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EU Income Directive – the end of poverty across Europe?

The employment and social committee at the EP votes on the draft proposal in June

In March 2010, members of the European Parliament, after discussions with employers’ and workers’ organizations agreed on studying the possible impact of the introduction of uniform minimum income level across the EU. The Employment and Social Committee at the European Parliament is going to vote on the draft proposal in June. In case this proposal is approved, it means that a new EU Directive will be developed which will guarantee that Marco from Italy, Bogdan from Romania and Ivan from Bulgaria will get the same minimum salary, in relative terms. Will this really be the end of poverty across Europe?

The EU is often perceived by EU citizens as a distant structure that does not have an impact on their daily lives. Many people, especially in new member-states, are not aware of the activities of the European Commission and Parliament and do not understand how the actions of EU institutions can improve their lifestyles. The introduction of a Directive establishing a minimum income would help fill in the gap. It will demonstrate a strong political commitment of the EU to social cohesion. Such a measure would also give a tangible meaning and content to the European Year for combating poverty and social exclusion, apart from awareness-raising campaigns. It will be a more “visible” step towards the achievement of the “Europe 2020” Strategy document, aiming at removing the risk of poverty for 20 million people in EU and also for better protection of fundamental human rights.

Guaranteed minimum income is supposed to have multiple positive effects like improved access to healthcare and education and also to better the quality of life. The establishment of minimum income is linked to decreasing poverty levels, in terms of the inability to have adequate nutrition, housing and access to basic services. It also guarantees stricter control on labor conditions. However, the establishment of minimum income, without integrating it into more comprehensive approach, would not provide for better jobs, higher quality of social services and better integration of social groups at risk. Ivan’s salary is six times less than Marco’s. What he has to know is that, with this Directive, his leva would provide the same substantial minimum as Marco’s euros and Bogdan’s lei. Raising Ivan’s awareness of the efforts at EU level to guarantee both of them equal opportunities, would be a step towards developing a sense of belonging, European citizenship and active participation. To achieve that, Ivan from Bulgaria needs to know what and why the EU is doing, Bogdan from Romania needs to be sure that his problems will be communicated to those responsible for policy development, and Marco has to feel the social support for measures targeting those like him. In order to develop mutual understanding and create a bridge between citizens and institutions, the role of the non-governmental sector is crucial, to provide both awareness-raising campaigns and consultative role for governments. In this way, the effectiveness of national systems also improves, and this is closely related to the effective implementation of a Minimum Income Directive and any other piece of EU legislation.

Article by: Federica Chiezzi, Elena Kirova, Zlatina Platchkova, Ioana Rebenciuc.

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