Strengthening social equity is a prerequisite for overcoming the crisis induced by the Covid-19 pandemic. This is the message of the 2020 edition of the Employment and Social Developments in Europe (ESDE) report, published on Tuesday 15 September.
The document shows that the Covid-19 pandemic has profound health, economic, employment and social implications, which largely threaten the social progress previously achieved by the EU. It calls on the EU and its Member States to take full advantage of the opportunities offered by the transition to a greener and more digital economy and to build inclusion, solidarity and resilience into the design of all policies.
It highlights the benefits of partial unemployment policies and calls on Member States to continue their efforts. It points out that the social investment (including requalification programmes) required by the ecological transition could amount to at least 20 billion euros by 2030.
Minimum wage and income
It also stresses the added value of adequate minimum wages and minimum income, which can have a beneficial effect on the social mobility of Europeans.
“It is timely to reflect on the role that minimum wages can play in energising labour supply and protecting workers from social risks, especially in the aftermath of severe recessions such as the current one”, the report notes, as the Commission is due to come forward with an initiative on the subject on 28 October, following its consultation with social partners.
Regarding minimum income, currently being tested in Germany, it concludes that receiving a minimum income does not necessarily discourage participation in the labour market. “However, setting minimum income standards should be done in coordination with enhanced work incentives, to improve minimum income’s impact on poverty reduction”, says the 160-page document. Link: https://bit.ly/3kktENW (Original version in French by Sophie Petitjean)