Auf dem Weg zu einer Europäischen Gesellschaft Sozialpolitik

Auf dem Weg zu einer Europäischen Gesellschaft

Sozialpolitik

Presentation Structure

• Definition• Social Security Models• Theories of the Welfare State• Politics of the Welfare State• Historical Development of EU Social Policy• Difficulties of a Social Europe• Difficulties of Different Systems• Citizens’ Attitudes• Discussion

Definition of Social Insurance

• Its basic features are: the insurance principle under which a group of persons are "insured" in some way against a defined risk, and a social element which means that the program is shaped in part by broader social objectives, rather than being shaped solely by the self-interest of the individual participants. Social insurance coverage can be provided for a number of different types of insured conditions, from disability and death to old-age or unemployment.

• 3 most typical: Unemployment/ Health/ Pension

Basic types of models of a social state

• The British “Beveridge” Model– Ex: Great Britain, Ireland, Denmark…

• The German “Bismarck” Model– Ex: Germany, France, Belgium…

The “Continental” Model

• Has its roots in Bismarck’s social laws.• three pillars: health insurance of the workers (15 June

1883), accident insurance (6 July 1884) and pensions insurance (22 July 1889).

• Socio-political consciousness developed during industrialization, when the “labour issue” gained in importance.

• Workers at focus of socio-political interest.• Financing from contributions; employee and employer

contributions.

The “Anglo-Saxon” Model

• Introduced in 1911 and reformed in 1943 by William Beveridge.

• State social policy has its origins in the struggle against poverty, which was not a specific problem of the workers.

• Target groups were the “particularly needy, the children and those incapable of self-organization”.

• Everybody had equal claims to provision, and services were financed from taxes.

• Oriented to needs and a minimum level of income.• Based mainly on the liberal and individualist doctrine.

Difference in Contributions

Theories of Welfare State Expansion

• The “logic of industrialism” school

• State-centric theories

• Theories of political class struggle

Social-Democracy

• Traditionally identified as the political motor force of welfare states.

• People have to be understood in social context, rather than as individuals.

• ‘Solidarity', which means not only standing shoulder-to-shoulder but the creation of systems of mutual aid.

• Socialism calls for people to be enabled to do things through collective action.

Conservatism

• Welfare is a secondary issue.

• Emphasis on traditional values in work, the family, and nationhood.

• A strong male-breadwinner/family approach to social policy and therefore favor direct transfers to families.

Liberalism

• Liberalism begins from the premise that everyone is an individual, and that individuals have rights.

• Liberals mistrust the state and argue that society is likely to regulate itself if state interference is removed.

• F.Hayek argues that all state activity, whatever its intentions, is liable to undermine the freedom of the individual; that society is too complex to be tampered with; and that the activities of the free market, which is nothing more than the sum total of activities of many individuals, constitute the best protection of the rights of each individual.

Redestribution of Wealth

Historical Development of European Social Policy

• 1957 to 1972: The Rome Treaties laid the foundations for European social policy

• 1972 to 1987: At the 1972 Paris summit, European social policy was extended, taking on a profile of its own for the first time.

• 1987 to 1992: The “Single European Act” • In 1992: New EU regulations in 3 areas:

- workplace health and safety - “social dialogue” - structural fund

Maastricht Treaty

• National policy has precedence over common action.• The convergence criteria:

– A high degree of price stability.– The sustainability of the government financial position

(annual government borrowing should not be above 3% of the GDP and total public borrowing should not exceed 60% of GDP).

– Exchange Rate Stability (no devaluation).• Stephen Gill (1998) therefore describes the

Maastricht– Treaty as a major element of the new "disciplinary neo-

liberalism" that was institutionalised by the European Union.

The Future of the EU Welfare State?

• Globalisation is intensifying competition for markets around the world. At the same time, in recent years, EU growth rates have not lived up to expectations. This has brought claims that in a more competitive environment, Europe can no longer afford the ’luxury’ of strong welfare measures. The EU must cut spending on social protection and ease regulation for business.

• Member States and other various key policy actors are torn between conflicting policy objectives, that is, the need to increase economic competitiveness and the need to maintain popular social benefits.

Difficulties of a Social Europe

• Asymmetry between Econ Europe and Social Europe– EU level– National level

Difficulties of a Social Europe

• Asymmetry on EU Level– Ever since the forming of EU, economic

integration has been the goal and the most important means. An integrated social policy has been left behind.

Difficulties of a Social Europe

• Asymmetry on the National Level– Member states lose control over some

important economic policies, but are still responsible for people’s benefits.

– Problems:

Difficulties of a Social Europe

• Difficulties in Social Policies due to Econ Integration– The monetary policy is controlled by ECB.– The “stability and growth pact” constrains

national financial policies.– Liberalization makes it no more possible to

use public-sector industries as employment buffer.

Difficulties of a Social Europe

Total Expenditure on Social Protection(EU)

Total Expenditure on Social Protection(Scandinavian Countries)

Total Expenditure on Social Protection(Continental European Countries)

Total Expenditure on Social Protection(South European Countries)

Total Expenditure on Social Protection(Anglo-Saxon Countries)

Total Expenditure on Social Protection(New EU Members)

Total Expenditure on Social Protection(Per Capita PPS)

Expenditure on Pensions(EU)

Expenditure on Pensions(Scandinavian Countries)

Expenditure on Pensions(Continental European Countries)

Expenditure on Pensions(South European Countries)

Expenditure on Pensions(Anglo-Saxon Countries)

Expenditure on Pensions(New EU Members)

Difficulties of a Social Europe

• Supply Side Strategies– Lower tax burdens, further deregulation,

relaxation of employment conditions, welfare cutbacks.

• Regime Competition– Social dumping and tax dumping.

Difficulties of Different Systems

• Difficulties Facing by Different Systems– Scandinavian– Anglo-Saxon– Continental European

Difficulties of Different Systems

• The Scandinavian Problem (inequality or more jobs?)– Fiscal and budgetary constraints.– Increasing political tax resistance.

Difficulties of Different Systems

• The Anglo-Saxon Problem– Wage inequalities and an expansion of

low-paid jobs.– Inability to produce a well-trained labor

force.– Accumulative cycles of social disadvantage

and exclusion of vulnerable groups.

Difficulties of Different Systems

• The Continental European Problem– High fixed labor cost is an obstacle to

private job growth.– Public employment is constrained.– Heavy burdens of labors. (payroll-based

social insurance financing)

Attitudes of EU Citizens

• Attitudes of EU Citizens– An increasing role of the European

Parliament.– The general attitude towards EU and an

integrated welfare system concerning social position.

– Different attitudes according to EU regions.

Discussion

• Why is there a contradiction between attitudes towards EU and an integrated welfare system?

• Is the integrated social policy on EU level manageable?