The EU ministers responsible for employment and social affairs took note, on 16 June in Luxembourg, of the opinion of the Employment Committee (EMCO) and the Social Protection Committee (SPC) regarding the introduction of a Social Imbalance Procedure in the ‘European Semester’ budgetary process, as proposed by Belgium and Spain in December (see EUROPE 12813/1).
This would be a system for identifying and responding quickly and effectively to imbalances in social rights, in the same spirit as the existing mechanism for macroeconomic imbalances. It would also strengthen the weight of the EU Council’s Employment, Social Affairs, Health and Consumer Affairs (EPSCO) configuration in the governance of the ‘European Semester’.
However, on Thursday, Member States remained divided on this approach, even sceptical, notably Austria, which states that there are sufficient instruments to pursue this objective. Sweden and the Netherlands have taken the same line, fearing an increase in bureaucracy.
Ireland also sought further clarification of the concept of social imbalances. “We don't know what is meant by that and how it will work in practice”. “National competences” must also be respected, said the minister, Damien English.
Germany, on the other hand, was in favour of such a mechanism, which says it would strengthen the objectives of social convergence, although “ questions remain”. Berlin will in any case take part in the pilot project, which will be tested in several countries, said the minister Hubertus Heil.
The opinion of the two committees concluded that the position of the Member States remains “divergent”, in particular with regard to the additional administrative burden it would represent. Some of the Member States want a more precise definition of this social imbalance and the criteria for triggering it, the two committees confirmed.
“With regard to the final country analyses, several Member States agree with the Belgian-Spanish proposal for a possible inclusion in the country reports, assuming that their publication will be resumed in the future as part of a winter biannual package”, states the opinion of the two committees.
Pilot project
The mechanism could also find its place in the form of a final country-specific analysis on social imbalance risks in the Joint Employment Report, along the discussions and negotiations in the committees that lead to the finalisation of the report by the March EPSCO.
“In the event of a political agreement on the introduction (of this procedure), a number of Member States are in favour of setting up a mechanism that is broadly in line with the Belgian-Spanish proposal, albeit with some important reservations related to its timing”, say the two committees. Luxembourg has therefore decided to integrate the ‘European Semester’ in 2024.
In the meantime, several countries will therefore carry out a pilot project to test this mechanism: alongside Germany, Finland, Luxembourg and Portugal have indicated that they will be part of it.
Link to the committees’ opinion: https://aeur.eu/f/260 (Original version in French by Solenn Paulic)