www.ssoar.info What - if anything - is undermining the European Social Model? Alber, Jens Veröffentlichungsversion / Published Version Arbeitspapier / working paper Zur Verfügung gestellt in Kooperation mit / provided in cooperation with: SSG Sozialwissenschaften, USB Köln Empfohlene Zitierung / Suggested Citation: Alber, J. (2010). What - if anything - is undermining the European Social Model? (Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Bildung, Arbeit und Lebenschancen, Abteilung Ungleichheit und soziale Integration, 2010-202). Berlin: Wissenschaftszentrum Berlin für Sozialforschung gGmbH. https://nbn-resolving.org/urn:nbn:de:0168-ssoar-218046 Nutzungsbedingungen: Terms of use: Dieser Text wird unter einer Deposit-Lizenz (Keine This document is made available under Deposit Licence (No Weiterverbreitung - keine Bearbeitung) zur Verfügung gestellt. Redistribution - no modifications). 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Jens Alber r What – if anything – is undermining the e European Social Model? p a p May 2010 n Order-No.: o SP I 2010 – 202 i s s Research Area u Education, Work, and Life Chances c Research Unit Inequality and Social Integration s http://www.wzb.eu/bal/usi i d e-mail: [email protected] Social Science Research Center Berlin (WZB) Reichpietschufer 50, 10785 Berlin http://www.wzb.eu Abstract The notion of a European social model assumes that European societies have certain features in common which distinguish them positively from the United States, among them most notably the social partnership in labour relations, redistributive welfare state schemes, and cohesive societies with a low degree of social inequality. The paper exam- ines to what extent the social reality in the EU conforms to this normative image and what challenges imperil the sustainability of the European social model. Special atten- tion is drawn to the influence of supranational decision-making in the European Union and to the role of the European Court of Justice. It is shown that Court rulings imperil the viability of national social programs, because they open the schemes to transnational access even though they continue to be nationally financed. This is also in tension with the solidarity concepts of European citizens which continue to be framed in terms of national citizenship. As a possible solution to these tensions, the strengthening of the participation rights of national parliaments and governments on the European level is advocated. Zusammenfassung Das Konzept des Europäischen Sozialmodells wird als normative Leitidee definiert, der zufolge die Europäische Union sich als „USA plus“ verstehen lässt. Während Schlüs- selcharakteristika wie Marktwirtschaft, Demokratie und offene Gesellschaft Europa und die USA verbinden, haben europäische Gesellschaften darüber hinaus ihrem Anspruch nach aber einige Merkmale gemeinsam, die sie von den USA unterscheiden, nämlich die Sozialpartnerschaft, den umverteilenden Sozialstaat und den größeren gesellschaftli- chen Zusammenhalt mit vergleichsweise geringer Ungleichheit. Untersucht wird, inwie- fern diese normative Idee der empirischen Realität entspricht und welche Herausforde- rungen die Nachhaltigkeit des europäischen Sozialmodells gefährden. Das besondere Augenmerk gilt hier dem Einfluss supranationaler Entwicklungen in der Europäischen Union und insbesondere der Rechtsprechung des Europäischen Gerichtshofs. Es wird gezeigt, dass die Rechtsprechung des EuGH häufig auf die transnationale Öffnung sozi- aler Sicherungsprogramme hinausläuft, die aber nach wie vor nationalstaatlich finan- ziert werden. Supranationale Entscheidungen auf EU-Ebene geraten damit zunehmend in Widerspruch mit nationalstaatlichen Institutionen sowie auch den Solidaritätsvorstel- lungen europäischer Bürger, die nach wie vor an der nationalen Staatsbürgerschaft festmachen. Ein möglicher Lösungsmechanismus wird in der Stärkung der Mitsprache- rechte nationaler Parlamente und Regierungen auf europäischer Ebene gesehen. Contents Introduction......................................................................................................7 1. The normative idea of the European Social Model: Europe as “USA plus”..............................................................................8 2. How does the normative idea conform to social reality? Three empirical criteria.............................................................................9 a) How much homogeneity do we find within Europe?....................................9 b) Is there convergence over time within Europe?.........................................10 c) Does Europe approximate the U.S. or vice versa?....................................13 3. Three types of policy challenges...........................................................14 a) External challenges from globalization........................................................14 b) Internal challenges within nation-states.......................................................16 c) Supranational challenges on the level of the EU.......................................18 4. Future prospects.....................................................................................29 a) The impact of the present financial crisis....................................................29 b) The triple limits to effective supranational social policies in the EU........29 c) Three realistic reform proposals...................................................................32 References.......................................................................................................38 Jens Alber 1 Introduction The European Social Model is a concept which is poorly defined, but cherished by many who are concerned that it might be imperilled. In this contribution I will first de- fine the European Social Model as a normative concept that is developed in contrast to the United States and claims that European societies have certain features in common which distinguish them from the U.S. In a second step I will briefly apply three criteria that help to determine to what extent the normative idea conforms to social reality. In a third step I will discuss three types of challenges that jeopardise the social dimension of Europe. The first two of these – external challenges resulting from globalization, and internal challenges resulting from demographic change and from the transition to post- industrial labour markets – I will discuss only briefly. My focus will be on the third type of challenge resulting from supranational developments in the European Union and spe- cifically from the roles played by the Commission and by the European Court of Justice. In a fourth and final step I will discuss the prospects for coping with the challenges through either strengthening supranational competences at the level of the EU or through revitalizing the role of national parliaments and governments. My argument is that there is a trend towards negative integration in the EU weakening national social policy functions which could only be counter-acted if there were a strong political will against it. Since such a strong will for countervailing supranational action can neither be found on the part of European elites nor on the part of national citizens, the only effec- tive remedy consists in revitalizing the participation and the veto powers of national parliaments and governments in EU decision-making. This latter position is not only shared by many German scholars, but also by the German Constitutional Court in its 2009 ruling on the compatibility of the law ratifying the Lisbon Treaty with the German Constitution. 1 This is the text of a lecture which was given at the Faculty of Social Sciences, Charles University, Prague, on 29 March 2010. Pag e 7 What – if anything – is undermining the European Social Model? 1. The normative idea of the European Social Model: Europe as “USA plus” The ’European Social Model’, though frequently referred to in politicians’ speeches, is rarely defined with any precision. One of the perhaps clearest attempts at an official definition may be found in the Presidency Conclusions of the Nice European Council meeting of 2000, where annex 1 describing the European Social Agenda states: ’The European social model, characterised in particular by systems that offer a high level of social protection, by the importance of the social dialogue and by services of general interest covering activities vital for social cohesion, is to- day based, beyond the diversity of the Member States’ social systems, on a common core of values’ (European Council, 2000b). Here we find four elements: (1) a high level of social protection with services of general interest; (2) the social dialogue, referring to coordinated policy making with collective agreements negotiated by the social partners; (3) an emphasis on social cohesion, and (4) a set of common core values. Official texts thus make it clear that the term European social model is to encompass more than a mere model of social policy. The documents rather make reference to embracive characteristics in the dimensions of state, economy, and society. Implicitly – and in more recent times also explicitly – the References term is often used to distinguish a European type of society from the type of society in the United States (cf. Albert, 1992).2 It appears, then, that the idea of a European Social Model implies the normative no- tion that the European Union should be conceived of as a ’USA plus‘, i.e. as a type of society which delivers everything the United States has to offer, but also some elements in addition which make a society worth living in and which the U.S. lack (Alber 2006) (figure 1). In the dimension of the economy, this means that Europe combines the growth dynamic of a market economy with the coordinating social dialogue of the col- lective bargaining partners and with ecologically sustainable development. In the di- mension of the state it means that European countries are not only free democracies, but also redistributing welfare states which supplement the market with a notion of social citizenship and a second sphere of the distribution of life chances that smoothes social inequalities. In the dimension of society in the more narrow sense, it finally means, that 2 References with a competitive edge to the United States may be found rather frequently in official EU documents (e.g. European Commission, 2004, 2005). A first, still more implicit example was con- tained in the conclusions of the 2000 Lisbon European Council setting the strategic goal for the Un- ion ’to become the most dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion‘ (European Council 2000a). Page 8 Jens Alber in addition to providing opportunities for the individual pursuit of happiness in a post- industrial global society, European societies promote solidarity bonds between individ- ual citizens which strengthen social cohesion. Anthony Giddens (2005) once captured the essence of this European superiority claim in a nutshell by stating that the European social model combines economic dynamism with social justice. Figure 1: The conception of the European Social Model as “USA plus” ECONOMY Dynamic market economy + Social dialogue and ecologically sustainable development STATE Democratic freedom + Redistributing welfare state SOCIETY Individual opportunity + Social cohesion/ security 2. How does the normative idea conform to social reality? Three empirical criteria If the idea of a European Social Model has empirical substance, we should be able to detect three of its traces in reality: (1) European countries should be similar in having crucial elements of the model in common; (2) They should converge rather than diverge over time; (3) And they should not “Americanize” in the sense of becoming more simi- lar to the U.S. Since I have dealt with these issues in detail elsewhere (Alber 2006, 2010), I will only examine them here briefly in a cursory fashion. a) How much homogeneity do we find within Europe? As we all know, the Eastern enlargement has considerably increased the socio-economic and cultural heterogeneity of the EU. GPD per capita in the richest country – Luxem- bourg – is now almost seven times as high as in the poorest country (Bulgaria). Even with respect to key dimensions that are central to the European Social Model we find stunning diversity: Pag e 9