The Belgian presidency of the Council of the EU has set the social-policy ambition for the next European Commission to follow.
In recent months, the discourse on the future of the European Union has been overwhelmingly centred on ‘competitiveness’. In the Financial Times in May, the French president, Emmanuel Macron, and the German chancellor, Olaf Scholz, advocated ‘a renewed impetus for competitiveness for the EU’s next term’. And the Strategic Agenda for the five years ahead adopted by the European Council in June identified a ‘prosperous and competitive Europe’ as one of three goals.
Yet amid this competitiveness-driven agenda, the Belgian presidency of the Council of the EU during the first half of 2024 worked quietly but effectively to ensure social considerations were not left by the wayside, leaving the benefits of the single market inequitably shared. The political guidelines issued in mid-July by the outgoing European Commission president, Ursula von Der Leyen, before her re-endorsement by the European Parliament, promised a new action plan for the European Pillar of Social Rights (EPSR). Centred on quality jobs, skills, an anti-poverty strategy and an affordable-housing plan, this reflected the consensus secured by the Belgian presidency with the La Hulpe Declaration.
Compass to navigate
In April in La Hulpe, the Belgian government had tabled a comprehensive social and employment agenda. The inter-institutional declaration was signed by the prime minister, Alexander De Croo, in the name of all EU member states bar Sweden and Austria, by von der Leyen on behalf of the commission and Roberta Metsola for the European Parliament, as well as by the social partners and civil-society representatives.
The declaration foregrounds the EPSR as a compass to navigate contemporary challenges and develop appropriate policy responses. So, yes to more competitivenes—but built on quality jobs, fair working conditions and adequate social protection for all.
The Franco-German competitiveness pitch is premised on more innovation (including via industrial policy) and investment in a deepened single market, in a context of fair trade. The La Hulpe Declaration sets out how this should be implemented to benefit everyone:
- enhancing labour mobility and fairness via co-operation among national labour inspectorates, improved fraud detection and more information and advice for mobile workers;
- expanding the roles of the European Labour Authority, allowing for concerted and joint inspections, the authority acting as an arbitrator in member states’ disputes and more accessible information for individuals and employers;
- co-ordinating social-security systems better, by pursuing electronic exchange of information and developing a digital vision to ensure portability of rights, with more user-friendly social-protection arrangements;
- on workplace health and safety regulating hazards related to climate change, setting minimum standards for hazardous substances and assessing psychosocial risks linked to digitalisation, and
- ensuring fair working conditions in areas such as telework, with a ‘right to disconnect’, the ‘human in control‘ principle for artificial intelligence and regulation of algorithmic management.
The declaration calls inter alia for a renewal of EU anti-discrimination strategies, including an ambitious new gender-equality strategy, as well as further actions to guarantee affordable and accessible housing and to support equality impact assessments in policy design and evaluation. It reiterates that social dialogue and collective bargaining are fundamental to the European social model, and democracy, and represent a tool to anticipate and manage transitions.
Clear social dimension
Beyond contributing to setting the legislative agenda with the La Hulpe Declaration, the Belgian presidency worked with its Spanish predecessor to ensure a strong social dimension in the new EU economic-governance framework—the prior fiscal rules having been suspended for the pandemic—which was agreed upon by the council and the parliament in February. Together with the European Parliament, the presidencies worked diligently to ensure that member states would retain the ability to invest in social, healthcare and labour-market policies while respecting fiscal constraints.
They secured the incorporation of social priorities: with the EPSR explicity included among the common European objectives to be achieved with the new rules, associated reforms and investments will be allowed in medium-term fiscal plans. Social developments will also be monitored, with the European Semester taking on board employment and social developments via a new Social Convergence Framework which was first introduced in the 2024 cycle. Thanks to these provisions, member states will have a legal basis to include social and health investments in their national plans, enhancing flexibility in budget adjustments.
The narrative of the Belgian presidency reversed the traditional approach to social and health policies, considered as a mere cost on the public budget. In March it organised the first ever joint meeting of EU ministers of economic and financial affairs and ministers of employment and social affairs. This was to present the results of a year’s work with the Spanish colleagues on the economic returns of investing in and reforming labour-market, social and healthcare policies.
The findings were clear. Well-designed social investments and reforms produce returns in terms of growth, through their impact on productivity and ‘human capital’—including via stronger innovative capacity and absorption of new technologies—and/or employment opportunities which ultimately improve countries’ debt sustainability.
At the June meeting of ministers of employment and social affairs, the presidency secured council conclusions on social investments and reforms for resilient economies and endorsement of guiding principles for member states to evaluate the economic returns of employment and social policies. The council called on the commission to: establish a ‘knowledge hub’ on social investment, to enhance mutual learning and technical assistance; continue improving the timeliness and availability of social indicators, to reduce lags in assessing poverty and inequality trends; and enhance member states’ access to data for policy evaluation and impact assessment, while ensuring protection of personal data.
Concrete actions
The first results of the engagement of the Belgian presidency are visible in the new commission political guidelines. Yet for these to translate into concrete policy actions, as envisaged in La Hulpe, the proposed action plan must be put in place and concrete proposals for directives and regulations spelt out.
A key role will be played by the next commissioner in charge of jobs and social rights. The extraordinary work done in the social and employment domain over the past five years has also been thanks to the outgoing commissioner, Nicolas Schmit. Equal ambition will be needed for the next five.
The parliament will also be central. In the last term, Dragoș Pîslaru, Agnes Jongerius, Gabriele Bischoff and Dennis Radke—to name only a few members of the Committee on Employment and Social Affairs (EMPL)—were critical in the passing of legislation and in teaming up with the Belgian presidency to strive for an ambitious social agenda. It is vital that the same ambition and pressure is maintained in the new mandate.
By September 20th, member states will be required to present their medium-term fiscal plans. The fiscal trajectory, and so the margin, is known for each member state. Now it is up to each country to present its plan and choose the right balance of reforms and investments, including in the social domain. For many countries the margins are limited and so trades-off will soon emerge on which policies to prioritise. In such a context inclusion of social investments and reforms becomes even more important and hence the incentive to use the guidelines for measuring the returns.
In sum, the social-policy road remains long and winding. But the agenda is clear and the task is of implementation.
Frank Vandenbroucke is deputy prime minister and minister for social affairs and public health in Belgium.
Dr Francesco Corti is an adviser to the Belgian deputy prime minister and minister of social affairs and health and an associate research fellow at the Centre for European Policy Studies. He chaired the informal EU working group on social investment launched by the Spanish and Belgian presidencies.
Gerrit Van de Mosselaer is an adviser to the Belgian deputy prime minister and minister of social Affairs and health. His background is as a legal counsel and social-policy adviser in social criminal law, public management in social security and EU social affairs.