Explanatory Memorandum to COM(2021)137 - European Child Guarantee - Main contents

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This page contains a limited version of this dossier in the EU Monitor.

dossier	COM(2021)137 - European Child Guarantee.
source	COM(2021)137
date	24-03-2021

1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

Commission President Ursula von der Leyen announced the creation of a European Child Guarantee with a view to ensuring that ‘every child in Europe at risk of poverty or social exclusion has access to the most basic of rights like healthcare and education’ ¹ . Supporting children from an early age and throughout their childhood is of paramount importance with a view to building a sustainable, equal, inclusive and competitive knowledge economy and a fair society.

With the aim of preventing and combating social exclusion, this proposal supports Member States in their efforts to guarantee access to quality key services for children in need: early childhood education and care, education (including school-based activities), healthcare, nutrition, and housing. While most children in the EU already have access to these services, inclusive and truly universal access is vital for ensuring equal opportunities for all children, and in particular those who experience social exclusion due to poverty or other forms of a disadvantage.

Social exclusion is a complex and multidimensional phenomenon. Its key drivers are insufficient resources and poverty, but also lack of equal access to goods and services due to various forms of disadvantage, preventing full participation in the society ² . The proposal targets children in need, referring to children at risk of poverty or social exclusion. In view of the multi-faceted challenges faced by people with low income, having difficulties to access goods and services or the labour market, a composite indicator being ‘at risk of poverty or social exclusion’ has been agreed at EU level. The indicator measures: (i) the number of people who have an equivalised disposable income (after social transfers) that is less than the at risk of poverty threshold ³ ; (ii) severe material deprivation, that captures the lack of basic goods that are needed to guarantee an adequate standard of living in a given society ⁴ ; and (iii) very low work intensity ⁵ . Children living in such households are particularly prone to social exclusion and are the group targeted by this recommendation.

In a majority of EU-27 countries, the rate of persons at risk of poverty or social exclusion is higher for children than for the total population. In 2019, 22.2% (nearly 18 million) of children lived in households at risk of poverty or social exclusion, as opposed to 20.9% (around 91 million) for the total population. The reduction of the risk of poverty or social exclusion among children over the last decade has been slower than among the general population. In addition, the poverty gap ⁶ in EU-27 is higher for children (25.4% in 2019) than for the rest of the population (24.3%), with the same holding true for the persistence of poverty ⁷ (14.1% for children in 2018 vs 10.8% for the rest of the population).

There is a strong correlation between social exclusion of children and the lack of access to key services. Children living in poverty or who experience particular disadvantages are more likely to face barriers in accessing services, which are key for their well-being and the development of social, cognitive, and emotional skills. While such services in all Member States are generally in place, the evidence shows that the access is uneven. In around one third of Member States, parents on moderate incomes find costs of early childhood education and care to be very high. Schoolbooks, school transport, meals and additional school-based activities place a significant burden on family budgets in 15 Member States. In several Member States, only some healthcare-related services for children are fully free of charge. In six Member States, more than 10% of children experience severe housing deprivation. Homelessness has increased in nearly all Member States, also affecting children. The drivers of unequal access to services may be manifold and can include: the lack of financial resources to cover for the costs of the services by parents or guardians; limited availability, particularly in rural ⁸ , remote or disadvantaged areas; lack of adaptation of services, or personnel, to children with particular needs; lack of information on the available services; or administrative barriers.

Alongside poverty, other forms of disadvantage create barriers for inclusion and participation in the society. The proposal also recommends that, when designing their national integrated measures to support children at risk of poverty or social exclusion, Member States take also into account, wherever appropriate, the specific needs of children who are homeless or experience severe housing deprivation; who have a disability; those with a migrant background; with a minority racial or ethnic background (particularly Roma); those being in alternative (especially institutional) care; and children in precarious family situations.

Children from disadvantaged backgrounds are disproportionally affected by social exclusion, often resulting from poverty or deprivation. Depending on the Member State, the poverty risk for children raised by a single parent, in families with three or more children, or with a migrant or Roma background is up to three times higher than that of other children ⁹ . Children from disadvantaged backgrounds also show considerably lower early childhood education and care attendance rates. Children placed in institutional care may not fully benefit from mainstream and inclusive education. Furthermore, children with disabilities, with a migrant background or those living in rural or remote areas might be unable to take part in many of school-based activities. Barriers can include affordability, the lack of proper infrastructure, poor accessibility, or language problems. The participation of those children in preventive health programmes is also hindered. Low-income status or a precarious family situation often result in irregular or unhealthy nutrition. Finally, the lack of access to affordable and adequate housing, including safe drinking water, poses an increased risk of severe housing deprivation and affects the overall wellbeing of children. All these access barriers perpetuate the intergenerational cycle of social exclusion, with profound and long‐term effects on children’s lives.

Preventing and combating social exclusion of children is essential for social progress and sustainable development. Social exclusion has damaging effects on the present and future opportunities of children and on their capacity to contribute to today’s and tomorrow’s society. Children who are socially excluded are less likely than their better-off peers to perform well in school and enjoy good health. They are at a higher risk of dropping out of school and, when they become adults, are more likely to be (long-term) unemployed and to experience poverty, because of reduced job opportunities and earnings. Poor education and health also have an important economic and labour market impact as they hinder the employment growth and lead to a lower-quality and less-productive workforce.

The COVID-19 crisis has exacerbated pre-existing inequalities and entails a significant risk of an increased poverty or social exclusion rate. It has created socio-economic risks for women and vulnerable groups such as single parents, children and the elderly, the persons with disabilities, migrants, minorities, younger and precarious workers and people living in areas and households with limited or no digital connectivity. Low and middle-income groups have a higher probability of income loss due to increasing unemployment and fewer telework possibilities. The impact on the disposable income of households is expected to drive up inequalities and may lead to new categories of households being at risk of poverty or social exclusion. School closures resulted in children missing out a reliable source of nutrition, as many children were deprived of school meals. Widespread digitalisation mitigated to a certain degree the education loss caused by school-closures, but many children lacked good home-learning environments e.g. due to the lack of necessary equipment, a poor internet connection, or lack of support in school work. COVID‑19 and social distancing measures also affected formal care arrangements, education, and leisure services.

There is consensus in the EU on the importance of guaranteeing effective and non-discriminatory access to quality key services for children who face various forms of disadvantage. In its Resolution of 24 November 2015 ¹⁰ , and as confirmed in its Resolution on the European Social Fund Plus of 4 April 2019 ¹¹ , the European Parliament called for a European Child Guarantee, with a focus on children in poverty and with an emphasis on certain key services. The Parliament also asked the Commission to explore the feasibility of such a European Child Guarantee via a multi-annual preparatory action. In its conclusions of 8 June 2020, the Council likewise invited the Commission to deliver a proposal for a European Child Guarantee. In its Special Report 20/2020 on child poverty of 29 September 2020 ¹² , the European Court of Auditors highlighted that a better targeting of Commission support to the Member States actions is needed to combat child poverty. Reacting to this report, the Council called on the Commission to include actions and objectives to tackle child poverty in its future initiatives, including as part of the European Semester economic coordination process. On 11 March 2021, the European Parliament adopted a Resolution on children’s rights in view of the EU Strategy on the rights of the child ¹³ , in which it calls on the Commission to present its proposal for establishing the European Child Guarantee in the first quarter of 2021, and calls on the Member States to speed up its implementation and to invest all possible resources, including EU funds. The European Parliament also highlighted that Member States should establish multi-annual national strategies for tackling child poverty and social exclusion and the European Child Guarantee national action plans.

No child should be left behind. The demographic trends and skills shortages, highlighted in the Commission’s Report on the impact of demographic change adopted on 17 June 2020 ¹⁴ , make it indispensable to foster the potential of the young generations, regardless of their socio-economic background. While the EU experiences one of the highest levels of social inclusion and cohesion in the world ¹⁵ , a decisive policy action is needed to support children in more difficult circumstances and who may face barriers due to different forms of disadvantages. Therefore, the European Child Guarantee puts focus on supporting children in need.

The European Pillar of Social Rights provides the framework for EU and national action for fair and well-functioning labour markets and social protection and inclusion ¹⁶ . The European Pillar of Social Rights Action Plan ¹⁷ strives for further improvements in living standards, working conditions and equal opportunities for all, thereby ensuring fairness, resilience and upward social convergence. The Action Plan provides a new impetus to address poverty or social exclusion in the EU. It sets the target to reduce by at least 15 million the number of people at risk of poverty or social exclusion, and out of this at least 5 million should be children. The revised Social Scoreboard will track performance and trends in the Member States, enabling the Commission to monitor progress towards the implementation of the principles of the European Pillar of Social Rights as part of the well-established policy coordination framework in the context of the European Semester.

The objective of the European Child Guarantee is to prevent and combat social exclusion by guaranteeing the access of children in need to a set of key services. In doing so, the initiative will contribute to fostering equal opportunities for children in need and combating child poverty.

1. To achieve this objective, and on the basis of extensive consultation process, the proposal:

–recommends Member States to target support measures at children in need, understood as persons under the age of 18 years who are at risk of poverty or social exclusion;

–when identifying children in need and within this group, recommends Member States to take into account, wherever appropriate, specific forms of a disadvantage, such as the needs of: (i) homeless children or children experiencing severe housing deprivation; (ii) children with a disability; (iii) children with a migrant background; (iv) children with a minority racial or ethnic background (particularly Roma); (v) children in alternative (especially institutional) care; and (vi) children in precarious family situations;

–calls on Member States to guarantee for children in need effective and free access to early childhood education and care, education (including school-based activities), a healthy meal each school day and healthcare; making certain services cost-free is one of the ways of increasing effectiveness of access;

–calls on Member States to guarantee for children in need effective access to healthy nutrition and adequate housing;

–provides guidance to Member States on how guaranteeing access to these services could be supported by corresponding measures;

–establishes governance and reporting mechanisms;

–provides for the implementation, monitoring and evaluation arrangements.

The proposal recognises that addressing the drivers of social exclusion of children is a multi-dimensional challenge. The European Child Guarantee itself will be effective only within a broader set of integrated measures, as outlined in the action European Pillar of Social Rights Action Plan, and within a broader policy framework of the EU strategy on the Rights of the Child, to which this proposal also contributes. To this effect, the proposal recommends that Member States build a supportive enabling policy framework by: (i) ensuring that relevant policies are consistent with one another and improving their relevance for supporting children; (ii) investing in adequate education, health and social protection systems; (iii) providing labour market integration measures for parents or guardians and income support for families and children; (iv) addressing the territorial dimension of social exclusion, including in distinctive urban, rural and remote areas; (v) strengthening cooperation and involvement of various stakeholders; (vi) avoiding discrimination and stigmatisation of children in need; (vii) supporting strategic investments in children and services, including enabling infrastructure and qualified workforce; and (viii) allocate adequate resources and making optimal use of the EU funding.

Union funds are available to support measures addressing child poverty and social exclusion and the implementation of the European Child Guarantee. Within the European Social Fund Plus (ESF+), for the 2021-2027 financing period, Member States that have a rate of children at risk of poverty or social exclusion higher than the EU average (in 2017-2019) will have to earmark 5% of the ESF+ for combatting child poverty or social exclusion, while other Member States will be required to earmark an appropriate amount. The European Regional Development Fund will contribute as well with future-proof investments in social infrastructure, equipment and access to quality and mainstream services, as well as with cooperation projects in border regions.

The Recovery and Resilience Facility will provide an opportunity to strengthen the growth potential, job creation and economic, social and institutional resilience of the Member States, including through the promotion of policies for children and the youth, and to mitigate the economic and social impact of the COVID-19 crisis, contributing to the implementation of the European Pillar of Social Rights, and enhancing economic, social and territorial cohesion. The Technical Support Instrument can support Member States in the design and implementation of their reforms aimed at addressing educational, social, economic and legal inequalities and challenges affecting children.

Member States will also continue benefitting from the 2017 – 2023 EU milk, fruits and vegetable scheme ¹⁸ . In 2023, the Commission will propose a revision of the scheme to make healthy products more available to children and improve their understanding of the benefits of healthy and sustainable food.

• Consistency with existing policy provisions in the policy area

The 2013 Commission Recommendation Investing in Children: breaking the cycle of disadvantage ¹⁹ set out an integrated approach to reducing child poverty or social exclusion and improving child wellbeing. The Recommendation focused on the three strands: (i) access to adequate resources; (ii) ensuring access to affordable quality services; and (iii) upholding children’s rights to participate in play, recreation, sport and cultural activities, as well as in decision-making that affects their lives. This proposal complements the existing policies in the area of combating social exclusion of children, builds on the experience and lessons learnt from the implementation of the Investing in Children Recommendation and reinforces its second strand by prioritising access to key services for children in need.

The European Semester economic and employment coordination process, supported by the Social Scoreboard ²⁰ , has highlighted the challenge of child poverty or social exclusion, with a number of Member States receiving related country specific recommendations ²¹ . The Employment Guidelines ²² underline the importance of ensuring the access of everyone, including children, to certain services, such as early childhood education and care, education and healthcare, with such access serving as a necessary condition for ensuring equal opportunities.

In the 2014-2020 financing period, European Structural and Investment Funds (in particular the European Social Fund, the European Regional Development Fund and the Fund for European Aid to the Most Deprived) supported a number of policy areas relevant for children, including tackling child poverty or social exclusion, quality mainstream education and care services, as well as healthy and nutritious food and material assistance to deprived children.

In 2017-2020, the Structural Reform Support Programme provided technical support to implement Member States’ reforms aimed at: (i) increasing the quality of early childhood education and care and preventing early school leaving; (ii) making education systems more inclusive; (iii) supporting deinstitutionalisation of children; (iv) improving access to services for children with disabilities; (v) fostering social integration of migrant and ethnic minority children; (vi) increasing the child-friendliness of national justice systems; and (vii) reviewing family protection legislation, to meet the evolving needs of all types of families.

• Consistency with other Union policies

The proposal is complementary to and consistent with a number of other EU initiatives. It represents a concrete deliverable of the European Pillar of Social Rights Action Plan and will contribute to achieving its headline target of reducing the number of people at risk of poverty or social exclusion. Increasing labour market participation of underrepresented groups, including women, will also contribute to tackling poverty; the European Pillar of Social Rights Action Plan sets a headline target of achieving an employment rate of 78% and puts forward a complementary ambition to at least halve the gender employment gap, by 2030.

The proposal complements the EU Strategy on the Rights of the Child adopted at the same time, which pools all existing and future initiatives on children’s rights under one coherent policy framework, and makes concrete recommendations for both the internal and external EU action. It outlines the Commission’s work in the following fields: (i) child participation in the EU’s political and democratic life; (ii) socio-economic inclusion, education and health; (iii) prevention and protection from all forms of violence and discrimination; (iv) child friendly justice; (v) children in the digital age; and (vi) the global dimension of the rights of the child. The section on socio-economic inclusion is aligned with the European Child Guarantee.

On 22 May 2019, the Council adopted a Recommendation on High-Quality Early Childhood Education and Care Systems ²³ , with the aim to support Member States in their efforts to improve access to and quality of their early childhood education and care. On 30 September 2020, the Commission adopted a Communication entitled ‘Achieving a European Education Area by 2025’ ²⁴ where inclusion and gender equality constitute one of the six dimensions to be consolidated. Based on that Communication, on 19 February 2021, the Council adopted a Resolution on a strategic framework for European cooperation in education and training towards the European Education Area and beyond (2021-2030) ²⁵ and agreed on an EU-level target that at least 96% of children between 3 years and the starting age for compulsory primary education should participate in early childhood education and care. The Resolution also foresees to improving quality, equity, inclusion and success for all in education and training. Member States agreed that the share of early leavers from education and training should be less than 9% by 2030.

On 30 September 2020, the Commission adopted a Communication entitled ‘Digital Education Action Plan 2021-2027: Resetting education and training for the digital age’ ²⁶ , which presents an ambitious vision for digital education in a lifelong learning perspective with the inclusion of all learners across all ages at its core.

On 5 March 2020, the Commission adopted its Gender Equality Strategy 2020-2025 ²⁷ . The strategy aims to counter gender stereotypes affecting the wellbeing and opportunities of girls and boys in all their diversity from an early age. It also announces, as confirmed by the European Pillar of Social Rights Action Plan, that in 2022 the Commission will present the revision of the Barcelona targets ²⁸ for participation in early childhood education and care. The Strategy also promotes women’s economic empowerment and the equal sharing of unpaid care work, including caring for children, between women and men. As long as women continue to carry a disproportionate responsibility for bringing up children, the objectives of gender equality and children’s social inclusion will continue to be closely interconnected.

On 19 September 2020, the Commission adopted the EU anti-racism action plan 2020 - 2025 ²⁹ . The action plan envisages combating racism through policy and funding programmes in the areas of employment, housing and access to healthcare and education. It promotes actions to ensure that children with a minority racial or ethnic background have equal access to education and that teachers are trained to work with all children and be sensitive to the needs of pupils from different backgrounds. It also envisages a Commission report on the application of the EU Racial Equality Directive, which prohibits discrimination based on ethnic or racial origin, including discrimination of Roma children, in different areas such as education and social protection.

On 7 October 2020, the Commission adopted the EU Roma strategic framework for equality, inclusion and participation ³⁰ . It consists of a Communication and a proposal for a Council Recommendation on Roma equality, inclusion and participation, adopted by the Council on 12 March 2021 ³¹ . The Recommendation calls on Member States to fight multiple and structural discrimination against Roma, in particular against Roma children, and to take stronger measures that support Roma children and their families in the interrelated fields of employment, social services, quality, inclusive mainstream education and early childhood education and care, health, housing and access to essential services, nutrition and access to leisure activities.

On 14 October 2020, the Commission adopted a Communication entitled ‘A Renovation Wave for Europe - greening our buildings, creating jobs, improving lives’ ³² . The initiative is based on the principle of affordability of the renovated housing and its accessibility, thus contributing to the goal of guaranteeing adequate housing to children in need, especially through the Commission Recommendation on Energy Poverty ³³ .

On 1 July 2020, the Commission adopted a package ‘The Youth Employment Support: a bridge to jobs for the next generation’ ³⁴ to support young people who are entering the labour market. One of the building blocks of the package was a proposal for a Council Recommendation ‘A Bridge to Jobs – Reinforcing the Youth Guarantee’ ³⁵ , which was adopted by the Council on 30 October 2020. The Recommendation aims to ensure that all young people under the age of 30 receive a good quality offer of employment, continued education, an apprenticeship or a traineeship within 4 months of becoming unemployed or leaving formal education.

On 12 November 2020, the Commission adopted the LGBTIQ Equality Strategy 2020-2025 ³⁶ , which presents measures to promote inclusion and combat discrimination against LGBTIQ persons and their families, including children.

On 24 November 2020, the Commission adopted an action plan on integration and inclusion 2021-2027 ³⁷ , which covers migrants and EU citizens with a migrant background. The action plan focuses on the enabling factors essential for a successful integration and inclusion: education and training, employment and skills, and health and housing. It pays particular attention to children of migrants and EU citizens with a migrant background.

On 3 February 2021, the Commission adopted a Communication entitled ‘The Europe’s Beating Cancer Plan’ ³⁸ , putting childhood cancer under the spotlight. One of the flagship initiatives of the plan is to launch the ‘Helping Children with Cancer Initiative’ to ensure that children have access to rapid and optimal detection, diagnosis, treatment and care.

The EU Strategy for the Rights of Persons with Disabilities 2021-2030 ³⁹ aims to improve the lives of persons with disabilities in the coming decade, in the EU and beyond. The strategy also adopts an intersectional perspective to the needs of children with disabilities.

Several Commission initiatives have already addressed the wider policy context and main drivers of social exclusion of children, in particular the labour market participation of parents and guardians. These initiatives are: the Commission Recommendation on the active inclusion of people excluded from the labour market ⁴⁰ ; the Council Recommendation on the integration of the long-term unemployed into the labour market ⁴¹ ; the Directive on work-life balance for parents and carers ⁴² ; the Council Recommendation on access to social protection ⁴³ ; the new Skills Agenda ⁴⁴ ; the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) ⁴⁵ , and the Commission proposal for a directive on adequate minimum wages ⁴⁶ .

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Legal basis

Under Article 151 TFEU, the objectives of the Union and the Member States include the promotion of improved living conditions, proper social protection, and the development of human resources, with a view to lasting high employment and the combating of exclusion. Improving equality of opportunities for all children living in the EU contributes to reaching those objectives. Under Article 153 (1)(j) TFEU, the Union supports and complements the activities of the Member States in the field of combatting social exclusion, with a view to achieving the objectives of Article 151.

The proposal is based on Article 292 of the Treaty on the Functioning of the European Union (TFEU), under which the Council adopts recommendations on a proposal from the Commission, in conjunction with Article 153(1)(j) and Article 153 i TFEU.

The proposal will contribute to the objectives of the Treaty on European Union, notably to combating social exclusion and discrimination, and protecting the rights of the child (Article 3 of the Treaty).

The proposal will also contribute to implementing the Charter of Fundamental Rights of the EU, and particularly to its Article 24, which recognises that children have the right to protection and care as is necessary for their well-being, and Article 33, which stipulates that the family must enjoy legal, economic and social protection.

• Subsidiarity (for non-exclusive competence)

While policies addressing child social exclusion are the responsibility of the Member States, the Union has the competence to support and complement Member States’ actions.

The proposal ensures the added value of action at the EU level. It will uphold a political commitment to advance on equal opportunities for all children, and in particular for children in need, and will support upward social convergence of Member States.

The added value of EU-level action is becoming even greater in view of the challenges associated with the COVID-19 pandemic, as its socio-economic impacts are likely to disproportionately affect children in need. The European Child Guarantee will help mitigate some of the negative effects of the pandemic by ensuring that children in need have full access to key services.

While respecting the Member States’ competences, the proposal gives concrete content to this ambition in particular by capitalising on 8 years of the implementation of the Investing in Children Recommendation. A focused EU intervention to reduce the gap between children in need and their better off peers in terms of access to key services will ultimately contribute to ensuring equal opportunities for children in the EU, while avoiding the high economic and societal costs of child social exclusion and the intergenerational transmission of disadvantages.

The proposal will also help Member States to make best use of the EU and national funding in order to address social exclusion of children. The Commission strongly encourages Member States to address child social exclusion as a matter of priority.

• Proportionality

The proposal complements Member States’ efforts in the area of addressing social exclusion of children. It respects Member States’ practices and the diversity of systems. It recognises that different national, regional or local situations could lead to differences in how the Recommendation is implemented. This will allow Member States to make use of the Recommendation according to their specific context.

Proportionality also played a key role in guiding the choice of the instrument.

• Choice of the instrument

The instrument is a proposal for a Council recommendation, which abides by the principles of subsidiarity and proportionality. It builds on the existing body of the European Union law and is in line with the type of instruments available for European Union actions in the area of social policy. As a legal instrument, the proposal signals the Member States’ commitment to the measures laid down in this Recommendation and provides a strong political basis for cooperation at European level in this area, while fully respecting the remit of the Member States.

3. RESULTS OF EX POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

• Ex post evaluations/fitness checks of existing legislation

In 2017, when presenting the European Pillar of Social Rights, the Commission took stock of 4 years of the implementation of the Investing in Children Recommendation ⁴⁷ . The assessment was complemented by a study by experts from the European Social Policy Network entitled ‘Progress across Europe in the implementation of the 2013 EU recommendation on Investing in children: Breaking the cycle of disadvantage. A study of national policies’ ⁴⁸ .

The Commission assessment reviewed progress achieved, both in general policy terms and for each of the three strands. It also examined the impact on policy-making for children and families, including a number of good practices and practical examples of actions taken.

The assessment concluded that the full implementation of the Recommendation was still work in progress. Although the Recommendation received strong support both at national and EU level, including from the European Parliament and civil society, it was still neither well-known nor properly used within the Member States at the local level, where concrete policy mechanisms have to be developed and implemented. However, the assessment did highlight that the Recommendation inspired a number of projects with positive impact. It was, to various degrees, successfully used as a policy lever in the European Semester, contributing to relevant country-specific recommendations to Member States on topics ranging from early childhood education and care services and income support to inclusive education. It also had an impact on preparation and implementation of the 2014-2020 European Structural and Investment Funds’ programmes ⁴⁹ .

The assessment highlighted that most Member States agreed that only a comprehensive integrated approach would be an effective strategy capable of breaking the cycle of disadvantage. Member States identified this renewed focus and the need to improve cooperation between all stakeholders at local level as a challenge. Most Member States agreed that it is socially fair and economically sound to invest more in children during the early years and that the provision of high-quality early childhood education and care is the key component.

Finally, in terms of achievements, the assessment found out that the Recommendation’s first two strands, on access to income and services, were instrumental in bringing about concrete policy changes and developing projects.

In addition, the study by the European Social Policy Network concluded that the improvement in the Member States on access to affordable quality services was insufficient and uneven. The least progress has been made in the areas of access to housing, healthcare and education.

Lessons learnt from the implementation of the Investing in Children Recommendation and the findings of the European Court of Auditors underline that combating social exclusion of children effectively requires reinforced efforts to better target the EU funding support in the Member States.

• Stakeholder consultations

The Commission carried out a targeted consultation between July and November 2020 through on-line questionnaires, focus groups and dedicated hearings, which involved Member States through the Council’s Social Protection Committee, the European Economic and Social Committee, the Committee of the Regions, the European social partners, civil society organisations and children themselves. This proposal reflects to a large degree the stakeholders’ views gathered during the consultations.

A majority of the respondents to the targeted consultation emphasised that the EU has a major role to play in supporting national, regional and local authorities in coordinated efforts to improve the situation of children in need. The stakeholders welcomed an initiative on a European Child Guarantee and stressed the importance of ensuring access to free early childhood education and care, free education, free healthcare, adequate housing and healthy nutrition, and of ensuring play and recreational activities for children. The majority of consulted stakeholders were in favour of proposing a Council recommendation on a European Child Guarantee. Stakeholders also stressed the importance of including specific groups of children in the target group of the Child Guarantee. They highlighted the importance of developing and implementing integrated strategies in fighting social exclusion and breaking the cycle of disadvantage, focusing not only on children’s needs, but supporting entire families.

The proposal benefits also from the wide consultation process with children where 10.000 children took part. The outcome called for the European Child Guarantee to focus on concrete and effective measures to ensure equal treatment of all children, with particular attention to children in vulnerable situations, and equal access to quality and affordable education for all children, from early childhood education and care to secondary education.

The summary of the results of the stakeholder consultations is attached to the Commission staff working document accompanying this proposal.

• Collection and use of expertise

The proposal is grounded in the Commission’s staff working document taking stock of the implementation of the Investing in Children Recommendation, the European Court of Auditors special report on child poverty and the expertise collected via a multi-annual preparatory action requested by the European Parliament, in particular the ‘Feasibility study for a Child Guarantee’ ⁵⁰ and the ‘Study on the economic implementing framework of a possible EU Child Guarantee Scheme including its financial foundation’. ⁵¹

The purpose of the feasibility study for a Child Guarantee was to clarify the potential scope of a European Child Guarantee and analyse conditions for implementing it, and to assess its EU added value. The study focused on four specific groups of socially vulnerable children: children in residential care, children with disabilities, children with a migrant background (including refugee children) and children living in a precarious family situation. It analysed the feasibility of guaranteeing them access to 5 key services: free healthcare, free education, free early childhood education and care, adequate housing and healthy nutrition.

The study concluded that the access of the above categories of children to the 5 services indeed needs to be improved. Lack of access may have short- and long-term consequences for children themselves, but also for society. Mainstream services need to be inclusive to ensure that children in need benefit fully and avoid stigma and segregation. Although ensuring access to the services would be an important part of tackling child social exclusion, it would need to be placed within a broader approach, as set out in the Investing in Children Recommendation, and within an enabling social policy framework. Finally, EU funds have considerable potential to play a more effective and strategic role in supporting access to the services.

The ‘Study on the economic implementing framework of a possible EU Child Guarantee scheme including its financial foundation’, complementary to the feasibility study, explored what could be the cost and benefits for the competent authorities of guaranteeing that all children in need have indiscriminatory access to the 5 services covered by the European Child Guarantee. The study concluded that benefits will have both a short-term impact on children’s lives and a long-term impact on children’s prospects as adults, on society and on future public expenditures. The study showed that the costs associated with providing children in need with free school meals, free quality early childhood education and care and removing school costs are relatively low, and are especially low in the light of the potentially high benefits that the actions can bring.

Finally, the Commission, at the request of the European Parliament and in partnership with UNICEF, is running pilot projects in Bulgaria, Croatia, Greece, and Italy to test these actions on the ground, and is researching the policy frameworks in Germany, Lithuania, and Spain. This will provide a valuable input to the implementation phase of the proposed recommendation.

• Impact assessment

The instrument proposed – a Council recommendation – offers guidance on how to implement the European Child Guarantee, while also allowing Member States the flexibility to design and implement measures, according to their national practices. Consequently, no impact assessment is needed.

The impact of the Recommendation will not only depend on how the Member States implement the measures. Country-specific circumstances, such as the macroeconomic situation, the design of the social protection systems and social services and the functioning of the labour market are also important, and make it difficult to disentangle the specific impact of the proposal from other factors.

The accompanying staff working document includes an overview of the most important challenges with regard to social exclusion of children, as well as gaps preventing equal access of children in need to the relevant services. It also includes a preliminary analysis of the Recommendation’s effectiveness and potential impacts.

The analysis used a combination of internal and external expertise. It also originates from numerous monitoring and peer learning activities and the feedback received during targeted consultations. Together, these contributions translated into measures detailed in the proposal.

In addition, a better collection of data at EU level is proposed in order to improve a close monitoring of actions in the Member States. A specific provision is included in the proposal to review the Recommendation after an initial period of implementation.

• Regulatory fitness and simplification

Not applicable.

• Fundamental rights

The European Child Guarantee will contribute to safeguarding the right of children to protection and care necessary for their well-being and to the legal, economic and social protection of the family (Article 24 and 33 of the Charter of Fundamental Rights of the EU).

4. BUDGETARY IMPLICATIONS

This proposal has no financial implications for the EU budget.

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

It is proposed that the Commission monitors the Recommendation’s implementation in the context of the European Semester, supported by the revised Social Scoreboard, including a new headline indicator on children at risk of poverty or social exclusion.

The proposal recommends that Member States nominate a national Child Guarantee Coordinator, equipped with adequate resources and mandate, who will effectively coordinate and monitor the implementation of the Recommendation and act as a contact person for the Commission. The Commission will work jointly with the Child Guarantee Coordinators and the Social Protection Committee to facilitate mutual learning (e.g. through peer reviews or peer counselling), share experiences, exchange good practice and follow up on the Member States’ actions taken to implement the European Child Guarantee.

The Commission will regularly report to the Social Protection Committee on the implementation of the Recommendation on the basis of the biennial reports from Member States.

The Commission also will engage with the Social Protection Committee in establishing a common monitoring framework, including quantitative and qualitative indicators, to assess the implementation of this Recommendation. The Commission and the Social Protection Committee will also work together towards enhancing the availability, scope and relevance of pertinent data at EU level.

Finally, after an initial period of its implementation, the Commission will take stock of progress made in the implementation of the Recommendation and report to the Council by 5 years after the adoption.

• Detailed explanation of the specific provisions of the proposal

§ 1-2 define the objective of the Recommendation and its personal scope (who are the children the Recommendation addresses).

§ 3 contains definitions, which are to be applied for the purposes of this proposal.

§ 4-5 are at the core of the Recommendation. They invite Member States to guarantee for children in need effective and free access to early childhood education and care, education and school-based activities, at least one healthy meal each school day and healthcare. Furthermore, Member States are invited to guarantee for children in need effective access to healthy nutrition and adequate housing. Member States should identify children in need, and within this group, take into account specific forms of a disadvantage experienced by children in need.

§ 6 refers to the efforts Member States should be making in building an enabling policy framework to address social exclusion and to break intergenerational cycles of poverty and disadvantage, and recommends a number of policy measures to that effect.

§ 7-10 recommend a set of national measures Member States should put in place in order to effectively implement the European Child Guarantee.

§ 11 establishes governance and reporting mechanisms. These include the following recommendations to the Member States:

·nominating national Child Guarantee Coordinators who will coordinate and monitor the implementation of the Recommendation;

·involve relevant stakeholders in identifying children in need and barriers they face in accessing and taking-up the services covered by the Recommendation, taking into account national, regional and local organisation and circumstances;

·submitting to the Commission a national action plan to implement the Recommendation;

·performing outreach activities;

·involving relevant stakeholders in the preparation, implementation, monitoring and evaluation of the national action plan;

·reporting regularly to the Commission;

§ 12 establishes implementation, monitoring and evaluation mechanisms and welcomes the intention of the Commission to:

·use the European Semester to monitor the implementation of the Recommendation;

·work jointly with the Social Protection Committee and the national Child Guarantee Coordinators;

·report regularly on progress to the Social Protection Committee;

·work jointly with the Social Protection Committee on a monitoring framework and relevant indicators;

·review the implementation of the Recommendation and report to the Council by 5years after the adoption;

·strengthen awareness raising and communication activities, and increase dissemination of results.