Too many social inequalities

Social and job inequalities in the euro zone are increasing and weigh heavily on citizens, workers, families and consumers. It is a phenomenon that, in addition to marking a setback in terms of equality and inclusion, poses a risk to economic and monetary stability. For this reason the EU and the Member States adopting the single currency, but more broadly all 28 Member States of the “common home”, should run for cover. It is the contention of the Commission Barroso, which on October 2 presented an analysis of the situation and a document with proposals to reduce those inequalities.Serious consequences. “Unemployment rates in the South and periphery of the euro area” – Mediterranean countries plus Estonia, Slovenia and Slovakia – reached an average of 17.3% in 2012, against 7.1% in the North and core of the euro area”; while “the average rate of young people neither in employment, education or training (NEETs) reached 22.4% in the South and periphery, against 11.4% in the North and core”. Poverty “has increased in two thirds of Member States, but not in the remaining third”. These are some of the highlights of the EU Employment and Social Situation Quarterly Review. The document underlines growing gaps among the 17 euro area countries, with social and labor inequalities that risk undermining the stability of the Economic and Monetary Union (EMU). The document was presented by László Andor, Commissioner for Employment, Social Affairs and Inclusion. Andor said: “Too many people are faced with the serious social consequences of the crisis. We must strengthen social investments and support the creation of jobs. To be sustainable in the long term, Europe’s Economic and Monetary Union needs to strengthen its social dimension, that includes the area of labour with the coordination of employment and social measures”. Five indicators. The Commission has also announced a communication that summarizes the steps needed to remedy this situation; steps that were decided, inter alia, by the Heads of State and Government in the EU Council. “We must identify and address the main occupational and social challenges – continued Andor – and not remain idle before the worsening of inequalities within Europe”. The Commission stresses the need to “strengthen the social dimension of EMU”, with the monitoring of the differences between countries (through five specific indicators: unemployment, Neet, real household income, population at risk of poverty, social exclusion) on which to intervene. “Solidarity at EU level” and job mobility should also be strengthened, along with a broader dialogue with the social partners (trade unions, businesses, local authorities, NGOs), the implementation of specific reforms (labor market, social security systems …) and a more accurate and accountable use of EU structural funds and of the European Social Fund.Responsibility and solidarity. On the same day the theme was addressed also by the other EU institutions. European Council president Herman Van Rompuy, speaking during a public debate in Brussels, confirmed that “social and labour disparities between Northern and Southern Europe” are being closely monitored. This situation must be countered through reforms and measures “which lie within the specific responsibilities” of Member States, along with “greater solidarity” in the euro zone and within the EU. Van Rompuy added: “The struggle to boost employment remains our biggest challenge”. The President of the European Parliament, Martin Schulz, on the contrary stressed that the proposals received by the Commission “aren’t ambitious enough”. He reiterated that the Commission, working closely with the EU Assembly, must ensure that Member States operate on specific actions and reforms, starting with the “Youth Guarantee” program and the policy actions to create growth in the real economy.