Are minimum incomes the answer to poverty and “working poor”?

The dark spectre of unemployment is stalking Europe and 2010 is the year it has earmarked in the fight against poverty. Almost 1 in 5 people across the European Union are at risk from poverty according to figures from Eurostat. Ahead of a report by Portuguese leftist MEP Ilda Figueiredo (GUE/NGL) a recent hearing by Parliament's Employment Committee looked at what impact a minimum European income directive could have.
This year is the European Year Against Poverty and Social Exclusion and the aim is to help the 17% or 85 million people in the EU who are considered at risk of poverty because their income is less than 60% of the average national income in their country.

The question at the hearing on 17 March was whether a pan-European directive should be drawn up to set a minimum income. 

Although rising unemployment continues to be the main driver of poverty the working poor, those whose salaries are at or below the poverty line are also at risk. 

“20 million working poor”

This point was taken up by Henri Lourdelle of the European Trade Union Confederation (ETUC): “We generated jobs in the EU but they tend to be characterised by precarious conditions,” he told the hearing. Europe has “20 million working poor, who can't live in a dignified manner on their jobs”. He backed new legislation.

The Chair of the Committee, French Socialist Pervenche Berès said, “Finance ministers are aggravating the social situation and undermining the aim of reducing poverty”.

Rebecca Smith of Business Europe (the employers' federation) said, “it is important to acknowledge that employment although not a guarantee against poverty is a necessary prerequisite” for combating poverty. She said, “if we boosted growth in the EU by 1 to 2%, 6.5 million jobs would be created.”

British Liberal Liz Lynne backed the idea of a minimum income because the lack of common standards has led to great disparities in poverty across Europe. But she thought that EU ministers would block it.

“Poverty an infringement of human rights”

Ilda Figueiredo said that “poverty is an infringement of human rights” and called for guaranteed minimum income and access to health and education.

Some EU countries already have a minimum income ranging from €1641 per month in Luxembourg to €123 in Bulgaria.

The highest level of poverty is in Latvia (26%), Romania (23%) and Bulgaria (21%). Poverty is lowest in the Czech Republic (9%), the Netherlands and Slovakia (11%).

A discussion on the draft Figueiredo report will take place on 27 April and the Employment Committee will vote on it in June.