The Social Investment Package – beginning of a change of course? By Oliver Röpke

The EESC recently adopted an opinion on the European Commission's Social Investment Package by a substantial majority. A package which at first glance appears technical could, however, herald a significant policy shift, with investment in the welfare state finally no longer being seen as a mere cost but as an investment in the future.

The EESC particularly welcomes this new approach. Investment in the welfare state is investment in growth and employment that will materially contribute to achieving the Europe 2020 objectives. Targeted investment in education and childcare in particular results in a higher rate of employment, helping to improve equality of opportunity and stabilising social security systems. In periods of soaring unemployment it also plays a decisive role in combating poverty.

The opinion is, however, critical of the fact that the question of financing for the Commission proposals unfortunately remains largely unanswered. Without a radical change in the lop-sided policy of spending cuts, successful implementation of the Social Investment Package is completely unrealistic.  This is why we need a Social Investment Package funded by an extensive European growth and investment programme. The issue of wealth taxes and an end to the ruinous race to cut taxes must also finally make it onto the political agenda. The Commission package will otherwise remain empty words without any political substance.