associations (ECSA) and the European Transport Workers' Federation (ETF) to amend Directive 2009/13/EC in accordance with the amendments of 2014 to the Maritime Labour Convention, 2006, as approved by the International Labour Conference on 11 June 2014.


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See the Winter 2018 Economic Forecast of the European Commission:

https://ec.europa.eu/info/business-economy-euro/economic-performance-and-forecasts/economic-forecasts/winter-2018-economic-forecast_en and the Quarterly Report on Economic and Social Developments: http://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=8063 .

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The majority of these newly created jobs can be considered as of "good quality": 78% of the newly created jobs since 2014 Q3 are permanent and 88% of them are full-time.

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Communication on the assessment of progress on structural reforms, prevention and correction of macroeconomic imbalances, and results of in-depth reviews (COM(2018) 120)).

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The European Centre for the Development of Vocational Training (Cedefop); the European Foundation for the improvement of living and working conditions (Eurofound); the European Agency for Safety and Heath at Work (EU-OSHA); the European Training Foundation (ETF).

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COM(2017) 821 final.

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Since 2015, the SRSS has been implementing close to 500 projects of technical support. Examples of such projects in the social field include: (i) supporting the implementation of a guaranteed minimum income; (ii) supporting the design and implementing of integration policies for migrants and refugees; (iii) improving disability assessment systems and the services for people with disabilities; (iv) improving the design and implementation of active labour market policies; (v) supportive the reform of special education.

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For more information on the Social Scoreboard, see:

https://composite-indicators.jrc.ec.europa.eu/social-scoreboard/#