Communication on a Strong Social Europe for Just Transition - Action Plan on the European Pillar of Social Rights

In “An Economy that Works for People”

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The European Pillar of Social Rights (social pillar) was jointly endorsed in November 2017 by the Council, Commission and Parliament. The big challenge has been ever since how the 20 principles and rights put forward in the social pillar will be implemented. The Juncker Commission proposed several updates to the EU’s legislation to bring the ‘social acquis’ in line with the needs of today’s world of work. Part of this action was also to clarify and ensure easier take-up and implementation of existing rules. The Commission put forward 26 proposals, both legislative and non-legislative, some of which are still under the negotiation, like the revision of the rules of the coordination of social security systems. It also enforced social considerations across portfolios, such as the European Semester of policy coordination, the deepening of Economic and Monetary Union, the Investment Plan for Europe (the so-called ‘Juncker Plan’) and flagship initiatives for the completion of the Single Market – from the Digital Single Market to the Energy Union – as well as in the EU’s trade and international relations.

In her political guidelines and her mission letters to Commissioner Nicolas Schmit (Jobs and Social Rights) and Executive Vice-President Valdis Dombrovskis (An Economy that Works for People) Commission President Ursula von der Leyen foresaw the creation of an Action Plan for the implementation of the social pillar. The Communication on 'A strong social Europe for just transitions' was the first step into this direction. It also launched a broad discussion with the stakeholders. 

Several initiatives contributing to a strong social Europe according to the Communication can be found under other priorities. These include: the Sustainable Europe (or Green Deal) Investment Plan), Just Transition Fund, the Industrial Strategy and the SME strategy.

Parliament adopted in plenary the own initiative report on 'Strong social Europe for just transition' in December 2020 with the aim  to emphasize the most important challenges the European labour market, regions, sectors and workers are going to face in the next ten years and describe the key initiatives to be taken in this respect. Therefore, the rapporteurs called for a core social agenda to be adopted during the Social Summit in Porto in May 2021 (Porto agenda). The report is divided into three parts: Governance framework for Social Progress; Financial means for Strong social and sustainable Europe; Porto Agenda: targets and proposal. While the first part focuses on the implementation of the social pillar, including its integration into the Treaties and the adoption of a Sustainable Development and Social Progress Pact, the second part points out the financial instruments to achieve a just transition, like the European Social Fund, the Youth Guarantee, the Child Guarantee, the SURE instrument and the Just Transition Fund. In the third part, the rapporteurs call for the aforementioned Porto Agenda that emphasizes different mandatory targets and proposals on: decent working work, sustainable and inclusive labour markets; social justice and equal opportunities; strong social protection systems and fair mobility. 

The new recovery plan of the Commission from 27 May 2020 reiterated the idea of a fair and inclusive recovery, with particular attention to fighting unemployment, improving skills (including digital skills of everyone), supporting pay transparency, a fair minimum wage, and further steps to fight tax evasion. 

In her State of the Union address in September 2020, Ursula von der Leyen, the President of the Commission emphasised the central role of a stable social market economy in the recovery from the coronavirus crisis. 

On 4 March 2021, the Commission proposed an Action Plan on the European Pillar of Social Rights. The proposal sets three headline targets to be endorsed by the Council and to be reached by 2030: 

- at least 78% of the population aged 20 to 64 should be in employment by 2030; 

- at least 60% of all adults should be participating in training every year by 2030; 

- a reduction of at least 15 million in the number of people at risk of poverty or social exclusion.

The Commission calls on Member States to define national targets accordingly. The three targets will be also supported by the revised social scoreboard, first published alongside the social pillar in 2017.  

Furthermore, building on the actions ongoing already since 2017, the action plan sets out future actions for the European Commission and actions it encourages Member States to pursue, so as to implement all the principles of the social pillar by mobilising all the available policy tools, ranging from funding programmes, the European Semester, to legislation and policy recommendations.

The main areas of action include:

- more and better jobs (including better working conditions);

- skills and equality (investing in skills and education so as to provide opportunities for all);

- social protection and inclusion (including by updating  social protection systems to the current realities of life and work).

The legislative and some non-legislative files that will follow from this action plan are in separate carriages in this train as well as in other trains, mainly 2 and 5. 

The proposal was accompanied by a Commission recommendation on Effective Active Support on Employment. 

At the Porto Social Summit on 7-8 May 2021 the Commission, Council, and Parliament together with stakeholders recommitted to the implementation of the principles of the social pillar. They also signed up to the three headline targets. On 8 May 2021, the European Council adopted the Porto declaration on social affairs. At the Council meeting of June 25 2021 heads of state or government welcomed the EU headline targets. 

 

Further reading

Author: Marketa Pape, Members' Research Service, legislative-train@europarl.europa.eu

As of 20/10/2024.