Social investment – where do we stand?
By Julie Marangé, Social Platform Intern
On 10 November, I attended a policy dialogue on social investment. The event was held in Brussels and set up by the European Policy Centre (EPC). Several key speakers from the EPC (Claire Dhéret, Fabian Zuleeg), the European Commission (Serge Patou), the European Parliament (Georgi Pirinski), Unipol Group (Tiziana Simoni), the Center for Studies on Federalism (Alberto Majocchi), International Strategy Filipo Addarii), and Plus Value (Fiorenza Lipparini), were able to give their opinion on the issue of social investment.
The EU launched its Social Investment Package in 2013 with high hopes for a paradigm shift concerning social investment, from narrative to impact. Two years after the Social Investment Package, where do we stand?
The European Union’s investment plan established in 2014, also known as the Juncker plan, was meant to revive growth and stimulate private investment. However, questions remain on how well this plan is performing. So far, social aspects have been completely ignored in the policy debate. Inequalities and the social impact of policies need to be addressed with greater attention, although, as Georgi Pirinski pointed out, market considerations are also necessary for an engaged and concrete debate. Alberto Majocchi stated that the Juncker plan is insufficient; Tiziana Simoni suggested that by integrating public and private funding, resources could be allocated in a more effective way.
Social investment in the context of economic governance could reduce inequalities and promote social cohesion. The problem remains on how to convince ministers of the benefits of such investments. Fabian Zuleeg proposed the concept of a “golden rule” for public and social investments. This golden rule would enable governments, over the economic cycle, to borrow only to invest and not to fund current spending. This would empower Member States to maintain productive public and social investment, and could enable the inclusion of effective social investment. Needless to say, this idea remains a dream, as the European Commission (Serge Patou) opposed such a rule.
