SOCIAL INCLUSION AND SOCIAL PROTECTION IN THE EU:
INTERACTIONS BETWEEN LAW AND POLICY
SOCIAL INCLUSION AND SOCIAL PROTECTION IN THE EU: INTER ACTIONS BETWEEN
LAW AND POLICY
Bea Cantillon Herwig Verschueren
Paula Ploscar (eds.)
Cambridge – Antwerp – Portland
Social Inclusion and Social Protection in the EU: Interactions between Law and Policy
Bea Cantillon, Herwig Verschueren and Paula Ploscar (eds.)
© 2012 Intersentia
Cambridge – Antwerp – Portland
www.intersentia.com | www.intersentia.co.uk Cover image: The Grapes (detail), Juan Gris (1887-1927)
ISBN 978-1-78068-056-9 NUR 828
British Library Cataloguing in Publication Data. A catalogue record for this book is available from the British Library.
No part of this book may be reproduced in any form, by print, photoprint, microfi lm or any other means, without written permission from the publisher.
Distribution for the UK:
Hart Publishing Ltd.
16C Worcester Place Oxford OX1 2JW UK
Tel.: +44 1865 517 530 Email: mail@hartpub.co.uk Distribution for Austria:
Neuer Wissenschaft licher Verlag Argentinierstraße 42/6
1040 Wien Austria
Tel.: +43 1 535 61 03 24 Email: offi ce@nwv.at
Distribution for the USA and Canada:
International Specialized Book Services 920 NE 58th Ave. Suite 300
Portland, OR 97213 USA
Tel.: +1 800 944 6190 (toll free) Email: info@isbs.com
Distribution for other countries:
Intersentia Publishing nv Groenstraat 31
2640 Mortsel Belgium
Tel.: +32 3 680 15 50 Email: mail@intersentia.be Intersentia Publishing Ltd.
Trinity House | Cambridge Business Park | Cowley Road Cambridge | CB4 0WZ | United Kingdom
Tel.: +44 1223 393 753 | Email: mail@intersentia.co.uk
Intersentia v
ACKNOWLEDGEMENTS
Th e chapters of this volume result from an expert seminar held at the University of Antwerp on 10–11 February 2011. Th e seminar was organized within the framework of a research project sponsored by the Research Foundation Flanders and was co-sponsored by the Faculty of Law of the University of Antwerp. First of all we are very grateful to the authors of the various chapters for their willingness to adapt their papers in accordance with the discussions and comments during the seminar, and also for their openness to our editorial suggestions.
We would also like to thank the other participants at the seminar for their invaluable contributions to the debate. We would like to acknowledge Malcolm Ross’ (Sussex Law School) contribution to the seminar, and we appreciate the fruitful thoughts of the discussants (in alphabetical order): Rita Baeten (European Social Observatory), Gareth Davies (VU University of Amsterdam, Faculty of Law), Jo De Cock (Belgian National Institute for Health and Disability Insurance), Eric Marlier (CEPS/INSTEAD, Luxemburg), Charlotte O’Brien (York Law School), Anne-Pieter van der Mei (Maastricht University, Faculty of Law), Koen Vleminckx (Belgian Federal Ministry of Social Security) and Fritz von Nordheim (European Commission).
In addition, we are much indebted to those who in their quality of chairs of the various sessions facilitated the meaningful discussions: Willy Palm (European Observatory on Health Systems and Policies), Philippe Pochet (European Trade Union Institute) and Anne-Marie Van den Bossche (University of Antwerp, Faculty of Law). Also, we are appreciative of the participation of Dagmar Schiek (University of Leeds, School of Law) and Jérôme Vignon (European Commission) particularly for their concluding remarks.
Additional thanks go to the editors of the Law and Cosmopolitan Values Series and its anonymous reviewers. Finally we are very grateful to all those involved in the editing and publication of the book, in particular the publisher Intersentia and Tom Scheirs for their support and timely publication.
Antwerp, November 2011
Bea Cantillon, Herwig Verschueren and Paula Ploscar
Intersentia vii
CONTENTS
Acknowledgements . . . v
List of Abbreviations . . . xiii
List of Authors . . . xvii
Social Protection and Social Inclusion in the EU: Any Interactions between Law and Policy? Bea Cantillon, Herwig Verschueren and Paula Ploscar . . . 1
1. Social inclusion and social protection: high on the agenda of EU lawyers and policymakers . . . 1
2. Need for dialogue between legal and social policy scholars . . . 3
3. Is there any interaction between the legal and the policy discourse on social inclusion and social protection? . . . 5
3.1. Framing the discussion: a promising Treaty framework, but can it deliver? . . . 5
3.2. Health policy objectives recently laid down in a legal instrument driven by ‘consumer protectionism’ . . . 7
3.3. OMC Pensions and the EU legal realm: parallel worlds? . . . 9
3.4. Combating poverty: doubts about the feasibility of binding EU instruments . . . 10
4. A way forward for an adequate ‘nesting’ of social policy objectives? . . . 12
Modest Beginnings, Timid Progresses: What’s Next for Social Europe? Maurizio Ferrera . . . 17
1. Introduction . . . 17
2. Th e challenge: closure vs. opening . . . 20
3. A new ‘nested’ architecture . . . 24
4. A more social EU: reconfi guring the patchwork . . . 28
5. Europe 2020 and its institutional potential . . . 37
6. Conclusion . . . 39
Contents
viii Intersentia
Th e EU Legal Framework of Social Inclusion and Social Protection:
Between the Lisbon Strategy and the Lisbon Treaty
Mark Dawson and Bruno de Witte . . . 41
1. Introduction . . . 41
2. Social inclusion and social protection under the Lisbon Strategy . . . 43
2.1. Social Europe under the Lisbon Strategy . . . 43
2.2. Th e OMC for Social Inclusion and Social Protection – empirical strengths and weaknesses . . . 45
2.3. Social inclusion and social protection under the renewed ‘Lisbon 2020’ Strategy . . . 47
2.4. Lisbon and the law – an opportunity missed? . . . 50
3. Th e Lisbon Treaty: new legal tools for European social inclusion and protection? . . . 52
3.1. Th e ‘Other Lisbon’ . . . 52
3.2. New Treaty objectives – but without new policy competences . . . 54
3.3. A new Treaty regime for social services? . . . 57
3.4. Th e social protection rights in the EU Charter of Fundamental Rights . . . 62
4. From Lisbon to Lisbon: a strategy and a treaty compared . . . 67
Th e OMC and Beyond: ‘Soft -to-Hard-to-Soft ’ Governance of Health Care in the EU Bart Vanhercke and Lena Wegener . . . 71
1. Introduction . . . 71
2. Th e open method of coordination in health care: emergence and key features . . . 73
2.1. Emergence: the Commission’s purposive optimism versus foot- dragging Member States . . . 73
2.2. Th e defi ning features of an incomplete method . . . 74
2.2.1. Common objectives: ambiguous words . . . 74
2.2.2. Reports to Brussels and (not so) soft recommendations . . . . 76
2.2.3. Indicators: a growing but preliminary portfolio . . . 78
2.2.4. Policy learning through peer reviews . . . 80
3. Looking for a needle in a haystack: the impact of the health care OMC at the domestic level . . . 83
3.1. Prudent mirror eff ects . . . 84
3.2. Spreading of peer reviews as a domestic governance tool . . . 85
3.3. National steering capacity . . . 86
3.4. Th e needle in the haystack: health inequalities . . . 87
Contents
Intersentia ix
4. Tracing EU signifi cance: a patchwork of soft governance and
instrument hybridity . . . 88
4.1. OMC as a ‘template’ for EU soft law mechanisms . . . 88
4.2. Interaction with other (harder) EU instruments: ‘soft -to-hard- to-soft ’ governance . . . 89
4.3. Soft governance and the European Court of Justice . . . 94
5. Explaining limited substantive impact: lack of ownership and actor rivalry? . . . 95
5.1. Ownership of a closed shop . . . 96
5.2. Actor rivalry . . . 97
6. Wrapping things up: ‘soft -to-hard-to-soft ’ governance in the EU . . . 100
Harmonization in Health Care: Th e EU Patients’ Rights Directive Wolf Sauter . . . 105
1. Introduction . . . 105
2. Background . . . 106
3. Summary of the case law . . . 109
4. Th e legislative context. . . 110
4.1. Renewing the social agenda . . . 110
4.1.1. Impact assessment: quantifying the case for codifi cation . 111 4.2. Th e dynamics of ‘old’ and ‘new’ patient’s rights . . . 112
5. Legal basis and scope . . . 112
5.1. Legal basis . . . 112
5.2. Scope . . . 114
6. Parallel regimes based on Articles 56 and 48 TFEU continued . . . 114
6.1. Th e right to treatment . . . 114
6.2. Undue delay: a time-limit which is medically justifi able . . . 116
6.3. Th e right to reimbursement . . . 117
6.4. Would an amendment of the social security rules have suffi ced? . . 117
7. Framing cross-border health care: the ‘old’ patients’ rights . . . 118
7.1. Reimbursement of actual costs . . . 118
7.2. Supplementary conditions . . . 119
7.3. Non-hospital care: full liberalization . . . 119
7.4. Hospital care and specialized care: the end of prior authorization regimes? . . . 120
7.5. Reasons to refuse prior authorization . . . 122
8. Common principles for health care: the ‘new’ patients’ rights . . . 122
8.1. Th e Social Policy Agenda . . . 122
8.2. Rights to accountability and transparency . . . 123
8.3. Universal applicability for the new patients’ rights? . . . 124
8.3.1. Safeguards measures for Member States of treatment. . . 125
9. Cooperation . . . 125
Contents
x Intersentia
10. Further analysis . . . 126
10.1. Prior authorisation requirements: liberalisation . . . 126
10.2. New patients’ rights: harmonization . . . 127
11. Conclusion . . . 128
EU Coordination of Pension Policy: Policy Content and Infl uence on National Reforms David Natali . . . 131
1. Introduction . . . 131
2. EU ‘direct’ and ‘indirect’ coordination of national pension policy . . . 132
2.1. Stability and Growth Pact: procedures and content . . . 133
2.1.1. Stability and Growth Pact (I), 1997 . . . 133
2.1.2. Stability and Growth Pact (II), 2005 . . . 135
2.1.3. Stability and Growth Pact (III), 2010–11 . . . 137
2.2. OMC on Pensions: procedures and content . . . 139
3. Assessing the infl uence of EU coordination on national pensions . . . 144
4. What eff ect (if any) on national reforms? . . . 145
4.1. SGP assessment . . . 146
4.2. Pensions OMC assessment . . . 147
5. Conclusion . . . 150
Interactions Between Policy and Law Regarding Pensions Yves Stevens . . . 153
1. Introduction: the research question . . . 153
2. Th e EU competence for pensions . . . 155
2.1. No true pension policy, only general social policy . . . 155
2.2. EU pension law: a generic term . . . 155
2.2.1. Freedom of movement of workers . . . 156
2.2.2. Freedom of establishment and services . . . 156
2.2.3. Free movement of capital and fl ow of payments . . . 157
2.2.4. High standards for employees’ rights . . . 157
2.2.5. Equality between men and women . . . 157
2.3. Th e research question . . . 158
3. Pension provision under the social security regulations: limited EU power . . . 159
3.1. Coordination of social security schemes . . . 159
3.2. Th e research question . . . 161
4. Occupational, supplementary and individual retirement provision: some EU power . . . 161
4.1. General . . . 161
4.2. Th e IORP Directive . . . 162
Contents
Intersentia xi
4.3. Th e Insolvency Directive . . . 164
4.4. Quasi-Portability Directive 98/49 . . . 164
4.5. Th e Life Assurance Directive . . . 165
4.6. Markets in Financial Instruments Directive (MIFID) . . . 165
4.7. Undertakings for Collective Investment in Transferable Securities (UCITS) . . . 166
4.8. Solvency II . . . 166
4.9. Tax issues . . . 167
4.10. Supervision: EIOPA . . . 169
4.11. Th e research question . . . 170
5. Conclusion . . . 171
Between Dream and Reality … On Anti-Poverty Policy, Minimum Income Protection and the European Social Model Bea Cantillon and Natascha Van Mechelen . . . 173
1. Introduction . . . 173
2. Th e ritornello of the minimum income guarantee . . . 176
2.1. From ‘harmonization’ to ‘convergence‘ . . . 176
2.2. Th e Lisbon Strategy, the OMC and the social indicators . . . 178
2.3. Th e Lisbon Treaty, the new social agenda for 2005–2010 and the EU 2020 targets . . . 180
3. Practices in the EU27 . . . 182
3.1. General social assistance schemes across Europe . . . 182
3.2. Th e common denominator of the European Social Model? . . . 185
3.3. Unity in Diversity . . . 187
4. Poverty trends and social assistance generosity . . . 190
4.1. Th e relationship between social assistance and poverty . . . 190
4.2. Lisbon and its poverty outcomes . . . 192
5. Between dream and reality stand concepts and practical considerations 194 5.1. What is an adequate minimum income? . . . 195
5.2. Budgetary burden . . . 197
5.3. Impact on dependency traps . . . 200
6. Conclusion . . . 201
Union Law and the Fight Against Poverty: Which Legal Instruments? Herwig Verschueren . . . 205
1. Introduction . . . 205
2. EU legal instruments for guaranteeing a minimum income: legal and political basis . . . 208
2.1. Providing adequate income support as a pillar in the active inclusion strategy . . . 208
Contents
xii Intersentia
2.2. EU legislative competences for a directive on minimum
income schemes . . . 210 3. Free movement of persons and the right to minimum subsistence
benefi ts . . . 214 3.1. Legal framework . . . 214 3.2. Union law guarantees access to minimum subsistence benefi ts
in the host State to poor migrant workers . . . 216 3.3. Union law guarantees access to minimum subsistence benefi ts
in the host State to former migrant workers and the members of their family . . . 217 3.4. Union law guarantees access to minimum subsistence benefi ts
in the host State to fi rst time jobseekers . . . 220 3.5. Th e right to free movement for economically inactive persons
and equal treatment in the host State for minimum subsistence benefi ts . . . 221
3.5.1. Residence Directive 2004/38 and the self-suffi ciency
requirement for economically inactive Union citizens . . . . 221 3.5.2. Union citizenship and access to social minimum
benefi ts for economically inactive migrant Union
citizens . . . 222 3.5.3. Unjustifi ed interference by the EU into the national
boundaries of minimum subsistence schemes? . . . 224 3.6. EU social security coordination and the access to social
minimum benefi ts for migrant persons. . . 226 4. Conclusion . . . 229
Intersentia xiii
LIST OF ABBR EVIATIONS
AG Advocate General
Art. Article
BEPGs Broad Economic Policy Guidelines
CEBS Committee of European Bank Supervision
CEE Central Eastern European
CEIOPS Committee of European Insurance and Occupational Pensions Supervisors
CESifo Munich Society for the Promotion of Economic Research
CESR Committee of European Security Regulators
Cfdt Confédération française démocratique du travail
Cgt Confédération générale du travail
CML Rev Common Market Law Review
CSB Herman Deleeck Centre for Social Policy
DG Directorate General
DG SANCO Directorate General for Health and Consumers
EAPN European Anti-Poverty Network
EC European Community
ECB European Central Bank
ECHP European Community Household Panel
ECJ European Court of Justice
ECOFIN Council of Ministers of Economic and Financial Policy
ECR European Court Reports
ECSA European Community Studies Association
EEA European Economic Area
EEE Exempt contributions, exempt investment income and
capital gains, exempt benefi ts
EEEPB European Economic and Employment Policy Brief
EES European Employment Strategy
EET Exempt contributions, exempt investment income and
capital gains, tax benefi ts
EGTC European Grouping for Territorial Cooperation
List of abbreviations
xiv Intersentia
EHPF EU Health Policy Forum
EIOPA European Insurance and Occupational Pensions Authority
EJML European Journal of Migration and Law
EJSS European Journal of Social Security
EL Journ European Law Journal
EL Rev European Law Review
EMCO Employment Committee
EMPLOY Directorate General for Employment, Social Aff airs and Inclusion
EMU Economic and Monetary Union
EOT Economics of Transition
EPC Economic Policy Committee
EPSCO Employment, Social Policy, Health and Consumer Aff airs
ESAs European Supervision Authorities
ESF European Social Fund
ESPAnet European Network for Social Policy Analysis
ESRB European Systemic Risk Board
ESRC Economic and Social Research Council
ETT Exempt contributions, tax investment income and capital gains, tax benefi ts
ETUI European Trade Union Institute
EU European Union
EU-SILC EU Statistics on Income and Living Conditions
EURACTIV EU Information Website
EUROGOV European Governance
EUROMOD Multi-country Europe-wide tax-benefi t model Eurostat Statistical Offi ce of the European Union
FAQ Frequently Asked Questions
FPS Federal Public Service
GASPP Globalism and Social Policy Programme
GDP Gross Domestic Product
HiAP Health in All Policies
HiT Health Care Systems in Transition
HTA Health Technology Assessment
Ibid. Ibidem
IGC Inter-Governmental Conference
IHS Institute for Advanced Studies
List of abbreviations
Intersentia xv
IMC Inter-Ministerial Conference
IMF International Monetary Fund
INAMI/RIZIV National Institute for Health and Disability Insurance INTERREG Interregional cooperation
IORP Institutions for Occupational Retirement Provision
ISD Investment Services Directive
ISG Sub-Group on Indicators
JCMS Journal of Common Market Studies
JEPP Journal of European Public Policy
JESP Journal of European Social Policy
MARKT (DG) Internal Market and Services
MIFID Markets in Financial Instruments Directive
MIPI Minimum Income Protection Indicators
ML Rev Modern Law Review
MPE Monetary Policy and the Economy
n./N. (Foot)note
NBER National Bureau of Economic Research
NGO Non-Governmental Organization
NHS National Health Service
NIER National Institute Economic Review
NSRs National Strategic Reports
NZa Dutch Healthcare Authority
OECD Organization for Economic Cooperation and Development
OJ Offi cial Journal
OMC Open Method of Coordination
OPOCE Offi ce for Offi cial Publications of the European Communities
OREP Oxford Review of Economic Policy
OSE European Social Observatory
PAYGO Pay-as-you-go
PPMI Public Policy and Management Institute
PROGRESS Community Programme for Employment and Social Solidarity
QMV Qualifi ed Majority Voting
RBSS Revue belge de sécurité sociale
RPS Rivista delle politiche sociali
SEA Single European Act
List of abbreviations
xvi Intersentia
SGEI Services of General Economic Interest
SGP Stability and Growth Pact
SNAP Supplemental Nutrition Assistance Program
SPC Social Protection Committee
SPSI Social Protection and Social Inclusion
TANF Temporary Aid for Needy Families
TEE Tax contributions, exempt investment income and capital gains, exempt benefi ts
TERL Transfer: European Review of Labour and Research
TEU Treaty on European Union
TFEU Treaty on the Functioning of the European Union
TILEC Tilburg Centre of Law and Economics
TTE Tax contributions, tax investment income and capital gains, exempt benefi ts
TTT Tax contributions, tax investment income and capital gains, tax benefi ts
UCITS Undertakings for Collective Investment in Transferable Securities
UNDESA United Nations Department for Economic and Social Aff airs
WEP West European Politics
WHO World Health Organisation
WRAMSOC Welfare Reform and Management of Societal Change
Intersentia xvii
LIST OF AUTHORS
Bea Cantillon is Professor of Social Policy and Director of the Herman Deleeck Centre for Social Policy at the University of Antwerp.
Mark Dawson is Professor of European Law and Governance at the Hertie School of Governance, Berlin.
Bruno de Witte is Professor of European Union Law at Maastricht University, and part-time Professor at the Robert Schuman Centre of the European University Institute (EUI) in Florence.
Maurizio Ferrera is Professor of Political Science at the University of Milan.
David Natali is Research Director at the European Social Observatory (OSE) and Associate Professor at the University of Bologna/Forli, Italy.
Paula Ploscar is PhD candidate at the University of Antwerp.
Wolf Sauter is Professor of Health Care Regulation at Tilburg University and competition expert at the Dutch Healthcare Authority (NZa).
Yves Stevens is Professor of Social Security and Pension Law at the University of Leuven, president of the occupational pension commission at the Financial Services and Markets Authority and member of the OPSG at the European Insurance and Occupational Pensions Authority.
Bart Vanhercke is Co-Director at the Brussels-based European Social Observatory and associate academic staff at the Centre for Sociological Research (CESO), the University of Leuven.
Natascha Van Mechelen is Post-Doctoral Researcher at the Herman Deleeck Centre for Social Policy, University of Antwerp.
Herwig Verschueren is Professor of International and European Social Law at the University of Antwerp and visiting professor at the University of Brussels.
Lena Wegener was junior researcher at the European Social Observatory and is now enrolled in the International Relations master programme at Freie Universität Berlin, Humboldt-Universität zu Berlin and University of Potsdam.
