It was the first major event in Brussels on the Commission project of a “social rights pillar” in the EU, which was hosted by the Austrian Trade Union Federation (ÖGB), the Chamber of Labour (AK), the German Trade Union Federation (DGB), the Friedrich Ebert Foundation and Solidar. Apart from Bernhard Achitz, Secretary General of the ÖGB, high-ranking participants such as Luxembourg’s Minister of Labour, Employment and Social & Solidarity Economy, Nicolas Schmit and MEPs Thomas Händel and Udo Bullmann debated during the whole-day conference. Christof Cesnovar of the AK Europa Office underlined the importance of investments in the welfare state. At the centre of the conference was the question what is to be expected of this Commission initiative and which demands will be put forward by the trade unions.

Fig leaf or change of course?

The financial crisis has led to a massive crisis of legitimation and confidence in the EU. According to the OECD, almost a quarter of Europeans live on or under the poverty line. Most of the discussants agreed that the confidence of the people can only be regained if the EU proves its ability to act and raises social standards in the Member States. Could the social pillar ring in a political change of course or is it just another social fig leaf of the EU Commission? The Commission proposal was presented in March and is currently being discussed in a public consultation, which continues until the end of the year.

ÖGB Achitz: “Justified scepticism“

“In view of the negative experiences with social initiatives of the EU Commission, scepticism is justified” summarized Bernhard Achitz the initial reaction of the trade unions. Nevertheless, the trade unions will actively participate in the discussion, because “we have in the EU not too many but too few binding social minimum standards“, contradicted Achitz the representative of Businesseurope, Rebekah Smith. However, new social standards should not be guided by the lowest level in the EU. To put the focus on reduced benefits for the unemployed or on the further weakening on the pension systems was here completely the wrong approach. “It will be decisive for the success of the initiative whether we regard strong social systems only as a cost factor or as a necessary safeguard and investment in the future.” Other than that, the restriction to the Eurozone could only be a first step, because social standards had to apply to all EU States, demanded the Secretary General of the ÖGB.

“Social Awakening or breakup of Europe?”

The two MEPs Udo Bullmann (SPD) and Thomas Händel (Die Linke) welcomed the Commission initiative at least in principle. “It is important that Social Commissioner Marianne Thyssen also announced legislative measures in the EU Parliament”, said Händel, Chair of the Committee on Employment and Social Affairs. He demands the implementation of the principle “equal pay for equal work at the same workplace”. Most speakers agreed that binding standards were necessary to enable the social pillar in the EU to be strengthened. Some governments share this opinion: “A social etiquette guide is not good enough; following the consultati, we need advanced proposals for concrete guidelines”, commented Susanne Hoffmann, Director General of the German Federal Ministry of Labour and Social Affairs. In her opinion, the involvement of the social partners, when the Commission document addresses wages and productivity, is worth improving. Andreas Botsch of the DGB criticised the automatic coupling of pension age and life expectancy recommended by the Commission. “Does the social pillar help us to achieve a social awakening at last or do we break up Europe?” This would be the decisive question, said Botsch.

Increasing social investments

Finally, the participants once again stressed the importance of social investments. Luxembourg's Social Minister Nicolas Schmit criticised the approach of the EU Commission: “One dictates budget rules and leaves all social responsibilities to the national states alone.” Failing to increase investments in the social state, would acutely endanger the stability of the European social model. Christof Cesnovar of the AK Europa Office emphasised the cumulative dividend of future-oriented social investments. Studies of the Chamber of Labour Vienna have clearly shown that increased investments in childcare have a positive effect on employment and social cohesion.

Next week, the European Trade Union Confederation will adopt a comprehensive Demand and Position Paper on this Commission Initiative.