Subject: Need for the EU to combat poverty and social inequalities
Unfortunately, as a result of the pandemic, poverty, social exclusion, marginalisation and deprivation are all on the rise in the EU.
European society as a whole judges and measures the EU’s success and effectiveness in terms of its social policies and sensitivities.
Through the Resilience and Recovery Fund, the EU has taken a number of important steps to revitalise Member States’ economies, and in the medium term there is a potential for the positive impact of these steps to be felt in all sections of society.
However, the never-ending pandemic is now creating huge social problems for large social groups in need of immediate support.
The EU needs to create a new flexible Social Recovery and Resilience Fund that will directly and effectively support the following categories of people:
1. Unemployed people;
2. Low-income pensioners;
3. People at risk;
4. Small and medium-sized entrepreneurs whose businesses have closed as a result of the pandemic;
5. Workers in the tourism sector who are already at risk of not working this year;
6. Farmers who have been unable to sell their produce as a result of the pandemic.
I believe that this list should remain open to other social groups.
In the light of the above:
Does the Commission intend to adopt my proposal? What other measures are being examined to directly support societies and people who are suffering?
Answer given by Mr Schmit on behalf of the European Commission
(25 May 2021)
To fight the pandemic the EU immediately launched comprehensive measures to support Member States’ actions to protect jobs, livelihoods and companies. The enhanced flexibility of state aid and fiscal policy rules (1) has given Member States fiscal room to fund social expenditure for vulnerable groups such as the unemployed.
Targeted support was granted through the mobilisation of Cohesion policy funds via CRII and CRII+ (2), providing flexibility to reinforce the Fund for European Aid to the Most Deprived (FEAD) and the European Social Fund (ESF), and the creation of SURE (3).
Member States shall also allocate at least 25% of the ESF+ to social inclusion and some at least 12.5% to help young people find a quality job and at least 5% to address child poverty. Building on the impact achieved through FEAD, all Member States should allocate at least 3% of their ESF+ to support the most deprived.
⋅1∙ This includes notably the activation of the general escape clause of the Stability and Growth pact, as well as enhanced flexibility available under the Temporary State
Aid Framework.
⋅2∙ The Commission has launched in April 2020 two packages of measures: the Coronavirus Response Investment Initiative (CRII) and the Coronavirus Response
Investment Initiative Plus (CRII+).
⋅3∙ The Support to Mitigate Unemployment Risks in an Emergency (SURE) can provide financial assistance up to EUR 100 billion in the form of loans from the EU to
affected Member States to address sudden increases in public expenditure for the preservation of employment.
| | ) NextGenerationEU will help repair the COVID-19 damages and via the Recovery and Resilience Facility (RRF) pave the way to reforms and investments addressing structural challenges (4) including on healthcare, re-/upskilling and social inclusion. The regulation sets out the need to mainstream equality of opportunities through the Recovery and Resilience Plans (RRPs). The six pillars of the RRF (5) will ensure that social progress is pursued along green and digital objectives, with the RRPs contributing to the implementation of the European Pillar of Social Rights.
Overall, the financial firepower combined with the European Pillar of Social Rights Action Plan (6) giving guidance on actions to implement the Pillar and proposing new employment, skills and poverty reduction headline targets for 2030, provide the necessary impetus to make the 20 Pillar principles a reality.
⋅4∙ As identified in the yearly country-specific Recommendations.
⋅5∙ The six pillars are: (i.) green transition; (ii.) digital transformation; (iii.) smart, sustainable and inclusive growth, including economic cohesion, jobs, productivity,
competitiveness, research, development and innovation, and a well-functioning internal market with strong small and medium enterprises (SMEs); (iv.) social and territorial cohesion; (v.) health, and economic, social and institutional resilience with the aim of, inter alia, increasing crisis preparedness and crisis response capacity; and (vi.) policies for the next generation, children and the youth, such as education and skills. ⋅6∙ Published on 4 March 2021.