Social policy analysis in the run-up to the European Semester.

VS – 10/2024

The EC's Social Protection Committee (SPC) has presented its report about reviewing social performance within the EU. As an advisory body to the ministers meeting in the "Employment, Social Policy, Health, and Consumer Affairs Council " (EPSCO), it regularly provides information in advance for the ministers' opinion-forming process. In its latest report, the SPC analysed the social situation in Europe, including the progress towards the 2030 target of reducing poverty and social exclusion by 15 million people. It also highlights the main structural and social challenges facing individual member states. This year's thematic focus is on long-term care. This monitoring made it possible to identify social challenges and positive social developments, and the social affairs ministers will formulate their social policy input for the annual report on sustainable growth based on this.

Monitoring social performance

The monitoring process determines the social trends that can be tracked each year, such as the number of people affected by poverty or social exclusion or the effectiveness of social transfers in reducing the risk of poverty. It also visualises both positive and negative developments. The focus here is on both recent developments and developments compared to 2019. This is the starting year for the 2030 targets agreed upon as part of the European Pillar of Social Rights Action Plan. These trends are shown both for Europe as a whole and in the country reports for each country. The following policy areas are especially relevant for statutory social security this year:


  • Poverty or social exclusion and inequality
     
  • Effectiveness of social protection
     
  • Pensions
     
  • Long-term care
     
  • Health.
     

Protect social security systems, but make the effects of the crises noticeable

The report shows that social security systems have successfully protected people in Europe from the effects of the crises in recent years and have acted as important stabilisers for economic development. However, the effects of the crises, in particular the sharp rise in inflation, have effected people's material situations. Little progress has been made towards the jointly agreed target of reducing the number of people affected by poverty or social exclusion by 15 million by 2030. Around a third of countries - including Germany - have also seen an increase in the number of people suffering from severe material and social deprivation. This indicates that a deterioration in their social situation occurred during 2023. In this context, the country report for Germany cites the fact that the number of elderly affected by considerable material and social deprivation has risen steadily in recent years as a social policy challenge. The report sees a need for political action here. The low life expectancy of 65-year-olds is cited as another challenge that should be counteracted by measures in Germany.

Focus on long-term care

This year's report focuses on long-term care. The report reviews the Council's 2022 recommendation about access to affordable, high-quality long-term care. The greatest challenges concern the financing of long-term care, as well as the availability of qualified carers. The report also shows that there are huge differences in the quality of care provided and that major territorial inequalities exist when it comes to accessing care services in specific countries.  The report highlights Germany for its good access to long-term care, primarily home care.

Background: European Semester

The SPC's report and the monitoring of the social performance of the EU member states included in it will be the basis for preparing the annual report on sustainable growth within the EU. This is presented annually by the EC and initiates the annual cycle of the European Semester. The annual cycle of the European Semester starts in November of every year with the so-called autumn package. This autumn package enables the EC to provide a general overview of the socio-economic landscape in the member states through a series of publications, as well as highlighting the main priorities and risks for sustainable socio-economic development within the EU.