Employment, Social Affairs & Inclusion

News 29/07/2022

Recent social policy developments in Albania, Czechia, Italy, North Macedonia, Malta, Sweden and Lithuania

Seven new Flash Reports prepared by the European Social Policy Network (ESPN) are now available and provide information on recent social policy developments in Albania, Czechia, Italy, North Macedonia, Malta, Sweden and Lithuania

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Albania’s digital transformation of public services delivery

Albania’s government in a bold and sudden move announced that as of 1 May, 95% of the services delivered by the public administration will be provided online only and the service windows for in-person communication with the citizens will be shut down, in a bid to further improve service quality and transparency. Low-levels of digital skills among socially vulnerable groups are likely to impede this transition. The establishment of call centres is a welcome measure in the short term, but in the long run the digital divide will need to be addressed.

Czechia: New measures to reduce the financial distress of households resulting from the current energy crisis

Due to the collapse of some energy suppliers and the rise in energy prices since the last quarter of 2021, the government prepared a reform of the housing allowance, which was voted through at the end of January 2022. The main points of the reform consist in a one-off extension of the number of beneficiaries and greater flexibility in the parameters of the benefit. A few months after its introduction, we can better assess its adequacy and effectiveness in the context of actual price increases. The current high level of non-take-up of this allowance might hinder its impact. The government has promised to simplify access to the benefit. In response to rising inflation, the government has announced further social benefits.

Activation and anti-poverty policies in Italy: increasing conditionalities in the design of the “Citizenship Income”

The new Budget Law for 2022 modified the Citizenship Income by strengthening its conditionality, with a view to reducing “disincentives to job searching”. However, the Government has not intervened to resolve the main weaknesses of the Italian minimum income scheme.

North Macedonia widens support for vulnerable energy consumers

The ongoing energy crisis has prompted several governmental measures in North Macedonia in 2022, including support to protect the most vulnerable. Among other measures, the support included a top-up benefit for guaranteed minimum assistance (GMA) beneficiaries and for pensioners between March and May, as well as an energy bill discount for those on low incomes over a twelve-month period. The number of beneficiaries has just been published. 35,000 households received the GMA, 328,840 pensioners received the one-off support, and 6,500 low-income households received the energy bill discount.

Malta: Turning the electoral programme into social policy changes

In March 2022, general elections were held in Malta. The programmes of the two main parties, the Labour Party and the Nationalist Party, both included extensive considerations on the social policy sphere, with many “social proposals”. The Labour Party won the elections with a landslide. The proposals made in the manifesto have now become commitments to be implemented in the new legislature.

Policy responses to combat energy poverty in Sweden

The sharply increasing energy costs have become a major topic both in the media and in politics. Policy responses from the government have been both to reduce taxes on fuel and diesel, and to retrospectively compensate households for part of their electricity bills during the winter season. The compensation has a clear regressive distributional profile and can also be seen as conflicting with the green transition.

Anti-inflation measures come into force in Lithuania after fierce discussions by top-level public actors

In the last five years, Lithuania has experienced a period of successful economic development and rapid personal income growth. But it has now become the leader in inflation in the EU. The President of the country, the President of the Central Bank, the Government, and the political opposition have engaged in a public debate on measures aimed at helping the people most affected by rising prices. They largely agree. Opinions differ only on the targeting of the measures, and there are concerns about the public budget deficit. Despite these concerns, the anti-inflation measures were approved and are being implemented.

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