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									     A EU headline target
for promoting social inclusion,
     in particular through
   the reduction of poverty


            Isabelle Maquet-Engsted
DG Employment, Social Affairs and Equal Opportunities
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       Outline of presentation
• Raisning awareness: EY 2010 for combating
  poverty and social exclusion
• A major breackthrough
• The Commission original proposal and the
  work on additional indicators
• The agreed target and its components
• Next steps
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            European Year 2010
• Supporting more than 700 initiatives in the EU
    – awareness raising (media campaigns, social networks)
      – direct support (information on rights, LLL)
      – policy developments (conferences, good practices),
      – expertise (studies)
•   Early political momentum (=>Europe 2020)
•   Increased public awareness (media coverage)
•   Partnership and cooperation, involving new actors
•   Keeping up the momentum:
      – October focus week (17 Oct: international day for
      poverty eradication)
      – November: Art exhibition with ambassadors
      – December: Closing conference with final declaration
      – Europe 2020
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 Europe 2020: 5 EU headline targets
• 75 % of the population aged 20-64 should be
  employed
• 3% of the EU's GDP should be invested in R&D.
• 20/20/20 climate/energy targets
• Early school leavers down to 10%
  30-34 with complete tertiary education up to 40%
• Lifting 20 million people out of poverty and
  exclusion
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          A major breakthrough
• Commissioner Andor on 7 June 2010
“Today's agreement is a major breakthrough. For the first time
  ever, we have a concrete target to reduce those at risk of
  poverty and exclusion by at least 20 million by 2020. This
  sends a powerful message about Europe's genuine
  commitment to visible results for a more just and inclusive
  Europe.”

• Council conclusions of March 2000
“Steps must be taken to make a decisive impact on the
  eradication of poverty by setting adequate targets to be agreed
  by the Council by the end of the year.“
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            An integrated strategy
• An integrated strategy for a smart, sustainable and
  inclusive growth:
   – Recognise that the success of the Strategy relies on all its
     goals being achieved together
   – Reducing poverty through active social security systems
     will help sustaining demand, reinforce labour supply and
     put the EU on a solid growth path with better
     employment opportunities for all
   – Reducing poverty will enhance children’s chances to do
     well at school
   – Reducing poverty will enhance participation of all in
     society, etc                                                   6
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     Commission original proposal
• Reducing poverty by one fourth by 2020,
  lifting 20 million of people out of poverty
   – People at risk of poverty are those who live with less than
     60% of the median income in their country
   – Poverty line varies from less than 100€ to more than 1000€
     across EU countries
   – 80 Million people at risk of poverty in the EU
   – Varies from 9.1% to 25.6%
• Headline indicator used to measure and monitor
  poverty in the EU and in most Member States
• It reflects the role of work, education and social
  protection in preventing and alleviating poverty
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          More work on indicators
• Spring European Council asked for more work on
  indicators
• To underpin a target “to promote social inclusion,
  in particular through the reduction of poverty”
• Member States had concerns about reflecting …
   – the multi-dimensionality of poverty
   – the diversity of situations and priorities across the EU
   – the impact of growth on living standards
   – situations of poor living standards in countries with low
     GDP per capita
   – the key role of labour market inclusion to fight poverty
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The target adopted on June 17, 2010
 Builds on existing work on indicators at EU level
 EU level target
   – “Lifting 20 millions people out of poverty or exclusion by
     2020”
   – Based on 3 existing EU social inclusion indicators:
      • At-risk-of-poverty,
      • (severe) material deprivation (adopted in February 2009),
      • people living in jobless households (just in time agreement on new
        definition)
• National targets
   – Member States are free to chose the most appropriate
     indicator to set their national target
   – Member States to show how they will contribute to meeting
     the EU level target, in dialogue with the Commission
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      Severe material deprivation
• Definition: People whose living conditions are
  severely constrained by a lack of resources,
   – They experience at least 4 out of 9 deprivations:
      • people cannot afford i) to pay their rent or utility bills, ii) keep
        their home adequately warm, iii) face unexpected expenses,
        iv) eat meat, fish, or a protein equivalent every second day,
        v) a week of holiday away from home once a year, vi) a car,
        vii) a washing machine, viii) a colour tv, or ix) a telephone.
• A non monetary measure of poverty
• Based on a single European threshold and
  reflects different living standards across the EU
   – It concerns 8.3% of the EU population
     varying from 1% in LU to 33% in RO
• List of items to be reviewed in 2015 (2009 SILC
  module)
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  People in households with zero or
      very low work intensity
• Definition: People (aged 0-59, not students) living
  in a family where no one works (or very little)
• Zero or very low work intensity refers to situation where
    – all adults in the family are out of work over a whole year,
    – Or they work very little in relation to their total work
      potential (Work intensity <0.2)
• Reflects long-term exclusion from the labour market, for
  individual workers and the family members who depend
  on them
• Strong link to child poverty and intergenerational
  transmission of poverty
• It concerns approx. 8% of the total EU population, varying
  from 4% to 14% (provisional calculations)
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    A new variable of work intensity
• Old definition
   – sum of all months actually worked by the working age members of the
     household divided by
   – sum of the workable months in the household (months spent in any
     activity status by all working age members)
• Issues
   – Did not take account of part-time work
   – Need a more refined breakdown by family types (e.g lone parents)
   – New development in the context of the ISG/SPC report on child poverty
     and well being
   – Further work on behalf of the Commission by Tärki/Applica
   – Definition tested by Guio-Fusco-Marlier in paper for SILC conference
• New definition
   – Takes part time into account + a proxi of number of hours worked by
     people who declare working part time
   – More refined household type breakdown
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                     Next steps
• Eurostat website
   – Provisional data (on-going validation work by Eurostat)
   – http://epp.eurostat.ec.europa.eu/portal/page/portal/europ
     e_2020_indicators/headline_indicators
• National targets
   – Member States free to set their targets on the most
     appropriate indicators, given national circumstances and
     priorities
   – Bilateral dialogues between Commission and each MS to
     establish the link between national target and EU target
• Monitoring of the target at EU level
   – Part of the monitoring of the 5 headline targets
   – Link to the monitoring of the employment guidelines (incl.
     GL 10)
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Annexes




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               Past trends (2005-2008)
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                                                                      People at-risk-
  25                                                                   of-poverty or
                                                                        exclusion
  20
                                                                       At-risk-of-
  15                                                                  poverty rate
                                                                         Workless
                                                                        households
  10                                                                   (provisional)
                                                                      Severe material
    5                                                                 deprivation rate


    0
             2005           2006                        2007   2008

Source EU-SILC(2008); % of total population                                              18
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