budgets is essential for the national level of social security.21 These criteria and the multilateral
surveillance procedure in association with the Stability and Growth Pact (SGP) and the Broad
Economic Policy Guidelines (BEPG) as its main instrument can be used as an important political
lever for the design, scope and structure of national old-age security systems.22 These remarks
prove that measures to implement the four basic freedoms and the Maastricht criteria may affect,
indirectly as well as directly, national old-age security systems.23
In addition to that, the Commission pointed out that the systems of social security themselves and
especially those of old-age security are facing various structural changes and common problems.
To name but a few: the increasing activity rate of women, the ageing of the European population
due to demographic reasons, a high level of long-term unemployment, changes in the living ar-
rangements and structure of households, as well as the high level of taxes and social contributions.
Furthermore, the Commission points out that due to the establishment of the single European
market and the EMU the growing mobility of people entail the need of unified rules of social se-
24
curity.
As pointed out in the historical review, harmonisation of social security has always been one ob-
vious goal in the past. Since then it has been replaced by convergence of social security systems,
which means first of all convergence of objectives.25 Now, the open method of co-ordination is the
supposed policy instrument to promote the process of convergence, starting with the areas of so-
cial inclusion, old-age security, health and long-term care after having been used in the employ-
ment field since the late 90’s.26
21
22
23
24
25
26
For the Italian social security system the direct and indirect effects of the EMU were immense. For this
case see Gohr (2001); for the German one see Schulz-Weidner (1995); Rürup (2000) and Ruland (2000).
More general are the comments in Schmahl / Rische (1997).
The multilateral surveillance procedure as a whole is implemented in article 99 EC Treaty whereas the
sanction mechanisms of the SGP are implemented in the Council Regulation (97/1467/EC) on Speeding up
and clarifying the implementation of the excessive deficit procedure. These sanction mechanisms include
binding recommendations and fines, if an EMU member state has a public deficit of more than 3 per cent
of its gross domestic product (GDP).
For these aspect see Schmahl (2002: 103).
Cf. Commission of the European Communities (1999). For earlier documents see Kommission der Eu-
ropaischen Gemeinschaften (1993); Kommission der Europaischen Gemeinschaften (1994) as well as
Kommission der Europaischen Gemeinschaften (1995) and Kommission der Europaischen Gemeinschaften
(1997).
For the major differences between the approaches of harmonisation and convergence see Lochner (1962)
as well as Schulte (1990); Schmahl (1993: 11); Schmahl (1993: 314 ff.); Gobel (2002: 12 ff.) and Schulte
(2002: 7 f.).
For the experience and success of the European Employment Strategy (EES) see Blanpain (1998) and
Jacobsson / Schmid (2002). For the influence of the EES on the German employment policy see
Ostheim / Zohlnhofer (2002).