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Policy packages for upward convergence Frank Vandenbroucke Contribution to the session on ‘Convergence and Inequalities’ Eurofound Forum 2017 Dublin 14 November Bridging aspirations functional necessities of European integration • The EMU: – EES 1997: supply-side flexibility New insight: labour market institutions supporting stability common standards resilient welfare states Cluster policy principles an effective stabilisation capacity in MS: sufficiently generous unemployment benefits notably short-term; sufficient coverage rates benefit schemes; no segmentation that leaves part force poorly insured against unemployment; proliferation employment relations are not integrated into systems social insurance; activation unemployed individuals Labour can deliver wage coordination: monitor competitiveness should be embedded dialogue distributive concerns mainstreamed monitoring => Convergence some key features Eurozone Traditional view: aspiration: simultaneous pursuit economic progress cohesion both within countries (development states) between (upward across EU) human capital through investment policies Upward inequality EU stimulate support MS develop ‘dual use ’ pursue internal quality is a condition long-term Reducing background inequalities families with children investing child care education contribute national EU-wide “Rising income has significant impact growth large because it reduces poorer segments poorest 40% population precise invest their skills ” (OECD In Together … 2015) Inequality: protection (EU27; 0-59) 70% 60% 50% 30% 20% 10% 0% 2004 2014 Work Intensity household very high medium low Overlapping priorities EMU collective bargaining transparency predictability minimum wages better perspectives households weak attachment markets / incentives low-skilled labour… ECEC Resources Structural versus competition: limits diversity Economic Monetary Union ECFIN discussion paper 065 Commission Directorate-General Financial Affairs Brussels 20 July Rinaldi Social Europe challenge In: Vision Summit Consortium
(eds ): Redesigning Ways forward Gütersloh pp 38- 77 2015 Gütersloh; (Consortium website: http://www vision- europe-summit eu/) Barnard De Baere ) A after Crisis Cambridge: Cambridge University Press September All publications: www frankvandenbroucke uva nl