A social market economy that cares, the EPP Group vision for European social policy

From cars and pharmaceuticals to data and high-tech, the EU produces goods worth trillions of euros every year. Our companies compete successfully around the world: we account for 16% of world trade. Our Small and Medium-Sized Enterprises employ nearly 100 million people. From the ruins of the Second World War and the destruction left by autocracies, Christian Democrats have built a Social Market Economy that matches the ambitions of our democracies. The Social Market Economy is a fair playground where businesses can compete, where everyone’s freedom is guaranteed, be they suppliers or buyers, and where everyone plays by the rules. It is about ensuring that everyone has a fair shot at success, while also looking out for those who are struggling.

Thanks to the Social Market Economy, Europe has one of the largest middle classes in the world: people who have built their success through hard work and passion for their craft. In recent years, Europe's middle class has been eroded by the economic crisis, the pandemic, and rising food and electricity costs. One in five Europeans is now struggling to make ends meet. Young people are delaying starting families out of fear of not being able to afford the costs, and older people are struggling to live on their pensions. There are also deeper issues that are holding back Europe's social and economic development - women are still paid 12% less than men, and the children of parents with low levels of education are six times more likely to be at risk of poverty than others.

7 out of 10 citizens believe that Europe has a role to play in addressing social issues. While the Socialists call for EU-wide spending programmes regardless of national differences and Liberals believe that the market alone can solve everything, we in the EPP Group want a Social Market Economy that cares. We value subsidiarity; Member States are best placed to look after the welfare of their citizens. But unlike the populists, we agree with our citizens: Europe must contribute to addressing poverty and inequality. Not to add red tape, but to set clear rules that encourage innovation, protect workers, empower young people through education and training, and make our economy fit for the future. We need to put people in the best position to create growth.

Europe must contribute to addressing poverty and inequality. Not to add red tape, but to set clear rules that encourage innovation, protect workers, empower young people through education and training, and make our economy fit for the future. We need to put people in the best position to create growth.

To begin with, we need to create jobs by accelerating innovation. Innovation is in our DNA: we are 6% of the world population, but we account for 18% of global R&D. Imagine what we could do if we unlocked our full potential. We want an investment plan for quality European jobs investing in research and development, with Member States collectively investing 4% of GDP. Innovation must also help us close the gender gap: we will launch a funding programme to significantly increase the number of women-led start-ups in areas of technological innovation.

We need to make the European economy work for all hardworking Europeans. First, we need to ensure safe and healthy workplaces that keep pace with today's working models and allow parents to combine work and family life, for example, through greater use of teleworking and parental leave, an idea launched in Germany by Ursula von der Leyen when she was Minister for Family. Second, we need to build a genuine European labour market: promoting a European social security pass and strengthening the European Labour Authority (ELA) to ensure that Europeans can work freely across Europe without additional burdens and risk of social exclusion. We also want to create a European Workers' Guarantee for the digital market to secure the rights of gig economy workers while respecting Member States' competences and strengthening trade unions and social partners. In the labour market and beyond, inclusion is the only way forward for Europe. We want a European disability card to guarantee equal rights for persons with disabilities across the EU.

We also need to help young people start their careers. Research shows that level of education and technical specialisation are the key predictors of income. We will continue fighting youth unemployment and turning the brain drain into brain gain, widening access to Erasmus+, and improving Discover EU so that every young European can explore our different cultures. At the same time, we want to make Europe the ideal environment for our senior citizens, ensuring their well-being, promoting active ageing and supporting their participation in society.

The social market economy - an invention of Christian Democrats - is the secret of Europe's ability to promote a strong economy across different societies. An economy based on people, not ideology. An economy based on innovation and subsidiarity, not bureaucracy. An economy based on responsibility and solidarity, not egoism. A competitive Social Market Economy that cares for every single European, this is our vision for European social policy.

Explore the EPP Group's vision for a united and secure Europe with economic strength and social responsibility. We want to ensure that every European, regardless of their background, has a fair chance to earn a living and embrace the European way of life. Learn more about the EPP Group Priorities: A Europe that Protects YOU