Press

Published in The Malta Independent, 20 November, 2014

Malta is among the member states in which the rate of severe material deprivation increased between 2008 and 2012. The most notably rises were in Greece, Lithuania and Hungary, which registered and 8% rise. Ireland, Estonia, Malta, Cyprus, Latvia and Italy follow, with rises between 4.5% and 7%.

This was noted during the 4th Annual Convention of the European Platform against Poverty and Social Exclusion, currently being held in Brussels.

Addressing the convention, Martin Schulz, President of the European Parliament said that the United Nations Convention of Children’s Rights have led to tangible results; however children are still facing struggles on a daily basis.

Halfway through the Europe 2020 strategy period, poverty statistics have remained unchanged, as a result of the financial crisis, and this needs to be tackled head-on, immediately. “We need to act at all fronts, at all levels. We can’t afford to leave a stone unturned,” he said. “At a time when finances are stretched, I urge all Member States to make use of social funds.” Mr Schulz expressed his disappointment at the fact that some member states have also attempted to end the programme, Fund for European Aid to the Most Deprived (FEAD). This fund, supports EU countries’ actions to provide material assistance to the most poor.

He added that member states need to immediately address the youth unemployment rate. “I am concerned that member states have failed to use funds allocated for the youth guarantee funds. Poverty and social exclusion are also about discrimination. People and their basic needs must be at the forefront of the public policy agenda.”

The president also stressed about the need to improve economic transparency, noting that one trillion euros is lost to tax evasion each year. “Increased transparency leads to better and fairer practises. We must not lose sight of improving our budgets, investment and economic growth.” Minimum income schemes should be established in all member states, allowing a shield across poverty, he said. Across the European Union, 9% of employees are poor.

“Inequality threatens the foundations of our democracy. Member states need to address their responsibility immediately,” he concluded.

Marianne Thyssen, Commissioner for Employment, Social Affairs, Skills and Labour Mobility said that the top priority should be job creation. There is the need of investing in people and their skills, and improving employment conditions, she said. “We most consolidate and improve social welfare systems; and tax benefit systems, supported by activation measures need to be established. All European citizenships should have social protection systems when they face hardships. We need to strengthen economic governance, and promote investment and structural reform.”

Europe supports projects that allow deprived members of society to get back on their feet, such as housing and help in starting one’s own business. “The challenges are huge; we need more and better jobs, and more efficient social welfare systems,” Mrs Theyssen said.

During the plenary session, participants argued that across the EU, social protection systems have not been modernised, and structures are often inflexible. They emphasised that social protection needs to be employment friendly, and include labour activation measures. This, is still lacking in some member states.

European member states that perform poorly in the way they organise social welfare systems, usually also perform poorly in managing capital, and also lack competiveness. The challenge is not only about addressing individual needs, but the general framework. This is about the way each country organises its governance. The EU, on its part, needs to support member states. Ms Heather Roy, President of the social platform, stressed that it is not solely about getting people into jobs, but rather making jobs accessible, even for persons with disability.

Poverty across the EU

24.8% of the EU population, which is about 124 million people, are at risk of poverty and social exclusion
16.9% of the population is at risk of relative income poverty
9.9% are materially deprived
10.5% is living in households with very low work intensity
Children have a particularly high rate of poverty or social exclusion at 28%
The risk is also particularly high among young people (18-24 years of age)
Women are globally more at risk of relative monetary poverty with a rate of 17.6%

(These figures do not include some of those in the most extreme situations, such as minority ethnic groups, immigrants, homeless or people living in institutions)