EU Policy Update What way forward?

1. 2a EU Policy Update What way forward? July 2 2015 Sian Jones, Policy Coordinator, European Anti Poverty Network

2. Outline • The Context – The EU in crisis • The new policy drivers: • 5 Presidents Report • Investment package. • Social Dimension and Employment Package • EU Migration Agenda • Developments on Europe 2020 and the Semester • EAPN ACTION

3. The Context: EU in Crisis New Juncker Team faces new threats to EU future: • GREXIT: Breakdown of negotiationswithGreece, requiringunacceptableprice for debt support. Greececalling referendum. • MIGRATION: EU Migration Agenda proposals of obligatory sharing of quotas on refugeesrejected, while 2000 drown in Med. • BREXIT: New Conservative Governmentgetsabsolutemajority in UK elections. Will have referendum on EU membership in 2016. • CLOSER ECONOMIC UNION FOR THE EURO ZONE: New proposalsunder the 5 Presidents report, aims to move to joint economicdecision-making, leaving non Euro zone in 2ndtier. • AUSTERITY, RESTRUCTURING, INVESTMENT, BUT NOT SOCIAL: Main focus is Investment package and economicgovernance. • WHERE DOES EAPN STAND?

4. Main Policy Drivers: EU Investment Package • Juncker’s Investment Plan for Europe (Nov 2014)aims at 3 strands: 1) mobiliizing 315 bninvestment; 2) targeted initiatives 3) Measures to provideregulatorypredictability/ tacklebarriers to investment (ie single market). • EuropeanFund for Strategic Investments(EFSI) (Jan 2015) • Sets framework and money for 1 and 2 and providesguarantee of 16 bn to support the 315 bnfund – mainlyprivateleverage. • Establishes a governanceframeworkwithSteeringBoard, investmentcommittee and accountabilty to EP. • Main projectsfunded: infrastructure, transport, energy, digital, withsomeinvestment in education, health, research and development • Strengths: Couldprovide a biggerreturns for public money, contributions willbedeductedfromdeficit, complement EU initativeseg HORIZON alsoEaSI – microcredit. • Weaknesses: Focus on infrastructure, not social or people; mainlyprivatefinancingwithlittle public money, no priority to poorer MS • WHAT BENEFITS FOR ANTI-POVERTY POLICY OR NGOs?

5. 5 Presidents’ Report: Completing the EMU • 5 President’s Report builds on ‘Towards a Genuine Economic and Monetary Union/Commission’s Blue print for a deep and genuine EMU (June 2015) • Aims to strengthen the Euro area and increase convergence and joint decisions through economic governance of fiscal and economic policies • 3 stage timeline: 1st stage to 2017, using existing instruments and treaty, then white paper in Spring 2017 with legal common standards. • Competitivness priority and new Competiveness Authorities, stronger macroeconomic imbalance with coordination through European Semester. • EU to earn a Social Triple A? –unemployment, but support every citizen to access adequate education and an effective social protection system, …..including a social protection floor », but no concrete measures. • Simplifying the Semester – fewer CSRs, and EURO zone first (Nov –March), followed by Country level. • Increasing democratic accountability: more role for Parliament, but no mention of stakeholders..

6. Progress on Social Triple A? • Commissioners Social Orientation Debate June 9 led by Commissioners Thyssen and Dombrovskis. • Economic policy on a par with social, with more focus on social dimension and impact but no SIA proposed. • Goal is social convergence: job creation, updating employment rules, and sustainable social protection, but not AI • Back EU Minimum standards – ie unemployment benefit, minimum income access to child/health care • Social partners not NGOs - to get balance between competiveness and fairness. • Timmermans focus on fundamental rights backed by new Ombudswomen, but contradictions of Austerity/Greece?

7. European Employment Strategy – EAPN’s Work on Employment • Employability Package: Scheduled to come out over the summer, but not sure what it will contain; job creation initiative scrapped. EAPN contributed to a public consultation on Long-Term Unemployment (see here), as an initiative on this will be part of the Package • Mobility Package: Scheduled to come out in December EAPN attended a consultation meeting with the European Commission, about cross-border coordination (portability) of social security and the revision of the Posted Workers Directive; a public consultation will follow. • Employment Guidelines: New proposal for revised Guidelines put forward by the Commission in the Spring, now discussed in Parliament and Council EAPN prepared it own position on the Guidelines and sent a letter to MEPs ahead of the EMPL Committee vote (see here), also sent by UK, IE, PT, ES • Action on Living Wage: Simplified proposal for action September – December • Inclusive Labour Markets: Position paper – draft before the end of the year

8. EU Migration Agenda • 5 Pillar EU Agenda (23 April 2015). • Common EuropeanAsylum System – proposing quotas for different EU countries. • IncreasedPracticalAssistencefor MS facingbrunt. • Increasecooperationwith 3rd Countries – particularly N. Africa – ieinvestment, but alsorepatriation. • Encouraginglegal migration for people withskillsie Blue Cardscheme. • Secure Europe’sBorders: ieincrease FRONTEX (90 ml EU) and to penalizetraffickers. • JuneEuropean Council: Reject quotas, temporary relocation of 40.000, (not UK, IE and DK and financial support to ‘hotspots’; Return Directive; cooperationwith countries of origin.

9. Europe 2020 – Timeline European Semester in the driving seat • Nov: Annual Growth Survey sets key priorities • March: Country Reports – Commission reviews progress • March: Spring European Council key messages • Mid April – MS present National Reform Programme (NRP) and Stability and Convergence Programme(SCP) • May – Commission review NRPs and SCPs • End May/June – Country-specific recommendations to June European Council – mainly focussed on macro-economic. • Autumn – MS implement NRP/Recommendations • 15th October – Eurozone present budgets for approval • On-going- Multi-lateral surveillance and exchange

10. New developments on Europe 2020 and the Semester. • Changes to timing/process of Semester: with Country Reports in Feb – help MS to consult? • Focus on investment, restructuring and reducing deficitsfrom AGS 2015 • Mid-Term Review postponed until end of year, with no justification offered.. • Change in Integrated Guidelines from EU2020 to Juncker’s priorities. • New slimmer CSRs reduced on poverty from 12 to 6, lack of coherence with mainly Employment.

11. EAPN Action and Approach • Feb/March: Report: Members proposals on CSRs • March: PR/ Letters to Spring EPSCO and Council • May: Quick PR response to the CSRs • June: More detailed response to CSRs sent with letter to EPSCO (May/June) • April: Briefing on Investment Package and support to Social Platform • May-June: Lobbying action on Integrated Guidelines with EP • Continued work with Semester Alliance on CSRs and Investment Package

12. EAPN Main Messages • Put social on a par with economic goals, backing a Europe 2020 vision of inclusive and sustainable growth and targets at heart. • Move from austerity to social investment, backing access to quality jobs, social protection and services (integrated Active inclusion) financed by fair taxation. • Give CSRs on poverty to all MS, and require an integrated antipoverty strategy • Ensure that 20% of ESF is used effectively to support social inclusion beyond employment

13. Some steps forward? • Increase in recognition of EAPN/NGO engagement in Semester from Commission and Council • EAPN President speaks to SPC - EAPN CSR • National Bilateral meetings with EC on recommendations (PT, IE, ES) • Invitation to participate in first ECFIN dialogue with national NGOs organized through European Semester Officers – (ES, PT, BE, DK, LT) • Meetings with Commissioner Dombrovskis, Cabinets of Thyssen/Junker; Timmermans on fundamental rights/Semester • But approach to Greece, shows that the EU agenda remains the same..

14. What way forward? • What should our response be to the current crisis situation? • Are there new opportunities we can seize? Investment and Employment package? Structural Funds? • Can we capitalizeon increased support for stakeholder engagement to get more impact in the Semester/Europe 2020?

15. Thank you for your attention! For more information contact Sian Jones, EAPN Policy Coordinator sian.jones@eapn.eu