Towards an European minimum income

This study examines whether it would be appropriate to introduce a guaranteed minimum income (GMI) at European level. It begins by describing the features of GMI systems implemented in the Member States for individuals of working age who are fit for work as well as the challenges they encounter and current trends. The study then looks at the legal feasibility of a binding European instrument relating to GMI schemes. A careful analysis both of institutional initiatives (Commission, Council) and of Community legislation shows that Article 153(1)(h) of the Treaty on the Functioning of the European Union, on the integration of persons excluded from the labour market, might provide a promising legal basis for future EU initiatives in this area. The financial cost of a revaluation of national GMIs has also been analysed in accordance with various scenarios, taking into account poverty lines and GMI take-up. This cost, estimated at the very least to be EUR 17.2 billion, should be borne by a European social solidarity fund either financed by the European Union or co-financed by the EU and the Member States. Alternative sources of financing are also put forward.