Is the European Union finally waking up to the realities of a failing welfare system? :huh: Apparently Sweden has . . . The Social Democrats have governed Sweden for 65 of the last 74 years, and that is now coming to an end. Yet, Sweden is one of only four EU countries to already have an employment rate above the goal of 70% employment by 2010 as called for in the 2000 Lisbon Agenda. Sweden soon has a new government and a new Prime Minister. The center-right alliance led by Fredrik Reinfeldt of the Moderate Party won a narrow victory over the ruling Social Democrats and their left-wing allies. http://www.sweden.se/templates/cs/Article____15415.aspx It's the first time in 25 years that we now have a majority government that's been elected on job creation. The election has been closely watched by other EU governments facing the need for welfare reform because of ageing populations and creaking pension and healthcare systems. http://euronews.net/create_html.php?page=d...0339&lng=1# Employment and welfare reform in the EU Barry Watts The Lisbon summit in 2000 set the ambitious target of making the EU “the most competitive and dynamic knowledged based economy in the world, capable of sustainable growth with more and better jobs and greater social cohesion.â€1 One of the main goals of the Lisbon Agenda was to increase employment throughout the EU in an attempt to address the impact of an ageing population on the supply of labour, sustain public finances and improve the EU’s competitiveness. Conclusion Although efforts have been made to make work pay and reform EU members’ benefit systems, the EU has a long way to go to achieve its objectives on employment and looks likely to miss the Lisbon target. Unemployment traps are still very high. Means tested benefits need to be lowered and Tax Credits such as the US’ EITC need to be adopted across the EU to tackle rampant unemployment. http://www.openeurope.org.uk/research/8watts.pdf This has me curious . . . with the increasing Minimum Wage here in the US, how many of those employees are gong to be disappointed when they see their Earned Income Credit eliminated or decreased? It will be a shock to some that they were paid more, yet somehow their after tax income didn't change much at all. What does your crystal ball say?
