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Inequalities_EU_European_Dialogue_27-4-2017

Inequality and poverty in Europe The challenge of convergence cohesion Frank Vandenbroucke University Amsterdam European Dialogue 2017 ETUI – Hans Böckler Stiftung Brussels 27 April Material deprivation: an absolute notion Inability to afford 3 or more items on a list 9; true pan-European benchmark 0 5 10 15 20 25 30 35 40 45 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 EU22 (unweighted average) EU27 (weighted average pan-European) deprivation clusters EU countries Unweighted averages for 50 60 EU15 Core+North South EU7 Ireland UK Poland within countries: at-risk-of-poverty rates country clusters) EU7: CZ HU LV LT EE SI SK EU22: 28 without RO BG MT LU CY CR! Years are survey-years; incomes refer t-1 contribution transfers (not pensions) the reduction 2004-06 Inefficient ‘pension-heavy’ welfare states Erosion mature ? Source: Eurostat own calculation ‘poverty by (excl pensions)’ total population SILC 2005-2007 en Diagnosis policy lessons (1) has stopped being ‘convergence machine’ is becoming unequal both between There no one-size-fits-all explanation inequalities hence silver bullet tackle increasing We need set complementary strategies instruments that can improve social protection employment perspectives households with weak attachment labour market Improving our human capital requires child-centred investment strategy addresses opportunities (2): should support aggregate prosperity across member towards equality stimulate develop packages pursue aims simultaneously Human capital: upward quality key condition long-term Reducing background families children investing child care education contribute national EU-wide Governments pursuing such deserve encouragement learn from other governments but also tangible notably when they budgetary dire straits ‘solidarity reform’ (3): EMU Design flaws ill-guided policies major divergence Eurozone Completing Monetary Union risk-sharing (Banking Re-insurance unemployment insurance schemes): this turns standards activation Thank you 1. Rinaldi Social In: Vision Summit Consortium (eds ): Redesigning Ways forward Gütersloh (http://www vision-europe-summit eu/) 2. Goedemé Zardo Trindade A perspective low-income dynamics CSB Working Paper 17/03 Antwerp: Herman Deleeck Centre Policy (University Antwerp) 3. monetary union: puzzles paradoxes in: Boone Marc; Deneckere Gita & Tollebeek Jo ) End Postwar Future – Essays work Ian Buruma Verhandelingen van de KVAB voor Wetenschappen Kunsten Nieuwe reeks 31 Uitgeverij Peeters Forthcoming www frankvandenbroucke uva nl