Czech Business Today

541. EESC Plenary session discussed and adopted an opinion on A European Framework Directive on Minimum Income. The Employers´ group voted against the directive and its counter opinion, supported by 92 voices, will become a complementary part of the adopted and distributed EESC opinion. Mr. Georges Dassis as the rapporteur of the opinion and one of the highly respected EESC´ members representing the workers´ group has been dealing with this subject for many years already.

He is highly concerned about the increasing poverty rate across Europe and is convinced that the only solution is to introduce a binding instrument at the EU level. He stressed that, in his opinion, the choice of legal instruments that would form this European framework for the establishment of a decent minimum income in Europe is justified by the requirement to ensure that all those in need of such assistance can access it, and that the support is tailored to their real needs.

A decent minimum income also constitutes a tool to integrate/reintegrate people who have been excluded from the labour market and also to combat poverty among those who are in work. The Employers fully agree that it is necessary to continue the fight against poverty. There are, however, strongly diverging views about the choice of the right instruments within the EESC. For this reason the opinion was already postponed from the January plenary agenda, but it was not possible to reach a consensus, even in the form of a “corridor opinion”.

This is the reason why the employers´ group has introduced its counter-opinion. The counter-opinion aims at presenting a constructive and comprehensive approach to reduce poverty in Member States. It is based on the fact that the principle of subsidiarity and the division of responsibilities, as enshrined in the Treaties of the EU, clearly define the Member States as sole actors in designing social security systems. However, Member States should be supported by the Open Method of Coordination at the EU level, to facilitate mutual learning of the best national approaches. This counter-opinion suggests a comprehensive approach aiming at maximising the scope of EU level actions in this regard.

This counter opinion recommends the following elements:

1. The focus of EU and Member State policies should be in continuing their reform efforts and creating favourable conditions for job creation. This is also the basis of all actions to reduce poverty.
2. On top of the key role of sound economic and labour market policies in the fight against poverty, an integrated approach with a targeted policy mix is needed. Minimum income plays an important role in this approach but it should be seen against the backdrop of integrated employment policies and services, notably social and health services as well as housing policies.
3. In light of the subsidiarity principle, the best level at which to tackle minimum income and implement measures aimed at reducing poverty is the national level.
4. There is scope for EU level action to support the Member States in their endeavours. The European Union and notably the European Commission should play a more active part by supporting the efforts of Member States. The way in which Member States meet the objectives of poverty reduction should be subject to follow-up in the framework of the European Semester, which presupposes greater coordination.
5. In the light of “the Declaration on a new start on a stronger social dialogue”, signed by the European Social Partners 26-27 January 2016, the role and capacity of the social partners – as the main actors at the labour markets – should continue to be strengthened both at the European and national levels in policy-making and structural reform processes.

Vladimíra Drbalová

EESC Member and Vice-Chair of the EESC Employers’ Group