On the convergence of social protection systems in the European Union

Member States of the European Union are autonomous when it comes to the design of their social protection systems. However, they are committed by a recommendation accepted by the European Council addressing the convergence of social protection objectives and policies. Besides, convergence of social protection systems is expected to come about as a result of economic integration. In this paper we examine whether such convergence has occurred during the past decades, using data on replacement rates and social expenditure ratios. We find a rather strong trend of relative convergence and, only during the past two decades, an absolute convergence of social indicators in the EU. But there are only weak signs that these trends are the result of European integration.     

Convergence in the Social Welfare Systems in Europe: From Goal to Reality

The history of the social welfare systems in Europe in the postwar period appears as autonomous national processes because the construction of Europe which imposed common rules in many areas was equally consistent with the national development of social welfare systems, within each national culture. However, the idea of a common system of social protection has always remained linked to political and economic European construction which would create a more cohesive society. Many studies have analysed the trend of specific social policies and their convergence or divergence in Europe. Therefore, global convergence is often conceived as resulting from the domestic dynamics of each social risk. The paper focuses on one specific topic: the quantitative evaluation of convergence among the EU and OECD countries at the macroeconomic level. In the first part we explain the construction of social indicators which can assess the convergence or divergence of social expenditure in EU and OECD countries. In the second part we show many methodological problems and difficulties of interpretation of the social indicators. Then we see that the analysis of national trajectories of social expenditure and the link with economic development can enrich the analysis of convergence in social protection. Finally, the empirical analysis supports the idea of “adjustment” reforms rather than radical changes in a transitional period.     

Transition Countries of Central Europe Entering the European Union: Some Social Protection Issues

A brief overview of essential choices facing the transition countries of central Europe with regard to social security policy precedes the discussion of some selected issues related to their entry into the European Union (EU). While not much weight is given to the idea of these countries bringing in yet another social model, the problem of social dumping is considered more seriously, particularly in view of the continuing impact of neoliberal ideology. The central issue of maintaining equilibrium between economic and social development is then examined in the context of current preparations for accession, and attention is drawn to the inherent weakness of the present EU policy, which deals with economic aspects of social protection only and fails to give the populations concerned a clear vision of attainable social goals for the future.     

Towards a convergence of European social models?

The European Union (EU) has chosen to construct itself through its currency. The social dimension has been left at a secondary level, based on the principle that economic progress will end up "pulling" social models "upwards" This optimism now looks somewhat misplaced. For a whole series of reasons, European social protection systems are threatened by regression: the emergence of liberal economic ideas, the need to be competitive, the implementation of the Stability and Growth Pact, the fact that the differences in the levels of remuneration and social benefits in Euroland are more evident owing to the single currency and, as a result, the harsher social and fiscal competition. If Europe wishes to avoid the risks of social fragmentation due to the "leveling down" of social protection, it will have to organize a minimum threshold of EU solidarity.     

Forms of Governance in European Union Social Policy: Continuity and/or Change?

This article addresses the question of the evolution of regulatory and distributive social policy at European Union (EU) level, with special emphasis on its quantitative aspects. Data collected in meticulous detail on the EU's powers in the area of social policy and their practical implementation from the early days of European integration through to the end of 2002 are presented in a range of figures and tables. It becomes apparent that, quantitatively speaking, the body of EU social law in existence to date is impressive. Contrary to expectation, non‐binding forms of action have not replaced those which are binding, or at least not yet. Soft law and the “open method of coordination”, the subject of so much recent debate, are rather a complement to classic legislation, entailing a minimum of harmonization. In terms of political science and legal theory this means that while the neo‐voluntarism and legalization hypotheses highlight important aspects of EU social policy, neither of them represents the whole story.     

The regulatory challenge of occupational safety and health in the online platform economy

The online platform economy raises a range of intricate legal questions connected to labour law and social security protection. In particular, the atypical forms of labour relationships used by many online platforms (e.g. multilateral, hyper‐temporary, off‐site, autonomous), often contractually defined as independent contracting, have challenged the application of labour and occupational health and safety law in many countries across the world, as the application of these norms tends to be dependent on the existence of an “employment relationship”. These developments are compounding the general increase in atypical employment, especially as a result of the 2007–08 financial and economic crisis. It has mostly fallen to courts to resolve the disputes between online platforms and their online platform workers, but some European Union (EU) Member States (such as France) have taken specific legal measures in response to these difficulties. Also, the EU‐level as such is becoming increasingly involved, with the Court of Justice’s ruling in the case of Uber providing some guidance on the “employment question”, and a pending legislative initiative on a Directive for Transparent and Predictable Working Conditions which may provide minimum labour protection for online platform workers in the EU. This article analyzes the problem of labour law in the online platform economy and surveys the various responses by courts and policy‐makers across the EU, which may furthermore set the tone for developments outside the EU in this area.     

Role of social welfare in European suicide prevention

Yur'yev A, Värnik A, Värnik P, Sisask M, Leppik L. Role of social welfare in European suicide prevention The aims of this study were to assess the relationship between suicide mortality and social expenditure in 26 European countries, explore attitudes towards welfare systems and their relationship with suicide mortality, and compare attitudes towards welfare provision in Eastern and Western Europe. The World Health Organization suicide data and Organisation for Economic Co‐operation and Development social expenditure data for 1980–2005 were used. Data on attitudes towards welfare systems were taken from the European Social Survey. Differences between mean scores for attitudes in Western and Eastern European countries were calculated. Correlations between social expenditure and suicide trends were negative in most countries for both genders. Inverse correlations between attitudes towards welfare provision and suicide mortality rates were demonstrated for males only. Differences in attitudes were found between Eastern and Western European countries; for example, confidence in the welfare system was found to be stronger in Western Europe. Higher social expenditure and greater confidence in welfare provision appear to have suicide‐preventive effects.     

Social Policy in a Federal Europe

The European Union has a federal structure, in which each citizen is subject to two governments. The position of social policy within the federation is contested, but the EU has gradually developed powers through the extension of its competence, direct intervention in social welfare issues and the push for “convergence”, or agreement on minimum standards. Consistent with its federal nature, the European model of the welfare state is based on convergence, integration of the excluded and social protection through the gradual extension of solidarity. The precise role that the federal government will take on within this is unclear, but it is already having a major impact on social welfare and its influence is likely to increase.     

Social investment agenda setting: A personal note

This article reconstructs how, under the umbrella of the Europea Union (EU), discreet opportunities for EU social policy agenda setting opened for academic expertise from the late 1990s to the 2020s. This began with the Dutch presidency of the EU in the first half of 1997, endorsing the notion of ‘social policy as a productive factor’, followed by the 2000 Lisbon strategy for Growth and Social Cohesion in the open economy. The social investment landmark publication was Why We Need a New Welfare State, written by Gøsta Esping-Andersen et al., for the Belgian presidency of 2001. Ultimately, cumulative academic insights and feedback from country-specific reform experiences found their synthesis in the Social Investment Package in 2013. EU political codification of social investment took effect with the adoption of the European Pillar of Social Rights in December 2017. The paper concludes on the future for social investment with some personal reflections as an engaged scholar.     

Impact of Social Service Expenditures on the Suicide Rate: The Cases of Asia Countries

An empirical study reported that the economic crisis in European countries affected their suicide rates and described that an increase in social services expenditures of US$10 per person in labor market programs impacted the decrease in unemployment suicides by 0.038%. However, there has no study that the economic crisis in Asia countries affected their suicide rates. Since 2008, South Korea has been ranked first for suicide rate in the OECD countries. Many studies have blamed the economic crisis that followed from the US financial crisis in 2007 as the critical cause. However, in the case of Japan, the suicide rate decreased in the same time period (2008–2011) even though they faced the same financial crisis. The purpose of this study was to examine why the different situations in Korea and Japan occurred with the economic crisis through testing whether the government’s social service expenditure affects the people’s suicide rate in Asia countries. These efforts will contribute to understanding the critical role of social service.     

Threats,chances and opportunities: social capital in Europe in times of social and economic hardship

The 2008 financial and economic crisis, characterized by an economic breakdown unparalleled since the Great Depression, provides a unique opportunity to study the relationships between economic developments and social capital by asking: How does social capital change in times of social and economic hardship? In order to explore the trends of social capital development, data from the European Social Survey 2002–2016 are used. The results suggest that economic decline – particularly increasing unemployment – is associated with a decline in social capital, especially in southern European countries. Furthermore, increasing long-term interest rates as an indicator of government future debt sustainability appear to be detrimental for social capital development. The impact of economic decline, however, appears to be contingent upon the functioning of state institutions: especially in countries characterized by well-functioning governments social capital is significantly less affected by economic decline than other countries.     

Pension Reform in the EU Accession Countries: Challenges, Achievements and Pitfalls

Like the current member States of the European Union (EU), the 13 accession countries have diverse pension systems that vary in the adequacy of benefits, the degree of solidarity, and the roles of government, workers, employers, and pension funds in scheme management. Since the mid-1990s, nearly all have increased their pensionable age and adopted new systems for voluntary supplemental pension savings. Five have scaled down their social insurance schemes in favour of new systems of commercially managed individual savings accounts. The article discusses these reforms and their match with key elements of the countries' political and economic environments, financial markets and regulatory experience. It highlights alternative approaches to pension protection for retired workers in conditions of ageing populations.     

The hidden welfare state, tax expenditure and social policy A comparative overview

This article describes, discusses and presents information about tax expenditure and its relation to social policy. It stresses that the hidden welfare state strongly influences social policy and that only looking at the direct provision of welfare goods may be misleading when making comparisons between countries. The article presents new figures on tax expenditure in relation to social policy and does so in a comparative perspective. It is argued that tax expenditure seems to have an upside down effect, but further research is needed to substantiate this. It concludes that tax expenditure strongly influences the provision, financing and delivery of social policy, and tax expenditure therefore has to be more fully integrated into the analysis of the welfare state.     

Straddling Two Continents: Social Policy and Welfare Politics in Turkey

There has been an increasing academic interest in understanding the dynamics of social policy in the Middle East and developing a conceptual ‘model’ to account for the particular characteristics of welfare arrangements in the countries of the region. While part of this framework, Turkey represents an exceptional case due to the Europeanization processes the country is undergoing in various policy areas, including social policy. The influence of the European Union on the shape of Turkish social policy, as illustrated by the government's recent reforms in the labour market and social security domains, is hereby used to outline the position of Turkey vis‐à‐vis both the Southern European welfare regime and the Middle Eastern pattern. This article seeks to assess the dynamics of Turkish social policy in light of the country's political, and socio‐economic dynamics, as well as the external influence exerted by the EU and international financial institutions. The aim is to examine Turkish welfare arrangements in a comparative manner and consider its suitability with reference to either of the two models. Looking at major trends in social security and the labour market, the article argues for a Turkish ‘hybrid’ model embodying the characteristics of both. Subject to EU explicit pressures for reform absent elsewhere in the Middle East, the data nevertheless show that Turkey has yet to make the qualitative leap forward that could place it firmly within the Southern European welfare group.     

R&D in a post centrally-planned economy: The macroeconomic effects in Poland

Half a century of centrally planned policy in the Central and Eastern European countries resulted in outdated technologies, inefficient allocation of resources and low productivity. Following the end of communism there was a fifteen year process of transition which ended in 2004 with eight post-communist countries joining the European Union (EU) of which Poland was the largest. As part of the EU these countries now face the challenge of the common EU strategy Europe 2020, which has set the target of achieving R&D expenditure to GDP ratio (called the R&D intensity) of 3% by 2020 for the Union as a whole in an effort to increase the competitiveness of the region. Poland, like the other post-communist countries, faces a lower target of R&D intensity, set at 1.7%. Nevertheless, the challenge is immense, since the country is still at only half that level and has little experience in developing policies to help achieve it. In this paper we tested two possible policy options to achieve the target: (1) to increase government expenditures on R&D and; (2) to provide tax relief on R&D to businesses. The method applied to assess the options is a recursive dynamic computable general equilibrium (CGE) model for Poland with an explicit link between productivity and R&D stock. The results show that achieving the R&D intensity target via the use of tax relief is 2.5 times more costly to the government budget, but it has a greater impact on the economy in terms of a higher GDP growth. Tax relief proved efficient in the short run while in the long run the government expenditure policy provides better value for money.     

Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age

Pfeifer, M. Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age This article aims to show which policy responses 14 Western European countries have adopted to deal with rising unemployment levels and increased need for benefits during working age. In contrast to earlier studies, both components of unemployment benefits (UB), i.e. unemployment insurance and unemployment assistance, were taken into account in a social rights indicator that depicts the legal entitlements of the unemployed. In total, there were eight indicators of both UB and social assistance representing expenditure, generosity, problem pressure and benefit entitlements. The following cluster analysis groups countries using these indicators. The resulting typology consisted of four ways of protecting the working‐aged: an extensive safety nets type operating well with functioning labour markets; a liberal protection type dealing with low levels of unemployment; a targeted protection type combined with an insider–outsider divide on the labour market; and lastly, a patchy safety nets type facing high unemployment levels.     

Pan‐European pension funds: Current situation and future prospects

The competitive pressures arising from European economic integration increasingly challenge the territorial sovereignty of national welfare states. This generates the need to situate domestic social security schemes amid the European Union's national and supranational as well as economic and social spaces. At the trans‐national level, the European Commission's 2003 Institutions for Occupational Retirement Provision (IORP) Directive created the illusion that a single market for occupational pensions would shortly be within reach. This did not happen, however, as IORPs — being at one and the same time financial vehicles and social insurance institutions — embody the constitutional asymmetry between policies promoting market efficiency and policies promoting social protection. Whereas the elimination of financial and tax barriers has proceeded smoothly, harmonization of the social and labour components within the occupational pension domain did not occur, slowing down the development of pan‐European pension plans. Nonetheless the road towards a single occupational pension market is still open, with first positive results emerging from the greater involvement of corporate and supranational actors.     

Fear of Others: Social Exclusion and the European Crisis of Solidarity

In recent years a major challenge for the EU has emerged around social issues and collective identities. With the emergence of a European political community that has diminished national sovereignty at a time when global forces are also undermining nation states, both Europe and migration become linked as sources of instability. Anxieties about Europe and migration are linked with fears of a clash of civilizations and anxieties about social securities. Social discontent, fuelled by socio‐economic changes, has undermined the traditional sources of identity around class and the nation, releasing xenophobic and nationalistic currents. Fear of others and anxieties about the future have emerged as potent social forces in contemporary society. The result is a crisis of European solidarity, along with a wider crisis of collective purpose. To combat such developments it is essential that the European project gives greater attention to issues of social justice and inclusive forms of social solidarity.     

Evaluating social investment in disability policy

Disability policy in European countries is displaying a shift towards social investment: increasing human capital and access to the labour market. The reasoning that underlies this transition is that disabled persons would benefit from mainstream employment, but are impeded in traditional policy by deficiencies in labour supply and demand. However, the shift towards more activating policies in many countries is accompanied by a decline in social protection. It is unclear whether social investment may effectively promote the employment chances of disabled persons within this context. The present research examines this question through a quantitative, cross-sectional, multilevel analysis on microdata from 22 EU countries. Our findings suggest greater activation to predict lower employment chances, while reducing passive support shows mixed effects. Conversely, measures for facilitation in daily life predict greater employment chances, as do measures for sheltered work. These findings raise questions over the value of social investment for disabled persons—and underline the need to overcome broader barriers in the labour market and in society.     

A Social-symbiotic Approach? EU Industrial Policy and the Pharmaceutical Industry in the EU

The purpose of this paper is to develop the debate about a symbiotic approach to industrial policy with respect to the pharmaceutical industry in the EU. The EU has an increasingly important role to play in European markets but it seems, at best, to be following a fragmented industrial strategy. There is a real and growing danger that this strategy becomes worse for everyone than no strategy at all. Thus the EU can either go for a comprehensive and comprehensible strategy or let the industry fend for itself amongst disparate health care systems amongst member states. Alternatively it can continue to stumble along with a pastiche of policies. There are signs of some debate about a more holistic approach to industry. In the European Union for example DG (Directorate General) V and DG III produced a communication arguing that “the [European Union] Community policy in favour of the pharmaceutical industry must take notice of [the] twofold context of public health and social security” (Com(93)718:3). This paper identifies current fragments of EU pharmaceutical industrial policy and indicates what a social-symbiotic approach is. Whether or not the industry in the EU continues to decline with respect to the industry elsewhere Asia and America in particular, the sick people of the EU will still need medication: a symbiotic approach to industrial policy can help stem the relative decline in the EU and indeed could reverse it.