15
ness. The final task is to enhance the flexibility of old-age security systems in order to respond to
55
the changing economic environment.
In addition to these two different approaches, there is the one of the European Commission that
combines social and economic objectives. The Commission issued first a communication on the
Future Evolution of Social Protection from a Long-Term Point of View: Safe and Sustainable
Pensions. According to this paper the success of old-age security reforms is closely connected to a
forceful economic policy as well as active employment policy. Based on this policy line, the
communication laid down ten principles for pension reforms. The following communication on
Supporting National Strategies for Safe and Sustainable Pensions through an Integrated Ap-
proach seems to be a compromise between different actors within the Commission but leans more
57
towards an economic approach.
Considering these different positions it can be concluded that discord between the involved actors
hinders the creation of a clear European vision in this area. The result may be a mix of different
approaches. Such an approach based on compromises can be seen in the joint report on Objectives
and working methods in the area of pensions: applying the open method of co-ordination. This
report is one of the core documents concerning the OMC in the area of old-age security.58 But it
took substantial disputes, before the main actors agreed upon objectives and working methods. An
agreement on common social indicators, as instructed by the Gothenburg Council in June 2001,
though was not possible. Nevertheless, the report underlines that the EU level should combine
existing policy processes with the OMC in order to integrate national actors respective to their
sphere of competence and power into the process.59 The joint proposal is based on eleven common
objectives. The three broad socio-economic goals are the following:60
• First, pension levels should meet social objectives. That is, preventing poverty in old-age and
ensure participation of elderly people in public, social and cultural life, at the same time gen-
erating inter- and intragenerational fairness.
• Second, old-age security systems should be financially sustainable via higher levels of em-
ployment. Participation of older workers should be promoted and a fair balance between ac-
tive and retired workers. Private and public pension schemes should be efficient, affordable,
portable, and offer security.
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56
57
58
Cf. Council of the European Union (2001: 3 f.).
For these principles and objectives see Commission of the European Communities (2000: 13 f.).
Cf. Commission of the European Communities (2001: 4 ff.).
This report was to prepare for the Barcelona Council in March 2002. It was approved by the Employment
and Social Policy (ESP) Council of December 3rd 2001 and confirmed by the Laeken Council in December
2001.
59
These existing policy processes are the Broad Economic Policy Guidelines (BEPG), the multilateral sur-
veillance process as implemented in article 99 EC Treaty (including the Cardiff process), the Stability and
Growth Pact (SGP), the European Employment Strategy (EES) and finally the Social Inclusion Process. Cf.
Council of the European Union (2001: 3 f.).
60
Cf. Council of the European Union (2001: 6 ff.).