Minister Lehtomäki: The European Social Model

5 September, 2006

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Mr President, Honourable Members,

Thank you very much for this opportunity to discuss the future of social Europe with you. This is clearly a matter of prime importance to our citizens.

EU leaders have repeatedly confirmed their commitment to European values and the development of European social models. The European model of society, capable of combining economic growth, high employment and social cohesion, provides a solid basis for responding to the challenges of globalisation and population ageing.

But the European social model must be constantly updated. We must ceaselessly strive to increase our people’s ability to adapt to change. We must promote European competitiveness and employment, and fight against poverty and social exclusion. And we must secure the long-term sustainability of our social protection systems, along with an adequate level of social protection. These objectives can be mutually reinforcing.

To safeguard the future of a social Europe, we must work assiduously to implement the Lisbon strategy, with its focus on growth and employment. If we are to preserve Europe’s welfare societies, we need to become more competitive, to increase the employment rate and to boost labour productivity. One of the objectives of Finland’s Presidency is to strengthen the basis for economic growth in Europe.

Ladies and Gentlemen,

The Commission is expected to present a Communication on demographic change in Europe in the next few weeks. The EU Ministers for employment, social affairs and health discussed the matter at their informal ministerial meeting in Helsinki at the beginning of July. One of the Presidency’s conclusions from the discussions was that changes in the age-structure of the population were not just a challenge but, above all, a proof of the effectiveness of the European welfare model. People now have the prospect of living and staying healthy for longer. Though the conclusions regarding the potential for economic growth and the sustainability of public finances are less positive, the key message is the need for long-term, proactive reform policies.

The social dialogue is an essential part of the European social model. The Finnish Prime Minister, Matti Vanhanen, and the Commission President, José Manuel Barroso, will host an extraordinary tripartite social summit in Lahti on 20 October. The purpose of the social summit is to continue the discussion on how to manage structural change in Europe. A new balance between flexibility and security must be sought. A major investment in skills is required.

Ladies and Gentlemen,

By making it easier for men and women to reconcile work and family life, we also enhance Europe’s ability to respond to the challenges of globalisation and population ageing. There is a strong connection between reconciling work and family life and implementation of the Lisbon strategy. This point was highlighted by the European Council’s at its spring meeting, when it approved the European Gender Equality Pact.

Ladies and gentlemen,

I would draw your attention once again to the European Union’s role as a global actor, striving to promote democracy, human rights and sustainable development. The Commission has just presented a Communication on decent work. It is important for the EU and the International Labour Organisation to cooperate on this matter. Promoting decent work in the world will increase labour productivity in the less developed countries too.

Mr President, Honourable Members,

As holder of the EU Presidency, Finland wants to enhance the European Union’s ability to adapt to the pressures of global competition. Improving European competitiveness is essential for the maintenance of our welfare societies. Europe can be both competitive and socially strong.

As Prime Minister Vanhanen pointed out when he addressed the plenary session in July, we must take seriously the fear that many Europeans feel regarding global competition. Allaying these fears through shared values and social justice is a very important task.