MAKING SENSE OF EUROPEAN SOCIAL POLICY: IRELAND AND THE LISBON TREATY

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1 MAKING SENSE OF EUROPEAN SOCIAL POLICY: IRELAND AND THE LISBON TREATY Institute of International European Affairs,Dublin Dublin Institute of International && European Affairs, by Tony Brown Institute of International & European Affairs, Dublin

2 2009 Institute of International and European Affairs. All rights reserved. This Publication may be reproduced in full or in part if accompanied with the following citation: Brown, Tony Making sense of European Social Policy: Ireland and the Lisbon Treaty, Institute of International and European Affairs, Dublin, Ireland, March As an independent forum, the Institute does not express opinions of its own. The views expressed in its publications are solely the responsibility of the author. ISBN: EAN: The IIEA would like to acknowledge the support of the European Commission for the project Europe 2.0 Cover Design by Johnny Ryan Interior Design by Hugh Donoghue & Brian Martin Tony Brown is a member of the Executive of the IIEA. The sole responsibility for the information in this puplication lies with the IIEA.

3 Page Background to the social policy 2 The social dimension in the Lisbon Treaty 3 A Union of values and rights 4 What values does the EU stand for? 5 Economic & social values 6 The Single Market 6 The Social Clause 7 The Charter of Fundamental Rights 8 What areas of responsibility does the Union have? 8 Co-ordination of economic, employment and social policies 9 National parliaments 9 Social dialogue and the citizen 10 Enhanced co-operation 11 Decision-making procedures in the EU 12 Balancing economic and social Europe 13 Public services (Services of general economic interest) 14 International trade and competition 15 Workers rights and the debate on the Lisbon Treaty 16 Make policy, not law 17 Conclusion 17 Appendix 1: Chronology of European Social Policy 18 Appendix 2: The growth of the Union 20

4 Background to the social policy In 1957, the Treaty of Rome was signed by the six founding members of the European Economic Community and set the objectives of economic and social progress, to be achieved by common action to eliminate the barriers that divided Europe. In 2004, an historic enlargement raised the number of members to 25 and later to 27 in In 2007, the 27 members of the European Union signed the Berlin Declaration celebrating the ending of division by the enlargement of the Union and restating the ideal of a European model combining economic success and social cohesion. The economic dimension of European integration has been developed and expanded by the achievements of the Single Market - with its emphasis on the free movement of people, goods, services and capital the impact of cohesion policy and the structural funds, and the introduction of the single currency. More recently, a key initiative saw the adoption of the Lisbon agenda, with its emphasis on growth, competitiveness and social cohesion. The social dimension of EU policy has evolved over the years with solid achievements in areas such as equality between men and women, training opportunities and mobility for young workers and labour law. However, important issues remain the subject of intense political debate across the Union, ranging from the provisions for social protection and workers rights to measures to combat discrimination and social exclusion. The signing of the Lisbon Treaty in December 2007 saw the culmination of a prolonged process of debate and negotiation which centred on the reform of the EU s institutional framework, but which also addressed the responsibilities of the Union and its Member States and the balance between the economic and social aspects of integration. At the time of writing, 25 Member States have ratified the Lisbon Treaty in their parliaments. The text of the Lisbon Treaty was drawn up in The social dimension of the Union was a key issue in its formulation. There was a strong Irish input into this work with all Irish convention members participating fully and the Irish Secretary General of the Commission playing a key role. The rejection of the text of the Constitutional Treaty resulted in the adoption of the text of the Lisbon Treaty. 2 Image European Communities, 2009

5 Signing of the Berlin Declaration 2007 The social dimension in the Lisbon Treaty From a social perspective, the Lisbon Treaty builds on the substance and achievements of the previous Treaties. It provides a basis for progress towards the stated values and goals of a social Europe, facilitating increased connection between the Union and its citizens and states, but without creating new responsibilities for the Union. The Treaty does not endorse a particular economic and social model but rather balances competing options. The Lisbon Treaty provides a framework for economic and social development in line with the emerging needs of the enlarged Union, and on the basis of policy choices by the Member States across a whole spectrum of issues. While fundamental principles are established and social policy legislation is fully protected, the future direction of social policy is not settled definitively and many important issues remain properly the subject of normal political debate and decision at both national and EU levels. 3 Top image European Communities, Left image 80,000 Workers on the Streets European Trade Union Conferderation, 2005

6 A union of values and rights Peace, human rights and respect for human life are the three most important values in the eyes of Europeans. - Eurobarometer Standard 69, November 2008 The Lisbon Treaty amends two existing treaties, which at the moment, add up to the EU s legal framework - the Treaty on European Union (TEU) (known as the Maastricht Treaty) and the amended Treaty of Rome, which is to be renamed as the Treaty on the Functioning of the European Union (TFEU). Most of the treaty articles relating to the social dimension of the Union are found in Part 3 of the TFEU. Yet the social dimension informs the entire text, which should be assessed as a whole. In particular, the values and objectives, in the early articles of the TEU and the incorporation of the Charter of Fundamental Rights through an article and an attached protocol, provide a basis for the development of a more social Europe which takes into account the working and social lives of EU citizens. Eurobarometer Survey 69, November 2008 THE VALUES OF EUROPEANS In terms of shared values, European member states are: Close to each other Distant from each other Don t know Inner pie: Eurobarometer Survey 69 Spring Outer pie: Eurobarometer Survey 66 Autumn

7 What values does the EU stand for? The preamble and the early articles of the TEU establish the EU as a union of values and rights. Article 2TEU sets out the Union s values: Equality between men and women Tolerance Respect for minorities Non-discrimination Human rights and dignity Justice Solidarity The statement of the EU s objectives in Article 3TEU reflects these values and has a strong social flavour focusing on the poor, the elderly, women, children and the disadvantaged in society. It highlights: Sustainable development The social market economy The linked goals of full employment and social progress Combating social exclusion and discrimination Promotion of social justice and social protection Equality between men and women Solidarity between generations Promotion of children s rights Promotion of economic, social and territorial cohesion All of the social objectives listed above have policy implications. For example, the general commitments to combat inequality and discrimination are emphasised in Articles 8 and 10 TFEU which provide that the Union shall have regard to these overall objectives in defining and implementing all of its policies. There is an agreed Declaration in Article 8 TFEU that the Union should aim, in its different policies, to combat all kinds of domestic violence, to prevent and punish criminal acts and to support and protect victims. The advance towards a union of values is not restricted to the regional level. Europe s social values are put at the heart of its relations with the wider world under the terms of Article 3(5) TEU. This refers to the goals of solidarity and mutual respect among peoples, eradicating poverty, protecting human rights and in particular, the protection of children s rights. Moreover, Articles 21 TEU and 205 TFEU commit the Union to advancing in the wider world the principles which have inspired its own creation, development and enlargement and reiterates the social values, thus ensuring continuity and coherence between the two treaties. Closing the gap between rhetoric and action will be critical, especially as regards development co-operation. 5 Images European Communities, 2009

8 Economic & Social Values The argument has been advanced that the EU is more about economic than social values, and that references to competitiveness amount to a contradiction of the social goals listed on the previous page. To take account of this, the Treaty of Rome reference to undistorted competition has been removed, at the demand of France following the referendum debate in that country, and a Protocol has been agreed to ensure continuity of existing internal market rules. This is important because the single market is not yet complete but it has already provided Ireland with economic opportunities, which have been translated into growth and jobs. Remaining distortions of competition in this market constitute barriers to Irish enterprises and constraints to Irish job creation. The Single Market No border formalities Mutual recognition/standardisation of products Competition in many service/utility sectors No capital restrictions An end to exchange-rate uncertainty (euro-zone) At the same time, EU social provisions in areas such as gender equality, non-discrimination and labour law provide necessary checks and balances. 6 Images European Communities,

9 The Social Clause Of particular significance is the so-called Social Clause (Article 9 TFEU) which requires the EU, in defining and implementing all of its policies to take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion and a high level of education, training and protection of human health. The specific reference to social exclusion was included as a result of a proposal made by the European Anti-Poverty Network in discussion with the Taoiseach. Added attention has been given in this text to workers rights and employment policy co-ordination, though the precise implications will need to be teased out in practice. Significant changes are made in respect of cross-border health threats. The scope of EU action on public health is broadened to include monitoring, early warning of and combating serious cross-border threats to health. It is further provided that the Union shall encourage cooperation between the Member States to improve the complementarity of their health services in cross-border areas. Article 168(5) includes provision for Union measures to protect public health regarding tobacco and the abuse of alcohol. Article 168(7) further clarifies the competence of the Member States in the health field, including the definition of their health policy, organisation and delivery of health services and medical care and the allocation of the resources assigned to them. What are the most important issues facing EU countries at the moment? Rising prices/ Inflation Unemployment Crime Economic Sitation Healthcare Pensions Immigration Taxation Housing The Terrorism educational system 7 Data from Eurobarometer Standard 69 (June 2008)

10 The Charter of Fundamental Rights The incorporation of the Charter of Fundamental Rights into the treaties, through the terms of Article 6(1) TEU, gives the Union a framework of individual rights, which includes key economic and social issues. It will ensure that individuals and concerned groups can access effective remedies where rights and freedoms guaranteed by EU law are violated either by the Union s institutions or by Member States when implementing EU law. The Charter does not establish any new power or task for the Union, and it is made clear that full account must be taken of national laws and practices. What areas of responsibility does the Union have? Under Article 5 TEU, the European Union can only act within the limits defined by the Member States. Unless the Member States give the EU powers in a certain policy area, power remains with the Member State. In general, responsibilities are shared between the Union and Member States in the areas of social policy, economic, social and territorial cohesion, consumer protection and common concerns in public health matters. However, competence in important areas such as health and education remains with the Member States. Social policy is an area of EU activity in which both political and national differences of real substance are obvious. In negotiation, many government representatives insisted on the importance of national culture, traditions and systems in sensitive social areas, including labour markets and social protection, and these national systems are often jealously guarded. Article 4 TFEU sets out the main fields of shared competence in social policy, ranging from workers health and safety to the combating of social exclusion. Details are set out in Title X TFEU. The right to pay, the right of association, the right to strike and the use of lockout remain the responsibility of national governments under Article 153(5) TFEU. Article 6 TFEU states that the EU will take complementary or supporting action in the areas of public health, education, vocational training, youth and sport. This is mainly where there is a cross-border dimension involving more than one Member State. 8

11 Signing of the Charter of Fundamental Rights 2007 Co-ordination of Economic, Employment and Social Policies The co-ordination of the economic and employment policies of the Member States are treated separately in Article 5 TEU. Member states have primary responsibility for co-ordination of economic and employment policies. Article 5(3) provides that the Union may, in future, take initiatives to ensure co-ordination of Member States social policies. National Parliaments There will be an enhanced role for national parliaments under Protocols attached to the Treaty. This ensures that decisions will not be made at Union level unless it is more effective than making them at national or local level. It also helps to ensure that the involvement of the Union is as limited as possible, as long as the decisions taken are in keeping with the provisions of the various Treaties. This could contribute to reducing the perceived democratic deficit, arising from shortcomings in national political and parliamentary systems which have tended to marginalise EU issues. It will also, however, make significant demands on these systems in terms of attention and resources. 9 Image The Council of the European Union

12 Social Dialogue and the Citizen Title II TEU - on the Democratic Life of the Union, is designed to enhance the social dimension as well as to increase the democratic legitimacy of the Union by linking it directly to citizens. Article 10 TEU provides that every citizen shall have the right to participate in the democratic life of the Union. Article 11 TEU states that the Union will give opportunities to citizens and civil society bodies to make known their views on areas of Union action and to maintain open dialogue with representative associations. The Citizens Initiative, in Article 11(4) TEU, establishes that not less than one million citizens who are nationals of a significant number of Member States may invite the Commission to submit a proposal for EU legislation on a matter they consider should be the subject of a legal act of the Union. Article 24 TFEU states that the European Parliament and Council shall set out the detailed arrangements for carrying out this initiative. Article 152 TFEU provides that the Union shall recognise and promote the role of the social partners at Union level employers, trade unions and representatives of public services and facilitate social dialogue, taking into account the diversity of national systems. A further clause states that the Tripartite Social Summit for Growth and Employment shall contribute to social dialogue. Articles 154 and 155 TFEU set out the conditions for the consultation of the social partners on Commission proposals. The trade union movement has expressed displeasure with the fact that these references to social dialogue are confined to the Social Policy field. Article 301 TFEU provides that the Economic and Social Committee, which exercises an advisory function, shall consist of representatives of the social partners and of civil society. Article 12 TFEU provides that consumer protection requirements shall be taken into account in defining and implementing other Union policies and activities. 10 Top image European Communities, Bottom image European Communities, 2009

13 Enhanced co-operation Article 20 TEU provides the framework for the establishment of enhanced co-operation (detailed in Title III TFEU), which may take place, as a last resort, in policy areas including social affairs. It must be established that the objectives of such co-operation cannot be attained within a reasonable period under existing provisions. Co-operation must aim to further the objectives of the Union, protect its interests and reinforce its integration process. At least nine Member States must participate and co-operation must be open at any time to all Member States. EU Commissioner for Employment Social Affairs and Equal Opportunities Vladimir Spidla 11 Image The Council of the European Union Image European Communities, 2009

14 Decision-making procedures in the EU Qualified Majority Voting (QMV) becomes the normal voting procedure in the Union under the Lisbon Treaty. In relation to social matters, given the sensitivity of some Member States, a combination of QMV and unanimity has been agreed. The veto has been retained, by way of derogation, in certain aspects, notably in the areas of social security, protection of workers where their employment contract is terminated, representation and collective defence in the interests of workers, employment conditions for third country nationals residing in EU territory and action to combat discrimination. A third variation of decision making is where QMV has been extended to measures relating to social security for migrant workers, but subject to an emergency brake. Article 48 TFEU provides that where a member of the Council considers that a draft European law or framework law... would affect fundamental aspects of its social security system, including its scope, cost or financial structure, or would affect the financial balance of that system, it may request that the matter be referred to the European Council for consideration and decision by unanimity. The Passerelle Clause, a bridging clause (Article 48(7) TEU), will apply in the social field. This clause provides that the heads of state and government, each with a veto, may decide to move from decision-making by unanimity to decision-making by QMV in a given area. In other words, the Taoiseach could block such a move by a veto. There is a further limit on the use of this provision that involves national parliaments. Any proposal to use this provision must be notified to the parliaments of the Member States, and if a single national parliament makes known its opposition within six months, the proposal will not be adopted. 12 Image European Communities, 2009

15 Balancing economic and social Europe The Treaty revisions seek to strike a balance between economic and social policies. Of importance in this respect is: Article 7 TFEU, the so-called Consistency Clause, which reassures citizens that the Union is obliged to ensure consistency between its policies and activities, taking all of its objectives into account and in accordance with the principle of conferral of powers. Titles X and XI TFEU - Articles enumerate the existing areas in the EU s body of social legislation: equal pay for male and female workers; paid holidays; the annual report on the achievement of social policy objectives; the work of the Social Protection Committee; the annual Commission report to the European Parliament on social developments within the Union; and the legal basis for the continuing work of the European Social Fund. Top image European Communities, Bottom left image European Communities, Bottom right image IIEA, 2009

16 Public Services (Services of General Economic Interest) The debate on public services, such as transport, has focused on the means by which social inclusion might be achieved through protecting those services from the application of EU competition policy (and thus liberalisation), through increased competition or through a mixture of the two. The Lisbon Treaty provides a legal basis in Article 14 for regulations establishing and defining the principles and conditions for the provision of public services. QMV and co-decision will apply to such decisions. An important addition to the article stresses that Member States still have the responsibility for public services, providing that such laws shall be adopted without prejudice to the competence of Member States, in compliance with the Constitution, to provide, to commission and to fund such services. The European Trade Union Congress and other groups had lobbied intensely in favour of the inclusion of a strong commitment to public services and of a specific provision to protect them from the strict application of competition policy. In the end game, it was accepted that the introduction of some EU regulation and the retention by Member States of general competence provided a basis for political debate and decision at both national and Union level where the principle of subsidiarity would have relevance. Of great importance, a Protocol on Services of General Economic Interest was added to the Treaty text, which has been welcomed by the trade union movement. It emphasises the importance of services of general interest and contains a number of interpretative provisions based on the shared values of the Union, which are relevant for services of general economic interest. 14 All images European Communities,2009

17 The Protocol makes reference to the essential role and the wide discretion of national, regional and local authorities in providing, commissioning and organising services of general economic interest as closely as possible to the needs of the users. It underlines the diversity of such services and the differences in the needs and preferences of users, arising from geographical, social or cultural situations. It emphasises the importance of ensuring a high level of quality, safety and affordability, equal treatment, universal access and user rights. Critically, the Protocol states that the provisions of the Treaties do not affect in any way the competence of Member States to provide, commission and organise non-economic services of general interest. International Trade and Competition Questions concerning the relationship between the Common Competition Policy and Services of General Economic Interest continue to give rise to controversy. They refer, in particular, to the arrangements for the negotiation of international trade agreements conducted by the European Commission on the basis of a mandate from the Council. The Commission has negotiated on behalf of the Member States in world trade talks since the 1960s. The Common Commercial Policy has been since then, and remains, an exclusive competence of the Union. The Treaty contains a provision for the extension of QMV, with certain exceptions, to Council decisions on such negotiating mandates. It has been argued that this provision could facilitate the liberalisation and eventual privatisation of trade in sensitive public services by removing the power of individual Member States to veto a proposal that they strongly disagree with. These concerns were taken into account by the Irish Presidency, which inserted a specific safeguard clause in Article 207(4) in respect of trade in social, education, health and other public services. These provisions ensure that decisions will be the subject of normal political interaction. The safeguard clause states in Article 206(6) TFEU that the exercise of the competences conferred by this article in the field of the common commercial policy shall not affect the delimitation of competences between the Union and the Member States. In other words, in the areas referred to above where the Member States, and not the Union, have responsibility, the Union cannot extend its role. The position of these important public services is protected. 15

18 Workers Rights and the debate on the Lisbon Treaty Concerns have arisen in respect of the rights of workers, and of their trade unions, in a European labour market that is subject to great change due to globalisation, the international financial crisis and the impact of the 2004 EU enlargement. These concerns have been heightened by recent judgements of the European Court of Justice (ECJ) dealing with the balance between the right of businesses to supply cross-border services and the right of workers to take action to protect local arrangements on pay and working conditions. The cases in question refer in particular to the application of the 1999 Posting of Workers Directive which provides that the same working conditions and pay in an EU Member State should be applicable both to workers from that state and to workers from other EU countries posted to work there. In the Laval, Viking and Ruffert cases, in Sweden, Finland and Germany, the ECJ dealt with disputes about rates of pay of workers from new EU Member States, which were significantly below effective local rates. The judgements in these cases are seen by trade unions as placing market freedoms above collective bargaining and the right to take collective action. This would limit the capacity of workers to respond to perceived threats to pay levels and working conditions from enterprises or agency workers entering their labour market from another Member State. Clearly there are differing opinions on these judgements. The issues were debated at great length in the European Parliament during the passage of the Services Directive. The debate is about finding a balance between the freedom to move and to establish business within the EU and the social goals of the Union. The incorporation of the Charter of Fundamental Rights into the Lisbon Treaty is important in this regard. The European Trade Union Confederation (ETUC) has argued that social rights built into the Charter of Fundamental Rights would have proved helpful in the ECJ cases. The Agency Workers Directive aims to ensure that after 12 weeks in a given job, agency workers assigned to work for a client company should not be given less favourable basic employment conditions than a similar permanent worker in that client company unless it is justified. Ministers at EU level are currently discussing the final form of this Directive. The ETUC and the Irish Congress of Trade Unions have argued that the recent ECJ rulings are not the only possible interpretations of the EU Treaties. They support the provisions of the Lisbon Treaty and the Charter of Fundamental Rights but call for a legally binding Social Progress Clause to be adopted. This should provide: that the Single Market is not an end in itself but is established to achieve social progress; that social rights such as the right to collective bargaining are not secondary to the rules of the market; and that economic freedoms cannot be used to circumvent national social and employment laws or for unfair competition on working conditions. 16

19 Make policy, not law The EU encourages Member States to co-ordinate their actions in a number of policy areas on a voluntary basis, without resort to EU legislation. It is primarily achieved by the establishment of guidelines, indicators or benchmarks, the exchange of best practice and the use of peer review and evaluation. It is associated primarily with the Lisbon Strategy, a Union strategy to transform the economy of the Union by 2010 into the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion. However, the method has been used with benefit in developing policies and programmes in areas such as combating poverty. It is referred to as the open method of coordination. The treaty provides for the use of the open method of co-ordination in a number of areas, without recognising the method as a general principle: Articles 149 TFEU (Employment), 156 TFEU (Social Policy), 181 TFEU (Research and Development), 168 TFEU (Public Health) and 173 TFEU (Industrial Policy). Conclusion The social dimension of the Union is given strong foundations in the Treaty, in particular in terms of its values and objectives. The competences of the Union and of the Member States in social matters are more clearly defined. A range of common policies and programmes are provided for in the TFEU. The important links between goals and policies are better established than in previous texts. In summary, the concept of a Social Europe is clearly defined. The conclusions of the European Parliament are relevant, underlining the importance of a text that facilitates a balance between social rights and the functioning of the internal market, while laying the foundations for progressive development of the European Social Model; underlines in that connection the importance of the new horizontal clause, under which the Union is required to comply in all its areas of competence with the most important social objectives and to strive to secure their implementation Image European Communities,

20 2000 Lisbon 1972 Paris 1972 Paris 1989 Strasbourg 1989 Strasbourg Appendix 1: Chronology Nice of European Social Policy The Treaty of Paris established the European Coal and Steel Community with the goal of promoting improved working conditions and an improved standard of living for the workers The Treaty of Rome included a Chapter on Social Provisions, creating the European Social Fund The Paris Summit emphasised the importance of vigorous action in the social field as to the achievement of the economic and monetary union and provided for a social action programme for the enlarged EEC Adoption of the Social Action Programme, highlighting equality between men and women The Charter of Fundamental Social Rights of Workers was adopted at...the Strasbourg European Council The Maastricht Treaty included a controversial Social Protocol permitting the UK to opt out on a wide-ranging social agenda. 18 Images of Paris and Strasbourg Website of the French Presidency of the Council of the European Union, 2008 Images of Lisbon and Nice European Communities, 2009

21 1957 Rome 1957 Rome 1997 Amsterdam 1997 Amsterdam 2007 Berlin 2007 Berlin Dublin The Amsterdam Treaty inserted a Social Protocol into the Treaty text following the New Labour election victory in the UK The Lisbon Agenda was adopted by the European Council, setting the strategic goal of making the EU the most competitive and dynamic knowledge-based economy in the world, capable of sustained economic growth with more and better jobs and greater social cohesion The Charter of Fundamental Rights was adopted as a political declaration at the Nice European Council The Treaty of Nice provided for the establishment of the Social Protection Committee to promote co-operation between Member States... on social protection policies The European Convention adopted a draft Constitutional Treaty, incorporating the Charter of Fundamental Rights The text of the Constitutional Treaty was agreed by an Intergovernmental Conference under the Irish Presidency Signing of the Berlin Declaration. The text of the Lisbon Treaty was agreed. Images of Rome, Amsterdam and Dublin European Communities, Image of Berlin Brandenberger Tor by Tim M. Hoesmann Website of the German Presidency of the Council of the European Union, Dublin

22 Belgium France Germany Italy Appendix 2: The growth of the Union Luxembourg Netherlands Denmark 1957 The first six countries Ireland UK Greece Portugal 1973 The six become nine and nine becomes ten Spain Austria 1986 The ten become twelve Finland Sweden Cyprus 1995 The twelve become fifteen Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Slovakia Slovenia Bulgaria Romania 2004 The fifteen become twenty-five, and in the 25 become today s total of twenty-seven.

23 The Institute of International and European Affairs Patron: Mary McAleese, President of Ireland The Institute of International and European Affairs is an independent self-governing body which disseminates information and analysis of European and international affairs and focuses in particular, on the role and contribution of Ireland in Europe and the world. The Institute provides a permanent forum for the identification and development of Irish strategic policy responses to the continuing process of European integration and to the wider international issues which impact on Europe. The main aim is to provide objective analysis of the key political, economic, social and legal issues for its members and the wider policy community. This is done by facilitating policy discussion with inputs from all relevant sectors, assembling information on key topics and disseminating research results. The legal form of the Institute is that of a company limited by guarantee and not having share capital. It is funded by annual membership subscriptions, from companies, organisations, institutions and individuals. A number of founding sponsors enable the Institute to operate on a financially secure basis. It also receives an annual grant from the European Commission.

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