The European Union already has an outstanding level of social security compared to the rest of the world. While the EU constitutes less than 6 % of the world's population and 20 % of global gross domestic profit (GDP), it accounts for at least 40 % of global public spending on social protection. According to Eurostat, In the EU-27 in 2020, expenditure on social protection stood at 22.0 % of GDP, at 41.3 % of total global public spending and at €2 943 billion. While the European social model is undoubtedly a unique achievement, it has to be adapted to the challenges of the future to maintain its long-term sustainability. #FutureShocks2022

EPRS policy podcast - Future shocks: Building a European social model for the 21st century

Compared to the rest of the world, Europe has the best levels of social protection and also ranks highly in terms of quality of life and wellbeing. However, it faces a wide range of challenges, including impact of the COVID situation.

The EU has only limited competence when it comes to social issues as most of it is up to national governments. The responsibility for employment and social policies lies mostly with the member states and their governments. This means that national governments - and not the EU - decide on issues such as wage regulations, including minimum wage, the role of collective bargaining, pensions systems and retirement age, and unemployment benefits.

However, over the years, the EU has been working on social issues throughout the European integration process and come up with a series of instruments in the social sector. These include EU laws, funds and tools to better coordinate and monitor national policies. The EU also encourages countries to share best practices on issues such as social inclusion, poverty and pensions.

One of the supporting tools is the European Social Fund+, with a total budget of €88 billion for next 7 years. It will play an important role in the implementation of the action plan on the European Pillar of Social Rights and in countering the socio-economic effects of the pandemic. It integrates the former European Social Fund, the Youth Employment Initiative (YEI), the Fund for European Aid to the most Deprived (FEAD) and the EU programme for Employment and Social Innovation (EaSI) into one fund.

Social Europe

From childhood to retirement, social policies are important at all stages of our lives.

Compared to the rest of the world, Europe has the best levels of social protection and also ranks highly in terms of quality of life and wellbeing. However, it faces a wide range of challenges.

The effects of the economic crisis are still deeply felt in many member states and, even though things have improved in many countries, great disparities remain within the EU. Unemployment rates are decreasing overall, but vary strongly among EU countries.

Low birth rates and an aging population also challenge the sustainability of welfare systems. Working life is being transformed due by technological innovation, globalisation and the rise of the services sector. New business models in the sharing economy with more flexible forms of working are becoming more important.

Social Europe (2020)

&nbsp;Arelatively recent phenomenon, the collaborative economy has become to the centre of the interest&nbsp;a decade in some areas of activities, such as car-sharing or short-term lets. Although it is now a well-known term – with alternative names from the 'sharing' to 'gig' to 'peer-to-peer' economy – it remains difficult to grasp precisely, beyond the central feature that potential consumers and providers are connected via a digital platform that matches demand and supply, providing cheap access to information on a very large scale.

These 'match-makers' make it possible for non-professional providers to offer goods and servicesin a wide range of activities, generating value and with the potential for further development.

The success of collaborative platforms has raised concerns regarding workers’ rights and unfair advantages these firms might enjoy over traditional companies that are bound by stricter legal regulations. Taxation issues in the collaborative economy increasingly highlight the need for an in-depth look into taxation, focusing on the link between the value created and tax, and the need for a level playing field for incumbent business facing competition from these new entrants to the market.

See more on this topic by visiting our package&nbsp; for the 8th parliamentary term.

Collaborative economy

International Day for the Eradication of Poverty

MEPs discuss with the Commission ways to encourage public and private investment in decent and affordable housing in Europe. Ahead of her confirmation as Commission President, Ursula von der Leyen said in a statement before Parliament on 18 July that Europe faces a housing crisis and announced she would appoint a Commissioner to be directly responsible for this issue. Danish Minister for Development Cooperation and Global Climate Policy Dan Jørgensen is the Commissioner-designate for Housing and Energy.
As part of its Renovation Wave Strategy, the Commission launched an Affordable Housing Initiative in October 2023. Before that, in January 2021, Parliament called on the EU to recognise access to decent and affordable housing as an enforceable human right.

Ensuring sustainable, decent and affordable housing in Europe

EP Plenary session - Parliament’s statements - International Day for the Eradication of Poverty

EP Plenary session -  Ensuring sustainable, decent and affordable housing in Europe - encouraging investment, private property and public housing programmes

EP Plenary session - Council and Commission statements - Forging a sustainable future together: economic, social and territorial challenges for a competitive, cohesive and inclusive Europe

EP Plenary session - Council and Commission statements - La Hulpe declaration on the future of social Europe

EP Plenary session - Topical debate - Quality jobs in a competitive future-oriented Social Market economy

EP Plenary session - Oral question - The role of social award criteria in public procurement in strengthening social rights, good working conditions and inclusive labour markets

EP Plenary session - Commission statement - Commission proposal for a Council recommendation on developing social economy framework conditions

EP Plenary session - Commission statement - International Day for the Eradication of Poverty

EP Plenary session - Council and Commission statements - Rising precariousness in Europe including the need for aid to the Most Deprived

EP Plenary session - Roadmap on a Social Europe: two years after Porto

EP Plenary session - International Day for the Eradication of Poverty

EP Plenary session - EU initiatives to address the cost of living, including the implementation of the European Pillar of Social Rights

- Will Europe be the engine of a green and socially fair transformation?-  debate between David SASSOLI, EP President, Gunter PAULI, entrepreneur and author of The Blue Economy and Beppe GRILLO, Italian comedian and politician

EP Plenary session - A social Europe in a Digital world

EP Press conference. Presentation of the report of the Independent Commission for Sustainable Equality.

Plenary session - Week 17 2017 in Brussels - European Social Right and WorkLlife Balance Initiative

Towards a European Action Plan for Social Enterprises - Meeting with NGOs on social entrepreneurship in Europe

Marie Claude VAYSSADE, Marijke VAN HEMELDONCK

' Social Europe ' demonstration at the European Parliament in Brussels. Presentation of the ' Social Charter '

MEPs debate on International Day for the Eradication of Poverty and call for increased action to support those living in poverty as well as for measures to eradicate poverty in Europe.The International Day for the Eradication of Poverty, marked annually on 17 October, fosters dialogue and understanding for people living in poverty. It acknowledges the efforts and the struggles of people living in poverty and provides them with an opportunity to make their voices heard.

International Day for the Eradication of Poverty: one round of political group speakers

Roberta METSOLA, EP President, opens the plenary session in Strasbourg by addressing a statement on International Day for the Eradication of Poverty. MEPs call for increased action to support those living in poverty as well as for measures to eradicate poverty in Europe.The International Day for the Eradication of Poverty, marked annually on 17 October, fosters dialogue and understanding for people living in poverty. It acknowledges the efforts and the struggles of people living in poverty and provides them with an opportunity to make their voices heard. This transcription is a result of an automatic process. Please check against delivery.

Statement by Roberta METSOLA, EP President, on International Day for the Eradication of Poverty

MEPs discuss with the Commission ways to encourage public and private investment in decent and affordable housing in Europe. Ahead of her confirmation as Commission President, Ursula VON DER LEYEN said in a statement before Parliament on 18 July that Europe faces a housing crisis and announced she would appoint a Commissioner to be directly responsible for this issue. Former Danish Minister for Development Cooperation and Global Climate Policy Dan JØRGENSEN is the Commissioner-designate for Housing and Energy.

Ensuring sustainable, decent and affordable housing in Europe - encouraging investment, private property and public housing programmes: Opening statement by Margaritis SCHINAS, Vice-President of the European Commission

Following up on the statement of Margaritis SCHINAS, European Commission's Vice-President for Promoting our European Way of Life, MEPs discuss ways to encourage public and private investment in decent and affordable housing in Europe. Ahead of her confirmation as Commission President, Ursula von der Leyen has announced she would appoint a Commissioner to be directly responsible for this issue. Danish Minister for Development Cooperation and Global Climate Policy Dan Jørgensen is the Commissioner-designate for Housing and Energy. As part of its Renovation Wave Strategy, in 2023 the Commission launched an Affordable Housing Initiative. Before that, in January 2021, Parliament called on the EU to recognise access to decent and affordable housing as an enforceable human right.

Ensuring sustainable, decent and affordable housing in Europe: extracts from the debate

Global challenges – including climate change, geopolitical conflict, erosion of democratic principles and social inequalities – affect people's daily lives and future prospects.A collective European response over the next 10 years could help to address these challenges – and offer benefits worth up to €3 trillion a year. This represents around 18 % of EU gross domestic product (GDP), equivalent to €6 700 per citizen per year. Referring to the European Parliament's work during the 2019-2024 term, our research has identified action in 10 policy areas that could unleash Europe's potential – without the need for Treaty change.

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