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Europe Daily Bulletin No. 12291
Contents Publication in full By article 12 / 32
SOCIAL AFFAIRS / Social

Ministers reflect on outlines of a European 'economy of well-being'

Implementation of the European Pillar of Social Rights, development of new indicators to go beyond GDP, strengthening the social dimension in the 'European Semester' budgetary process, creation of a joint formation between the Employment and Social Policy Council and the Economic and Financial Affairs Council.

These are some of the many proposals put forward by the Member States on Monday 8 July, invited by the Finnish Presidency of the Council of the EU to reflect on the concept of the 'Economy of well-being' (see EUROPE 12283/2).

A general consensus has indeed emerged on the need to combine an economic and a social approach among the interventions of the Ministers responsible for Employment and Social Affairs, based on the report of the Organisation for Economic Co-operation and Development (OECD) (see EUROPE 12290/15).

However, several Member States, such as the Czech Republic, simply recalled the need to implement the principles enshrined in the European Treaties, in particular Article 3 of the Treaty on European Union (TEU), or Article 9 of the Treaty on the Functioning of the European Union (TFEU), which stress, inter alia, the importance of social protection, the fight against exclusion or Europe's "sustainable development".

Not surprisingly, among the most recurrent points, national ministers and representatives mentioned the need to provide lifelong education and vocational training, solid and universal social and health coverage (Sweden stressed this point) and the fight against all forms of social and gender inequality. All agreed on the need to adopt a cross-sectional approach. Many insisted on the further implementation of the European Pillar of Social Rights, UN sustainable goals and the development of a strategy that would take over from the Europe 2020 strategy.

Among the most salient proposals put forward, Poland, Italy and Luxembourg suggested going beyond GDP to measure the progress of an economy, to complement it with indicators related to well-being. Belgium supported the proposal, but pointed out that the addition of such indicators was not necessary at European level.

Other Member States stressed the need to measure the impact of measures taken at European level in the social field. The evaluation must naturally be carried out after the fact, but also preemptively, before the implementation of the measures, as pointed out by Romania or Luxembourg.

Slovenia, for its part, advocated that the EU should set up mechanisms to protect labour markets at European level in times of crisis, along the lines of those developed over the past ten years to protect the financial sector.

Social policies and the 'European Semester'

But one subject was raised many times during the interventions: the use of the 'European Semester' to strengthen the social dimension, as a lever to ensure social convergence. On that occasion, Luxembourg proposed to streamline the budgetary process and give it a multiannual dimension.

As such, the ministerial lunch, which was held behind closed doors, was entirely devoted to this issue in the presence of Mario Centeno, President of the Eurogroup. Asked by EUROPE about the content of the exchanges, Employment and Social Affairs Commissioner Marianne Thyssen mentioned the project to create an "EPSCOFIN", a joint ECOFIN and EPSCO training, or a "Jumbo" Council, as Finnish Employment Minister Timo Harakka added.

Aino-Kaisa Pekonen, Finnish Minister of Social Affairs and Health, assured that the Finnish Presidency would propose conclusions on the subject at the EPSCO Council on 24 October. The Minister recalled that the Finnish Presidency will organise a high-level conference on the economy of well-being from 16 to 18 September.

A transition to a green and fair economy

In the same morning, Member States were invited to take the floor on the report presented by the European Commission entitled 'A Clean Planet for All' and, in particular, on the issue of ensuring a just transition. Again, all delegations seemed to be in complete agreement on the substance. Many ministers stressed the importance of skills (and the importance of lifelong learning), especially for the most vulnerable workers, the need for a sectoral and territorial approach. Here, the crucial role of the Structural and Investment Funds has been mentioned many times.

Poland suggested creating a specific European Fund for coal regions, which will be particularly affected by the transition to a low-carbon economy.

Hungary dissatisfied with the recommendations

When approving the country recommendations for adoption at ECOFIN the following day, Hungary made no secret of its dissatisfaction with the recommendations on its judicial system - and its lack of independence from the political authorities.

These recommendations have nothing to do with economic governance, according to the Hungarian minister.  The latter explained that he had requested amendments on several occasions, but reportedly faced the European Commission's "lack of flexibility". The Minister explained that Hungary may not be able to agree at ECOFIN if no changes are made.

Marianne Thyssen replied that independent judicial systems are essential to ensure good economic growth in the long term. "This is an essential prerequisite for a properly functioning market economy", she explained, mentioning 17 of the recommendations.

Discussions will continue tomorrow in the ECOFIN formation and could be heated. (Original version in French by Pascal Hansens)

Contents

INSTITUTIONAL
ECONOMY - FINANCE - BUSINESS
EXTERNAL ACTION
SOCIAL AFFAIRS
SECTORAL POLICIES
COURT OF JUSTICE OF THE EU
NEWS BRIEFS