Top-level talks focus on social protection

Date: 18/11/1999

By Simon Coss

SOCIAL affairs experts from across the Union will meet in Helsinki next week in a bid to breathe some new life into the ongoing debate over how to reform the EU's crumbling pension and benefit systems.

The top-level meeting will focus on efforts to find new ways of financing the Union's 15 national health, benefit and pensions systems, which are all buckling under the weight of an ageing population.

Changing demographics mean that more money is being taken out of the schemes - via pension payments or hospital care for example - than is being paid in by taxpayers.

While responsibility for financing social security schemes remains a national rather than EU competence, both the Finnish presidency and the European Commission believe there are strong arguments for discussing reforms at a Union-level.

"These may be national problems but they are national problems that all governments are facing," said one Finnish diplomat, who added that next Monday's (22 November) conference in Helsinki would provide an opportunity for governments to share experiences.

One of the main themes of next week's talks will be the relationship between social security systems and employment.

In a recent report on Modernising social protection, the Commission argued that many health and benefit schemes actually prevented jobs from being created. It said companies wishing to hire new workers were often deterred by unreasonable obligations under national social security rules, with those keen to become self-employed facing particular problems.

Other issues to be included at next week's talks include harmonising tax, social protection and social security contributions across the EU, although Finnish officials admit that initiatives in this area are currently "99% talk".

Social affairs experts from across the Union are to meet in Helsinki, 22.11.99 in a bid to breathe some new life into the ongoing debate over how to reform the EU's crumbling pension and benefit systems.