Impact of Globalisation on Employment and Social Policies in the EU

The demands on the European social model are unlikely to abate; globalisation will continue and the EU’s mandate will widen. And yet the ability to pay for social protection will be severely tested in the face of ageing populations, fiscal consolidation and action to address sovereign debt. Three broad policy implications suggest themselves. First, in coming years there will be a compelling case, not least in the EU, for open markets as a stimulus to innovation and growth. Second, EU social protection linked to globalisation, within the framework of flexicurity, will need to be better targeted and better implemented, in order to help those who lose from globalisation and to realise the EU’s full potential in skill-intensive activity. Third, trade policy will need to be seen in the broader context of sound domestic economic management.