1. Inequality is rising globally and within the EU, threatening economic growth and social cohesion. 2. A mixed policy response is needed that promotes inclusive growth through jobs, social protection, and reducing inequality of opportunity. Social investment policies that boost human capital from an early age can help drive participation and productivity. 3. Transforming welfare systems into ones focused on social investment, like supporting education and women's participation, can help countries adapt to demographic changes and perform better economically. The EU needs more coordinated, fair social policies to strengthen its legitimacy and long-term viability.

1. Inequality
Lieve Fransen, MD, PHD.
1.Inequality rising at global and European
level, a key challenge of our time.
2.The need for an effective mixed policy
response
3.The contribution of social policy and
welfare reform
4. A social investment approach and can
Europe lead? Europe-insights

2. 1.Inequality rising.
• Income / wealth inequality part of broader reality,
including inequality of outcomes /opportunity.
• Extends to gender/ race/ ethnicity/ disability/ age.
• Worlds poorest half controls less than 10% of its
wealth.
• Rising inequality and divergence within and between
countries in EU a threat for growth , social fabric and
credibility of European project.

3. Income inequality

4. Inequality increased in half
of EU countries

5. Unequal crisis and recovery
• Employment rates: divergence between
North and South of EU 15

6. 2. Need policy mix for
inclusive growth.
• Recent attention paid to it, but still denial of many,
while promising in conclusions from G20.
• Most (EU) strategies focus on macroeconomic
policies and structural reform for growth and less
attention to inequality.
• Believe in trickle down economics.(cfr structural
adjustment).
• Need of political will and integrated agenda, jobs.
health, social protection , inclusion, resources.

7. Outstanding reform agenda
• Policies that simultaneously promote growth and
reduce inequality.
• Address also inequality of opportunity and help
broaden participation in process of growt.
• such as:
• Access to markets, level playing field for firms,
human capabilities, women participation, education,
activation, (re)integration, remove barriers for job
creation

8. 3. Transformation of welfare
to social investment .
• Realizing peoples full potential is precondition for
growth and equality in opportunity/ income and
wealth.
• Adapt welfare
to ageing, potential future labour market
shortage, changing family structures, roles of
women, knowledge based and globalised
economies.

9. Ageing requires highest
possible participation

10. Countries that moved timely
in this direction have
weathered the crisis better.

11. The right mix of policies

12. Social investment approach
• Investing in human capital from early age and
lifelong.
• Supporting better women’s participation in labour
market.
• Working longer and in more flexible careers.
• Integrated social services and benefits.
• Enabling people to better cope with risks (resilience)
across life course .

13. Upward social convergence
or divergence and inequality.
• Effective social investment policies
crucial for
• - equality of opportunity,
• - convergence,
• - smart ,sustainable and inclusive
growth

14. From fighting unemployment to
promoting greatest possible
participation of people in
labour market and society
+ People to work more and longer, and special attention
to women, young, older…
• (re) integration disabled, long term unemployed,
migrants…
• Active/ individualized support services vs passive
cash transfers.

15. Stronger prevention and
capacitation
• Early interventions, invest in very young.
• Competencies and skills of young.
• Prevent early school leaving/provide youth
guarantee.
• Effective employment services, preventing
unemployment.
• Life long learning opportunities.
• Education, care, independent living.
• Reduce tax disincentives to work.

16. Central idea
• Social investments that serve to raise participation
and productivity should not be seen as a drain on the
public finances but as productive factors that
contribute to economic progress .
• Advocate a new system of public finance surveillance
to allow identification of real public investments.
• This could allow to exempt social investments from
the constraints of fiscal austerity.

17. 4. At country and EU level
• Human capital is the single most important growth
factor.
• Equality of opportunity and the highest level of
participation in labour market and society is the only
way forward.
• Affordable for our economies in Europe.

18. At EU level
• Inefficient social investment policies
manifest:
in lower educational outcomes.
less productive workforce,
higher costs and
social and economic spillover effects in other
member states.
(1)

19. At EU level (2)
• EU is a complex world of multi-tier governance with
social policies at MS or regional level.
• Yet The European project is not perceived as
delivering a better life and more equality in
opportunity and convergence in the way it once did.
• To sustain a vibrant EU in the future
that is equal, open and global more fairer Europe is
needed.

20. EU level (3)
• The crisis has bolstered a macro- economic policy
platform focusing on bringing the budget deficits and
public debt down.
• Costly bank bail outs, automatic stabilization, rising
social protection expenditures and declining public
revenues, make it even more challenging for Europe
to live to its full economic and social wellbeing
potential.

21. Conclusion
• Addressing inequality of opportunity in Europe by
improving social investments….
…… is urgently needed to change the course towards
increased divergence and dualization of society.