On 24 September 2024 took place an online EZA snack debate in cooperation with WOW (World Organisation of Workers) and Krifa (Kristelig Fagbevægelse), funded by the European Union. Subject was “The future of EU social policy under the new Von der Leyen Commission”, more concretely the La Hulpe Declaration, the European Pillar of Social Rights and the new Commission’s Priorities.
On 16 April 2024 the La Hulpe Declaration on the Future of the European Pillar of Social Rights was signed. During the conference policymakers, stakeholders and experts discussed the future of the European Pillar of Social Rights. The aim being how to best implement this in the years to come.
The European Pillar of Social Rights first saw the light in 2017. At the Gothenburg Summit the European Parliament, the Council and the Commission discussed the 20 key principles which would guide us towards a strong and social Europe. This commitment was reaffirmed in 2021. The conference in La Hulpe was the latest reaffirmation of the commitment.
The signing of the La Hulpe Declaration filled many with hope for a stronger Social Europe. However, following the European elections and the formation of the new Commission, the focus seems to have shifted. This was reaffirmed by “Draghi report”. Competitiveness seems to have become the new mantra of the next legislature and social policy is in danger of being relegated to the back seat.
This raised a number of questions as to the direction of Europe. Francesco Corti, Advisor to the Belgian Minister for Employment and Social Affairs and a key figure behind the La Hulpe Declaration, was invited to share his insights. During a one-hour session he explained the history of the European Pillar of Social Rights and the ambitions of the La Hulpe Declaration, the current situation after the European elections and his expectations for the future.
The working program of the previous legislature of the European Commission (2019-2024) was very social. Social policy (keeping everyone on board) was a priority. When asked how he would rate the previous legislature, Mr. Corti answered that ‘it is true that the focus was more on making sure to keep everyone involved and not leaving anyone behind. This certainly had positive results in many aspects. But not all goals were met yet and in some cases, it became clear that these will not be met before the set deadlines. One such issue is the European Green Deal.
When looking at two other priorities (a Europe fit for the digital age and an economy that works for people) we also see that we need to continue improving. So, one should say there is still much to do in the social field. Remarkably though the expectancy is that the focus will shift under the new Presidency. Do you agree that it is to be expected that the priorities for the next legislature will shift?
‘You are right that the priorities are different to the ones during the previous legislature’, Corti said. ‘The priorities of Commission Von der Leyen II have largely shifted because of outside forces. The war in the Ukraine, the conflict in the Middle East, the continuing and increasing influence and interference of both the US and China are all reasons for a change in paradigm. The three priorities for the 2024-2029 legislature are: a free and democratic Europe; a strong and secure Europe; a prosperous and competitive Europe. The current priorities clearly show the shift that has taken place. It does not mean that social rights and the social programme are no longer important. What it does show is that the European Commission feels that other issues are more urgent today.’
The feeling that social policy is losing out, or at least is receiving less attention, can also be seen when looking at the fact there is no longer a Commissioner for Social Affairs. Instead there is an Executive Vice-President for People, Skills and Preparedness who is responsible for skills and education, quality jobs and social rights. In the word preparedness one can sense a feeling of fear for an uncertain future. Is the La Hulpe declaration compatible to what is expected in the next years? ‘I have the feeling that the gap is not as large as it may seem now. Of course we will have to wait and see what the coming period will bring, but my feeling is that he declaration and what is expected are in line with each other. Again it is true that the focus has shifted, but this does not necessarily mean that the direction is completely different.’
Related to the issue of social policy is the ability for social spending. With the reform of the Stability and Growth Pact in 2023 there is fear that public spending may come under pressure. Do you believe that this may affect social policy or even result in austerity?
‘Well, the reason for the reform is on the one hand to ensure sound and sustainable public finances, while on the other hand promoting sustainable and inclusive growth in all member states. The latter should be achieved though reforms and investment. Many EU countries do not comply to the EU budget targets. To do so these countries will have to cut spending to adhere to the 60% debt to GDP ratio. And this may very well lead to cuts in the spending on social policy. I would say it is too early to speak about austerity, although the European Central Bank does consider the need for austerity measures. The facts that we have a aging population, a war at our borders and climate-challenges certainly do not help. But what can be expected is that the expenses on everything social will most probably diminish in favour of issues deemed more urgent’, Corti said.