Background – The European Social Model – Trends and challenges

The purpose of the study Methodology Our hypothesis What’s next?

The “European Social Model” The Continental model The Anglo-Saxon model The Nordic model The Mediterranean model The Central and Eastern European Model

Predominant role of welfare state in providing public goods is distinctive feature

Public sector and social public spending are larger than in other world regions

Belief that high quality public services should be accessible to all for the fulfilment of fundamental rights

However, variations of this model exist in Europe

Social insurance system financed by contributions from employers, employees and taxation

Redistributive function of welfare state relatively low

High level of protection of workers

Expensive labour force

High level of unemployment

Universal principles – NHS -High public spending

Relatively large social assistance functions as safety net of last resort

Cash transfers primarily orientated to people of working age

Activation measures are important e.g. training schemes leading to employment

Significant role of the state High level of taxation High level of female employment Social system financed from tax revenues Flexicurity Welfare system highly dependent on full

employment and social safety nets & strong incentives to work.

Emphasis on education Decentralisation of education and health

care

Strong job protection, weak unemployment benefits, low work force flexibility

Strong unions

Public spending concentrated on pensions

Role of non-structural factors in social protection

Social services are largely financed through employees payments

Regional inequalities

Communist past of collectivist welfare state – welfare rights linked to employment

Income equality was high and welfare benefits generous

Tax rates low - often ‘flat’ income tax rates

Collection from personal income taxes low

Depend on social security contributions to tax wages

Social spending is predominantly financed through social security contributions levied on wages

Low unemployment benefits

Globalization The transition to a knowledge based

economy The ageing population Changing values and the family model Migration

Intensifying competition for markets round the world

Threats and opportunities

Fears Europe will not be able to afford the luxury of strong welfare measures in a more competitive environment

Globalization accentuates internally driven trends, transition to a knowledge-based economy, geographic income inequalities, mass migration

Will require significant adaptation

Requires cognitive, personal and IT skills

Capital has become mobile

Regional inequalities increased

Increased job insecurity

Shrinking working age population will mean reduction of total employment

Education vital for integration into new economy

Major shift in balance between active and retired population

Increase in life expectancy – pressure on public spending on pensions and health care

Fall in fertility rate

Changing role of women = gender employment gap narrowing

Low fertility rates

Economic pressures keeping fertility rates low

More individualistic societies – traditional conformity of family rejected

More mobility

Family structure less strong

On the increase

Making European societies more diverse, multiethnic and multi-religious

Integration and participation essential

Will be necessary to make up for shrinking working population

Platform for sharing service providers’ common challenges and experiences in a changing social Europe

Develop our understanding of challenges as faith-based organisations

Start discussion on how in a European level, Eurodiaconia can be of service to its members

Eurodiaconia’s role – facilitate networking and communication between its members

Qualitative interviews

Interview about 8-10 members

Questions seek answers regarding1) Reality of national/local Diaconal setting2) The challenges members are facing3) Future implications for Eurodiaconia and its members

Followed by analysis, interpretation, conclusions and recommendations

European diaconal services – increasingly independent from the state

Pressure of providers of social and health care to sustain and develop services

Needs to protect socially excluded will increase

Provision of social security will be increasingly privatized and charity based

Conclusions and recommendations will be made on the basis of the findings

Main and significant findings will be discussed in various working groups and the 2008 AGM