The Eurocadres blog

Social market structures can encourage cross-border labour mobility

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Europe is recovering from the economic crisis that has left its mark on many peoples' lives. Nearly one quarter of EU citizens (24.6 %) are currently regarded as being at risk of poverty or social exclusion. In today's total EU population, this corresponds to approximately 122 million people. 

train station mobility

Unemployment is one of the biggest risk factors leading to poverty, and this applies especially to long-term unemployment - the scale of which has doubled in Europe since 2007, and accounts for half of total unemployment.

Unemployment is one of the biggest risk factors leading to poverty, and this applies especially to long-term unemployment - the scale of which has doubled in Europe since 2007, and accounts for half of total unemployment.

We also know that poverty tends to pass on to children in jobless households, and creates divergent educational achievement among children from early on. We not only have the adult population living in poverty at stake, but also the future generations and children who are growing to a world of inherited inequality.

A threat of marginalisation is first and foremost a great personal difficulty and risks deprivation of constitutional rights. But it has wider economic consequences to our society as well.

A marginalised person doesn't use his or her potential for the common good by working. He or she doesn't pay taxes that help sustain the social system. He or she doesn't contribute to the pension scheme that covers the pensioners today and in the future with an adequate income.

He or she is often the consumer of social services and therefore a cost to the public sector. Finally, he or she will, at retirement age, need pension coverage that he or she hasn't been involved in contributing during his or her active years.

Keeping this in mind, it is worth all the time and effort to bring marginalised groups of people within the sphere of economic activity and working life.

While being busy fighting the turmoil of economic crisis, we have almost lost the core idea and value of why we need to have a prospering economy in Europe. It is to create well-being to people, to serve humanity and common interest. A regulatory environment should provide rules for competition that direct its effect for the best of all people.

A threat of marginalisation is first and foremost a great personal difficulty and risks deprivation of constitutional rights. But it has wider economic consequences to our society as well.

The concept of social market economy was developed as an antidote to totalitarianism and war which ravaged our continent in the first half of 20th century. But it is still as timely topic as it was then. Now the Commission has declared its willingness to develop a European pillar of social rights.

As we are anticipating legislative proposals in addition to already delivered proposal for Council recommendation on the integration of the long-term unemployed into the labour market, we should actively consider new ways to provide social protection and quality services in a globalised and fast changing Europe.

As we know, employment is the best protection and guarantee against poverty. Therefore it is crucial to provide people with all possible means to access labour market and make a sustainable living for themselves. Marginalisation not only means personal pain and suffering to those who are excluded, but it is also a burden to our economy in multiple ways.

Social protection should not be seen as a cost, but as an encouragement to live our lives to the fullest, take measured risks and dare to try out new ideas. We need to create circumstances that promote cross-border activity and flexible ways for people to organise their lives.

We need to create circumstances that promote cross-border activity and flexible ways for people to organise their lives.

This requires overcoming obstacles that at the moment cause wariness and uncertainty in peoples' minds about their social security and future subsistence when moving from one social security scheme to another inside Europe.

Creating minimum protection standards at the EU level could secure the basic standard of living for all EU citizens, regardless of their place of origin or actual residence, enabling them to profit fully from free movement and internal single market.

By setting the same rights and minimum standards for all Member States, people could be assured that they will get assistance in case of serious illness, unemployment or at the age of retirement. The way of providing this assistance or social service can take a form that fits best with the tradition and existing social system of each Member State. The purpose of the standard is to set a common objective, not force everyone to a same model or to undermine good practices already in place.

(c) Sirpa Pietikäinen

The author

Sirpa Pietikäinen
Member of European Parliament (EPP)

Follow her on twitter @spietikainen