The European Union (EU) has limited competence in the field of social policy, although the European project has integrated a social dimension from the outset. In 1957, the Treaty of Rome enshrined the free movement of workers, the “abolition of all discrimination” between them, and a chapter on social policy, according to which each Member State must guarantee equal pay for men and women. The Treaty also established the European Social Fund to promote access to employment and improve living standards.
Step by step, the EU has strengthened the social dimension. National governments are responsible for employment and social policy (labour legislation, minimum wages, pensions, social assistance), but the Treaty provides that “the Union will support and complement the actions of the Member States”. The Union thus determines laws and recommendations and approves funds to complete and coordinate national policies.
European Pillar of Social Rights
In 2017, the EU took an important step towards those who advocate the creation of a “Social Europe”: the European social model was enshrined in the “European Pillar of Social Rights”, a kind of roadmap proclaimed by the community’s institutions: the Commission, the Council and the Parliament. This pillar represents 20 fundamental social principles and includes initiatives in areas such as equal opportunities, access to the labour market and social protection.
In its plan to implement the “Framework of Social Rights”, the European Commission has set targets to be achieved by Member States by 2030: at least 78% of the European population aged 20 to 64 should be in employment; at least 60% of all adults should participate in training activities every year; the number of people at risk of poverty or social exclusion should be reduced by at least 15 million.
Evolving “Social Europe”
During and after the pandemic, the bloc adopted measures and rules to strengthen the social dimension of the public project. MEPs approved rules to guarantee an adequate national minimum wage and legislation on digital platform workers. With the spread of remote work, they have defended rules allowing workers to “disconnect” from work. The EU also has financial instruments. The European Social Fund is endowed with around 99 billion euros for the period 2021-2027. There is also the European Globalisation Adaptation Fund, which supports workers laid off due to companies moving to third countries.
But Europe faces multiple social challenges. Nearly seven decades after the Treaty of Rome protected equal pay, women still earn 12.7% less than men (on average across the EU, according to Eurostat). Last year, members of the European Parliament approved a law that would require companies to disclose information that would make it easier to compare salaries and highlight gender pay gaps.
Elisabeth Kuiper, a policy analyst at the European Policy Centre, identifies the EU’s key social challenges over the next term: skills/re-skills, affordable housing and inequalities in access to healthcare.
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