Answer given by Mr Schmit on behalf of the European Commission

Prior to the outbreak of the COVID-19 crisis, poverty was steadily declining in the EU, with a substantial decline in the rate of severe material deprivation[1]. The COVID-19 outbreak risks reversing this progress, although simulations[2] show that the increase may be limited thanks to the measures adopted. These include the EUR 100 billion of the new SURE instrument ( Support to mitigate Unemployment Risks in an Emergency) and the mobilisation of the existing EU funds through the CRII and CRII+ packages[3].

The 2021 Annual Sustainable Growth Strategy[4] highlighted that fairness remains one of the four principles to guide the recovery. The Recovery and Resilience Facility’s general objective is, inter alia, to promote the Union’s social cohesion by supporting Member States to emerge stronger from the current crisis and ensure economic and social resilience. The national recovery plans are meant to mitigate the social and economic impact of the crisis. These resources will add to the cohesion policy funds. Moreover, REACT-EU provides additional resources to the cohesion policy and the programme for the most deprived in 2021 and 2022. The European Social Fund Plus (ESF+), dedicated to employment, education and social policies provides that Member States shall allocate at least 25% of their ESF+ resources to social inclusion, including 5% to tackle child poverty and additional 3% for the most deprived.

The European Pillar of Social Rights will be the compass in ensuring better working and living conditions in the course of the recovery. In March, the Commission will put forward an Action Plan to implement its principles including further measures to combat poverty and inequality, such as a European Child Guarantee.

• [1] In 2019, the rate of severe material deprivation in the EU-27 was 2.8 percentage points lower than in 2015, down from 8.4% to 5.6%. https://ec.europa.eu/eurostat/statistics-explained/pdfscache/34097.pdf
• [2] https://ec.europa.eu/jrc/sites/jrcsh/files/jrc121598.pdf and https://ec.europa.eu/jrc/sites/jrcsh/files/jrc121228_policy_brief-_the_impact_of_the_great_lockdown_on_hh_25_06_2020_1.pdf
• [3] https://ec.europa.eu/regional_policy/en/newsroom/news/2020/04/04-02-2020-coronavirus-response-investment-initiative-plus-new-actions-to-mobilise-essential-investments-and-resources
• [4] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2020:0575:FIN