Select Committee on European Scrutiny Eighteenth Report


18  STREAMLINING THE OPEN METHOD OF COORDINATION FOR SOCIAL PROTECTION POLICIES

(27150)
5070/06
COM(05) 706
Commission Communication: Working together, working better: a new framework for the open coordination of social protection and inclusion policies in the European Union


Legal base
Document originated22 December 2005
Deposited in Parliament 11 January 2006
DepartmentWork and Pensions
Basis of consideration EM of 23 January 2006
Previous Committee Report None; but see HC 63-xxviii (2002-03), para 15 (2 July 2003)
To be discussed in Council No date set
Committee's assessmentPolitically important
Committee's decisionCleared; but further information requested

Background

18.1 In July 2003, the previous Committee considered proposals from the Commission for streamlining the open method of coordination in the field of social protection.[31]

18.2 The "open method of coordination" (OMC) was introduced by the Lisbon European Council in March 2000.[32] The European Council described it as a process "designed to help Member States to progressively develop their own policies" through:

  • agreeing European guidelines and timetables for short-, medium- and long-term goals;
  • setting quantitative and qualitative indicators and benchmarks;
  • translating the European guidelines into national and regional policies; and
  • and periodically monitoring and evaluating progress.

The OMC is not underpinned by EC legislation; it is a voluntary process for sharing information and good practice, recognising that Member States have the primary responsibility for social protection.

18.3 "Social protection" is the collective term for policies on pensions, social inclusion and healthcare and long-term care.

18.4 The Communication the previous Committee scrutinised in 2003 proposed that Member States should:

  • agree a set of common objectives for the three pillars of social protection;
  • set common indicators; and
  • produce reports every three years on their strategies for achieving the common objectives and make progress reports in the intervening years.

Every year, the Council and the Commission would send the Spring European Council a Joint Report on Social Protection. The production of the Joint Report would be synchronised with the production of the European Employment Guidelines and the Broad Economic Policy Guidelines (now known as the Integrated Guidelines for Growth and Jobs). The Commission also proposed that the first set of common objectives for social protection should be agreed in 2006.

18.5 The previous Committee concluded that, in general, the Commission's suggestions seemed sensible.

18.6 In July 2003, the Employment and Social Policy Council supported most of the Commission's proposals for the OMC. Among those it did not support was the proposed requirement for Member States to make annual progress report in the years in between their three-yearly reports.

The document

18.7 This new Communication on the OMC for social protection:

  • proposes common objectives;
  • argues for greater publicity for the OMC so that the public would see the benefits of the process and the EU's support for social protection;
  • calls for more mutual learning and sharing of good practice between Member States;
  • proposes that, in the intervening years between the Member States' three-year reports, the OMC should concentrate on the analysis of specific issues and the dissemination of policy findings;
  • proposes that Member States' national strategies for social protection should contain an assessment of the national social situation, a statement of the Member State's strategy for modernising its social protection policies and plans which translate the common objectives into national policies for pensions, social inclusion and healthcare and long-term care; and
  • repeats the proposal that the Council and Commission should make annual Joint Reports on Social Protection.

18.8 The Commission proposes the following common objectives for the three pillars of social protection:

  • promote social cohesion and equal opportunities for all;
  • interact closely with the Lisbon objectives for growth and jobs and with the sustainable development strategy; and
  • improve the processes for the design, implementation and monitoring of policies.

18.9 In addition, the Commission proposes specific objectives to:

  • make a decisive impact on the eradication of poverty and social exclusion;
  • provide adequate and sustainable pensions; and
  • ensure accessible, high-quality and sustainable healthcare and long-term care.

18.10 The Commission says that there should be:

    "a renewed focus on target setting in relation to poverty and social exclusion"

and that :

    "The European Parliament has often indicated a wish to engage more fully with OMC processes. The Commission and the Member States should explore with Parliament ways of doing so."[33]

The Government's view

18.11 The Parliamentary Under-Secretary of State at the Department of Work and Pensions (Mr James Plaskitt) tells us that there is widespread support for the OMC among Member States, who see it as a useful means to exchange information about good practice and involve stakeholders and so improve policy formation and execution.

18.12 There are, however, two aspects of the Communication on which the Government will be seeking clarification. The first concerns the Commission's reference to setting targets on poverty and social exclusion. The Minister tells us that the governments of several Member States, including the UK Government, have doubts about the value of quantified EU targets; and the Government will, if necessary, resist the adoption of such targets. Second, the Commission refers to the wish of the European Parliament to be more fully engaged in the OMC. The Minister says that it is unclear what more the European Parliament should have to do with this non-legislative process for cooperation between Member States in matters for which they have the primary responsibility.

Conclusion

18.13 We share the conclusion the previous Committee reached when it considered the Commission's previous Communication on simplifying the open method of communication: in general, the proposals appear sensible. We should add, however, that the proposed common objectives seem so bland and general that we wonder whether they would have any practical value.

18.14 We welcome the Government's intention to seek clarification of the Commission's references to setting targets and to the interest of the European Parliament in the OMC. We should be grateful if he would tell us what response he receives. We see no need, however, to keep the Communication under scrutiny pending his reply and so we are content to clear it.





31   See headnote. Back

32   Lisbon European Council, 23-24 March 2000, Presidency Conclusions, para 37. Back

33   Commission Communication, page 9. Back


 
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