Socio-economic inequalities in Europe: time to restore social trust by strengthening social rights
- Author(s):
- Parliamentary Assembly
- Origin
- Assembly
debate on 28 September 2021 (25th and 26th sittings)
(see Doc. 15365, report of the Committee on Social Affairs, Health and
Sustainable Development, rapporteur: Ms Selin Sayek Böke). Text adopted by the Assembly on 28 September
2021 (25th and 26th sittings).See also Recommendation 2210 (2021).
1. Europe’s prosperity has been seemingly
growing for decades but disparities in income, wealth, educational
achievement, health, nutrition, living conditions, occupations,
social identity and participation in society have continued to widen
among and within countries. These inequalities not only negatively
affect individuals and communities, but also restrain overall economic
development, undermine social justice and hurt the functioning of
our society. Entrenched structural inequalities were magnified during
the global financial crisis of 2008-2009 and the Covid-19 pandemic,
leading to deeper poverty, the erosion of social rights, reduced social
mobility and greater social polarisation in society. Across Europe,
widening inequalities made economies less robust and less resilient
to external shocks, while social resentment increased the risk of
social unrest and political instability.
2. The Parliamentary Assembly notes that the prevailing economic
development models will always entail a certain degree of socio-economic
inequality, which calls for a review of the structural root causes
of inequalities. However, this is no reason for States to shirk
their responsibilities to guarantee socio-economic rights for all
by using tools from a wide set of economic policies and redistribution
mechanisms to reduce inequalities and, above all, to better protect
the most disadvantaged and the most vulnerable. As pointed out in
Resolution 2384 (2021) “Overcoming
the socioeconomic crisis sparked by the Covid19 pandemic”, the budgetary
austerity measures of the last decade have only weakened social
systems, thus amplifying inequalities, with dramatic effects on
the neediest. Instead, a major shift in policy making is needed
to pursue genuinely inclusive and sustainable growth: States must
invest in rebuilding the economy while strengthening their social
systems. The crises of the past decades have shown that equality
and sustainable growth are two sides of the same coin.
3. Reducing inequality within and among countries is one of the
UN Sustainable Development Goals (SDGs). Despite some positive developments
in a few countries before the Covid-19 pandemic, inequalities have
worsened again, unleashing a human development crisis as a result
of global investment levels and overseas development aid flows shrinking
dramatically in 2020. The Assembly underlines the need for and importance
of collective action in favour of the poorest countries and the
most vulnerable population groups (including older persons, children,
persons with disabilities, women, migrants and refugees, and workers
in precarious employment situations).
4. Rising inequalities hit vulnerable and marginalised groups
especially hard, with the biggest difficulties being faced by older
people and persons with disabilities. Moreover, inequalities and
poverty drive child labour and child marriage, a persistent problem
worldwide, although one that occurs to a differing degree across countries.
European States have a moral duty to address these scourges more
effectively both nationally and by assisting other countries concerned
in eliminating child labour, child exploitation and child marriage,
with an additional sense of urgency due to the Covid-19 crisis.
5. The Assembly is particularly concerned about the slowdown
in social mobility and extensive intergenerational transmission
of inequalities which hamper children’s well-being and development
prospects and threaten their rights. Socio-economic circumstances
in early stages of life play a critical role in determining the
socio-economic status and the health of individuals later in life,
with parents’ education and wealth having a significant impact.
The Assembly highlights the need for more progress in ensuring universal
access to State support based on guaranteed basic financial resources
but most importantly with a focus on educational equality and better
access to health and social protection services, as well as adequate
housing in order to give children from less-privileged backgrounds
the same opportunities in life as those from wealthier families.
It welcomes the European Child Guarantee initiative under the European
Pillar of Social Rights of the European Union and considers that
this initiative should be promoted across the whole of Europe.
6. The Assembly deplores the significant impact of socio-economic
inequalities on the health of individuals, which is starting to
create a health divide in society. The growing prevalence of chronic
and long-term diseases in Europe, most notably and fastest among
socio-economically deprived populations, especially women, has clear
links to inequalities in educational status. In addition to the
physical health impacts, there are also significant mental health
issues related to inequality and employment status. This combination
of physical and mental health impacts takes a deadly toll on European
society by reducing the average life expectancy, in particular as
regards healthy life expectancy.
7. The Assembly concurs with the Council of Europe Development
Bank’s view that housing inequalities are both a symptom and a cause
of existing income inequalities. Given that poor households often
live in sub-standard homes and in deprived neighbourhoods, they
face greater difficulties in accessing certain public services such
as basic healthcare and quality education, as well as better remunerated
jobs. National housing policies should be rethought to provide more
equitable options for enjoying one’s right to housing of an adequate
quality at an affordable price, as provided for by the European
Social Charter (ETS Nos. 35 and 163).
8. During the Covid-19 pandemic, social inequalities have persisted
across age groups, gender, geographical areas and income clusters,
with single-parent families (mostly headed by women) being at the highest
risk ever of poverty and social exclusion. Low-income households
and ethnic minorities are also more likely to experience inadequate
living conditions with repercussions for their health, life expectancy
and socio-economic status. The Assembly notes the expert opinion
which concludes that a high level of social capital in the neighbourhood
and social networks within communities provide essential mutual
support to disadvantaged households and should be encouraged by
local authorities.
9. Against the background of the persisting gender pay and pension
gap across Europe, the Assembly reiterates the right to equal opportunities
and equal treatment in matters of employment and occupation without discrimination
on the grounds of sex, as proclaimed by the European Social Charter.
It points to the conclusions of the European Committee of Social
Rights on States parties’ implementation of the right to equal pay
and to equal opportunities in the workplace, which show a massive
violation of this right and urge that additional legislative steps
are taken to better protect this right and prevent discriminatory
practices in the labour market. The Assembly welcomes the adoption
on 17 March 2021 by the Committee of Ministers of the Council of Europe
of the Declaration on equal pay and opportunities for women and
men in employment, aimed at tackling existing inequalities in employment.
10. Recalling the member States’ duties to adequately protect
the socio-economic rights set out in the European Social Charter
and with a view to tackling structural socio-economic inequalities
more effectively, the Assembly urges member States to:
10.1 compile comprehensive data sets
using information from national accounts, surveys and the tax administration
in order to allow for effective analysis and stock-taking of the
extent of socio-economic inequalities;
10.2 carry out an in-depth assessment of macroeconomic factors,
technological and regulatory changes, domestic labour laws and macroeconomic
financing requirements and choices that may have contributed to
worsening socio-economic inequalities and damaged the effective
implementation of social rights at the national level;
10.3 seek legislative and regulatory changes aimed at facilitating
their population’s access to quality public services, adequate housing
and stable employment;
10.4 mainstream social objectives in their policy making by
systematically screening policy changes for their impact on social
cohesion and carrying out comprehensive human rights impact assessments of
economic policies, in line with the UN Guiding Principles on Human
Rights Impact Assessments of Economic Reforms;
10.5 rethink their budgetary policies to take a more socially
egalitarian direction, so that basic needs are universally covered
and equal opportunities are spread fairly across society by:
10.5.1 guaranteeing universal, free and equal public provision
of basic education, health and social protection services;
10.5.2 increasing the share of public spending on vocational
training, higher education and lifelong education programmes;
10.5.3 evaluating alternative policies for basic income or basic
wealth provision programmes (including options for accessing adequate
housing) that would help ensure minimal financial resources for
decent living;
10.5.4 considering regulatory caps on pricing for the use of
privatised basic infrastructure and services to remedy immediate
hardships, while also reconsidering the role of public ownership
in the provision of basic services;
10.6 review their fiscal policies so as to ensure fair and
equal distribution of economic and social opportunities through
redistribution channels, notably by:
10.6.1 closing loopholes
in current tax codes, improving tax compliance and reducing tax avoidance
both nationally and through tax havens;
10.6.2 eliminating or limiting tax deductions or tax benefit
schemes that tend to disproportionately benefit high earners;
10.6.3 reassessing the possible role of taxes on all forms of
property and wealth with a view to consolidating households’ and
children’s material well-being;
10.6.4 guaranteeing that the proportion of direct and indirect
taxation in total revenues is optimised to eliminate socio-economic
inequalities;
10.7 consider systemic changes to labour market policies, notably
by:
10.7.1 strengthening the bargaining power of workers
through trade unions and enhancing communication between social
partners;
10.7.2 revising minimum wage policies and collective bargaining
frameworks that will guarantee a decent living wage and social protection
as well as stable and quality jobs for all;
10.8 take stronger legislative action to eliminate the gender
pay and pension gap as well as discriminatory practices in the labour
market by:
10.8.1 ensuring access to effective remedies
for victims of wage discrimination or of discrimination on any other
grounds;
10.8.2 guaranteeing wage transparency and enabling wage comparisons;
10.8.3 maintaining effective equality bodies and related institutions
with enhanced control functions in order to ensure equal pay in
practice;
10.8.4 ensuring more flexible quality employment opportunities
with decent pay and training perspectives for vulnerable population
groups;
10.8.5 guaranteeing effective access to affordable and quality
childcare services for working parents;
10.8.6 enhancing the protection of workers with long-term and
chronic illness and/or disabilities in line with the Assembly’s
Resolution 2373 (2021) “Discrimination
against persons dealing with chronic and long-term illnesses”;
10.9 provide for the setting up of personal training accounts
and lifelong learning opportunities to enable continuous upgrading
of professional competences, acquisition of new skills and requalification or
transition to different types of jobs due to the use of artificial
intelligence, digital/platform economy needs and other technological
developments;
10.10 adapt and strengthen social protection coverage for non-standard
and new forms of employment;
10.11 improve incentive structures through competition policies,
public procurement rules and regulations with the goal of reducing
rewards for non-productive and rent-seeking activities;
10.12 strengthen regulatory policy frameworks on corporate social
responsibility so that businesses and financial markets align more
closely with the SDGs and human rights as highlighted in the Assembly’s
Resolution 2311 (2019) “Human
rights and business – what follow-up to Committee of Ministers Recommendation
CM/Rec(2016)3?”;
10.13 use the Council of Europe Development Bank to co-finance
priority social projects, in particular with regard to improving
the provision of health services more equitably throughout a national
territory and reducing the rural versus urban divide;
10.14 give local public authorities enhanced financial means
to support the development of social capital, solidarity schemes
and networking, in particular in more disadvantaged and rural areas;
10.15 enhance collective solidarity mechanisms, co-ordination
of public investment and aid flows targeted at the implementation
of the SDGs, both at national and international level;
10.16 initiate international co-ordination to agree on:
10.16.1 a binding set of minimum international labour rights to
be enshrined in global trade and investment rules;
10.16.2 transparency rules and public scrutiny of public interest
for internationally financed public projects, including through
private-public partnerships;
10.17 enhance international efforts to restructure the global
governance framework with the aim of overcoming the fragmented landscape
of international law that drives a wedge between economic policies
and human rights, and to increase international co-ordination/co-operation
between human rights agencies and economic policy institutions;
10.18 increase the financial resources available for protecting
the public interest by ensuring full co-operation with the Group
of States against Corruption (GRECO) and the Committee of Experts
on the Evaluation of Anti-Money Laundering Measures and the Financing
of Terrorism (MONEYVAL), aimed at ending corruption;
10.19 guarantee sufficient allocation of economic and financial
resources to ensure proper social protection and sufficient provision
of public services, and protection of the economic and social rights enshrined
in national and international legal documents.
