Employment, Social Affairs and Inclusion EU Commissioner: "The European Social Situation is Worrying" - Social Investment Package as a European Answer

The study of the European Commission published on 8 January 2013 follows a year which has seen several member states coping with escalating debt and cuts to public spending.

“2012 has been another very bad year for Europe in terms of unemployment and the deteriorating social situation”, Employment, Social Affairs and Inclusion EU Commissioner, Mr László Andor said. The commissioner added that it was unlikely that Europe would see much improvement in 2013, unless it achieves greater progress on credibly resolving the euro crisis, finding resources for much needed investment, which in his words includes investment in people’s skills, employability and social inclusion, as well as making finance work for the real economy

Key conclusion of the study

According to the study, with different parts of the EU seeing different social and employment trends, finding the right policy responses in certain key areas is crucial.

After a few years of persistent crisis, most national welfare systems have lost much of their ability to protect household incomes against the effects of the crisis.

What is the Commission Study is all about?

Long-term employment exclusion, its impact on the labour market and the broader social dimension, is considered in this context. The functioning and efficiency of various social protection systems is also examined, with a particular focus on the effect of distributional and design aspects.

The Review looks at the impact of wage developments and the problem of skill mismatches as well, concluding a fair and equitable structural adjustment agenda is needed.

Next steps

The Commission set up an agenda for job creation and balanced labour market reform and adopted the Employment Package in 2012. The Social Investment Package for growth and cohesion is addressing the growing risk of poverty and social exclusion.

Youth guarantee scheme: getting young Europeans back to work

On 14 January 2013 (Monday) the Plenary of the European Parliament will debate a youth guarantee schemes that entitles young people to either work, training or education after having been unemployed for four months. It has been proposed by the Commission, which during Monday’s debate will provide MEPs with more information on how it would work and how it would be funded.

Basic information about the Youth guarantee scheme

The Commission proposes that all under 25s should receive a quality offer of a job, continued education, an apprenticeship or a traineeship within four months of leaving formal education or becoming unemployed. The scheme would be financially supported by the European Social Fund and integrated into the employment policies of every member state according to its needs. Member states would also need to establish partnerships with stakeholders and ensure early intervention by employment services.

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