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In 2012, still no solution was provided for the disconnection between the aspirations of the Europe 2020 Strategy towards inclusive growth and the poverty target, and the reality of the impact of austerity policies, particularly on people in or at risk of poverty and other vulnerable groups. Poverty has drastically increased to almost 120 million people and is deepening in many member states.

We formulated proposals on how to implement the Europe 2020 poverty and social inclusion target and on the inclusion of social objectives in European Governance. We called on member states to switch from emergency measures with damaging social consequences to a sustainable and inclusive long term plan for an economy that responds to the needs of the EU population. Social objectives should be integrated in the same way as economic objectives in EU priorities in order to ensure an inclusive recovery.

In December, we addressed the Annual Convention of the Platform Against Poverty and Social Exclusion with our key messages. Austerity measures promoted by many governments and encouraged by EU Economic Governance are resulting in increased inequalities, poverty and social exclusion. Without combating this there will be no social Europe for a better future and well-being of all.

Upon the invitation of the Social Protection Committee, we contributed to their 2012 assessment report on the social impact of the crisis and the fiscal consolidation, addressed to the Spring Council. On the basis of our contribution, the Committee decided to dedicate a section of their third crisis monitoring report to the impact on services.

We met with Commissioner Andor to discuss and present our proposals on what should be the social priority in the Annual Growth Survey 2013. With Commissioner and EC Vice-President Olli Rehn we discussed where to find inclusive growth and presented our proposals on how the implementation of social objectives can ensure an inclusive and sustainable recovery.

Looking forward to 2013

In 2013, we will continue to call for the poverty and social inclusion target of the Europe 2020 Strategy to be put back as a top priority in European governance. In less than two years we witnessed EU leaders ignoring their commitment to strive toward an inclusive, sustainable and smart growth through the Europe 2020 Strategy. It seems now clear that member states will not reach their commitment to lift 20 million people out of poverty by 2020. In addition, sufficient and adequate funding should be allocated from all EU funds in order to support the social objectives of the Europe 2020 strategy (poverty, education and quality employment). Complementary sources of funding should be identified in order to respond to the cuts in social spending and social safety nets in the member states.