Document adopted
Adopted on
ETUC Resolution on Strong public welfare and social protection in transitioning to EU
Adopted at the Executive Committee meeting of 10-11 December 2024
Persisting issues
The EU still faces a series of significant social issues that are unacceptable for the wellbeing society and competitive economy it aspires to be. Their persistence represents a harm to the European Social Model as well as to the successful transitions towards a more digital, green and competitive Europe.
High rates of poverty[i], growing inequalities, social divide, social segregation and exclusion[ii], high differences in wage levels across the EU represent highly harmful vulnerabilities for the EU. They represent a shame for one of the wealthiest areas of the world, and deprive the EU society and economy of human capital for the mid- and long-term growth of a social market economy, all the more critical in times of transitions and demographic declines.
The evidence-based policy recommendations of the Report on the Future of Welfare in the EU[iii], among others, have not been taken into due account. Public expenditure for dignified ageing is approached as a mere cost; so far, funds for the social protection of those impacted by the climate and digital transitions are insufficient; social benefits are increasingly inadequate and inaccessible. The Report instead clarifies the economic costs of unaddressed social vulnerabilities which are also linked to the major threats for the sustainability of highly inclusive and efficient welfare systems[iv].
Austerity policies continue to hit public expenditure and investment for public services and especially for welfare and social security, impacting workers and communities - women[v] and some groups more than others. Whereas enhanced welfare states are crucial to making the EU more resilient against future emergencies and ongoing transition, austerity results in reduced growth and makes many EU social and economic objectives, such as gender equality, unreachable. Cuts in public spending for adequate social protection benefits, care, education and research among other public services[vi] - as per many NRRPs - deprive people of their rights and the EU of a healthy, educated, qualified and talented workforce.
Call to actions
The ETUC reiterates the call for a comprehensive set of strategies, marked by a strong holistic people-centred approach, clear political will, coherent financial resources, coordination and monitoring in partnership with social partners, namely:
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The relaunch of the Action Plan to fully implement the principles in chapter III of the EPSR: we call for a shared assessment, updated targets[vii], stringent and monitored intermediate objectives, new flagship initiatives enhancing gender, youth and transnational dimensions. Social dialogue, collective bargaining and involvement of social partners must be the integrated methodology for implementation, monitoring and evaluation of progress.
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A strong anchoring of social protection to the world of work: the future of welfare and social protection in the EU certainly concerns “people” (as per the design of mandates to the new Commissioners), however it is widely determined by “workers”, in terms of societal equity, expectations as well as adequacy and fiscal sustainability. Work-related social contributions and taxes represent redistributive features towards the whole society, enhancing universal, adequate and solidarity-based welfare states. Underpinned by high-quality and universal public services, they must be rooted in high participation in the labour market, especially of young people and women, reduction of precariousness, unvoluntary and marginal part-time, a job rich recovery, work-life balance, fair working conditions, wages and contributions.
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A sound public service agenda, underpinning all possible initiatives and strategies, including welfare, education, care, public administration, industry, enlargement, social, economic and territorial cohesion etc. None will be successfully delivered without adequately funded and staffed public services (for instance labour or tax inspectors). The EC must take forward the recommendation of the Letta report for an Action Plan on services of General interest in the context of implementing the EPSR, with the ETUC committed to contributing to the public services agenda including social protection policies. Public authorities can also play an important role as employers. Furthermore, a sound public service agenda is also a feminist agenda[viii]. Major efforts are necessary in public social security administrations in order to fully ensure workers’ rights in the transnational dimension, as well as to guarantee that the highest standards of social protection rights are equally accessible by workers, citizens and residents everywhere in the EU.
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Anti-austerity, need-based and adequate fiscal resources for welfare and social protection, coupled by effective redistributive policies and especially more just taxation[ix]. The feeling of injustice among employees – the core base of taxpayers - must be reversed for the sake of social and democratic stability. Taxation and contributory exemptions as incentives to employment are short-sighted policies that hamper any wealth redistribution, especially when applied indefinitely, without social conditionalities, respect of national collective bargaining agreements, or workers’ health and safety. Increasingly approached as private individual products or leverage for investments on the financial market, pensions are instead life savings aimed at securing dignified retirement. Systems must ensure they are adequate. As proved[x], this is best achieved via public, inclusive and collectively managed pensions with the involvement of trade unions in their governance. Public welfare must be preserved, maintaining its pivotal role than can be integrated but not substituted by private capitalisation systems.
Priority demands for the new European Commission
Substantial progress in the implementation of the Recommendation on access to social protection for workers and the self-employed (RASP). The overall TU evaluation of its implementation so far calls for a revision of national systems to make them more rights- and needs-based, for more pressure from the EC, for greater monitoring by and involvement of social partners[xi].
Dignity of ageing ensured for the increasingly ageing population, phasing out the cost-of-ageing approach of the Stability and Growth Pact.Public expenditure and investment must evolve coherently with the increasing demands of the dependent and elderly. Pension systems must aspire to adequacy and status maintenance beyond the mere protection from poverty. High quality public child, health, social and long-term care and full enforcement of provisions relating to work-life balance are rights and needs, not commodities, to be guaranteed via investment in staff, that must be formalised and protected by collective agreements. Intergenerational solidarity must be rooted in investments in education, quality job-creation, qualification and innovation that generate job opportunities for the young in a demographic context where everyone can live longer and healthier. A more human approach to migration policy must be part of an urgent revitalisation of our societies - compelling not only for welfare fiscal sustainability.
An anti-poverty strategy, rightly announced by the EC President, long overdue, must follow the ETUC guidelines called for since the launch of the EPSR Action Plan[xii]
The right to adequate, decent and affordable housing[xiii], rooted in a strategy to be developed on the basis of social dialogue - as announced by the Commissioner-designate in front of the European Parliament.
Investment in social protection and public services massive and prompt, and well-coordinated in all intervention areas in order to maximise the potential of public services as societal and macroeconomic stabilisers and enhancers[xiv]. Public high quality education, open and affordable to all along the whole life-cycle since the earliest age until university; public social, child-, health- and long-term care must be protected from underfunding, progressive externalisation and privatisation – especially when not carefully monitored and subject to stringent social conditionalities in public procurement that prevent the most vulnerable people from accessing them and increase polarisation of wealth and profits.
Public spending for social protection and social inclusion treated as an investment for the purpose of the Stability and Growth Pact, thus exempted from European fiscal and budgetary constraint’s rules.
The EC must provide evidence-based projections and information about necessary allocations to guarantee steady upward convergence in the enjoyment of principles of Chapter III of the EPSR, including a need-based assessment of vulnerabilities to be tackled, the impact of cost-efficient decisions as well as the distributional impact; the estimated costs of a lack of investment in public services and social protection in order to enact the necessary measures.