Editorial of December 2018

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 by Sergio Maia, Managing Editor

Multiannual financial framework, budgets and elections: is there room for convergence?

Current status of EU politics barely hides that convergence seems more and more dramatic, as the elections next May are rapidly approaching amidst uncertainty, Brexit and national populisms. Despite the signal Emmanuel Macron attempted to send recently by addressing the German Bundestag – the first French president to do so in 18 years – in favour of unity against chaos, there is little doubt that the moment is of euro-tension, somewhat of pre-storm. Italy is (literally) stepping on the European Commission’s budgetary recommendations; Brexit withdrawal agreement conclusion is an incognita on the British side (there is also the preliminary reference on its revocability under appreciation in CJEU); Steve Bannon is trying to fund extremist right-wing candidates for the European Parliament election; Poland is disguising its real commitment to implement CJEU interim measures; new migration rules are not settled, etc.

On top of that, there is an ongoing negotiation for the next multiannual financial framework (MFF) and in parallel proposals for a Eurozone specific budget as of 2021 – which was the underlying pretext for Macron’s speech at the Bundestag. The original idea of the French president was to equip the Eurozone with a separate budget to assist Member States experiencing instabilities in their economies. In other words, it would serve as a sort of debt mutualisation guarantee in critical times. This was only insidiously mentioned in the Meseberg Declaration, but it was mentioned nevertheless. The motivation for this tool was to provide an enhancement of the general balance between European economies so that the different levels of development in the EMU could be compensated for the benefit of Euro (stabilisation, prices) and trade flow in the internal market.
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The European Pillar of Social Rights: a first step in the right direction or rather a palliative, cosmetic care? Some critical remarks from a constitutional perspective

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 by Pietro Masala, Postdoctoral Research Fellow (García Pelayo), CEPC, Madrid

On 17 November 2017 the European Pillar of Social Rights (EPSR), a document proposed by the Juncker Commission expressing “principles and rights essential for fair and well-functioning labour markets and welfare systems in 21st century Europe” (as said in its Preamble), was solemnly proclaimed by an interinstitutional conference in Gothenburg, in the framework of a “Social summit for fair jobs and growth”. It is, of course, too early to evaluate the concrete impact of this document on the development of the social dimension of the European Union. Nevertheless, it is possible to examine its contents and the acts which prepared its proclamation (namely, a Commission communication establishing the EPSR and a Commission recommendation setting the EPSR principles and rights[i]), in order to express some essential critical remarks.These shall help understand the EPSR’s constitutional meaning and implications in the present phase of the integration process.

It is widely recognised that, during the last decade, the financial crisis and, especially, the new economic governance which has been introduced and implemented in the eurozone as a response, have significantly increased the pre-existing “constitutional imbalance between ‘the market and ‘the social’ in the European Union”[ii] . The asymmetry between these two components was justified, at the early stages of the integration process, by a clear separation of powers and tasks between the European Communities (the market) and the Member States (the social), but it is no longer tolerable in the present Union. Both external and internal factors affect the sovereignty of the Member States in defining and implementing their social and employment policies, in a way that has reduced substantive equality and internal solidarity in European societies. On one hand, the new context of globalization implies new challenges for the “European social model”; on the other hand, the development of the European single market and of the Economic Monetary Union has had a strong impact on national welfare states.These factors as a whole induce to believe that the conferral of more extended powers (and resources) to the Union, allowing the partial federalisation of the social domain, is desirable, as it would entail a more effective protection of social rigths, through a fair cooperation between the Union and the Member States.

Continue reading “The European Pillar of Social Rights: a first step in the right direction or rather a palliative, cosmetic care? Some critical remarks from a constitutional perspective”