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FIGHTING CHILD POVERTY IN THE EU 2020 CONTEXT

Zagreb, 30 November 2010

EUROPEAN COMMISSIONDG Employment, Social Affairs and Equal OpportunitiesSocial protection and inclusion policies

Walter WOLF

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A strong political commitmentMarch 2006 Council asked Member States “to take

necessary measures to rapidly and significantly reduce child poverty, giving all children equal opportunities, regardless of their social background”

• 2007 focus year on child poverty

• SPC Report on Child Poverty and Well-Being• Peer Review of the Social Protection Committee

• 2008 National Strategy Reports• A key priority in 24 Countries - Many have set

quantified targets in relation to child poverty• 2010 European Year against poverty and exclusion

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‘Open Method of Coordination’ (OMC)http://ec.europa.eu/social/main.jsp?langId=en&catId=750

• Definition of common Objectives and agreed indicators

• Reporting to national partners and to the EU (EC, Council, EP)

• Facilitating mutual learning and exchange of good practices

• EU and national poverty reduction targets

EU Social Inclusion Process

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The 2006 Social Inclusion Objectives

• access for all to the resources, rights and services needed for participation in society, addressing exclusion, and fighting all forms of discrimination

• the active social inclusion of all, both by promoting participation in the labour market and by fighting poverty and exclusion

• that social inclusion policies are well coordinated and involve all levels of government and relevant actors, including people experiencing poverty, that they are efficient and effective and mainstreamed into all relevant public policies

Making a decisive impact on the eradication of poverty and social exclusion by ensuring:

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Main achievements of the “Social OMC”(in the fight against child poverty)

• Child poverty has gained importance in national agendas and is now present in most national strategy. This also applies to enlargement countries

• Common indicators have been made available

•The target-setting approach has gained relevance

•Mutual learning through peer reviews has taken place and there is broader understanding of the multidimensional nature of the issue

•Stakeholders involvement in policy making has improved, although in uneven manner across MS

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’Smart, sustainable and inclusive growth’http://ec.europa.eu/eu2020/index_en.htm

7 EU ’flagship initiatives’• Smart: innovation, youth on the move

digital agenda• Sustainable: resource efficiency,

competitiveness• Inclusive: new skills and jobs, ’European

Platform against Poverty’

Europe 2020

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(1) ensuring the quality and the sustainability of public finances;

(2) addressing macroeconomic imbalances;(3) reducing imbalances in the euro area;(4) research, development and innovation,

digital economy;(5) improving resource efficiency and reducing

greenhouse gases;(6) improving the business and consumer

environment, modernising the industrial base;

EU 2020 integrated guidelines adopted in July 2010

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(7) increasing labour market participation and reducing structural unemployment;

(8) developing a skilled workforce responding to labour market needs, promoting job quality and lifelong learning;

(9) improving the performance of education and training systems at all levels and

increasing participation in tertiary education;(10) promoting social inclusion and combating

poverty.

EU 2020 integrated guidelines continued

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• 75 % of aged 20-64 employed

• 3% of EU's GDP invested in R&D

• 20/20/20 climate /energy targets• Early school leavers down to 10% and 30-34 with tertiary education up to 40%

• Lifting 20 million people out of poverty and exclusion

Europe 2020 The 5 EU headline targets

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Commission decision of September 29

• Based on the ten basic principles for Roma inclusion • The EU Framework will seek to ensure a more efficient

monitoring of and support to national and European efforts with regard to Roma integration

• To that end, and in the frame of the Europe 2020 Strategy, the Commission will invite Member States to present their own national strategies for the inclusion of Roma which could feature in their national reform programmes.

• The forthcoming flagship initiative on a "Platform against poverty" will constitute an integrated framework of actions to support horizontal priorities

• The European Commission also expects Member States to be explicit and ambitious about Roma when setting their national Europe 2020 targets in the fields of poverty reduction, employment and education.

EU Framework for National Roma Integration Strategies in April 2011

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• Recognising that the success of the Strategy relies on all its goals being achieved together

• Reducing poverty through active social security will help sustaining demand

• Reinforcing labour supply and 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

Europe 2020 An integrated strategy

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19 million poor children in the EU

Source: SILC(2008)

At-risk-of poverty rate in the EU (%), children and total population, 2007Poverty thresholds are 4 times higher in the richest countries than in the poorest

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Children aged 0-17 Total population

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Material deprivation measuresvs. at-risk of poverty rates

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At-risk-of-poverty rate (left axis)

Material deprivation rate (left axis)

Value of thresholds for a couple with two children -monthly income in PPS (right axis)

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People in workless households

• People (aged 0-59, not students) living in a family where no one works (or very little)

• 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%

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Possible gains in the efficiency of social transfers

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Expenditure on social protection benefits (excluding pensions) - % of GDP, 2007

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Source: SILC 2008 & ESSPROS 2007

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Why are there children living in poverty?• Monetary poverty

– The characteristics of the family in which they live• ½ of poor children live with a lone parents or a large family• Parent is below 30 and/or is low skilled• Children with a migrant background (40% at risk of poverty)

– Labour market situation of parents• 10% of children live in a household where nobody works (up to 16% in the UK)• 13% of children are poor even though their parents are working

(more than 20% in ES, PT and PL). • 62% of mothers work against 70% of women without children. Still, in some

countries women remain on the labour market when they become mothers – Effectiveness of governmental support for families

• Social transfers reduce the risk of poverty for children by 42% in average.<25% in EL, ES, IT and LV, LT and >60% in DE and FI

• Child care: Is quality child care available? Can parents afford to work? Yes in the Nordic C, BE, FR, HU, NL / No in IE, SK, UK

• Material deprivation– Describing actual living conditions

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Diagnosis on child povertyfrom very bad (---) to very good (+++) performance

Child poverty risk outcomes

Children in jobless

householdsIn-work poverty

Impact of social transfers

GR

OU

P A

AT + + ++ ++

CY +++ + +++ +

DK +++ + +++ ++

FI +++ ++ +++ +++

NL + + + +

SE + (++) ++ ++

SI ++ +++ +++ ++

GR

OU

P B

BE + -- +++ +

CZ - -- + +

DE ++ -- +++ +++

EE -- -- + -

FR ++ - ++ ++

IE - --- + +

SK - --- + +

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Diagnosis on child poverty from very bad (---) to very good (+++)

performanceChild poverty risk outcomes

Children in jobless

householdsIn-work poverty

Impact of social transfers

GR

OU

P C

HU --- --- - +

MT - -- -- -

UK -- --- -- +

GR

OU

P D

EL -- +++ -- ---

ES --- + --- ---

IT --- ++ --- --

LT --- + -- --

LU -- +++ -- +

LV --- - -- --

PL --- - -- --

PT -- + -- --

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Key policy messages endorsed by all Member States

• Policies ensuring equal opportunities for all and improving educational outcomes for each child.

• Fighting child poverty requires a combination of adequate income support, quality jobs for parents; and enabling services for children and their families.

• The best performers combine universal support towards all children with measures targeted at the most disadvantaged

• Efforts to tackle poverty will gain leverage from an evidence-based diagnosis of the main causes of poverty and exclusion in each Member State.

• Quantified objectives can be instrumental in making a decisive impact on the eradication of poverty

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Key policy areas• Income support and in-kind benefits

• Universal: ‘compensate’ for the cost of raising a child• Targeted: support those who need it most, but stigmatising, trap effects, low take up rates, higher administration costs• Combining the two• Integrated provision of services

• Access to the labour market for parents• Making work pay for parents: Tax incentives, in-work benefits,…• Child care: quantity, quality and affordability• Reconciliation measures: flexible working time and leave arrangements

• Education: supporting the development of the child• ECD, Pre-schooling and access to education• Preventing early school leaving• Access to health care, health at school• Housing (preventing evictions, enforceable rights, etc)

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Key policy areas• The most vulnerable children

• Children in foster care, institutions and disabled children• Pay attention to issue of children without parental care for economic reasons (parents in bankruptcy, parents working abroad)• Children living in deprived areas• Children with a migrant/ethnic minority background• Other vulnerable situations: street children, children victims of abuse or violence, in contact with criminal justice system, substance abuse

• Governance• Targets • Monitoring arrangements on child poverty, child well-being• Mainstreaming the well-being of children• Social inclusion and the children’s right agenda

22Source EU-SILC(2008); % of total population

Past trends (2005-2008)

People at-risk-of-poverty or exclusion

At-risk-of-poverty rate

Severe material deprivation rate

Workless households (provisional)

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5

10

15

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25

30

2005 2006 2007 2008

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Impact of the crisis

• Expected GDP growth for 2010 remains modest• Unemployment > 10% and expected to stay high • Social expenditure (social protection, education

and health) ~ 70% of public expenditure in EU• Social protection > 40% of public expenditure • Fiscal consolidation will affect social expenditure:

a challenge for social polices aimed at addressing poverty and exclusion

• The social situation is likely to further deteriorate and poverty is likely to increase.

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15 Recommendations for monitoring child poverty and well-being

Rec. 1: Setting targets at national level for the reduction of child poverty based on a diagnosis of the causes of poverty in this country.

Rec. 2: Impact assessment (micro-simulation models)Rec. 3 to 6: Monitoring child poverty and well-being within

the OMC (NSR) and at national level, in relation to a common analytical framework, orientation for ISG work on child wellbeing

Rec. 7 to 13: Statistical capacity building at EU and national level

Rec. 14 and 15: Improving governance and monitoring arrangements at EU and national level (coordination, involving stakeholders, invest in research, invest in analytical tools)

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Indicators and dimensions of well-being

• Economic security and material situation (risk of poverty, material deprivation of families)

• Housing• Local environment • Health• Education (early school leavers, literacy)• Social relationships and family environment• Exposure to risk and risk behaviour• The situation of vulnerable children

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SILC 2009 module ‘Material deprivation’/1

• Can you tell me whether all the children in your household have or can do the following?

- Yes- No, can’t afford - No, other reason

– Some new (not second hand) clothes– Two pairs of properly-fitting shoes (including a pair of all-weather

shoes) – Fresh fruits and vegetables once a day– 3 meals a day– of which at least one with meat, chicken, or fish (or vegetarian

equivalent)– Children books at home– Outdoor leisure equipment (bicycle, roller skates…)– Indoor games (educational baby toys, building blocks, board

games, computer games, …)

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SILC 2009 module ‘Material deprivation’/2

• Can you tell me whether all the children in your household have or can do the following?

- Yes - No, can’t afford - No, other reason

– (participate in) a regular leisure activity (swimming, playing an instrument, youth organisations, etc)

– Celebrations on special occasions (birthdays, name days, religious events)

– Invite friends round to play and eat from time to time– Participate in school trips and school events that cost

money– Go on holiday at least 1 week per year– Regular dental check-ups

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SILC 2009 module ‘Material deprivation’/3

• And, do all children in your household have?- Yes - No - Not applicable

– A suitable place to study or do homework– An outdoor space in the neighbourhood where they can play

safely• Was there any time during the past 12 months when

1 the children in your household really needed to consult a doctor but did not?

- Yes, there was at least 1 occasion- Couldn’t afford - Waiting list too long- Too far to travel - other reason

- No, there was no occasion• Idem “to consult a dentist”• Idem “to buy medicine or medical equipment”

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European Platform Against Poverty and Social Exclusion

• To be adopted on December 17, 2010• To support concrete and innovative actions

and a broader involvement of stakeholdersFour main pillars: 1. Stepping-up Member States coordination to

address common challenges 2. Promoting effective partnerships and the

social economy 3. The fight against poverty beyond social policy 4. Community Funding in support of social

inclusion

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Next steps• National targets

–Member States set their targets on the most appropriate indicators, given national circumstances and priorities

–Bilateral dialogues between Commission and each Member State 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

• Eurostat website–http://epp.eurostat.ec.europa.eu/portal/page/portal/e

urope_2020_indicators/headline_indicators

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EUROPEAN COMMISSIONDG Employment, Social Affairs and Equal Opportunities

Further Information

DG Employment, Social Affairs and Equal Opportunities‘Social Inclusion’ website

http://ec.europa.eu/social/main.jsp?catId=751&langId=en