ETUI/ETUC Conference ‘The world(s) of work in transition’

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Common European standards for resilient welfare states: adequate social insurance and investement Frank Vandenbroucke Contribution to ETUI conference β€˜The World-s of Work in transition’ Brussels 28 June 2018 Intergenerational risk sharing under pressure: change pension benefit ratios incl private pensions ( ) Pension ratio = π‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Ž 𝑝𝑝𝑝 π‘π‘π‘π‘π‘π‘π‘π‘π‘π‘π‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Žπ‘Ž 𝑀𝑀𝑀 𝑀 BE BG CZ DE IE ES FR IT CY LU HU MT AT PL SI SK FI UK dk ee hr lv lt nl pt ro se 10 20 30 40 50 60 70 Benefit 2070 2016 No (Musgrave rule) Based on data from Ageing Report The dimension EMU: an evolving paradigm β€’ In the 1990s labour market reform was justified by advent supply-side flexibility β€˜enabling’ activation policies Today we need a broader approach : EMU requires consensus institutions that support both stability Therefore β€˜protective’ collective action are order Enabling protective can be mutually reinforcing creating systems Stability through bargaining: member states deliver wage coordination; this excludes totally decentralised uncoordinated bargaining Institutions monitor competitiveness should embedded dialogue distributive concerns mainstreamed monitoring needs common Cluster policy principles effective stabilisation capacity MS: – sufficiently generous unemployment benefits; sufficient coverage rates schemes; no segmentation leaves part force poorly insured against unemployment; proliferation employment relations not integrated into insurance; unemployed individuals β€’Effective => Convergence some key features Eurozone Access protection A perspective –Traditional view: –New insight: β€’The aspiration: simultaneous pursuit economic progress cohesion within countries (development states) between (upward convergence across EU) integration human capital investment Priorities EU β€’Investment ECEC education (and egalitarian background conditions) Rather than β€˜basic income cash’ free & top quality affordable health care! Resources 1) Risk Reduction Sharing Moral Hazard: Vaccination Metaphor Intereconomics Vol 52 May/June 2017 Number 3 pp 154-159 2) Basic Union: conundrum rather solution ACCESS EUROPE Research Paper 2017/02 01 August downloadable at http://ssrn com/abstract=3011847 3) From Gothenburg Social Summit Union Europe 27 November https://www socialeurope eu/gothenburg-social-summit-european-social-union 4) Commission May 5) On β€˜Musgrave rule’: Schokkaert Devolder Hindriks Towards equitable sustainable points system proposal Belgium Journal Economics Finance First View April 1-31 All publications: www frankvandenbroucke uva