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BackThe Social Convergence Framework (SCF) has been created as a tool to map and compare employment and social policy developments in EU Member States in a structured way. It should help to identify countries with a particular need for action. However, further steps are needed to ensure that social objectives are adequately taken into account.
In 2018, the Joint Employment Report for the first time presented the Social Scoreboard, which assesses the progress of the member states in relation to the European Pillar of Social Rights. The EU Commission also used the Social Convergence Framework based on the Social Scoreboard in the Joint Employment Report 2024 to analyse member states' employment and social policy developments. In the second phase of this process, countries at risk of failing to meet the social policy criteria are examined more closely.
Background and development
As part of an initiative launched by Spain and Belgium in 2021, the original plan was to find a way to counterbalance the economic criteria of the Macroeconomic Imbalance Procedure (MIP) with a social policy equivalent. The original idea was a Social Imbalance Procedure. According to one argument, social imbalances, similar to economic imbalances, may also have a detrimental effect on other member states.
This idea was not fully adopted, but did result in the Social Convergence Framework (SCF), which was adopted by the EPSCO Council in June 2023. The aim is to strengthen the social dimension within the European Semester. A Social Imbalances Report will be prepared using certain indicators to identify obstacles to ‘upward social convergence’ – i.e. the upward convergence of member states with regard to social criteria. For example, the indicators relate to equal opportunities, fair working conditions, inclusion and social safeguards. However, while further concrete steps to curb economic imbalances are linked to the MIP, the SCF only states that: “Key findings will be reflected, where relevant, in the Country Reports and inform the Commission´s reflection on the proposals for 2024 Country-Specific-Recommendations (CSRs) in the employment, skills and social domains, as appropriate, but without any automaticity.”
General results of country analyses
With reference to the SCF, the Joint Employment Report 2024 notes that the labour market in the EU remained broadly stable and has recovered well from the COVID-19 pandemic regarding unemployment rates. However, there are problems when it comes to skilled workers and qualifications needed for the digital and green transitions. In many member states, the gender gap concerning employment rates remains unchanged, as does the employment gap for people with disabilities. Although Europe's social systems are stable, they need to be monitored closely in view of rising prices for food, housing and energy.
The second phase analyses seven member states (Bulgaria, Estonia, Spain, Italy, Lithuania, Hungary and Romania) more closely as several areas have been classified as critical in these countries. Problems that have arisen in several of these States include a high risk of poverty, a wide gap between rich and poor, unaffordable housing, high unemployment rates and difficulties in accessing healthcare and education.
The EU Commission does not consider the situation in Austria to be critical enough to warrant closer scrutiny in the second phase, as it does in other member states. However, it has criticised the lack of access to childcare among other, which it says also contributes to the high rate of part-time work among women (50.3%) and thus reinforces the gender pay gap.
How effective is the Social Convergence Framework?
In the European Semester, the SCF does provide a structured assessment of the member states in terms of social policy. However, the social policy instrument is less influential for the direction of the European Semester than the economic and, even more so, fiscal policy instruments. The results of the SCF do not automatically lead to further discussion within the Semester. EuroHealthNet criticises the insufficient reflection of the SCF in the country-specific recommendations and points to the risk of an arbitrary approach. It is therefore proposed to expand the SCF further and to create links to targeted investments in areas which the report has identified as being at risk. This should ensure that social and health systems in the EU are more resilient and better protected against austerity policy.
The SCF is probably not yet a guarantee for sufficient representation of the social dimension in the European Semester. Discussions are also still ongoing with regard to the indicators. The recently published Prosperity Report by the Austrian Chamber of Labour (AK) serves as a good example of a balanced representation of key objectives.
Further information
Joint Employment Report 2024 – Publications Office of the EU (europa.eu) (1st Phase)
Register of Commission Documents - SWD(2024)132 (europa.eu) (2nd Phase)
AK EUROPA: Benchmarking Working Europe 2024. The ongoing quest for Social Europe
AK EUROPA: Looking back. Social policy achievements of the past EU legislative period
AK EUROPA: The Social Pillar and the future of the EU social agenda
AK EUROPA: AK-Report on Prosperity and Well-being 2024 (German only)
Overview of EuroHealthNet research & policy work (europa.eu)