T
oday Europe is facing a historic challenge,
i.e., to reconcile the efforts made by the
member states to stabilize public finances
with the need for an economy of knowledge and
innovation; an economy that will contribute to
employment growth and the reduction of poverty
and social exclusion, through the necessary
reforms and actions.
A smart and sustainable economic growth requires
innovation, as well as the enhancement and
strengthening of Europe’s social dimension. The
prerequisite for the promotion and implementation
of necessary structural changes is a high level of
social cohesion and trust. The reconciliation of the
need for fiscal consolidation with the need for soli-
darity and the renewal of the European Social
Model is essential, since social cohesion is both the
prerequisite, as well as the outcome of sustainable
economic growth. The European Union is required
to respond decisively and effectively to a number
of challenges such as:
●The high and persistent unemployment rates
that have led to record high levels of long-term
unemployment.
●The extensive loss of jobs leading to low
employment rates.
●Youth unemployment, together with a significant
increase in the number of young people who
are not in education, employment and training
(NEET).
●The aggravation of the phenomenon of poverty
and social exclusion, resulting to an increase in
the number of households without working
members and an increase in working poverty.
The current social and labour reality requires,
more than ever, the enhancement of the social
dimension that will strengthen employment, social
inclusion and protection, in close cooperation with
the social partners. The promotion of “Europe
2020” strategy objectives requires balanced poli-
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The European Union is already in its fifth year of
the “Europe 2020” strategy, a strategy on smart,
sustainable and inclusive economic growth. This
strategy is also the basic tool for addressing the
crisis, aiming, on one hand, at combating the
deficiencies in the existing European Development
Model and, on the other hand, at promoting the
development of necessary conditions for the
achievement of smart and inclusive growth.
Towards a Substantially
Strengthened Social
Dimension of the EU/EMU
By Giannis Vroutsis, Minister of Labour, Social Security &
Welfare
