Background Information

The purpose of our social model should be to enhance our ability to compete, to help our people cope with globalization, to let them embrace its opportunities and avoid its dangers. Of course we need a social Europe. But it must be a social Europe that works.
— Former UK Prime Minister Tony Blair, Speech to the EU Parliament, 2005

The social future of the world is in Europe; if Europe is able to maintain its social model, it will be a sign of hope for the rest of the world.
—Juan Somavia, ILO Director-General, La Libre Belgique, 2003

While it is difficult to speak of a single, monolithic European Social Model (ESM), the term coined in the 1980s refers, in all its variety, to reconciling social and economic concerns based on fundamental rights, a high level of social protection, solidarity and dialogue. It is not by chance that these underlying values recall the four pillars of the ILO’s Decent Work Agenda: rights at work, employment, social protection and social dialogue. Both express a shared vision of a just and prosperous society.

However, this long cherished European Social Model is under pressure. It is under pressure economically in a rapidly changing world where the borders for doing business are dissolving, global competition is increasing and European populations are ageing. It is also under pressure politically within Europe as citizens grow increasingly aware of their own vulnerability to the forces of globalization and worry that today’s policies may  be insufficient to face tomorrow’s challenges.

The simple but difficult choice facing European policy makers today is not the black and white one of preserving the status quo versus abandoning the cherished European Social Model. It is instead a choice of reforming national labour market and social policies, or continuing to hinder change.
— André Sapir, Globalization and the Reform of European Social Models, 2006.

A key challenge for both the European Social Model and the Decent Work Agenda is how to sustainably extend more of the benefits of globalization to a greater number of people. From both the EU and ILO’s perspective, globalization is not incompatible with equity or the goals of decent work. Economic and social progress go hand in hand and success in the global economy need not be achieved at the expense of social protection or workers’ rights. The key question orienting this event is how to conceive and implement economic and social reforms aimed at greater economic adaptability while preserving the social values that are so thoroughly woven into the European tapestry.

The ILO and the European Union are in this together. Social justice, standards and social dialogue are our shared values. If they do not work in Europe, it is difficult to make them work globally. And if they do not work globally, it is all the more difficult to make them work in Europe.
— Kari Tapiola, Executive Director of the ILO, Speech at the EESC-ILO Conference on the European social model, 2006

In this context of shared values and challenges, the International Training Centre is hosting this High-Level Dialogue to discuss, share experiences and learn from one another on some of the key themes on the future of the ESM. This is not the first time the ILO has joined with European constituents to discuss the European social model. Most recently, the ILO and the EESC met in 2006 to address similar themes. This will, however, be the first time that the International Training Centre of the ILO joins this debate directly, lending its training expertise to create a unique learning event. Through interactive and facilitated group sessions, this High-Level Dialogue will draw out the lessons of experience from different actors and regions across Europe.

The discussions during the event will focus on four specific themes.

The first of these is on dealing with change. Globalization is not the only factor responsible for industrial change but it is undeniably an important and highly publicized one. Relocating, outsourcing production, restructuring and downsizing – these are some of the consequences of increased global competition on European firms and workers. How to better anticipate and manage these changes, particularly through social dialogue and negotiation between social partners is a critical issue for employers, workers and governments alike.

The second theme, flexicurity, is the most prominent labour market policy approach being debated in Europe today and has become the central concept in the European Commission’s employment policy. With the recent adoption in 2007 of a Communication on the common principles of flexicurity there is an emerging policy consensus. But what do these principles mean in practice? This event will look at practical approaches and experiences of constituents from different Member States in implementing flexicurity policies.

A third theme, which is an extension of the first two, is modernizing the ESM for sustainability. Does modernization mean that the social agenda will be compromised or do economic, employment and social policy truly form a mutually reinforcing policy triangle? The objective of this session will be to consider the direction and measure the success of modernization of the European social model and in particular to understand better the actual and potential contributions of the social partners to this process.

Lastly, the final session of the event will feature a ministerial exchange on the Decent Work Agenda and ESM, offering global perspectives on how to move forward in promoting a fair globalization. Amid widespread uncertainty in the world of work, ranging from financial turmoil and economic downturn to growing unemployment, informality and insufficient social protection, participants will discuss from their own experiences the approaches to balancing social and economic development.