SOCIAL IMPACT OF THE CRISIS
CC-29/09/09
SOCIAL IMPACT OF THE CRISIS
QUESTIONNAIRE SUMMER 09 – EAPN MEMBERS RESPONSES
|1. What are the main characteristics of the Economic/Financial Crisis in your country? What are the main developments in 2009? |
|SPAIN |a) Intense contraction of GDP. |
| |The Spanish economy is suffering a recession in terms of a 3% decrease of inter-annual GDP (May 2008-2009). |
| | |
| |b) Drop of industrial production, consumption and exports. |
| |A year ago the Spanish industrial production grew ahead of four countries in the EU-16. One year after Spain is the country where industrial activity has dropped the most, by 24.7%. |
| |A steep drop in consumption of related manufactured products can be seen in the figures of new cars’ purchases: in 2009 Spain has fallen from the first place, to the last row of the |
| |European car market ranking. |
| |Another indicator is the volume of exports. In 2007, exports grew at the European Union’s rates, enduring the wrath of the emerging countries and outperformed five countries in the |
| |ranking. One year after exports fell far from the average, currently under critical levels. |
| | |
| |c) Increase in the State deficit. |
| |Between 1996 and 2004, public deficit was eliminated. From a negative budget balance of 6.6% of GDP, budget balance was achieved, public spending was reduced from 43.2% of GDP to |
| |38.9%, thus increasing the sphere for private initiative to create employment. Austerity, spending control and a legal frame for budget stability and for tax and structural reforms |
| |enabled the accession to the Euro-zone. But the regulations of the Budgetary Stability Act have been relaxed. In 2006, Spain had a surplus of 2%, which made the sixth place in the |
| |EU-16. In contrast, in 2008 the deficit was about 3.8%, leading to the final quarter of the ranking. This worrying situation, with a forecast of 5-6% by the end of 2009, has forced to |
| |cut public spending and budgets during the first months of this year. |
| | |
| |European Commission - Economic Forecast spring 2009 |
| | |
| |Forecasts for Spain |
| |2007 |
| |2008 |
| |2009 |
| |2010 |
| | |
| |GDP growth (%, yoy) |
| |3.7 |
| |1.2 |
| |-3.2 |
| |-1.0 |
| | |
| |Inflation (%, yoy) |
| |2.8 |
| |4.1 |
| |-0.1 |
| |1.4 |
| | |
| |Unemployment (%) |
| |8.3 |
| |11.3 |
| |17.3 |
| |20.5 |
| | |
| |Public budget balance (% of GDP) |
| |2.2 |
| |-3.8 |
| |-8.6 |
| |-9.8 |
| | |
| |Current account balance (% of GDP) |
| |-10.1 |
| |-9.5 |
| |-6.9 |
| |-6.3 |
| | |
| |4 May 2009, European Commission, European Economy n° 3|2009 |
| | |
| | |
| | |
| |d) A fast and intense negative impact on the labour market. |
| | |
| |Eurostat has determined that the pace of job destruction has increased to 1.3% between January and March, over the same period of 2008. Spain brought 802,800 out of the 1,220,000 |
| |people who stopped working during this period in Europe.[i] |
| | |
| |From the first quarter of 2007 to the first quarter of 2009 that percentage of unemployed households (all working-age adults unemployed) rose from approximately 2.5% of total |
| |households, to 6.3%, reaching the figure of more than one million households. Unemployed households have by far the lowest level of disposable income per adult. During the same period,|
| |the percentage of no-income households rose from 1.8 to 2.8%, meaning 470,000 households (about one million individuals). This represents an increase of over one hundred thousand homes|
| |in two years.[ii] |
| | |
| |Today’s results of the Labour Force Survey, EPA, states that there are 4,135,000 unemployed persons, almost 19% of the Economically Active Population. |
| | |
| |Main results - Labour Force Survey, 2nd trimester 2009 |
| | |
| |The number of employed people dropped by 145,800 in the second trimester of 2009, regarding the previous trimester, and stood at 18,945,000. In the last years the occupation has fallen|
| |in 1,480,200 people. The inter-annual rate of occupational change is -7.25%. |
| |The activity rate stood at 60.06%, nine hundredths less than in the first trimester. Males’ rate is 68.89% (22 hundredths lower than the previous quarter) and females’ rate is 51.55% |
| |(five hundredths higher). |
| |The number of unemployed persons increased by 126,700 in the previous trimester and stood at 4,137,500. Unemployment rises 56 hundredths, to 17.92%. The number of unemployed has |
| |increased by 1,755,900 people in the last 12 months. |
| |The total number of salaried people descended in 106,200 people on the previous trimester, and is estimated at 15,736,800. In the last year, the number of employees fell by 1,116,200. |
| |Employees with permanent contracts go down at 52,000, and the temporary employees to 54,200, in this trimester. The rate of temporary occupation stands at 25.24%, with a decline of 17 |
| |hundredths regarding the trimester before. |
| |In the second trimester of 2009, the number of employed persons increased in the Illes Balears (36,400 more) and, to a lesser amount, in Extremadura (7400) and Castilla y Leon (4100). |
| |The largest decreases in the number of employed persons in this trimester are found in Andalusia (52,200 less occupied), Catalonia (40,600), Valencia (30,200) and Galicia (21,100). |
| |The largest declines in unemployment in this quarter occurred in Catalonia (20,800 less unemployed), Extremadura (8300) and Canary Islands (7500). The largest increases in unemployment|
| |were observed in Valencia (57,500 more unemployed, than in the previous quarter), Andalusia (54,600), Castilla-La Mancha (14,600) and Asturias (9900). |
| |Source: Instituto Nacional de Estadística, Encuesta de Población Activa (EPA), Segundo trimestre de 2009. 24 de julio de 2009 |
| | |
| | |
| |e) The fall in employment levels implies, inevitably, an increase of social needs. Even with delays, there is evidence that persistence over time of high unemployment rates increases |
| |inequality and poverty levels. |
| | |
| |In the context of the crisis, the weaknesses of the scarcely distributive model of growth that reigned during the last 15 years became more visible. Those who already face poverty (or |
| |live on the edge of it) are hit extraordinarily hard in these days and will be in the year ahead. A stiff competition between those persons, and the newly impoverished people, is |
| |expected to increase. Important budget cuts in social spending are fuelling this process.[iii] |
|GERMANY |Due to its role as a great export nation, Germany notably suffers from drops in orders, cutback of production, insolvencies of companies and thus, a decline in employment. Caused by |
| |enormous decline in production the GDP decreased by 3.8 per cent in the first quarter of 2009 (after –2.2 per cent in the last quarter of 2008). As average for 2009 a loss of 6 per |
| |cent is expexted. |
| |Nonetheless the German labour market is not yet hit by the crisis due to generous short-time working allowance policies: unemployment is only slightly higher than last year (3.4 |
| |million unemployed persons plus 1.4 million short time workers in August 2009). Latest economic projections do not predict extensive dismissals for this year but an increasing number |
| |of job losses is expected for 2010 (which are supposed to bring about up to 4 million jobless persons). |
|IRELAND |Bursting of domestic led property bubble at the same time as global credit crunch has led to worse decline than other EU countries and reduced policy options. |
| |Standardized Unemployment rate up from 4.8% in Jan 2008 to 12.2% (July 2009). At the end of July 2009 there were 423,400 people on the Seasonally Adjusted Register. |
| |As of July 2009 there has been a 142% increase in redundancies. Three sectors continue to dominate these statistics and they are: other services; building and civil engineering; and |
| |other manufacturing. Higher rate of increase in unemployment among non-Irish nationals and younger and older people that in the workforce generally. |
| |Job losses started in construction but now affecting almost all sectors. |
| |Low level of credit available due to high and in many cases uncollectible property related debt – leading to business and job stagnation. |
| |Dramatic increase in exchequer deficit due to reduced tax returns ( expected to be at least 33% in 2009) |
| |Government borrowing has risen rapidly and not sustainable. IRELAND’s credit rating has been downgraded by all international rating agencies so the rates for interest repayments have |
| |increased. However this has shown signs of improvements recently. |
| |Evidence of highly unethical practice in banking sectors. |
| |Private sector pensions badly affected. Many companies pension funds are empty |
| |Growing retrenchment and weak spending with no definite plan for recovery apparent. |
| |Publication of the McCarthy report on making savings in public expenditure, proposals include dramatic cuts in social welfare, education and health, as well as changes to the universal|
| |child benefit payment. |
| |Commission on Taxation due to report soon and seen as likely to recommend a widening of the tax base to include property taxes |
|CR |Collective redundancies in manufacturing corporations, increasing unemployment (3 % more than 2008), increasing number of people in heavy indebtedness, increasing childrens poverty. |
| | |
| |According to representative Factum Invenio research among general public 03/2009 (app. 1000 citizens over 15) – |
| |The current economic crisis has already affected a fifth of czechs and more than half them expects impact of the crisis still. |
| |Six out of ten have experienced or expected, in the context of crisis, decline in living standards. Two-fifths of the population fear the inability to save as before and the same |
| |percentage of the population is concerned about the loss of savings. More women (56%) than men (48%) fear the impact of crisis. |
| |effects of the crisis has often felt by lower-income households. for households with gross monthly income to 15 thousand crowns mentioned crisis hitting almost 30% of their income and |
| |category 15 až 25 thousand crowns said the crisis hit more than a quarter (27%). |
| |Effects of the crisis is more felt by lower-income households. Households with gross monthly income to 15 thousand crowns mentioned that the crise effects negatively up to 30% of |
| |their income. |
| |Two-fifths of households fear that they will be unable to save and invest as much as they used to. Identical percentage of people is afraid of losing current savings. About a third of |
| |households is concerned about reduction in wages, unemployment, inability to pay regular bills and the cost of medicines and health care. |
| |Three-fifths of households have reduced (31%) or plan to limit (29%), their spending. Expenditure cuts have already households with limited income to 25 thousand crowns, and people |
| |older than 60 years. Most often people reduced spending for clothing, footwear, of visiting restaurants, cafes and clubs, as well as expenses for food. In the case of deterioration of |
| |the financial situation of households they plan to save on telecommunications services and internet. |
| |Car industry: In connection with the impact of world depression on the Czech economy, the car industry, which belongs to the crucial Czech industry, is said to be the most affected |
| |sphere with regard to the losses. The most motor car companies (e.g. Skoda, Hyundai, Tatra) had to discharge their staff from employment and restrict the production which had another |
| |impact on their suppliers and their employment, production restriction or they simply had to shut down. |
| |Bank sector: Banks are supposed to slow down the progress of all sectors. For example, the mortgage volume sold to citizens on January among-yearly dropped to about 44 per cent. |
| |Currency: Czech crown has been significantly weakened during the crisis. |
| |Glassmaking: This traditional Czech industry has been struggling with contract declines for some years already. Many firms finished in bankrupt, several thousands of people have no |
| |work. According to the experts, the present depression has just advanced the fall of glassmaking. |
| |Building industries: New work contracts dropped by approximately ten per cent. Orders from private sector to the building companies went down, particularly regarding new apartments but|
| |also commercial buildings. Building companies continue their work primarily thanks to the public sector’s demand. |
| |Textile industry: This part of Czech economy used to be a very strong one. However, it has been struggling due to the crisis and suppressing for some years. The occuring crisis has |
| |strengthened the impact on some companies. A lot of firms are forced to shut down and discharge their staff. |
| |Others: The crisis has affected the most economy sectors in some way. For instance a recent survey carried by the Economic Chamber has revealed that every second small or middle-size |
| |firm in the Czech Republic has already had to discharge its staff from employment or is going to do in a short time. More than one third of companies restricted the production or is |
| |planning to do so due to the drop of contracts. |
| | |
|SWEDEN |Rapidly increasing unemployment and it has spread from manufacturing industry to white collar sector and public sector. The Swedish GDP is estimated to decrease with 5,4 % in 2009 |
| |which is the largest decrease since the 2 world war. |
| |A slight improvement of the financial situation has taken place during the last weeks, but that will not affect the unemployed. |
|FINLAND |As regards poverty, FINLAND is yet to recover from the previous depression it went through in the 1990’s. The subsequent economic growth, although remarkable, passed the poor, as the|
| |resulting wealth was distributed unequally. The income gap has been widening and relative poverty growing ever since. Much hope was being put in a Committee (SATA-komitea), which was |
| |assigned in 2007 to review the whole social system with a view to its complete overhaul and which has just delivered its intermediary report. Unfortunately, the economic realities seem|
| |to hit hard the Committee’s recommendations, on which it had great difficulties to find any concensus in the first place. |
| | |
| |The most visible impact of the crisis so far is practically daily news on companies putting their employees on forced leave without pay (Finnish legislation allows employers to that, |
| |instead of giving them notice for good; it’s a sort of Finnish version of flexicurity, developed much before the term was invented). A number of labour force is also being dismissed |
| |right away, leading to growing unemployment. |
|THE NETHERLANDS |Financial crisis banks and other financial companies |
| |Economic: more difficulties (less orders) for companies, more unemployment |
|BELGIUM |in Flanders: (DM 010909) |
| |-100 new unemployed each day |
| |-40.000 or 21,3 % more unemployed then this time in 2008 |
| |-youth unemployment 25 % higher then last year |
| |-short and middle term unemployment has raised |
| |-both low and highly educated people |
| | |
| |Prognoses unemployment in BELGIUM: 70.000 extra unemployed in 2009, 110.000 extra unemployed in 2010 |
| | |
| |Problems with the general budget: |
| |-expected deficit of 25 billion ! (6 to 7 % of gdp) |
| |-18% less fiscal income than last yea |
| |-government is building debts |
| |-Belgian economy shrinks with 5to 6 %, now negative growth of 3,5 % |
|LITHUANIA |Growing unemployment, non-performing loans, and social security crisis |
| |There is no enlargement in LITHUANIA this year |
|DENMARK |The first sign was in the financial institutions, where some few banks went bankrupt and all others slowed downed their activities. It is still in 2009 rather difficult to obtain loans|
| |for smaller enterprises and private persons. |
| |The next sign was a nearly total stop for sale of real estates and decreasing in prizes up to 1/3, compared to the highest level in 2007. Buying of goods and services also decreased |
| |drastically. Many smaller shops were forced to sell out or even close. In 2009 both phenomena’s are still experienced. There are smaller signs of stabilization and even maybe an |
| |increase in sale of real estates, goods and services, but the situation is still considered as unstable. |
| |The third sign was the hastily growing unemployment rate, now more than doubled, especially among unskilled workers, working in construction, production and service industries. Yet, |
| |the general unemployment rate is still below the rate in year 2000. |
|FRANCE |Réduction du PNB |
| |Augmentation du chômage et plus grande difficulté d’accès des primo-demandeurs d’emploi au marché de l’emploi |
| |Augmentation des déficits publics |
| |Difficultés des entreprises |
|Eurodiaconia |As a European network we are more focused on the impact on our members as service deliverers and advocates for those in need. The major developments we are seeing through our members |
| |are: |
| |Decreasing funding for services either by reduced budgets or zero growth budgets |
| |Increased request for services as more people face economic and social challenges |
| |Need to develop new services e.g. food banks, debt counselling |
|UK |For data on the scale of the financial recovery package, see Appendix 1 |
| | |
| |2009 |
| |The rate of decline of output has reduced. UK is likely to be out of recession in third quarter 2009 |
| |The rate of decline in house prices has reduced relative to earlier quarters |
| | |
| |Key question is whether this is due only to combination of the bank support and destocking completion by companies, rather than any rise in domestic or export demand – although the |
| |weak pound should help exports. If there is no real increase in demand, or further falls (see below) we may have a “double dip” recession. |
| |Current Labour government is thinking of ending the financial stimulus (“quantitative easing”) being pumped into the economy, later in 2010. If there is a Conservative government |
| |following the election in 2010 (May is latest date), then they will reduce the financial support earlier and faster. |
| |Unemployment is continuing to rise and is now greater than 2.5 million. Unemployment is predicted to continue to rise till 2011 or 20102 because it is a lagging indicator and also |
| |because some employers are taking advantage of the crisis to reduce employment and conditions. |
| |Money wages are stagnant or increasing very slowly for most blue and white collar workers; some private sector employees have seen money wage cuts and some public sector workers are |
| |being offered zero or 0.5% wage rises and unraveling of three year pay deals already agreed. |
| |Benefit money incomes are nearly stagnant. Most benefit incomes are uprated by price inflation – which is low. |
| |Real incomes depend on whether you are on a central bank rate tracker mortgage (spending power is up). Those on fixed or standard rate mortgages and rent payers have lower purchasing |
| |power because their major housing outgoings have not reduced. |
| |Utility bills continue high - they went up when fuel prices went up, but did not come down when oil price fell. They are predicted to continue to rise, as are water and public |
| |transport, especially rail fares. All these have risen faster than the rate of inflation – partly because of government requirements to invest in renewal of infrastructure - and will |
| |continue to do so, but also because many aspects of them are not regulated, they are privatised and many are foreign owned. |
| |Low wage earners and benefit recipients in rented accommodation who spend a high proportion of their incomes on utilities, transport and food have seen their real incomes most reduced.|
| |The main change in the debate in early 2009 was the shift away from bankers and their degree of responsibility for the financial crisis, to MPs’ expenses – these were apparently |
| |leaked by soldiers working temporarily in the Expenses offices between assignments in Afghanistan. They were leaked to a Conservative supporting daily newspaper who made them front |
| |page news over a period of weeks. This dominated the media debate and the responsibilities of bankers and hedge funds were sidelined, though there is still some outrage at their |
| |salaries and bonuses and that these have continued to be paid at the old levels even in banks financially floated by the taxpayer. |
| |But the major current debate is about paying down the public debt by cutting public services. Essentially, this is the debate about who will ultimately pay for the crisis. |
| |The public debt is manageable and lower than some other western states – and it will reduce automatically when tax receipts rise after the recession. Despite this and the risk of |
| |double dip recession there is more concern about how ratings agencies will rate our debt and the public debt debate has been captured by the same Conservative argument as in the |
| |Thatcher period (which resulted in a deep recession and 3 million unemployed) – that just like households, governments have to balance their books. All main parties have agreed there |
| |will be cuts – the Liberal leader at their party conference referred to a need for “savage” cuts and the Labour PM has admitted there will be cuts, having tried to avoid saying this |
| |publicly. It is likely there will be salary freezes or cuts, pension changes and cuts in employment for public sector workers; despite this there will be service cuts. There have |
| |already been proposals to cut some services and income supports to children and families and expectant mothers. |
| | |
| |There is a significant debate about cutting the social benefits bill, with strongest support for cutting benefits to the unemployed - who already receive only 10% of average wages, |
| |plus housing support to their landlord. |
| | |
| |The public seems largely unaware that the welfare bill for the unemployed of working age is a small fraction of the state pensions’ bill for the retired (£2.88 billion in direct |
| |payments- Job Seekers’ Allowance compared to £62.68 billion for pensions – the Guardian, 16 September:p21 ). However the public were already largely convinced that people would have to|
| |work longer because pensions would be too low. The state pension, like most other benefits, is uprated only in line with prices and over the years has drifted away from wages, one |
| |reason alongside our higher birth rate than some continental countries, why the demographic impact of ageing on public finances is not so great in the UK. Occupational pensions have |
| |been badly hit by the closure of final salary schemes – closures accelerated since the financial crisis – and their replacement by money purchase schemes (defined contribution rather |
| |than defined benefit). Most employers are putting in a much smaller percentage than they did under the old final salary schemes. These money purchase schemes have been badly hit also |
| |by falling stock markets. In their 2008 report, the UK NAP experts (Bennett and Bradshaw) said that the government’s strategy of shifting to private pension provision was “in tatters”.|
| | |
| |Some Background Data from Seager, A in The Guardian, 28 September:p30 |
| | |
| |Overall our stimulus package was one of the smallest in the major economies, at 2% of GDP |
| |State employs 6 million – 20% of working population, fewer than people think, but public spending cuts will show up in serious unemployment |
| |Public spending is 42% GDP – in line with average since 1970 – it’s just that Labour got it down to 36% by 2000 as Tories and Labour cut after the last deficit of the 1990s recession |
| |Taxes in UK are about average for OECD at 35% of GDP |
| |There is no evidence of a link between tax take and economic performance (Dolphi IPPR) |
| |We did have a structural public debt deficit before the crisis due to rebuilding public infrastructure after years of investment starvation |
| |Deficit this year will be £200b 13% of GDP and in the next few years national debt may go up to 80% GDP - double the government’s 40% “prudent” level, So it would be possible to raise |
| |taxes rather than focus only on spending cuts – but no party is advocating it |
| |Impact of ageing will mean even larger cuts if no tax rises |
| |
|2. What are the key elements of your country’s recovery packages? How effective are they? |
| |
|SPAIN |What are the key elements of your country’s recovery packages? How effective are they? |
| | |
| |The government has embarked in a flurry of policy initiatives to protect or promote banking, automotive industry and other. “Social” packages have been promised – but, until now, |
| |there are more words than facts. |
| | |
| |a) Launched and already implemented: |
| |Measures aimed at easing the economic impact of the plunging housing market and rising unemployment: a two-year moratorium on 50% of mortgage payments for those made unemployed |
| |and an extended tax exemption period for reinvested capital gains on house sales. |
| |The “Eplan 2008-2009” failed to activate the local labour markets, as it worked in the very short-run, due to low productivity ventures, with scarcely multiplying effects. |
| |National Social Housing and Revamp Plan, launched on July 22nd, with a budget of 10,000 MEURO for 2009-2012. |
| |Social Dialogue Initiative Table, composed by trade unions (UGT, CCOO), companies’ representatives (CEOE, CEPYME) and the government (Ministry of Labor and Immigration) is |
| |active, but with moments of uncertainty and blockage (July 23rd-24th). |
| | |
| |However, in 2009 the government reduced more than 33.8 million new investment in public safety, 40 million program to the second cycle of infant education, and almost 15 million |
| |of loans and scholarships for secondary education. Also, the following cuts have been implemented: |
| |59 million less for the fund to support the reception and integration of immigrants |
| |more than 12 million less to the IMSERSO (aged persons) |
| |2.4 million less for the Plan of Action for Persons with Disabilities |
| |3.01 million less in support measures for the 'positive parenting', among others. |
| |In total, the Government acknowledges having cut spending on 1,500 million; the ministries of Education and Social Policy (105) and Housing (105) are two of the four most |
| |affected. |
| | |
| |b) Measures announced, but still not implemented: |
| |Extension of the unemployment insurance to those who are no longer covered. 29 out of 100 unemployed do not have income at all. In July, the Government is proposing a 12-month |
| |measure which consists of the extension of a monthly pay of 420 Euro for those resourceless unemployed. This proposal goes along with the possibility that companies could deduct |
| |two points of their Social Security contributions. Implied budget costs for both measures: 8,106 MEURO. |
| |Extension of the Guaranteed Minimum Income to more needy beneficiaries. |
| |Increase of 8% of minimum pensions, which are below Euro 500. |
|GERMANY |The German government has taken various measures in order to soften the repercussions of the crisis on the German economic and labour market. In November 2008 and January 2009, it|
| |adopted two economic stimulus packages (“Safeguarding employment by consolidating growth” and “Pact for stability and growth in Germany”) and provided approximately 100 billion |
| |euros for their implementation. The economic stimulus packages are designed to balance the export collapse by enforcing domestic demand, and to enable companies to keep their |
| |employees as long as possible. |
| |In detail, the government has adopted several taxes and duty relieves. Among them, the green car incentives considerably stimulated the domestic demand for automobiles. Besides, |
| |the government encouraged public capital investments, especially in the local infrastructure (investments in educational institutions (6.5 billion Euro), local infastructure (3.5 |
| |billion Euro), transport routes, building refurbishment (4 billion Euro, car industry is supported by subsidizing buyers who choose a new car with an “environmental bonus” (5 |
| |billion Euro)). |
| |It further enhanced and improved the arrangements for short-time working. This concept, being very well received outside of Germany as an effective action to hinder an increase of|
| |unemployment, in fact contributed to a great extent to avoiding suspensions of companies’ employees for the awaited upcoming economic revival. It has already existed before the |
| |crisis, but recovered its proper designation in these days. The number of employees working short-time has risen up from 100,000 to 1.4 million within one year. |
| |Due to these measures, especially the short-time working measures, a dramatic increase in the number of unemployed could be avoided so far. However, relatively stable prices as |
| |well as the scheduled pension increase in July 2009 or the redemption of the commuter tax allowance also positively affect the present situation on the consumption and the labour |
| |market. Moreover, the labour market benefits from a decrease of manpower as a result of the demographic change in Germany. |
|IRELAND |In January 2009 a Framework for a Pact for Stabilisation, Social Solidarity and Economic Renewal was produced through social partnership. There was an agreement in this Pact to |
| |‘protect the most vulnerable’. While this sentiment has been repeated it has not been carried through on by Government. The social partnership talks collapsed in trying to agree |
| |certain elements of implementation and have not been fully reactivated following this. |
| |Government has commissioned two reports, one the McCarthy report on public expenditure has reported making dramatic recommendations for expenditure cuts, the other the Commission |
| |on Taxation likely to be published in September, though suggestions is will include proposals for property and carbon tax. |
| |Banks |
| |Bank Guarantees provided for all bad loans, one bank is nationalized and major funds injected by the government into 2 others. |
| |Government has published legislation to establish a National Assets Management Agency (NAMA). NAMA will take the bad loans off the banks books, paying a price which will not |
| |reflect current market values, but rather longer term market outlooks. There is much debate about what value should be placed on these bad loans and on the impact of the final |
| |payment rate on the ability of the banks to lend again and on the risk the taxpayer will be exposed to fro many years to come. The opposition parties and the minor party in |
| |government have all expressed concern about the NAMA proposals and these will be debated in September. A number of commentators think that further bank nationalisation is |
| |preferable or inevitable in the future. . |
| |Jobs |
| |Some new measures are being introduced to use Government supports to help companies to retain jobs at risk as a result of the crisis. For example in the beginning of August |
| |The Minister for Enterprise, Trade and Employment announced a €250 million scheme to protect up to 27,400 vulnerable jobs in the productive sector of the economy. The Employment |
| |Subsidy Scheme (Temporary) will provide a subsidy of €9,100 per employee over fifteen months to qualifying exporting enterprises in the manufacturing and/or internationally traded|
| |services sectors. |
| |Exchequer Deficit: |
| |In July a Committee set up to look at where the Government could cut public spending reported, (McCarthy Report) suggesting major cuts and amalgamation of Government agencies and |
| |bodies as well as in supports to NGOs, and cuts to essential services and social protection levels. If implemented these will result in over 4 billion euro in cuts in public |
| |expenditure. Already major cuts to services have taken place. |
| |A Commission on Taxation has reported to the minister, the report is likely to be made public in September - proposing changes and areas where taxes can be increased - Some |
| |changes have already been put in place to increase revenue from a low tax base. These have included an income levy which on all income above the minimum wage on a progressive |
| |scale and a levy put on public sector pensions. |
| |The Minister for Finance has stated publically that he sees no scope for increasing further the income tax burden at this time (August 2009) |
| | |
| |Effectiveness |
| |Jobs: Banks are still not lending to businesses or individuals. No sign yet of the effectiveness of direct funding from Government to address job retention or creation. |
| |Exchequer Deficit: Signs of Government at least understanding the extent of it and beginning to address it but the implications will have a lasting negative effect and there is |
| |considerable concern that the most vulnerable will pay a major price in cutting the deficit through reductions in social welfare rates and supports for children as well as in |
| |services essential to the most vulnerable eg cuts in education and heath budgets. Reductions in prices, although not across the board are being put forward as a justification for |
| |welfare rate reductions |
| |As an open island economy economists predict that IRELAND can only recover after there have been an international recovery from which we can benefit. Such a recovery may lead to a|
| |major increase in emigration among those seeking employment with initial positive impacts on unemployment rates but long term negative effects on future growth and on a pick up in|
| |consumer expenditure. |
|CR |money or old cars to people (grit, scarp money) – to motivate to buy new cars – support for car industry |
| |accelerated depreciation of property companies (cars from 5 to 2 years) |
| |reduction of vat rate - companies can buy cars with vat deduction |
| |= incerased sales of cars in the Czech republic |
| |reduction of contributions to social insurance for employers - estimated this law could help save 50 000 to 70 000 jobs |
| |amendments to the insolvency act |
| |slight increase of all child benefits (50 CZK monthly) for all ages, increases the child tax rebate |
| |temporary increase and extension of unemployment benefits (1 month) |
| |Education and retraining is offered to unemployed people – visibly increased due to ESF support. Nevertheless, this approach is not very successful. Those people are looking for |
| |jobs (fast income) not for schools. Now, the Budget Committee of the Czech Parliament added 1,5 milliards CZK to enhance unemployment compensation. The summary of unemployment |
| |relief this year will be 15 milliards CZK, which is 4 milliards over the planned budget. |
| |The recovery packages concern: |
| |temporary social bonification for employers (till the end of 2010) |
| |revised law on insolvency – protection of working places for companies in need; i.e. better protection of employees against insolvency of employers |
| |introduction of “scrap bonus” to support the purchase of new cars |
| |acceleration re-deductions of company possessions |
| |extending the time of relief in unemployment and improving the allowances |
| |support of retraining schemes |
|SWEDEN |Initially the focus was on the financial sector financial. During 2009 the focus has been on provide more jobs but the focus have shifted to measures regarding, education, |
| |vocational training courses, temporary employment with economic support from the government. |
| |An important measure at the present is financial support to the public sector on local and regional level in order to prevent reduction amongst the employed and in order to |
| |safeguard the quality within the social- and health sector. |
| |The change in focus to more educational and job creating measures is partly the result of criticism from the political opposition and the public and the fact that we have a |
| |political election coming up next year. |
|FINLAND |The Finnish Government has agreed on a stimulus package which, according to news reports, OECD’s experts recently called good but too small. |
| | |
| |The following sections are excerpted from Press release 31/2009, Government Communications Unit, 3.2.2009 16.10. |
| |“The Government has today, 30 January 2009, agreed on a stimulus package having an overall impact of EUR 2 billion. The package will generate at least 25,000 man-years in |
| |employment. As a result of the stimulus decisions made by the Government, overall GDP this year and next year combined will grow by approximately one per cent. The fiscal stimulus|
| |impact, 1.70 per cent of GDP, or EUR 3 billion, brought about by the decisions concerning the budget and supplementary budget of 2009, will also rank the third largest in the |
| |Commission’s comparison among the 27 Member States. |
| |The objective of the supplementary budget is to minimise the number of people who, as a result of the international economic downturn, have become affected by cyclical |
| |unemployment, and to carry them over the hard times. The main emphasis is therefore placed on measures that directly promote employment, such as making investments in transport |
| |infrastructure, supporting construction and lifting the social insurance contribution. Additional priorities include education and research. The number of study places in |
| |vocational training will be increased, and appropriations allocated to research and development will be raised. |
| |Employment: Construction, transport infrastructure and lifting the social insurance contribution |
| |To soften the effects of the quickly deteriorating economic situation, measures will be taken to stimulate construction and renovation activities, to bring forward and increase |
| |the number of investments in transport infrastructure, and to lower labour costs by decreasing the social insurance contribution on employers. The impacts of the stimulus measures|
| |will altogether generate at least 25,000 man-years in employment. In addition, the decision to bring forward investments in transport infrastructure will generate 4,300 man-years |
| |in employment. |
| |Impacts of the supplementary budget on public finances |
| |In accordance with the decisions made in conjunction with the supplementary budget, a total of EUR 1.2 billion will be used to increase government expenditure and launch new |
| |projects. Lifting the social insurance contribution will produce an annual income reduction of EUR 833 million in the future. [italics added] The stimulus measures of the |
| |supplementary budget will weaken the balance in public finances by EUR 912 million in 2009. The stimulus decisions made will raise the spending limits for 2009 by EUR 216 |
| |million.”Not part of the stimulus package, but linked to the topic, is the following Press release 32/2009, Government Communications Unit, 30.1.2009 16.13: |
| |“Guaranteed pension to be introduced in 2011 |
| |To secure a reasonable level for the smallest pensions, the Government commits itself to introducing the so-called guarantee pension at the beginning of March 2011. An amount of |
| |EUR 111 million will be used annually to finance guaranteed pensions. The level of guaranteed pensions would stand at EUR 685 per month in current money. |
| |Guaranteed pensions will ensure that the smallest pensions are at a reasonable level. Approximately 123,000 pensioners would be covered by the guaranteed pension. The guaranteed |
| |pension supplement will be paid to persons whose overall pension (earnings-based pension and national pension) remains below the guaranteed pension level. |
| |Indexation of basic security benefits to extend |
| |Basic security benefits not covered by indexation (minimum allowance, child benefit, home care subsidy, private day care subsidy) will be linked to the consumer price index. The |
| |first index increase will be effective on 1 March 2011. |
| |The annual index increase will alleviate the impacts of inflation and ensure the purchasing power of basic security benefits. Most benefits regarded as basic security are already |
| |covered by indexation.” |
| |While the efficiency of the stimulus package is yet to be seen, a few comments can be made: |
| | |
| |- most of the money goes to construction, whereas many consider that at least part of it could have been used better in services. It is precisely at the time of crisis, when the |
| |basic services are most needed; now the municipalities are desperate to secure them, their tax revenues going down drastically. |
| | |
| |- The Government made the decision long demanded by the business world, i.e. it lifted the requirement for employers’ social insurance contribution (see the italics above). This |
| |means an annual income reduction of EUR 833 million in the future. The Government hopes that it will be compensated by increased tax revenues at a later stage; for the time being,|
| |the gap is being filled by additional state loan. There is no proof that the funds in question will actually have any impact on recovery, but the move may turn out to be basically|
| |an income transfer from the state to the businesses (and their owners). Besides the practical impact, one may also call into question the signal it gives on the significance of a |
| |system based on solidarity. |
| | |
| |- The promised increases in social security benefits come in 2011, which is too late. They would be both most needed and have most effect in terms of enhancing consumption, if |
| |they were implemented earlier. |
|THE NETHERLANDS |Financial support(loans) for banks and other financial companies |
| |Economical: support for companies (by proving at least 30% decrease in consumption/orders) to allow them to keep (for the company important ) employees in part-time (half of the |
| |salary-costs via unemployment regulations(law)-so they can directly restart when the situation is improving; effective for this short time for the people: they are not fired- for |
| |the companies; they can go on (slimmed but not out of business). |
| |More orders from the government towards works of general interest(e.g. motorways, waterways c.a.) |
|BELGIUM |-introduction of temporary economical unemployment, also for clerks. |
| |The system of temporary unemployment for employees/clerks is quite successful. It exists since june, already 389 companies applied, the number is still growing. It’s a measure |
| |possible for companies with a loss of 20 % are with 20 % temporary unemployment of their workers/labourers |
| |-The ‘participation Fund’ gave companies ? already 70 % more loans than one year ago. |
| |-tax reduction for night- and overwork, next to general tax reduction on labour |
| |-The temporary decrease of VAT for the Construction sector had some stimulating effect, although the effect is already decreasing. |
| |-In Flanders, there will be a big employment conference in Octobre, where an employment action plan will be developed with the goal of preventing the people who got unemployed due|
| |to the crisis, end up in long term unemployment and structural dependence on benefits |
| |-On the national level, a ‘pensionconference’ should be ended by the december 2009 |
|LITHUANIA |Now extremely important to restore the money to promote small and big business lending by EU funding through the European Investment Bank, European Investment Fund and other |
| |resources. Promote business viability can be maintained rapid reduction of red tape and administrative burdens on business. |
| |Party leader focused on antitrust enforcement measures. |
|DENMARK |The liberal governments answer to the crisis only has one element of real importance: So-called bank packages, where the state gives security and loans to banks in crisis, caused |
| |by to too many and too big loans to insecure projects, mainly in real estate. |
| | |
| |The packages seem rather effective for consolidation of the banks, but it is not sufficient to solve problems of enterprises and private persons who need loans and credits. There|
| |are many complaints, especially from enterprises that claim to have sound projects, but cannot get them financed by the banks. This has led “the red bloc” in the parliament to |
| |suggest a recovery package for this group also, but until now without success. |
|FRANCE |Mesures ponctuelles et temporaires de soutien aux revenus des ménages |
| |Mise en place du Revenu de Solidarité Active |
| |Mise en place d’un médiateur du crédit et mesures de maintien du crédit aux entreprises |
| |Tentatives de consolidation de l’emploi par l’extension des possibilités de chômage partiel et de son indemnisation |
| |Nouvelle étape d’exonération de charges pour les bas salaires |
| |Libéralisation des contrats à durée déterminée. |
|UK |The main element has been the enormous financial cost of support for the financial sector – the bank welfare state |
| |Recapitalisation of the failed banks: £36.9b for LLoyds and RBS; £18.8b for Northern Rock; £10.4b for Bradford and Bingley etc; in total £85.5b on direct financial stability |
| |measures (The Guardian 16 September 2009: pps20 -21). BBC news made it a bit higher – over £90b – see Appendix 1 |
| |Selling of bonds (government debt) to all banks to recapitalize them to encourage them to lend again to households and businesses – but they have not really responded and the |
| |credit market is still largely frozen. Banks are using the government assets to rebuild their balance sheets. They are also taking higher profits in charges to their customers. |
| |There has been no explicit social package – there have been automatic increases in the size of welfare bills due to rising unemployment. |
|EURODIACONA |There is a general feeling among our members that the focus in rescue packages is on the newly unemployed and not on those who are long term unemployed or who have been living in |
| |poverty since before the crisis. It is believed that the long term unemployed and those living in poverty will only suffer more as services are reduced and the focus is on |
| |revitalizing business and banking and increasing consumer spending. |
| |
|What is the main social impact of the crisis and the recovery packages in general terms? How is it affecting people experiencing poverty and social exclusion? |
|SPAIN |In assessing the likely impacts of the downturn, the dimension of unemployment blurs the picture in Spain, with more than 6,000 new jobless persons per day during the first |
| |quarter of 2009. The incidence of joblessness is bigger among migrants, women, and also among both the youngest and the middle-aged. These vulnerable groups are most at risk of |
| |becoming or staying excluded from the labour market. Reportedly before ending 2009, nearly 4 million people among Spanish and migrant residents will turn to be unemployed. And, |
| |after some months of receiving the unemployment insurance (seguro de desempleo), they may most likely become new poors. |
| | |
| |A Survey based on telephonic interviews to 615 individuals experiencing poverty and social exclusion, specifically focused on the impact of the crisis on their lives, conducted by|
| |the Red Cross (April-May 2009), reached to the following conclusions: |
| | |
| |In the past 10 months, the situation of those who suffer from moderate risk has worsened. The comparative data allows to detect an increasing proximity between the people with |
| |different risk levels, primarily because those placed in the moderate risk zone have come closer to the areas of bigger vulnerability. |
| |Half of the people are affected by the crisis. 56% of respondents believed that the crisis has had a big or a very big influence in their economic / financial situation last |
| |year, while 37% believed that the degree of influence has been little or none. |
| |Most are below the poverty threshold --almost 3 out of 10 have no income. 90% declare incomes of less than 1000 Euro. The average monthly income is 505.90 Euro, half of those |
| |interviewed admitted to a maximum 500 Euro per month. 20% of respondents declared no income and 29% have some income, but less than 500 Euro a month. 49%, almost half are in |
| |extreme poverty or absolute. |
| |The major problems are due to serious illness or death within the family, followed by money quarrels. 64% shares home with their families and only 19% live alone. 32% live with |
| |minors under 16 years (14% of them below the age of schooling). 30% live with people over 65 years. There are high percentages of people living with ill people (28%) and disabled |
| |(19%). |
| |Without any space for free-time, social or study activities: there is only some sports and religion. The social life of respondents is not at all active, as most of them (93%) |
| |does not attend bars, cafes and restaurants, 93% never frequents pubs, discos, casinos or bingo halls, 94% does not go to cinemas, theatres and concerts. In terms of day-care |
| |centres, host shelters or soup kitchens, only 9% attend frequently. 81% does not attend to adult schools, occupational or vocational training, or similar, and Internet-cafes. The |
| |trend begins to change with regard to the practice of sports, as a 25% attends the sports centers, gyms or sports areas in parks on a regular basis, or habitually. With regard to |
| |places of worship, 38% goes regularly. |
| |Loneliness is not the biggest problem. As for personal relations available, the situation is summarized as follows: a few close friends (35%), some important relations (51%), |
| |people who may listen to their problems (46%), but few friends or relatives to call in case of material need (only 19% ). |
| |Many worries, little happiness. "Optimism and enjoyment" appear in proportions similar to "gloom and anguish." However, those who are living with permanent and occasional anxiety |
| |added up to 80%. With regard to personal care, 15% had permanently self-abandoned, but there are varying degrees of casual neglect. |
| |Short-term personal situation shows no changes; while medium term indicates something between being at a standstill and getting better. The problems suffered in the past year |
| |include: economic / financial, health problems, and also job-related problems. Therefore, for people in vulnerable situations, there is a greater dispersion of significant |
| |problems with respect to the general population. |
|GERMANY |Cuts in social expenses are not yet executed (since we have parliamentary elections for the Bundestag on September, 27th) but are certainly expected in the coming years. All the |
| |governmental measures are of temporary nature and therefore will probably not suffice anymore next year to repel a considerable increase of unemployment and thereby in poverty, |
| |which is expected to continue, despite some current signs of a certain recovery. It remains to be seen if this development will take a turnaround in the aftermath of the upcoming |
| |elections in Germany with a new government in place or if the situation will still continue to deteriorate. Already by now, more and more people work in precarious employment. The|
| |short-time work arrangements put great burden especially on families, not being able to encounter their financial charges anymore. Especially the most vulnerable people, and among|
| |them families, migrants, single parents, children and old people, are going to suffer the most from the negative development. |
| |Inevitably, by an increase of people unemployed, social security contributions will decrease and at the same time the need for social security benefits will increase by the end of|
| |this year. To add to the negative situation, despite high savings in the past, the measures taken by the government (including a huge bank guarantee programme) have led to a |
| |record state debt which – together with the high losses in social security contributions – will probably have an enormous negative impact on the stability and security of the |
| |social system in the future. The public becomes more and more aware of the fact that “somebody will have to pay the prise” – i.e. normal tax payers. |
|IRELAND |Social Welfare recipients have already experienced a range of cuts impacting their incomes. Rent supplement has been reduced and the government has cut the extra social welfare |
| |payment at Christmas. Further cuts are expected although there are a number of campaigns in place to fight such cuts in the next Budget in December |
| |NGOs and state organisations are under growing pressure to demonstrate efficiencies in operations and to justify their budgets. |
| |The McCarthy report has recommended the closure of the Department of Community, Rural and Gaeltacht Affairs, the closure of the Family Support Agency and related services and |
| |sever cutbacks and rationalisation of local development organisations and services with little or no assessment of the economic and social impacts of these proposals. |
| |Economic context being used to justify attacks on equality, human rights, anti-racism and anti-poverty NGO’s and infrastructure.(the previously independent Combat Poverty Agency |
| |has been amalgamated into the Department of Social and Family Affairs, the National Consultative Committee on Racism and Interculturalism was closed down, the Equality Authority |
| |had a 43% budget cut and the Irish Human Rights Commission a 24% cut) |
| |Already cuts in services including health and education and social care supports for older people and people with disabilities as well as payments for childcare. |
| |Specific cuts in education supports for children for whom English is not a first language, travelers and those with learning disabilities. |
| |Health cuts across range of health services |
| |Needs of those furthest from labour market are much less of a priority as the priority moves to ensuring the newly unemployed do not move to long term unemployment |
| | |
|CR |See above. |
| |Programs and recovery packages are aimed rather for companies (employers) and mainstream middle class groups than for people experiencing poverty (PEP) – this extreme target |
| |groups are rather omitted (or solved separately in social not in the crise package). PEP need dignified job opportunities, discharge from debts and social living. There are no |
| |programs to rent or built cheaper flats (e.g. social housing programmes). It makes solving problems of PEP very difficult. If they are not able to pay rent they lose the living |
| |and their children are more likely to be sent to children homes. Civic initiatives create programs helping to prevent institutional education of “social orphans” in Czech |
| |Republic. Local authorities help very little (or vice versa) to slum clearance where excluded minorities live. Only the social services and work of civic initiatives and social |
| |NGOs is therefore not enough efficient – system changes are necessary as well. |
| |The main social impact of the crisis is rising unemployment which weighs heavily especially on people who experience poverty and social exclusion. |
|SWEDEN |- The confidence among the citizens regarding the reliability of the welfare system has decreased a lot. |
| |Note on social assistance |
| |Social assistance: 1st – 2nd Quarter, 2009 |
| |Summary |
| |This report presents statistics on expenditures for social assistance and introductory benefits to refugees and certain other foreign nationals in SWEDEN during the second quarter|
| |of 2009. The purpose of the report is to provide fresh quarterly data on social assistance distributed at the municipal level. The statistics are a part of SWEDEN’s Official |
| |Statistics. |
| |Refugees are defined as asylum-seekers that have been granted residence permits and still qualify for state-financed benefits. The municipalities are entitled to reimbursement for|
| |four years of benefits for each refugee, starting with the calendar year in which they are granted residence permits. Municipalities may also apply to the state for compensation |
| |for expenditures on social assistance to certain other foreign nationals after the initial four years. |
| |.... |
| |All of the changes over time are represented in constant prices. |
| |Results |
| |Social assistance, second quarter 2009 |
| |Total expenditures on social assistance during the second quarter of 2009 amounted to SEK 2 774 million. That was an increase of sixteen per cent compared with the second quarter |
| |of 2008. |
| |Refugees and certain other foreign nationals received SEK 564 million in social assistance and introductory benefits during the second quarter of 2009. This is four per cent more |
| |than during the second quarter of 2008. |
| |Of the 270 municipalities that reported social assistance expenditures for refugees during the second quarter, 214 distributed introductory benefits. |
| |Social assistance, first and second quarter 2009 |
| |Total expenditures on social assistance during the first and second quarter of 2009 amounted to SEK 5 451 million. That was an increase of fifteen per cent compared with the first|
| |and second quarter of 2008. |
| |Refugees and certain other foreign nationals received SEK 1 120 million in social assistance and introductory benefits during the first and second quarter of 2009. This is three |
| |per cent more than during the first and second quarter of 2008. |
|FINLAND |The actual impact of the crisis will only be seen later. There are however signs, based on which it is feared that the unemployment will grow, the position of single parents will |
| |weaken, mothers and immigrants will find it harder to get jobs. The chronically ill will find it harder to get rehabilitation or pensions; instead, they will be left to hang |
| |around at the employment offices. Also other vulnerable groups – those, who are in a weak position even under the best market conditions – will find it difficult to cope. |
| |Generally, competition becomes harder and attitudes tougher. |
|THE NETHERLANDS |Banks are very carefully by investments, providing loans, mortgages c.a. The financial support by the government was given to prevent this. People are more economically with |
| |their expenditures, less consumption; pep are affected of course, because the possibility of improving their situation/ even continuation is almost lost. |
|LITHUANIA |People are forced to save money. Currently shows no signs of overcoming the crisis. |
|DENMARK |The impact of the crisis and recovery packages on poverty and social exclusion is not very clear. There might be many effects, now and in the longer run, but they are rather |
| |difficult to identify directly. |
| | |
| |On effect to be expected is coming from the fact that the State creates an en enormous deficit in the national budget, by giving so much support to the banks and due to the |
| |growing unemployment, and at the same time maintains a stop for increases in taxes, which has been the governmental policy since 2001. |
| | |
| |These components will for sure leave fewer money to public support of the poor and socially excluded and will also lead to a growing gap between rich and poor and makes it more |
| |difficult to integrate the excluded. |
| | |
| |The effect is shown in several studies. There are a growing number of people living under the poverty line, as defined by EU: less than 60% of the average income. Still less than |
| |in most other countries, as DENMARK still is one of the richest countries, but our welfare system erodes and the principle of flexicurity seems to be more popular outside than |
| |inside DENMARK. |
|FRANCE |Il est certainement trop tôt pour mesurer pleinement à la fois l’impact de la crise et celui des mesures prises pour en combattre les effets. |
|UK |Unemployment is affecting less skilled workers and older workers and youth. There are now 1 million young people not in paid work. |
| | |
| |POSITIVE POLICY POINTS ON THE SOCIAL SIDE TO DEAL WITH THE CRISIS |
| | |
| |Remembering the trouble we got from UK government over negative comments about UK last time, some positive points are. These could probably go in under Q3 in the questionnaire |
| | |
| |CHILD POVERTY |
| |That UK government although it missed its 2005 and will miss its 2010 Public Service Agreement target on child poverty, the targets have focused policy attention on child |
| |poverty, to positive effect. Despite the financial crisis, the government has continued with its 2020 target and put in a legislative framework, in the Child poverty Bill of 11 |
| |June 2009. |
| | |
| |SUPPORTING YOUNG PEOPLE |
| |Future jobs fund is aimed to create jobs for young people – government claims, up to 85,000 jobs and training places including internships. Overall the government believes that |
| |150,000 extra jobs will be created, mainly for 18-24 year olds who have been out of work a year. The money is to be spent between October 2009 and March 2011; the Fund is part of |
| |the Young Person’s Guarantee so that by 2010 every 18-24 year old will be offered at least 6 months of a job, training or work experience. The Fund is bid for competitively |
| |More places at university created this year - though not fully funded to the universities and only for about a third of the extra demand for places due to recession |
| |Government would also say that the radical changes it was making to skills delivery mechanisms which are continuing despite the crisis will help young people |
| | |
| |DISADVANTAGED GROUPS |
| |Continued to put through law on access to statutory sick pay for agency workers with contracts of 3 months or less |
| |Government would also say that in continuing with its welfare reforms, it is providing additional support as well as compulsion for people with a disability and single parents |
| | |
| |TO MAINTAIN EMPLOYMENT DEMAND |
| |maintaining and bringing forward capital projects for schools, homes and hospitals to keep employment up |
| |Car scrappage scheme – and extended for 6 months more |
| |targeted tax cuts for business |
| | |
| |SUPPORT FOR MORTGAGE INTEREST |
| |The government is maintaining support at assumed interest rates higher than actual current rates |
| | |
| | |
| |But what there is not is a social package and we have asked for a social summit to discuss and conclude on social impact of the crisis and next steps |
| | |
|Eurodiaconia |As per question 2. However, there is also the need to think about the emotional impact of thecrisis and the concept of hope. More and more people are and may start to see the |
| |situation as hopeless and that there is no care and support for those in the deepest need. Therefore, in some cases, mental illness may increase which will also need support. |
|In what areas is the impact most felt and how? Give details and examples where relevant if possible. |
| |
|Employment (what kind of jobs are affected and in what way? Is there an impact on quality of job conditions – eg increase in temporality/short-term working? Are new jobs are being created? What about their |
|quality? Is support being given to Social Economy? What’s the impact on activation policies? Are measures being taken to increase access to jobs for the unemployed? What’s happening to conditionality?) |
| |
|SPAIN |In April 2009, 100 economists made a diagnosis and some key proposals about fixing the unstable Spanish labor market. Quotation: |
| | |
| |“The current economic crisis did not start in the labor market. However, Spain is suffering a much higher job destruction rate than most developed countries. With an unemployment |
| |rate around 15%, and which could reach 20% in the next few months, it is urgent to tackle the causes that generate such an intense job destruction. Neither fiscal stimulus |
| |packages nor employment-promoting measures –for instance the already-approved job creation subsidies– will be effective if the main problems that induce such an inefficient |
| |performance of the Spanish labor market are not solved. Those problems explain the huge gap between our unemployment rate and the euro area average (8%), and without fixing them |
| |it will not be possible to create enough jobs in high-productivity industries once the international economic conditions return to normalcy.”[iv] |
| | |
| |a) What kind of jobs?: The most affected are the construction, services and manufacturing sectors, where most of the jobs were created in the last years. Many of these jobs were |
| |taken by migrant workers, who have been the first most affected by the downturn. |
| | |
| |b) Quality: More work, in less time, and for a lower salary --Take it or leave it. Quality of job conditions are negatively affected due to the “real” or the “alleged” crisis. |
| |Employers feel they can lower working conditions because of the abundant work supply. Without valid work-permits, migrant workers are prevented by law from organizing or applying |
| |to register a trade union and suffer from harsh working conditions. |
| | |
| |c) New jobs: The EPlan 2008-2009, already mentioned, was intended to create more jobs, but it seems that have failed in general terms, as funds were placed in low productivity |
| |and short-term ventures by local authorities. Measures differ from one regional government to another, depending on political orientation and availability of transferred national |
| |funding. In the last year, unemployment rose more in Canarias, Murcia, Cantabria and Castilla-La Mancha, also significantly in Navarra (93.63 %), Aragón (92.15), Cataluña (81.02),|
| |La Rioja (75.74) and Comunidad Valenciana (70.99). Below the national average (66.42 %) there were Madrid (64.90), Castilla y León (63.68), Andalucía (62.26), País Vasco (45.81), |
| |Baleares (41.84), Galicia (33.65), Asturias (26.42) and Extremadura (23.15).[v] |
| | |
| |d) Social Economy: the sector is not specially flourishing, as deflation is affecting all areas of economic activity. |
| | |
| |The Forum of the Third Sector and the Social Economy is a joint initiative of 5 social platforms and networks. They demanded a National Pact for Jobs and Social Inclusion and made|
| |proposals to the government (January 2009). Their key recommendations were: |
| | |
| |1. To incentivize the economy and employment |
| |2. To implement training and support measures to help in the transition from unemployment to employment, and to return to the education system as well. |
| |3. To strengthen the support for social protection and social services. |
| |4. To strengthen the Social Third Sector. |
| | |
| |There are some interesting initiatives, at the regional level, addressing some of the most crucial social and economic problems, like the Self-Financed Communities, -- a good |
| |example.[vi] |
| | |
| |e) Unemployment and precariousness affecting people already facing poverty and social exclusion before the crisis: |
| |(Source: the abovementioned Red Cross’ Survey) |
| |Unemployed and employees: precariousness, insecurity and low income. Many salaried employees work in the domestic and proximity services sector. Two groups can be clearly |
| |distinguished: those with permanent contracts, 35%, and those who have no contract, 20%. In this portrait of the precariousness, 26% had changed jobs in the last year. |
| |Almost 7 out of 10 said that there had been recent layoffs at their workplace, an average of 18 workers per site, in the last year. Despite this, half of respondents does not feel|
| |their jobs are endangered, while the other half believes they are. |
| |As for the unemployed, stressing that only 20% received unemployment benefits. Although 56% is actively seeking work, only 13% of the unemployed received any job proposal in the |
| |last month (April 2009). The reasons for unemployment are several, the most common: the end of the contract (20%), family / personal reasons (15%), failure to have legal |
| |work-permits (12%) and illness or health problems (12%) . |
| | |
|GERMANY |Temporary jobs are significantly being reduced. Especially young professionals lose their jobs or have difficulties finding a – new – job. |
| |No particular financial support is given to Social Economy. |
| |No specific measures are taken to increase access to jobs, policy focus is on measures to keep people in the job. |
|IRELAND |What kind of jobs are affected and in what way? |
| |The main areas of job losses initially were in Construction and related occupations followed by wholesale and retail and repair of motor vehicles and motor cycles. This has now |
| |spread more generally as the effects of the recession impact on consumer spending. However exports have held up well and there are major pressures to improve competitiveness and |
| |to reduce both pay and non-pay costs, including pressure from employer groups to cut the minimum wage. . |
| |Is there an impact on quality of job conditions – eg increase in temporality/short-term working? |
| |While there has been a large decrease in full-time working there has been a small increase in part time work, mainly by men. Many people in the private sector have also taken a |
| |cut in pay. |
| |Are new jobs are being created? What about their quality? |
| |No real sign of new jobs being created but the Government is looking at the creation of new ‘Green’ jobs. |
| |Is support being given to Social Economy? |
| |No sign of any developments in this area |
| |What’s the impact on activation policies? Are measures being taken to increase access to jobs for the unemployed? What’s happening to conditionality?) |
| |The Government focus is on the recently unemployed and resources and supports being targeted at those distant from the labour market are now being redirected |
| |Minimum Wage |
| |The Government is currently looking at proposals to reduce the guaranteed minimum wage. |
|CR |Unemployment between April and June 2009 in the Czech Republic rose up to 6.4 percent. According to the Czech Statistical Office (CSO) i tis the highest annual increase since |
| |1999. Without work is to this date 333 900 people. Most affected are in Karlovy Vary, Ústí and Moravia-Silesia region – over 9 percent. |
| | |
| |Increase in unemployment affected mainly industry and construction. The most affected areas are glass, ceramics, textile, car industry. Manufacturing corporations release workers |
| |and then fail. The situation is worse in greater agglomerations (eg. Nothern Moravia). New jobs are creating slowly. Social Economy enjoyes no or very small support, also it seems|
| |to be little efficient. Activation policies are expensive but little effective as well. |
| | |
| |High unemployment remains in a group of people with basic education. Also PEP do not get or lose more often “black market jobs opportunities in construction work” – work without |
| |taxation and legal basis which increased their regular social benefits income (though illegally). Therefore social tension is slightly increasing eg. among socially excluded Roma |
| |together with increasing extremism support within population (increase of political visibility of ultra-right nationalist parties such as The workers party - Delnicka strana, The |
| |national party - Narodni strana etc.). |
| |Many companies shorten working hours of their employees without refund. |
|SWEDEN |The unemployment is expected to increase for several years and to reach it´s peak 2011 with around 12% from around 9% today. In some places the employees and the employers have |
| |taken a large responsibility in developing models for decreasing working our and salaries. The social economy has not yet been used to its full potential. |
|FINLAND |The growing number of the newly unemployed will worsen the already difficult situation of the long-term unemployed, who are the last ones to get a job. Actually, the pressure to |
| |find jobs is shifting from the employment offices to associations of the unemployed. At the same time, conditions for financial support to these associations have been tightened, |
| |which means operational limitations. |
|FINLAND |Indebtedness – both private, personal and public – will grow |
|THE NETHERLANDS |Jobs in the financial orbit, road/housebuilding sector, administrative jobs—dismisses; there is an attempt to decrease the job conditions, but the trade unions are fighting to |
| |keep them and indeed there is an increase of temporally/short-term jobs; there are some new, low paid and less secure jobs; it depends on what you mean by Soc. Economy—yes there |
| |is support (accompany and financial) for people who starts their own small business(ZZP-zelfstandige zonder personeel= independent person without staff). (e.g. market-sellers, |
| |cleaners, coaches); |
| |Activation policy is still going on, but the jobs are less and not so qualified; it was already happening before- access to jobs difficult if you are long-term-unemployed, your |
| |age (above 35/40), your education; conditionality is (still) part of the activation –policy, by re-integration is training and some education included. |
|BELGIUM |- Jobs in construction, transport and industry sectors are strongly affected: eg. 20 % less goods in the Antwerp Port, harbour workers are 3,5 times more unemployed then last |
| |year. This means the highest level of days of unemployment since word war II |
| |-106.000 more people temporary unemployed then last year (DS 22/08) |
| |- Activation policies stayed unchanged, which means that also the same number of consultants, social assistants… are consulting a much bigger number of unemployed people |
| |- Waiting lists for training courses became longer |
| |- Labourmarket is very conservative nowadays: who’s out stays out |
| |-for the first time ever over 100.000 unemployed in the Brussels Region |
|LITHUANIA |The biggest increases in unemployment - 14 percent. The majority of work lost its builders, bankers, computer science, middle managers |
|DENMARK | |
| |Jobs affected are mainly those for unskilled workers, and jobs in specific branches as construction. |
| | |
| |The Quality of jobs is affected in relation to milieu, stress and insecurity. |
| | |
| |Access to jobs for unemployed is tax – financed and supported by public and private job services, but as the crisis has resulted in fewer jobs in general and in specific areas |
| |especially, it has been more difficult for unemployed to have success in getting a new job. People who have social or health’s problems and lacks education, experiences more |
| |difficulties in getting jobs. |
|FRANCE |On a assisté à une forte baisse du travail intérimaire avec stabilisation au deuxième trimestre 2009 et à un non-renouvellement de contrats à durée déterminée. Ce sont donc les |
| |travailleurs précaires qui ont été les premiers touchés par la crise et la diminution du nombre d’emplois. |
| | |
| |En ce qui concerne les mesures prises pour permettre aux demandeurs d’emploi d’accéder à l’emploi, outre celles prises pour inciter les entreprises à embaucher, on observe un |
| |quasi décontingentement des emplois aidés, la limite étant la capacité des organisations (associations notamment) à y recourir et à pouvoir en financer l’encadrement |
|UK |Employment data from National Statistics Online, accessed 28 September 2009 |
| | |
| |The employment rate for 3 months to July 2009 has fallen to 72.5%, lowest since 1997 |
| |Total in employment for year to June 2009 is 28.89 million, down 600,000 on the year |
| |There are 31 million workforce jobs in the year to June 2009, down 664,000 on the year |
| |The unemployment rate is 7.9% for the three months to July 2009, the highest since 1996 |
| |The claimant count (registered unemployed because they are entitled to benefit) was 1.61 million in August 2009, highest since 1997. Note: these are statistics for the registered |
| |unemployed and are therefore much lower than the labour force statistics of ILO, which count people able, willing and currently seeking work, whether registered or not. |
| |Redundancies in the three months to 2007 were 246,000 down 55,000 over the last quarter, but 107,000 up on the year |
| |Job vacancies were 434,000 in the three months to August 2009, down 174,000 over the year. |
| |Inactivity rate for working age people was 21.1% for the three months to July 2009, there are now 7.99 million inactive people of working age, up 125,000 on the year and the |
| |highest since records began in 1971 |
| |Average earnings excluding bonuses increased by 2.2% in the three months to July 2009, compared with the previous year, the lowest since records began in 2001. Average earnings, |
| |including bonuses, increased by 1.7% in the same period |
| | |
| |The negative trend in employment has accelerated - in the last four quarters the percentage change in employment growth rates for the UK were: -0.3; -0.2; -0.5; -0.9 (Eurostat |
| |newsrelease: Euroindicators; 14 September 09) |
| |There are a number of reasons for believing that the total employment impact of the crisis is undercounted by registered unemployment |
| | |
| |There is an increase in short time working which a bit disguises the true employment impact of the crisis. Ditto, it seems likely that there are people who are forced to work part|
| |time who would prefer full time |
| |Agency workers seem to have been first to lose their jobs as they are contracted to the agency and not the place where they work |
| |Some self employed people who have lost their business or self employed contracts will not appear in the unemployment statistics because they are not entitled to benefits and |
| |therefore may not register as unemployed, but run down their savings, before being forced to seek income or housing support |
| |It is not evident what is happening to informal workers including asylum seekers and those working while on benefit, who will not appear in unemployment statistics because they |
| |were working illegally |
| |Some unemployment has been disguised by an exodus of east Europeans especially Polish people |
| |Young people are not being hired into their first job. Graduate unemployment is rising but is still lower than for less skilled youth. However, some graduate unemployment is |
| |disguised as more graduates have sought further study as there is less scope for employment. Some large employers such as British Telecom have ended their graduate entry |
| |programmes |
|Homelessness and Housing Exclusion ( Is homelessness increasing? Are there increases in evictions and repossessions? Is there an impact on rent levels and access to housing?) |
|SPAIN | |
| |Homelessness and housing exclusion are increasing. Recently unemployed people with pending mortgages, and tenants who cannot afford their mortgages and rents are beginning to |
| |loose their homes. Families and particularly children, already at risk, are not covered by the traditional “social emergency” resources and facilities. As basic social services, |
| |soup centers, shelters, drop-in centers and other such services managed by NGOs and private charity are facing a big increase in demand, while finding it harder to bring in |
| |donations and subsidies, the costs in terms of hunger, homelessness and illness will soon be very important indeed. |
| | |
| |According to the Red Cross’ Survey, serious problems with housing were faced by almost 3 out of 10 persons, who were already facing social vulnerability before the crisis. 28% of |
| |respondents have reported having serious problems with regard to the maintenance of their homes, with two highlights: the inability to pay the rent, and not being able to afford |
| |electricity, gas, telephone or community expenses. Many have requested the Red Cross and the social services aid, but 29% of those who can not afford the rent had not requested |
| |assistance. |
| | |
| |Considering the Survey conducted by the Caritas Center for Homeless Persons, in April-May 2009, the number of homeless people increased slightly (21%) during 2008. The report |
| |showed that some people affected by the crisis are beginning to use the facilities for homeless people, in the absence of other alternatives. Many Caritas offices indicate that |
| |the crisis is still not massively dragging the people to homelessness. However, when analyzing data from the first quarter of 2009, the increase reaches a remarkable 30%. This is |
| |due mainly to homeless migrants: while natives only increased by 17%, the immigrants have done so by 68%. |
| | |
| |The profile and characteristics of these homeless groups are: |
| |A preponderance of men (90.5%) |
| |A bigger weight of the native (72%), compared to the homeless immigrants (28%). |
| |The average age of 39.7 years, with a clear distinction between: |
| |Immigrants, with an average age of 36 years. |
| |Natives, with an average age of 43.4 years. |
| | |
| |The main cause of chained factors that lead to homelessness in 2008 were: loss of job (abandonment, dismissal or termination of contract), followed by addictions (alcohol, drugs, |
| |gambling). Other causes are also related, such as the difficult labour insertion, the loss of a residence and work permits, and the lack of family support. In the case of |
| |homeless migrants, the report highlights the difficulty of accessing to employment (mostly due to discrimination) and their “irregular” administrative conditions. Caritas |
| |services indicate that 63% of the homeless persons move from one locality to another (most often, in the case of immigrants), while 37% remain in the same location (more common, |
| |among natives).[vii] |
|GERMANY |It is not yet possible to quantify the likely increase of homelessness. We are expecting to perceive impacts next year. |
|IREALND |Homeless organisations have been reporting an increase in homelessness and those seeking their services for the past year. Many of these people are migrant workers, mainly from |
| |Eastern Europe, who have lost their jobs. |
| |There has been an increase in house repossessions but the Government has intervened to try to prevent this move. Recently Courts have also found in favour of mortgage holders over|
| |lenders. |
| |In general there has been a reduction in the cost of renting. However the state has also reduced the rent supplement paid to social welfare recipients. |
| |In April the Government cut the Rent Supplement support to those on low income and social welfare citing reduced rents. However, many tenants have not been able to negotiate a |
| |reduction in rents with their landlords leading to increased poverty for these people. |
| |Many houses build by developers are now empty. Homeless organisations have called for these to be purchased by local authorities to address the needs of those on the social |
| |housing waiting list and those who are homeless. The Government has provided some funding to local authorities to rent some of these houses to address some of the needs of those |
| |on the social housing waiting list. |
| |Most planned social housing regeneration projects involving public private partnerships have collapsed. |
|CR |Homelessness is not increasing but not diminishing. Restrictive programs are not effective – the homelessness communities are rather more diffused. At the moment problem with day |
| |care center Hope for homeless near to Prague Main Railway Station is negotiated. The quarter Prague 1 will push the center form the city of Prague to margins of the Prague. Civic |
| |initiatives defense the successful project Day Centre Hope asking local government to let live the center because it is located in very appropriate place – under the highway, |
| |close to the Main Railway Station. There is lack in access to housing not only in Prague but in the smaller cities in Czech Republic (see scandalous behavior of mayoress in |
| |Chomutov). People they are not able to pay rent are reject without to plan the future steps for them. |
| | |
| |No social housing law – lack of affordable rent, discrimination on “free market” – private owners often discriminate PEP, families with small children, Roma in renting. No or lack|
| |of affordable state or council flats complicates this issue. |
| |The reality of lower wages (shortening working hours) bring along the growth of distraints and indebtedness of individuals and families (inclusive indebtedness in connection with|
| |rents and distraints of flats or homes). |
| | |
|SWEDEN |The number of people who are forced to sell their homes (houses and apartment) due to debt are increasing. The number of people who are legally forced to sell has been doubled |
| |since 2007 and 2009. The underlying problem is mainly unemployment. The expected increase of people being to forced sell their homes is also related to an expected increase of the|
| |rate of interest. |
| |The number of homeless people can also bee expected to increase since more and more people are living on the margins. |
| | |
|THE NETHERLANDS |Homelessness among youngsters is a little (slowly) increasing; there are still evictions –this has more to do with people who cannot longer afford to pay the mortgage of their |
| |house (but they will have a (rented)house a.s.a.p.); the rent-level (for housing-corporations) is regulated by the government, so every year there is a small % (3-5%) raising of |
| |the rent. (private house-owners can let their houses for more, but now let them for less). |
|BELGIUM |- Five times less building permits are requested (DS 08 08), which means a decrease of 21 %. This might have an impact on the (already problematic) scarcity of houses to rent. |
| | |
| |- ‘Insurance for housing guarantees’ |
| |A free public insurance, people who are having problems paying their hypothetical loans due to illness are unemployment, can use this insurance. |
| |The insurance is now also possible for higher income levels. The minister is now researching if a similar insurance for people who rent a place is possible (Gazet van Antwerpen 17|
| |09) |
| | |
|DENMARK |The number of homeless seems to be on a stable level. There seems also to be no increases in evictions. Yet, the number of repossessions is growing rapidly, even if it is still |
| |not big, compared to e.g. the 1980th. |
| | |
| |Rent level is decreasing, yet still to high for poor people. Access to housing is also easier as there are many empty, newly build flats, but the rent is too high for poor and |
| |socially excluded. |
| | |
| |The government has just started a program for reducing the number of homeless. The idea is to set up more flats, aimed specifically for homeless. “Housing first” is one of the |
| |buzzwords, underlining the hope that homelessness primarily is a housing problem. |
| | |
|LITHUANIA |Labor has lost depending on what activities the area has worked |
|UK |There was an increase in evictions and repossession of houses but the rate of increase has declined in the last quarter. The situation varies with landlords but government had |
| |been encouraging banks to make repossession/ eviction a last resort and has provided some support for people to stay in their homes. I do not know the situation with social |
| |landlords – some of them were moving quicker to eviction for rent debt before this crisis. |
|MINIMUM INCOME |
|SPAIN |If long-term unemployed people have to turn to is the welfare system, they will face a devastating shock. The unemployment insurance, while it has highly restrictive rules, |
| |considers eligibility from the standpoint of unemployed status. The Guaranteed Minimum Income (rentas mínimas), in contrast, is a system of last resort that can only be accessed |
| |by those on the very edge of destitution. In most of the Spanish Regions, those with any other sources of income are ineligible by reason of the welfare means tests. In |
| |conditions of rapid economic downturn, that will translate into a whole mass of people who are without work but who cannot even apply for income support until they have exhausted |
| |their savings. Once they have reached the required level of poverty, those who were previously working for living wages will be expected to make do with the degrading pittance |
| |that GMI provides, in their current levels. |
| | |
| |The social assistance system is massively arbitrary in its actual implementation and regional and local governments have to co-finance for part of it. Local governments are |
| |dragging a public debt of nearly Euro 30,000 million, and will surely face expenditures cutting measures in the months ahead. In such a situation, it is to be expected that local |
| |welfare offices will engage in an intensified drive to deny entitlements. If the crisis becomes deep enough and caseloads reach a high enough level, the very viability of welfare |
| |provision will be called into question. |
| | |
| |According to the Caritas Report, which coincides with the Red Cross’ Survey, most people who seek aid do not get the Minimum Income. Even when the MI granted, there is a 98-day |
| |delay before payment, due to bureaucracy, budgetary scarcity and shortage of human resources to manage the system. |
|GERMANY |Not yet |
|IRELAND |The Government is considering proposals to cut the Minimum social welfare payment by 5% at the end of 2009. |
| |While the Minimum social welfare payment has not yet been cut criteria for certain groups has and also criteria for access to social welfare benefit has been made more difficult |
| |and the term reduced before people move to the means tested Jobseekers Allowance. Other cuts include; |
| |Half rate payments to under 20s |
| |The extra payment at Christmas has been cancelled, representing a 2% cut in social welfare. |
| |Rent Supplement payments for those on social welfare has been reduced. |
| | |
|CR |Minimum wages for the year 2009 is still 8 000 CZK (390 EUR). Benefits are under some conditions higher than minimum wages which creates week motivation to work. |
| |Recovery packages bringing longer and higher relief of unemployment. |
|SWEDEN |During the last years the benefit levels has decreased for the sick and the unemployed. The access to the benefits has also been more restricted, also for social benefits. But |
| |this change is not due to the present crises. It is a result of the political strategy from the present government. The effects of these cuts can be expected to be more visible in|
| |the future. |
|FINLAND |Following the loss of numerous jobs and increasing unemployment, the worsening of the economy of communes because of for example decreasing tax income has more and more began to |
| |become obvious during this year. Communes try to find ways of "belt-tightening", also in social- and health sector which makes the biggest costs in communes' economy. It seems |
| |that the demands to save are seen solely from economic point of view, and based on economical argumentation. There is, although, a conflict - which barely is discussed - between |
| |this kind of thinking, and the actual laws in FINLAND regulating the social- and health services. The basis in the laws is namely that the social- and health services should be |
| |arranged in communes according to factual needs of services among people living in the commune - communes should also to find out these factual needs for every service, and |
| |reserve money/resources enough to be able to offer these services for everyone who's in need of it. But the solely economical argumentation seems to, almost and at least partly, |
| |ignore this, and to interpret laws in the way which seems to be in conflict with the original meaning in the law. |
| |From this follows that there's a tendency now to worsen the services and different benefits even for those who are living in the weakest situations, and for whom the actual laws -|
| |no matter what discussions there are or have been about the services or benefits' level- still and in the end have quaranteed at least basic rights. |
| |So it seems that there is a growing, yet hidden and not so much in public discussion, confrontation between the consequences of the economic crisis also to public/communes' |
| |economical situation and communes' plans to handle it and communes' interpretation of the law regulations on the other hand, and the factual written rights for services and |
| |benefits actually quaranteed for people in the law regulation. |
|THE NETHERLANDS |Until now the levels of benefits are not affected ; it is more difficult/more rules to access a benefit (especially for youngsters < 23 years, handicapped people, but this already|
| |going on for years) |
|BELGIUM |-A social fund that give an income surplus added to the unemployment fee was created, temporary economical unemployment fee is raised |
|DENMARK |DENMARK is still protected by a rather well functioning labour market system, with high percentages of organized employed, collective agreements etc. Yet, minimum income is |
| |affected specifically in branches like building and construction, where many companies illegally hire skilled or unemployed workers from the new and poorer EU member states. |
| | |
| |The phenomena “working poor” is still rare in DENMARK, but we find it in specific branches, especially in the service sector and other fields dominated by unskilled workers. |
| | |
| |Benefits are reduced relatively every year, by 0.5 % and new very low benefits are invented by the government in areas with many migrants. |
|FRANCE |La France est, depuis le 1er juin, en pleine période de mise en place d’un nouveau dispositif remplaçant celui de « revenu minimum d’insertion ». La seule chose que l’on puisse |
| |dire aujourd’hui est que cette mise en place est lente, de nombreuses personnes éligibles n’ayant pas encore demandé à en bénéficier et qu’il existe un fort risque de détournement|
| |de l’esprit de la Loi par ceux qui ont à l’appliquer. |
|UK |The changes to benefits are at present only “kite-flying”; it will be next year before we see what happens. The Conservative party has proposed to end working tax credits which |
| |top up low income and to increase compulsion and penalty. Their social justice working group led by their former party leader Ian Duncan Smith has produced a paper arguing also |
| |for simplifying the welfare benefits system to just two benefits – one benefit for all those of working age for example - and they have even discussed some kind of basic income; |
| |all this in the context of fixing our “broken society”. This view – that society is broken - has taken root widely in the UK before the crisis. The working group’s proposals have|
| |not been publicly supported by the party leadership. |
| | |
| |There were anyway wide ranging proposals for changes to the benefits system and much larger elements of compulsion and penalty already in the Labour government’s Welfare White |
| |Paper this summer (2009). There were also plans for major changes to benefit and service delivery for welfare recipients including letting of large contracts to for profit and not|
| |for profit organisations. The government has stated that the recession does not give it reason to change these plans, although many anti-poverty and disability organisations have |
| |argued there are no jobs for the people most likely to be affected. |
| | |
| |More than one political party and many media individuals have argued that universal benefits such as child benefit should be means tested. However, the child poverty groups have |
| |been making a robust defence. |
|Access to other services and goods (are prices of basic services and goods eg food, housing, energy etc increasing/decreasing?. Are there increasing problems of accessibility or coverage? |
|Spain | |
| |The debate now is about how “good” could be this slight fall in the consumption basket. While it may mean a relative relief to some consumers in the short run, deflation and |
| |recession are also a probable and negative scenario in the mid-term. |
| | |
| |The problem of unaffordable mortgages, due to a former increase in interest rates during 2008, is beginning to unwind (Euribor’s drop has reduced in more than 20% the cost of the |
| |average mortgage)[viii]. Nevertheless, families who already live in edgy financial situations or/and also happen to suffer from recent unemployment are very affected by the weight|
| |of the housing costs in their reduced budgets. |
| | |
| |The problem of no-income families and those who live under the poverty threshold is permanent and has not been solved by the decrease in food prices. On the other hand, services |
| |fares of electricity, gas, telephone, public transportation and other have been raised, beginning 2009. |
|GERMANY |No |
|IRELAND |There has been a general reduction in the prices of goods and services of 5.4% to the year to June 2009. The Government have used this as an argument for why social welfare rates |
| |should be cut but while many items such as mortgages, electricity, gas and electricity and clothing and footwear and the cost of cars have decreased many essential items such as |
| |some miscellaneous goods and services (8.5%), public transport (1.5%), education (4.5%). Health (3.4%) and utilities and local charges (electricity, gas and waste and disposal |
| |charges - 4%) have increased. |
| | |
| |- There has been a reduction in the level of services to all groups. Care supports for older people and people with disabilities have been cut and proposed service increases in |
| |this area will not proceed. Rural Transport Programmes are being curtailed with proposals to stop them completely. General Health services, particularly those with an outreach |
| |function have been curtailed etc. |
|CR |Increasing of prices of rent and energy create a problem for PEP. They have mostly greater debts on rents and energies. |
| |Prices of services and goods do no go up; on the contrary, some product prices (e.g. basic groceries) have dropped due to the decreased number of consumers. |
|FINLAND |Bankruptcies of small companies will increase, a growing number of people will lose their personal creditworthiness, and municipalities - which in FINLAND are responsible for |
| |providing the basic services - will be unable to carry out their obligatory tasks. Consequently, access to services, even the very fundamental ones, will be at risk. |
|THE NETHERLANDS |The price of some food (like fresh vegetables and fruit, bread) are increasing, by selling-stunts of super-food-markets some prices are decreasing; from the 1st of July the |
| |energy-prices are a little decreased, not really problems (only for some people in debt) of accessibility and/or coverage. |
|BELGIUM |-Consumption (private and industrial) of electricity has decreased, partly because of the crisis |
| |-Prices of energy are still very high in Belgian, due to the lack of regulation and competition |
|DENMARK |Prices have followed the same trends as in other countries. There were rather big increases in 2007 – 2008, but in 2009 prices are stabilized, in general. As the public benefits |
| |have not been regulated properly, this has given problems to specific groups like unemployed, ill and elderly people. |
|UK |See above. Fuel poverty is rising. There is also a discussion in the parties about ending the winter fuel payment to older retired people (this is a one off annual payment to help|
| |with fuel bills). |
| | |
|Indebtedness and financial exclusion (has the crisis worsened the number of people indebt? How/why?) |
|Spain |Late payments recorded the highest rate in thirteen years in July 2009, up to 4.54%. However, it does not include late payment of financial establishments. The figure does not |
| |include late payment of financial credit (ECF), as they have a very high rate of defaults, which in May stood at 7.97%. If the data from the EFC should be included, arrears |
| |amounted to 4.642%. [ix] |
| | |
| |High indebtedness is an outstanding problem due to the consumption expansion trend of the last years, and the weight of mortgages in the household’s economies. After 2004, these |
| |mortgages were contracted on the basis of overrated housing prices. Due to the recent downturn in the market, many families are facing bigger debts than the market value of their |
| |assets. There are houses on sale with the legend: “I cannot keep on paying. I sell the house for the remaining mortgage amount!”. The newly arrived immigrant families who invested|
| |in properties after that date are particularly jeopardized, as their jobs are the most precarious, the first to fall, and the prices paid by their homes are the highest. If they |
| |cannot sell, they may find that the solution is not easy: properties cannot be simply “returned”, or even given away to the banks, as banks are not willing to receive them (they |
| |already have got a lot of assets that are hard to sell, including new real estate developments). If they simply stop paying, they may loose the properties anyway, but they will |
| |not get rid of their debts. If they become part of a debtors list, they cannot access to any sort of credit, and their salaries can be frozen. Returning to their homelands may not|
| |stop the process, as they can be prosecuted, even if they are not present. |
|GERMANY |It is not yet possible to quantify the likely increase of indebtedness. We are expecting to perceive impacts next year when the number of people in debt as well as the amount of |
| |debts will probably significantly rise. |
|IRELAND |There is an increase in indeptedness. Much of this relates to people with loans who have now lost their jobs or take a reduction in their salary. |
|CR |The crisis worsened the number of people in debt. There are many advertising offering goods, holidays and other commodities on credit. People trust in non banking institutions |
| |they negotiate fraudulently. There are some campaigns of danger warning and increasing financial literacy. Currently, process of implementing EC directive concerning consumer |
| |protection into Czech legislative is running. |
|SWEDEN | |
| |Yes, the crisis has worsened the number of people living indebt. More and more of the debts are related to the need to cover the daily living cost. The situation is worsened by |
| |the fact that many people are forced to apply for loans with very high interest. |
|THE NETHERLANDS |Yes, for indebtedness (in THE NETHERLANDS financial exclusion is rare), because of restrictions of the banks by (not) giving more loans and worsening the conditions |
|DENMARK |The number has increased, especially maybe among those young people and families who bought apartments or houses in 2005 – 2007, where prices where at the top. They are know, |
| |technically seen, deeply indebted, because their loans exceeds the market value of their property. It can be foreseen that they will come into heavy problems, if they are hit by |
| |accidents, illness, unemployment, divorces etc. |
|UK |Over indebtedness was a widespread and increasing problem before the financial crisis and a cause of it. |
| |Household debt per se is actually reducing now as households who can, pay down debt (e.g. those who have seen an increase in real incomes due to decline in mortgage payments |
| |overpay their mortgage to pay down debt; others are paying off credit card debts etc and being cautious about spending due to fear of the future). There is a little evidence that |
| |consumers may be increasing their confidence again. |
| |Those who were very poor before and living on social benefits have been little affected by the financial crisis – they had little or nothing to lose – one of our EAPN PEP members |
| |referred to himself as a “ bottom feeder” (a fish that swims along the ocean floor, looking for food on the seabed). However, it seems likely (see above) that they will be |
| |affected by the social response to the crisis of cutting public expenditure. |
|Eurodiaconia |Our membership believes that they will have to offer more services to those who are affected by debt and imagine to offer more debt counseling services and emergency financial |
| |support. |
|Impact of-IMF/Commission Budget support in some New Member States (what has been the impact of the IMF and Commission financial support? Was any social conditionality imposed and how was this delivered?) |
|Spain | |
| |In 2008, the European Commission made payments totaling 10.7 million Euros from the European Globalization Adjustment Fund (EGF) to help Spain with 1600 workers who lost their jobs |
| |when the U.S. multinational Delphi decided to close its plant in Cadiz, and relocate production to its plant in Tangier.[x] |
| | |
| |Recently, there has been a serious admonition on behalf the European Commission regarding the peaking unemployment rate (Spain has asked the EU for more financial aid in 2009, but the |
| |application has been rejected), the high public spending, and the State deficit (well over the Eurozone standard). Last March 24th, the Commissioner for Economic Affairs of the EU, Mr.|
| |Joaquín Almunia, gave 6 more months to the Spanish administration to implement measures in order to place the deficit below 3% of GDP , within that period.[xi] Finally, both France and|
| |Spain were given until 2012 to reabsorb their excessive deficit up to that threshold of 3%. |
| | |
| |The European Economic Recovery Plan of November 2008, has set out key elements of the public support relevant for the automotive sector, CARS 21. The new Temporary Framework for State |
| |aid measures adopted in December 2008 and revised in February 2009 is designed to allow Member States to provide aid to companies facing problems with access to liquidity and whose |
| |difficulties do not pre-date the crisis. Aid measures also include cost-based loans for the production of green products.[xii] |
|GERMANY |In June 2009 5.9 million people received earnings-replacement benefits such as unemployment benefits, short-time working allowance or social assistance, which are 110.000 persons more |
| |than the year before. |
| |Precariously employed are the first to lose their jobs, and growing unemployment makes it more difficult for them to find a new one. Among those, women and single parents, ethnic |
| |minorities and migrants as well as low skilled persons are the groups mainly affected |
|CR |Not sure |
| |
|Other |
|Spain | |
| |Bad administration of public funds seems to be an additional problem. Spain could lose up to 1,000 million Euros in EU aid for delays in the implementation of appropriate control |
| |systems to ensure that no irregularities are incurred in the use of money. These funds belong to the budget-year 2007 and the deadline for their use expires December 31, 2009, but due |
| |to these delays, they have not been spent. The Government had asked to Brussels a year delay, until December 2010, to use the funds, but the Commission has rejected this demand in |
| |July 2009. In 2007, Spain was to receive a total of 6,300 million Euro. The EU executive has already paid 2,600 million by way of progress. However, a substantial amount of money, |
| |which the Commission estimates between 800 and 1,000 million Euro, is currently frozen and at risk of being lost because Brussels is not satisfied with the control systems implemented |
| |by the 17 regional governments. [xiii] |
|B) Which groups worse are most affected? How? Give details and examples if possible. |
|Spain |Poverty: 19.5% of the population is under the poverty threshold (and 13.8% in permanent poverty) |
| |Deprivation: 18.5% is deprived in three or more indicators of basic needs. |
| |Exclusion: 17.2% of the population is affected by 3 or more indicators of social exclusion |
| |Severe poverty: between 3% and 4% of the population, 2.7% in chronic poverty |
| |Severe exclusion: 5.3% of the population |
| |More than 10% are working poor. |
| |Widowers and dependent people’s pensions are the lowest, under 400€ |
| |Minimum income is around 400€, well below the minimum salary, which is 610€ |
| |Persistency of high rates of unemployment, above EU average, before and during the crisis. |
| |The guaranteed minimum income is a system of last resort that can only be accessed by those on the very edge of destitution. |
| |Child poverty level, 25%, is higher than EU average |
| | |
| | |
| |Source: |
| |VI Informe FOESSA sobre exclusión y desarrollo social en España. 2008 and other. |
|IRELAND |It is difficult to say who has been most affected as cuts and reduction in services has been across the board affecting every group. Some examples have been highlighted above. Those |
| |most distant from the labour market are no longer a priority for government as they move to target resources on those recently unemployed. Poverty rates among the most vulnerable are |
| |likely to increase but we do not have up to date figures yet. Opportunities for young graduates are greatly reduced as have welfare rates for those under 20, The government is |
| |committed to develop measures to support retraining and access to education but the scale of thes initiatives are not yet clear. |
|SWEDEN | |
| |All these groups are affected, but to a large extend this is due to the government’s policy in general. |
|CR |All target groups are affected by increasing unemployment, shortening working hours without refund of wages |
|DENMARK |The groups affected are the usual ones: People who have a mix of hindrances in relation to the labour market: the poor, unskilled, single, and unhealthy. The problems have been |
| |identified many times, especially among single mothers, single men and bigger migrant families. Young and elderly are among those most affected by the growing unemployment. |
|Unemployed or precariously employed? |
|SPAIN |According to the “100 economists’ document”, there is a problem of high employment volatility generated by a dual labor market, in which for two decades around 30% of employees have |
| |been on fixed-term contracts. In economic booms this model generates strong job creation, albeit concentrated in low-productivity industries, whereas in recessions it exacerbates job |
| |destruction. This is so because the existing regulation induces firms to respond to economic fluctuations through labor turnover, rather than looking for alternatives such as changes |
| |in workplace organization. This aspect is reinforced by a second problem: a collective bargaining system that is too rigid, too centralized in some cases, and insufficiently |
| |coordinated in others. Thirdly, unemployment protection schemes do not achieve sufficient coverage, while at the same |
| |time --they claim-- these benefits discourage job search in some cases, thereby unnecessarily lengthening unemployment spells. Lastly, Spain suffers from woeful active labor market |
| |policies |
| |trying to help the unemployed to find jobs. |
| |According to the NGOs experience, recent unemployed persons are coming from low-skilled jobs in the sectors of construction, hospitality and, most recently, of the industrial sector. |
| |Many are immigrants who have work permits. Their employment benefits are running out, and they are beginning to enter the "zero income" situation. |
| | |
|GERMANY |In June 2009 5.9 million people received earnings-replacement benefits such as unemployment benefits, short-time working allowance or social assistance, which are 110.000 persons more |
| |than the year before. |
| |Precariously employed are the first to lose their jobs, and growing unemployment makes it more difficult for them to find a new one. Among those, women and single parents, ethnic |
| |minorities and migrants as well as low skilled persons are the groups mainly affected. |
|CR |1. Unemployed or precariously employed - See above |
| |2. Ethnic minorities and migrants – especially Romas, there is nearly zero possibility to find work especially for 50+ and older people, or with some health problems and children = |
| |groups with multiple disadvantages (eg. Roma women 50 + with some health condition) |
| |3. Women single parents ( the situation of women is generally not critical but vulnerable) |
| |4. Low income families (with more children) |
| | |
| |Older and younger people – people 50 + willing to work find work mostly with difficulties |
| |Disabled and people with long-term health problems – there is rather problem that people with disabilities mostly accept benefits without caring about job. |
|SWEDEN |Unemployed or precariously employed? |
| |These groups have even less chances to get a job than before the crisis. But they are forced to apply for a certain number of jobs every week, participate in different programs that |
| |will keep them busy but leading to any jobs. They also have to accept any job regardless if it´s less paid ore they are too qualified for the job otherwise they will lose their |
| |unemployment benefit. |
| |. |
|THE NETHERLANDS |yes, older too expensive; younger no experience |
|BELGIUM |- People working in temporary (interim) jobs were the first to become unemployed, and don’t get access to the labourmarket again |
| | |
|FRANCE |Les efforts portent davantage sur les personnes ayant un emploi et sont menacées de le perdre (mesure de chômage partiel, dispositifs d’accompagnement et de recherche d’emploi pour les|
| |licenciés économiques) que pour les demandeurs d’emploi ou les travailleurs précaires. Ce sont donc ces derniers qui subissent le plus l’impact de la crise. |
|UK |So far, the precariously employed (see above) such as agency workers and fixed term contract workers and self employed |
|Older and younger people |
|SPAIN |Pensioners without other income, living in poverty. 7 out of 10 retirees have no income other than retirement pension. Considering this fact, with the very low levels of less than 1000|
| |Euro, the picture is that of elderly living below the poverty threshold. |
| | |
| |According to the Red Cross’ Survey, it is remarkable the strong growth of the people without any income, who now represent 1 out of 5 cases, in the last year. This data is largely |
| |linked to the disappearance of family support and solvency. 77% declared that they have no chance of financial assistance of any kind to address their problems. |
|GERMANY |Unemployment among young people up to 25 years has rised three times higher (by 16 per cent) than unemployment in general (which has risen by 5.3 per cent; data from May 2009) because |
| |young employees enjoy less job security and are above average on temporary contracts. |
|SWEDEN |About 25 per cent of the young people are unemployed; one of the highest numbers in Europe. This has also led to an increased number of people receiving social benefit. And Older are |
| |expected to work longer (if they have any job- there is also a discrimination against elderly people on the labor market) than to the age of 65. |
|THE NETHERLANDS |yes, older too expensive; younger no experience |
|BELGIUM |Right now the crisis affects both younger and older people in more or less the same way. But in the last months, a lot of young people finished school, so the near future will tell us|
| |if they will find a job or stay unemployed. Youth unemployment has raised with 40 %. |
|UK |Youth |
| |
|Women/single parents |
|SPAIN |According to Caritas Survey, there is a clear increase in the aid demand by women, especially single-parent families, and with problems of reconciling work and family life. There are |
| |also immigrant women who have come through processes of family reunification, unemployed women over 40-years old and wives of unemployed husbands, who are no longer working in the |
| |domestic service. |
|SWEDEN |Single parents are represented more frequently than others when it comes to child poverty, women have lower average than men (These facts are not connected to the crisis) |
|FINLAND |In recent investigation it was found that the poverty among single parents have increased most |
|THE NETHERLANDS |Yes, nothing new, especially single parents, because of the necessity of childcare |
|BELGIUM |More men (+34 %) than women (+10 %) get unemployed now, due to the fact that they are working in sectors that are sensitive for economical changes, industry, Construction, transport. |
| |Women work relatively more in public services, where the impact of the crisis is less strong. |
|UK |Not clear, as fewer women may return to the labour market (“discouraged workers”) and others may take part time rather than full time jobs. But shop and leisure workers have been badly|
| |hit and these include a high proportion of women workers in their labour force. Other large employers of women are the public services and these will be hit next year. |
|Ethnic minorities and migrants |
|SPAIN |The most notable risk faced by immigrants is unemployment. Most migrants living under vulnerable situations do not receive the unemployment allowance (8 out of 10). According to the|
| |Red Cross’ Survey, although half have lost their jobs for reasons attributable to the crisis, a 54.6% cited personal or family circumstances, among them the lack of a proper |
| |work-permit (14.1%), difficulties to reconcile family and work (20.3%) and diseases(7.8%). |
| |Following the Caritas’ Survey, there are specific aspects in the aid requested by immigrants that can be highlighted: |
| | |
| |1. Immigrant families with mortgage debt, rent or even high personal loans, who also require food and clothing. There is a clear trend: the number of applications of “irregular” |
| |immigrants is stagnated, while there are growing demands from regular and integrated immigrants. |
| |2. "Regrouped", immigrant women, without training or qualifications, who have barely set foot our of their households, and go to Caritas to seek for a job – frequently accompanied |
| |by a newly unemployed husband. |
| |3. The request for information on humanitarian, voluntary return to their homeland has increased and has been encouraged by the Government, but finally this solution is not very |
| |well accepted. |
|SWEDEN |It is the same situation as for single parents and women. The number of unemployed immigrants out of the labor market has always been proportional unequal. Their situation has |
| |become worse during the crises. |
| | |
|NL |Yes, if they don’t speak enough Dutch, or don’t have enough education/training |
|BELGIUM |There’s a growing scarcity on the black job market, undocumented migrants are having increasing difficulties to find jobs to survive |
|UK |Their unemployment rates were already much above white people, but very varied between groups – Indians have lower unemployment and better quality jobs than people of Bagladeshi and|
| |Pakistani origin for example. This is linked to skills and qualifications, age structure and regional location as well as the nature of discrimination that different groups suffer. |
| | |
| |Many European migrants have gone home and inward migration has fallen |
|Disabled and people with long-term health problems. |
|Spain |According to the Red Cross’ Survey, people with drug addictions, disability, former inmates shared an increasing burden of their personal circumstances, which in almost 100% of the |
| |cases have been aggravated recently by family problems. Their perspective about the future is dominated by a vision of stagnation and little prospect of improvement, while a 25% is |
| |pessimistic about the future. |
|SWEDEN |Same situation as groups described above |
|THE NETHERLANDS |Of course, but that is not new |
|UK |As above, they already had a worse experience and only 11% of people with certain mental ill health were in work before the crisis. |
|Other |
|SPAIN |There seems to be an increase in domestic, gender and urban violence, as well as a deterioration of basic health conditions. |
|GERMANY |Male employees in industry are significantly more affected by job losses resp. short-time work than women who work in services more often. |
|UK |Despite the arguments that the financial crisis would hit heavily white collar professional employment in the south, the already declining regions and industries have been most |
| |hurt, plus last year, export industries |
| | |
| |“Blue collar” men (and women) in the midlands and the northern regions and Wales– for example those working in car manufacturing and other manufacturing, have been hit by the |
| |crisis. |
| | |
| |For example, some organizations who replied to EAPN Cymru (Wales) said that in an already deprived area of Wales, “the three major local employers Air Products, Flexsys and Dennis |
| |Brickworks have closed within a span of 18 months”. |
| |
|How is the crisis impacting on social NGO’s? ( particularly NGO’s involved with EAPN) Give details if possible. |
|CZ |NGO´s providing social services have not been affected to all intents and purposes so far as they get funding in a large extent from the state budged. The state budgetary procedure |
| |is always to be realized in the last decade of the previous year, i.e. the budget for this year was approved in autumn 2008 (when politicians claimed that the depression would have|
| |no affect on the Czech Republic). Nowadays Czech Republic is a part of the world depression and therefore it supposed that the state budged will show diminished subsidies determined|
| |for social services provision. |
|LITHUANIA |In LITHUANIA does not appear significant impact on non-governmental organizations |
|Is there an increase or change in the demand on NGO services? What? |
|SPAIN |Both, increase and change. |
| | |
| |For example, in the case of Caritas, there has been a 50% increase in the number of assisted people. If in 2007 there were nearly 400,000 people served through the Home Services and|
| |Primary Care, in 2008 the figure had risen to 597,172 persons, an increase of near 200,000 users.[xiv] Something similar is happening to the Red Cross. |
| | |
| |Problems faced by social NGOs include: |
| |Increase in the volume of hosted immigrants. |
| |Saturation of many services. |
| |Inability to perform an accompaniment to individuals and families. |
| |Considerable increase of aid in kind (food, clothes, medicines) to cover basic needs. |
| |Growing needs to obtain more financial support. |
|GERMANY |While the government puts more emphasis on the recovery of the economic and labour market, social and civil society actors have to shoulder a great responsibility in helping and |
| |supporting the already poor and those people being predominantly affected by the crisis. Welfare and voluntary organisations must put pressure on the government to meet Germany’s |
| |claim of being (and remaining) a Welfare State. |
| |Stress has been and will be put, among other things, on issues like: |
| | |
| |Measuring the effects of the crisis and of recovery efforts against the principles of social justice and of equity, assisting in particular people depending on the social system and|
| |the most vulnerable; |
| |Acknowledging the special role of civil society, of welfare organisations and of social economy as well as of voluntary engagement; |
| |Monitoring, and securing, that sufficient public investment is spent on social structure domains. |
|IRELAND |There is an increase in the demand for the services of NGOs in all areas. In particular those dealing on the front line with the basic cost of living, providing food and support |
| |with bills, also those advising on debt. Groups who face cuts in welfare supports are also seeking advice. Homeless organisations have had a greatly increased demand for their |
| |services has have organisations working with migrant workers and their families. |
|CR |According to the law on Social services there are preventive social services (including social inclusion and similar goals) free of charge. Being paid from the state or regional |
| |budget the existence of NGOs is endangered because of shortening of budgets – cuts are more likely to be on preventive social services of NGO´s. On the other hand, the state and |
| |region don´ t provide preventive social services. |
| |Some social services are supported within SF EU by means of public tenders (i.e. the project is processed and implemented by the region and in a way of public tenders it will make |
| |contracts with particular social service providers, which are going to realize the contract with regard to the social service provision, the contracted number of |
| |contacts/interventions/clients) |
|SWEDEN |NGO´s are supposed to do more for less money. Also due to the Governmental policy NGO´s are supposed to provide more social service as a part of a “selling out”, privatization |
| |policy. |
|THE NETHERLANDS |EAPN/Netherlands isn’t involved in NGO-services |
| | |
|DENMARK |There is a growing demand for NGO services for especially for social work, support to childrens education and leisure time activities, but also basic needs like temporary housing, |
| |food, clothes. |
|FRANCE |Les associations font en général état d’un accroissement des demandes qu’elles reçoivent et s’interrogent sur les moyens d’y faire face. Certaines prévoient de renforcer leur appel|
| |à la générosité publique. |
|UK |Increase |
| |For example, some organisation who responded to EAPN Cymru (Wales) said “The key implication for us has been the massive increase in demand for our debt service. Our statistics are |
| |proving that clients are struggling to meet their commitments particularly with their housing costs. This has led to an increase in demand for our court service representation in |
| |Rhyl to help with potential repossessions. The new government initiative ( Debt Relief Orders) has increased the clients demand for the service.We have had an increase in |
| |employment queries as well. Plus we anticipate an increase in poverty, unemployment and crime.Plus we are finding that the downturn is having an impact on “advantaged groups” as |
| |they are pushed into poverty”. |
|EURODIACONIA |Yes, our members report an increase in demand for their services. |
|b. Are there cuts in public funding lines for NGOs? Are the conditions for getting funds more difficult to fulfil? Is there an increase in funding available to reflect increased demand? |
| |
|SPAIN |Yes. The chapter of social expenditures in 2009 State budget has been cut, as mentioned before, and there are no additional funds to deal with the increasing demand of needy people.|
| | |
| | |
| |Depending on the regional situations and the political struggles, it seems that small NGOs are facing increasing problems in their structural funding, as the bigger ones concentrate|
| |more public funds. |
| | |
| |In order to address these difficulties, EAPN works in two ways: to increase lobbying at the regional and national levels, and to coordinate efforts, together with other Platforms |
| |of the Third Sector to make joint proposals. |
|GERMANY |Not yet |
|IRELAND |Despite the increased demand there have been big cuts to the state support for NGOs and other funding lines from private sources are also drying up. NGOs have had between 8-16% cuts|
| |to their funding from Government. This is going to increase and there are proposals for major cuts to funding to NGOs at national and local level. |
| |Many NGOs have staff on protective notice and have had to cut services including those targeted at addressing drug addiction, child protection etc. |
| |Before the current crisis the Government has already been imposing greater conditionality on NGOs forcing greater service delivery over advocacy work and now restricting networking |
| |activities. This has also been impacted on by cuts to budgets. |
|CR |So far ESF is still existing, NGOs have opportunities to get funds for their work. After this period there is a substantial fear how will the financing of useful projects and |
| |activities continue. |
| |Almost everything (preventing social services) is shifted from state budget to ESF projects although it is rather a system social service than a ad hoc innovative project. |
| | |
| |Some social services are supported within SF EU by means of public tenders (i.e. the project is processed and implemented by the region and in a way of public tenders it will make |
| |contracts with particular social service providers, which are going to realize the contract with regard to the social service provision, the contracted number of |
| |contacts/interventions/clients) |
|SWEDEN |Yes, there are cuttings, mostly on local and regional level. |
|THE NETHERLANDS |For some NGO’s there is cut indeed, for EAPN/Netherlands there is nothing to cut, we don’t get funding at all; no increase in funding available |
|BELGIUM |Ngo’s receive less donations, especially smaller ngo’s are effected, the amount of donations decreased with 10 to 30 %. The bigger ngo’s feel less differences. (DS 13 08) |
|DENMARK |Public funding for NGO’s is still not very available in DENMARK, even if there is a growing political interest for the voluntary sector. Private funds seem to be affected and |
| |reduced, due to the financial crises. |
|UK |There were already problems before the crisis. Lobby groups, especially on poverty, and smaller groups were finding difficulties in getting funding as funders shifted ever more to |
| |service delivery according to government priorities. |
| |Small specialist service delivery groups – especially for employment and skills, were not able to get access to public funders’ increasingly large contracts. |
| |The fall in the stock market has badly affected large NGOs’ financial portfolios. |
| |Charitable giving including street collections and legacies, is down significantly. |
| |The government anyway wanted to see mergers and takeovers in the sector to reduce duplication and prepare for big welfare/ employment contracts; there is some restructuring support |
| |available from the government office for the third sector. Large NGOs such as Age Concern and RNIB have been involved in mergers with other organisations in their sector. There are |
| |redundancies ongoing at most of the large big brand charities. These include European officers as it is not seen as a priority. |
| | |
| |Small grassroots organisations such as the National Group on Homeworking and the UK Coalition Against Poverty, have closed. |
| |Competition with for profit providers in employment and skills services has greatly increased. |
| |Some organisations dependent on ESF have lost that funding – it is ever more difficult for third sector organisations to access contracts. |
|EURODIACONIA |Yes, our members are experiencing this today. There is no increase in funding to meet demand rather there are reduced budgets or zero growth budgets. It is anticipated that it |
| |will 2010 where this will be seen most clearly. Such a reduction will have a huge effect on the ability to meet demand for services and to guarantee quality. |
|Are there changes in the access to funding, ie through Structural Funds? |
|What is the impact on Structural Funds – have there been changes in the access and priorities due to the Economic Recovery Plans? Have these impacted negatively or positively on funding for combating poverty |
|and social exclusion? |
|SPAIN | |
| |Information is not available. |
|IRELAND |There have been changes to the Structural Fund Programmes but mostly with a negative social impact with cuts to urban regeneration and equality measures and a greater emphasis on |
| |construction capital type projects. This is stated as due to reduced overall revenue and a focus on job creation type activity. The Equity for Women Measure was effectively |
| |dropped and the funding redirected to other services |
| |No clear indication that the Economic Recovery Package has had any large impact. |
|CR |See above. Some cases show that structural funds are misused to regular financing of preventive social services like asylums for homeless, re-socialisation programs and similar. |
| |NGOs are worrying about the further development of those social services. The Economic Recovery Plans have small impact on funding for combating poverty and social exclusion. But|
| |the financial situation of the state budget predicts cuts on all ministries as well as MOLSA. Being usually paid from the state or regional budget the existence of some social |
| |NGOs is endangered because of shortening of budgets – cuts are more likely to be on preventive social services of NGO´s (eg. institution – house for seniors will remain – |
| |politically important, rather than “preventive” field social work for homeless etc.). |
| |Within SF EU new calls for proposals have been realized that will strengthen small and middle-size companies. The world depression has no impact on SF EU focus as far as the |
| |social service sphere is concerned |
|SWEDEN |It is to early to draw any conclusions yet. |
|THE NETHERLANDS |No idea about Structural Funds, they are mostly used by projects of the government (infrastructure c.a.). EAPN/Netherlands doesn’t (and didn’t) receive any funding from Struct. |
| |Funds (no direct impact on funding for combating poverty and soc. Exclusion) |
|DENMARK |The access seems to have been more difficult, at least for the smaller NGO’s as demands to project administration is growing. |
|Eurodiaconia |The structural funds need to evolve into a dynamic instrument that responds to needs today and not the needs of three years ago when the programme was developed. Additionally, |
| |the time delay between application and decision needs to be shortened and the process simplified. In one or two cases there have been difficulties for faith based organizations |
| |to access funds. |
| | |
|What alternative proposals are being made by other stakeholders? (eg Trade Unions, academics, NGOs) How far are you in agreement with these? |
|Spain | |
| |Already mentioned the document developed by 100 economists, in order to reform the labor market. It is interesting, as far as it strongly pleas for an extension and improvement of |
| |the unemployment benefits, while the crisis persists. |
| |Trade Unions are part of the Social Dialogue Initiative, together with the Government and the big corporations. However, there is a generalized perception that they may be too far |
| |from the needs and circumstances of the most vulnerable people, who may not be their clients (pensioners, irregular migrants, self-employed workers, etc.) |
| |The most outstanding element in this process could be that social NGOs have become a partner in the Government dialogue body on social policy. The success elements are basically |
| |those related to the increase in governance. But this may not be a big deal… |
|GERMANY |Trade Unions demand for better employment protection and better social protection for precarious workers. |
|IRELAND |Social Partnership talks on crisis broke down in January. There have been some talks in the background but no clear agreement on a way forward. |
| |Trade Unions have proposed a 10 point plan and a Social Solidarity Pact. |
| |Some NGOs are putting together their responses to the McCarthy report and preparing pre-budget submissions |
| |A coalition to fight the welfare cuts has been started call thepoorcantpay.ie. |
| |Many commentators are calling for temporary bank nationalisation as the only effective way to deal with the banking crisis |
|CR |At the moment, the project of Progress program “Development of informed and participative approach to understanding, evaluation and creating of National Action Plan of Social |
| |Inclusion in Czech Republic” (shortly NAPSI together!) constitutes an attempt to change formal features of national strategic document and to give it more important role in the |
| |society. On this attempt NGOs, academic sphere, MOLSA and university are working together. |
|SWEDEN |More initials’ are requested regarding job creating, workplace education, infrastructure measures and economic resources to the municipalities and the regions for health, care and |
| |education. |
|FINLAND |Not only proposals, but an actual agreement on a social policy package was made between major associations of employers and employees in January. The agreement was praised for |
| |having secured employment pensions and unemployment benefits and having put an end to talks on cuts in unemployment benfits. This is advantageous to the members of the said employee|
| |organisations, i.e. persons with jobs, who would be entitled to earnings-related unemployment benefits, if the job was lost. |
| | |
| |However, it should be born in mind that the level of the earnings-related unemployment allowance is tied to the level of basic unemployment allowance, i.e. the latter cannot be |
| |raised without it causing a raise in the former, too. This means that raising the basic allowance of the long-term unemployed and those without a sufficient job history is, |
| |economically and politically, too costly. |
|THE NETHERLANDS |No structural proposals known, talking, talking and trying to keep the ship floating |
|BELGIUM |Proposals of the organisations and federations of employers: |
| |-abolish possibilities for early retirement |
| |-remodel pensions in relation to life expectancy |
| |-fiscal benefits for company investments |
| |-stop the growthpath –agreed by the government and social partners- of the budget of health care |
| |-loan moderation (prevent substantial increases) |
| | |
| |Proposals of the Trade Unions: |
| |-introducing a crisis tax for the banks |
| |-special employment programs (for Young unemployed) with more training and education |
| |-restore the solidarity mechanism in the fiscal system, eg. higher taxes on capital, cut in the fiscal stimuli for second and third pension pillars |
| |-tobintax, |
| | |
| |The Flemish Public Employment and Vocational Training Service (VDAB) confirmed again a double strategy of continuation till at least 2010: |
| |continuing with the (severe) activation policy: ‘there are still jobs available’ |
| |continuing to pay special attention to target groups, even when people with a smaller distance from the labour market are getting unemployed. |
|LITHUANIA |All bids from the Trade Unions are for the tax reduction |
|DENMARK |There is a growing focus on poverty in DENMARK and on finding a lower limit for public benefits. |
|EURODIACONIA |We currently support the Spring Alliance work on the post – Lisbon strategy. |
|UK |Trades Unions |
| |UK TUC – press release 14 September |
| |“Public spending cuts would create a "double-quick, double-dip" recession and push unemployment over four million, the TUC's leader has warned. Brendan Barber called it |
| |"astonishing" that demands for reducing the budget deficit were being seen as a priority, rather than funding economic revival. Speaking ahead of the TUC Congress in Liverpool, Mr |
| |Barber said the outlook was "very precarious". |
| |But Gordon Brown says the economy is "on the road to recovery". “ |
| | |
| | |
| |UK TUC - press release 23 September |
| |The TUC has joined with other national trades unions to demand a jobs summit in 2010 in response to the crisis: “Fifty union general secretaries from around the world - including |
| |the TUC's Brendan Barber - will be lobbying world leaders in Pittsburgh over the next two days, urging them to put jobs centre stage during Friday's G20 Summit”. |
| | |
| |“The ITUC's case for jobs and greater financial regulation is set out in its Pittsburgh Declaration which says the G20 must step up its |
| |efforts to tackle the growing global jobs crisis. Unions warn that the economic crisis is set to cost 59 million jobs by the end of the year, and predict that global unemployment |
| |could reach ten per cent in 2010, threatening the chances of any real economic recovery”. |
| | |
| | |
| |Overseas Development Institute Briefing Paper 51– The global financial crisis – poverty and social protection (August 2009) sww |
| | |
| |(ODI is an independent institute) |
| |Opening statement from this report which examines the impact on 10 less developed countries |
| | |
| |“ While the repercussions of the financial crisis on poverty in the developing world are severe and likely to worsen, the response to date by governments and donors has been |
| |marginal. The World Bank estimates that the ‘triple F’ crisis: financial collapse, combined with the food and fuel price crises, will increase the number of poor by between 53 and |
| |64 million people in 2009, based on estimates of those on less than $2 a day and $1.25 respectively (Chen and Ravallion, 2009). The UK Department for International Development, |
| |meanwhile, estimates that an additional 90 million people will be living on less than $1.25 a day by the end of 2010. |
| |What we are seeing, however, is a minimal social protection response to the crisis. Even the roll out of existing social protection commitments is being threatened by the reduction |
| |in public resources. |
| |The combined effects of worsening poverty as a result of the financial crisis, and a weak social protection response set the scene, not only for severe and growing poverty and |
| |inequality in the medium and long term, but also for stifled growth when the upturn comes – undermining progress towards the Millennium Development Goals. |
| |Working with national researchers, ODI has conducted an assessment of the impact of the financial crisis in 10 countries – Bangladesh, Benin, Bolivia, Cambodia, Ghana, Kenya |
| |Nigeria, Indonesia, Uganda and Zambia. An ODI Working Paper discusses the macro-economic, poverty and social protection impacts (te Velde et al, 2009). This paper highlights social |
| |protection, underscoring its importance to stop people falling into poverty; stop the poor and vulnerable falling deeper into poverty; and promote the livelihoods of poor people so |
| |they can catch the upturn when it comes. It examines social protection policy responses to date”. |
| | |
| | |
| |ADSS Cymru (Association of Directors of Social Services in Wales) - a newsletter report of an ESN survey |
| |“Financial crisis: providing social services under budget pressure |
| |The financial and economic crisis is having an impact on local public social services in different ways. |
| |More people are making claims for benefit payments, asking for debt management advice, and increased numbers are eligible for free or reduced-cost access to services. At the same |
| |time, local and regional governments in many countries are under pressure to reduce expenditure in the face of falling local tax receipts and central government grants. Some, |
| |however, are increasing budgets to meet greater demand. |
| |Current impactESN members from eighteen countries responded to a recent ESN survey on the impact of the financial and economic crisis on local public social services. Whilst it is |
| |too early to provide a detailed and competitive analysis of its impact on demand and expenditure in 2009 and especially 2010, these recent responses provide a tentative insight into|
| |its early effects. In the face of an uncertainty over rising numbers of service users and benefits claimants and falling tax receipts later in the year, local authorities are |
| |clearly being cautious with their expenditure. |
| |Asked what the impact had been on the number of service users to date, 44% responded that there had been a significant impact (Ireland, Germany, Iceland, France, Hungary, Slovenia, |
| |Austria, Serbia), 28% some impact (Cyprus, DENMARK, Finland, Poland, UK and Switzerland) and 12% a very big impact (Greece, Spain, Ireland). A respondent from France estimated an |
| |increase of 10-30% in social benefits claims, while another from BELGIUM estimated 30% increase, mostly people seeking debt advice. |
| |The increase in demand relates not only to unemployment or social benefits but also to support for basic living costs, rental costs and nursery places. Where means-testing (charging|
| |people more for services if they have greater income and capital) is in place, notably in Ireland, municipalities and health services are inevitably covering a greater share of the |
| |cost of care, as a result of unemployment or falling incomes. |
| | |
| |Some local authorities are taking on new responsibilities, for example in Spain as a result of the dependency law. There is a big increase in the number of elderly and disabled |
| |people applying for social care. Meanwhile, because of the recession, many more people are seeking assistance in paying the rent, nurseries and basic living costs. The number of |
| |service users is estimated to have doubled in some areas. |
| |Anticipating the futureThe impact of the recession is not uniform. Looking ahead to 2010, 28% of respondents (Ireland, Sweden, Finland, UK, Poland, Hungary, Serbia) anticipate at |
| |least a 5% reduction in budgets compared to 2009. Meanwhile, 36% of respondents (Cyprus, DENMARK, Spain, Germany, France, Austria, Switzerland) are expecting a typical increase or a|
| |larger than normal increase in response to the rise in demand. |
| |In muncipalities where savings of at least 5% in social services are to be made in 2010, the most likely measures to achieve this are: freezing recruitment and capital investment; |
| |requiring better-off users to pay more for their care; reducing staff training; and reducing or closing 'voluntary' services, i.e. services or benefits which the municipality is not|
| |by law required to provide (typically including cultural, social and community-building activities rather than personal care services). |
| |Managing with less money |
| |"We need to consider very carefully what we are doing," says a colleague from Finland. Reflecting on the consequences of service cuts in a previous recession (e.g. more young people|
| |with social problems), he warns against cuts. "It is better to take care of people during hard times", he says but recognises that services are likely to be cut by around 5%. |
| |"Thorough review of cost and activity is the preferred way forward," says a colleague from the UK, "we have to prepare to provide more services with less money." |
| |ESN will continue to monitor the impact of the recession on social services. If you are in local or regional government and manage social services, you are welcome to participate in|
| |ESN Survey.” |
| |
|What are EAPN proposals/actions?/ Has EAPN responded? Is so, what are EAPN proposals/actions? If not, what are the main obstacles? |
| |
|SPAIN |Proposals made by EAPN Spain to the government: a Pact for Jobs and Social Inclusion |
| | |
| |System of Guaranteed Basic Income, considering the criteria of "social need" and “sufficiently protective intensity" |
| |Active employment policies. |
| |Social services as a pillar of the welfare state. There is an urgent need of improving efficiency in social spending as well as increasing its level, at least to the EU average |
| |level. |
| | |
| |a) In terms of SOCIAL PROTECTION: |
| |To raise the minimum wage amount up to €800. |
| |To articulate a basic legal framework to guarantee the same Guaranteed Minimum Income scheme for the entire territory. |
| |To expand the existing protective system. The minimum income is to be managed so that it is a step in the process of integration. Coordination between central state and regional |
| |governments is essential. |
| | |
| |b) In terms of EMPLOYMENT: |
| |To develop the personalized itinerary for labour insertion, managed both by the social services and the NGOs. |
| |To support flexible and adapted professional training, specifically tailor-made for the most vulnerable. |
| |To create more jobs for disadvantaged groups. |
| |To support entrepreneurship within disadvantaged people. |
| |To improve the protection system for the domestic service workers. |
| |To work less hours, and to distribute the existing workload, in order to create more job-posts. |
| | |
| |c) SOCIAL SERVICES as a pillar of the Welfare State: |
| |To emphasize their responsibility in the satisfaction of basic needs through an adequate system of social protection. |
| |To strengthen the system of social protection for families facing economic difficulties. |
| |To facilitate the access to housing to families with fewer resources and to avoid their eviction. |
| |To manage public services of general interest so that the rights of vulnerable families are protected. |
| | |
| |d) To focus at the local and regional levels: |
| |To increase efficiency, social projects must be translated to the smallest local level, i.e. respond to the specific needs and context of the level at which it is implemented. |
| |Any project to be realized within the framework of the national social policy should clearly state the goal to be achieved and the detailed action steps to be taken, identify the |
| |target groups and comment on the expected outcomes. |
| |It should also list the responsible and supporting agencies, contain a definite time frame and resource implications. |
| |More synergy and coordination is required between the decentralized and the centralized administration! |
| | |
| |e) Claiming for Rights, not just jobs. |
| |Tackling child and family poverty in order to prevent intergenerational transmission of poverty. Reducing the chances that poor children become poor adults will dramatically lower |
| |future poverty rates. |
| |Disadvantaged people can only commit themselves to active participation and full integration in society when they find ‘enabling’ environments for the fulfilment of their civic |
| |potential and when their actual needs and conditions are taken into account. |
|GERMANY |EAPN Germany (Nationale Armutskonferenz – NAK) is intensifying its efforts to prepare the EY 2010 aiming at sensitising the public to the topic “poverty” and at claiming a shared |
| |responsibility in the fight against poverty and social exclusion. In such a vein, EAPN Germany has participated in discussing and shaping the National Strategic Programme, where |
| |it has become clear that the overall German picture is far away from being rosy. This is not only due to effects of the current economic crisis but also linked to a certain |
| |resistance of political circles to really take effective anti-poverty and anti-exclusion measures. |
| | |
| |Within the national focus week now under preparation, which forms part of the national programme, the NAK and other civil society actors put much emphasis on reaching out to groups |
| |of society that still have not so much come across the topic of poverty, or have to be more convinced of the need to counter this “phenomenon”, the occurrence of which is a |
| |particular shame for a rich country like Germany… |
|IRELAND |EAPN IRELAND calls for strategies to protect the most vulnerable, including women and children, those on social welfare supports, the low paid. It has lobbied for tax increases on |
| |higher incomes to finance services in key areas. |
| |In November 2008 EAPN IRELAND produced a shadow report on National Report on Strategies for Social Protection and Social Inclusion which challenged the cuts and their impact on |
| |people in poverty. |
| |EAPN is member of Community Platform which is a social partner and has been involved in talks. Currently developing pre budget submission and campaign. |
| |EAPN IRELAND is involved in the planning committee for a major street protest in late September and participated in a national protest by the trade unions earlier in 2009. |
| |It also lobbies through the Equality and Rights Alliance for the reinstatement of funding to the Equality Authority and the Human Rights Commission and an insurance that both bodies|
| |will have the resources and independence to carry out their functions. As part of this campaign EAPN IRELAND with the other partners has engaged with the European Commission and |
| |Irish MEPs. |
| |EAPN IRELAND has had a number of letters and articles printed in the paper and has also been on the radio at local and national level. Delegates from the Meeting of People |
| |Experiencing Poverty have been supported to engage with the media as part of this process. |
| |EAPN IRELAND Employment Working Group held roundtable on the economic crisis in February, with a focus on employment and welfare issues. It had completed a position paper from this |
| |process which will be disseminated widely later in the summer with the aim of also presenting it to the Parliamentary Inter Party Committee on Enterprise, Trade and Employment in |
| |the autumn. |
| |EAPN IRELAND is part of a campaign group planning to roll out a campaign before the end of the summer against cuts to the Minimum Income and the Minimum Wage, called The Poor Can’t |
| |Pay |
| | |
|CR |From the early beginning EAPN Czech Republic is connected with EAPN using its support and experience. We communicate the messages and critical views on relevant political forums or |
| |thematic seminars. We rather communicate the perspective of PEP generally /mainsreaming the PEP perspective into all relevant discussions, issues, policies/ than specifically within|
| |the time of crisis (of course pointing out specific dangers connected with the impact of crisis or recovery plan – eg. raise of extremism due to worsened social situation and lack |
| |of jobs). |
|SWEDEN |As a network we have not responded, this has been done in different ways trough the member organizations. |
|FINLAND |Minimum income and the level of basic allowances should be raised to guarantee a reasonable subsistence. The above-mentioned guaranteed pensions and index increases should be |
| |implemented without delay. Municipalities should be supported in order to ensure their ability to cope with their service obligations. Also service sector at large would deserve |
| |more attention by the state. Possibilities for social loans should be increased and provision of advice to those in debt ensured. All efforts should be made to strengthen the |
| |conditions for inclusion, including by securing the operating conditions and means of participation of NGOs. The value of social cohesion can hardly be over-estimated even at the |
| |best of times – needless to say, it should be even more in focus at the time of crisis. |
|THE NETHERLANDS |Response on what? Probably next week we will know more about this –recovery package. |
|BELGIUM |The Belgian Network wants profound and wide spread evaluation of the actual economic system. The measures proposed by the Belgian State (and also by other member states) is too much|
| |focused only on a better control of the financial sector and for the rest the same economic measures as for the “jobs and growth” strategy like before… business as usual. |
| |The evaluation has to be profound in a way to question thoroughly the actual economic system and to build up another more sustainable economy less based on the nearly unlimited free|
| |marked system we know today. |
| |The evaluation has to be wide spread: not only with the classic social partners (employers and trade unions) but also with all actors involved in civil society. |
| |For the future: the social dialogue about the economic system which is limited now to employers and trade unions has to enlarged a civil dialogue with partners from social and |
| |development organisations. It has to result in a system where social policy is put in the hart of the economic system as a equal directing principal of the system. |
| |The Flemish network is lobbying to be part of the employment conference, and is lobbying for an extra job and mediation program for people experiencing poverty |
| |Tax system needs to reinforce it’s function of redistribution |
| |People who are longtime unemployed need to get the possibilities now to follow education programs to enforce their labour market positions on the long term |
|LITHUANIA |Maintain close contact with the government |
|DENMARK |EAPN supports the NGO activities for defining a limit for how low benefits can be and helps keeping the focus on poverty and social exclusion and solutions as well. EAPN is right |
| |now engaged in the preparations of 2010. |
| |Responses received |Time |
| |Networks | |
|1 |Spain |July 22 |
|2 |Germany |September3 |
|3 |IRELAND |September |
|4a |CZ SIWG |September |
|4b |CZ SF | |
|5 |SWEDEN |September 3 |
|6 |FINLAND |September 7 |
|7 |BELGIUM |September 4 |
|8 |Netherlands |September 4 |
|9 |LITHUANIA |September 15 |
|10 |DENMARK |September 21 |
|11 |France |September 21 |
|12 |UK |September 29 |
| |EOs | |
|11 |Eurodiaconia |August 7 |
| | | |
-----------------------
[i]
[ii] Caritas Report, La respuesta de CÁRITAS ANTE LA CRISIS. IMPACTO, DIAGNÓSTICO Y PROPUESTAS, June 2009.
[iii] The average European social expenditure related to GDP is 26.9%, while in Spain is 6 points less, a scarce 20.9%. . Quoted from CRUZ ROJA ESPAÑOLA, Boletín sobre Vulnerabilidad Social 1, July 2009.
[iv] A proposal to restart the Spanish labour market,
[v] Data from the Active Economic Population Survey, EPA, provided by the National Institute of Statistics, INE, January 23, 2009.
[vi] Jean-Claude Rodríguez-Ferrera is Professor of Economics at the Universidad Ramon Llull in Barcelona and the Polytechnic University of Catalonia. Inspired by the Grameen Bank, he has developed an initiative for the hardest-hit economies, to be self-financed through Self-Financed Communities (Comunidades de Autogestión Financiera - CAF). In order to create a CAF, at least one group of people must exist, as well as a minimum social network. The management group requires one meeting per month and includes free support for Community Development, an NGO, in the first months of operation, until the community has acquired the basic financial knowledge. Rodriguez-Ferrera says: "90% of the members are immigrants, but we have also created a group with people here, which has a higher level and need up to 2,000 euros' .Members of the CAF who provide the capital are the owners, and the revenue generated by the interest (usually 1%) remains and is managed within the community. In turn, they can request small loans of around 300 Euros. This sum must always be less than four times the amount of capital with which they contributed, never over 40% of the total capital of the CAF. From here, each community establishes its rules and conditions of repayment of the loans, the amount of fines for delays, etc. There are 15 CAF in Barcelona and 2 in Madrid. IF La revista de innovación, Nº 57, 2009
[vii] Caritas report.
[viii]
[ix] Data published by the Banco de España on July 17th, 2009, quoted in many sources, such as
[x]
[xi] La Razón, March 24th 2009. Le Monde, March 23rd 2009.
[xii]EU support to fight the crisis in the automotive sector.
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