FINLAND: Social Democrat and Union leaders change their minds on basic income

FINLAND: Social Democrat and Union leaders change their minds on basic income

Leaders from the traditional biggest opponents to basic income in Finland, the Social Democratic Party and Trade Union Central Federation STKK, said their organisations should eventually consider basic income.

Two major faces from the Finnish leftist political sphere, the Social Democratic Party (SDP) chairman Antti Rinne and Trade Union leader Antti Palola have just made a significant shift of attitude towards basic income during SuomiAreena, an annual public debate forum held in Pori, Finland.

“If basic income means that everyone is secured in a decent way, the SDP must be involved in this debate” said Antti Rinne, Social Democrat leader and former minister of finance. Rinne thinks it is important that any basic income would not make it more difficult to take up work.

The Social Democratic Party has been the main basic income opponent in Finland. During the last general elections, 80% of their candidates for parliament said they opposed basic income.

A similar move came from Trade Union STTK leader Antti Palola, who was also speaking at SuomiAreena. He said:

Personally, I’ve been thinking about this issue and come to the conclusion that we in the trade union movement need to reposition ourselves on this issue. After all, we have traditionally been very tightly in favour of this discretionary income-related basic social security. We have seen that it is the right thing.

According to Palola, the old vision of Trade Unions was relevant as long as the people had permanent – big or small – incomes from standard employment positions. However, the labor market is rapidly changing and the Union movement should hear these new signals.

The new center-right government of Finland has committed itself to implement a basic income pilot, although the details are not known yet. The SDP has not yet announced whether or not it will oppose this project in the parliament.


Credit picture CC Demarit

With contribution from Johanna Perkiö

French Regional Council of Aquitaine to assess feasibility of basic income pilots

French Regional Council of Aquitaine to assess feasibility of basic income pilots

Announcements from Finland and the Netherlands on the launch of basic income pilots are making ripples across Europe. In France, the Southern Region of Aquitaine might well be the next place where experiments are conducted to assess the viability of basic income.

Last Monday, July 6th, the regional Council based in Bordeaux voted through a motion marking the start of a process towards running basic income pilots in the region.

Despite a heated debate before the vote, the motion proposed by Green Council member Martine Alcorta was passed unanimously. In fact, several political groups opposed the motion, but decided to abstain when it came to a vote (see the video of the plenary here).

The president of the Council, Alain Rousset in particular rejected the proposal, which he believes is “against the work ethic”. But in the end he also stated he “could not oppose generosity”.

The motion was obviously supported by the Greens, but also with enthusiasm by the radical left coalition “Aquitaine Région Citoyenne” and by one right-wing member and deputy mayor of the city of Bordeaux, who explained her position to the online newspaper Rue89:

« I have always been in favour of the thinking around basic income. Many people don’t get by despite the number of benefits and social assistance schemes. We have to simplify everything: both administrative procedures for citizens and the workload for social workers.

Basic income is not an incentive not to work. On the contrary, it reveals people’s capacities once freed from pressures. We have to launch new experiments with a new spirit. We need new proposals, new models from what currently exist, and to think of a new system. »

So far, the adopted motion only commits the Council to start a call for projects to assess the feasibility of basic income pilots in the region. Under french law, such pilots could only be conducted under the direction of a voluntary department (sub-sections of regions in France), with the agreement of the government. The region would only provide financial support.

The initiator of the motion suggests that the pilots should be based on a proposal drafted last March by BIEN’s Affiliate, the French Movement for Basic Income, to reform the existing means-tested minimum income in France, the “Active Solidarity Income” (RSA). Under this proposal, the RSA would be automatically distributed with no work requirement and along with a taxation system more friendly towards part-time workers.

The current system suffers from many flaws. It is complex, discriminatory, household-based, and moreover it discourages people from pursuing paid work – or encourages them to instead pursue undeclared work – because of its threshold effects. Because of this, the RSA is neglected by the very people who need it. The take-up of RSA is only just over 50% of those eligible.

The proposal being pushed forward is certainly not a perfectly unconditional basic income, but it would constitute a solid step in that direction.

“This is a unique and unprecedented decision in France,” said Green local representative Marc Morisset. The Green Party of France has officially supported basic income since November 2013. Its members have been increasingly active in the promotion of the idea. Last February, another Green regional council member in Rhone-Alpes made a similar proposal, but unsuccessfully.

After this historic vote, the next step will be to finance a feasibility study, find a voluntary department and locate possible areas for experiment.

30 Dutch Municipalities show Interest in Experimenting with Basic Income

30 Dutch Municipalities show Interest in Experimenting with Basic Income

Following growing interest in the idea of a basic income in the Netherlands over the past year, the feasibility of local pilot projects to investigate basic income is being considered in more than 30 Dutch municipalities.

The City of Utrecht, the fourth most populated City of the Netherlands, has attracted a lot of attention recently – including at an international level – with the early announcement of their launch of a pilot project later this year.

Although the program is far from being ready and its specifics are far less radical than they sound, the good news is: Utrecht might just be the tip of the iceberg of a massive wave of local experiments in the Netherlands.

Currently there are 30 Dutch municipalities interested in running basic income pilot projects. Among them, the cities of Utrecht, Tilburg, Wageningen and Groningen are the most advanced.

These developments are the fruit of many people’s efforts. They are also the outcome of an unprecedented wave of awareness about basic income in the Netherlands, following the broadcast of two Dutch documentaries about basic income.

sjir

Sjir Hoeijmakers

Sjir Hoeijmakers, a young econometrician, helps stakeholders interested in experimenting with the idea of a basic income at a local level. He follows up with all interested cities, advises them, and tries to create synergies between them. Hoeijmakers crowdfunded his own ‘basic income’ a few month ago, so he could afford to dedicate himself into the coordination of pilot projects ideas in the Netherlands.

“Most of the people starting these initiatives are looking for an alternative to the current social security system, which is perceived as being based too much on distrust in and control over welfare recipients.” explains Sjir Hoeijmakers. According to him, most of the initiative for local pilots comes from people working inside the municipal administrations, but some also come from academics or are citizens’ initiatives. “What is most interesting and a very good sign is that the initiatives come from people with all kinds of political backgrounds, and are often depoliticized.” .

But what are those experiments about exactly? Despite the media enthusiasm about Utrecht becoming soon “the first city without poverty in Europe”, the reality is of course slightly less utopian.

“Experiments will focus on people already receiving benefits”

The experiments will mostly focus on people who are already welfare claimants in the Netherlands, and particularly beneficiaries of the national minimum income system, which is means-tested and conditional. It is also not paid on an individual basis, but assessed by household.

In fact, those experiments mainly have two major differences with the current system: they aim at making social assistance less conditional regarding work requirements, and will aim at removing the poverty trap by allowing people to earn extra money on top of their social allowance.

However the schemes being considered so far remain household-based, means-tested and therefore non-universal. In fact, these schemes are similar to the concept of negative income tax which in the 1970s, was the basis of experiments in the United States.

“These experiments are not exactly basic income, but they go in that direction” insists Sjir Hoeijmakers. Basic Income Network in the Netherlands agrees too, and regards these initiatives as possible milestones on the path towards a fully unconditional basic income.

This approach has a fundamental advantage: since the target groups are already receiving welfare money, not much extra funding is needed from the existing budget to run these experiments. This would be a different story if all of the city’s residents were included.

“Utrecht is making big plans, but they are not ready yet”

International media outlets such as The Independent and many others have extensively reported on the case of Utrecht, reporting that the experiment could start as early as September. Sjir Hoeijmakers admits to being surprised by how much coverage the city of Utrecht is getting right now.

“The City is making big plans, especially thanks to Alderman Victor Everhardt. The program, however, is just one of many experimental initiatives, and still needs to be authorized by the National Secretary of Social Security” says Sjir Hoeijmakers. According to him, the program will most likely not start before January 2016: ”To be realistic, it could be far later than that, depending on the politics of it.”

Despite the media excitement, the numbers of people and the amounts to be given aren’t fixed yet: there are only approximate numbers up till now, and they don’t necessarily give a good picture of what will be done.

The Utrecht experiment as currently planned, would work with 5 groups, only of which one would get something close to a basic income (no withdrawal if there is extra earned income, no further conditions). A sixth group who stay living under the current welfare system will act as a control group. Each group will have a minimum of 50 people, and the 900 and 1300 euros aren’t exact figures but indications of how much might be paid.

“The city of Utrecht is using the rhetoric of the basic income, which may have contributed to it getting so much attention.” he says. “In some other cases the term Trust Experiment is being used, to avoid confusion with the concept of a full unconditional basic income.”

Several political parties openly support the experiments, including the green-left, the liberal-democrats, and some among the labor and the socialist parties.

INTERVIEW: Finland, basic income, and the government’s schizophrenia

INTERVIEW: Finland, basic income, and the government’s schizophrenia

The new centre-right government coalition in Finland committed to run a basic income pilot project. It is however unlikely that a pure unconditional basic income has any chance to be experimented, says BIEN Finland‘s chairman Otto Lehto in this interview.

The Basic income community worldwide is getting excited about the Finnish government’s commitment to launch a basic income experiment. Are you enthusiastic too?

We have certainly reached a historical point. For the first time, in the general elections of April 2015, the majority of the MP’s in the Finnish Parliament have expressed their support, ranging from mild to strong, for basic income. This data derives from the answers given by candidates during the last election. The majority of the Finnish public has also expressed its support for the idea. This is the result of many years of active public debate and discussion, including our much-publicized but ultimately unsuccessful citizen’s initiative campaign (2013).

Otto_Lehto

Otto Lehto

The new government, led by Prime Minister Juha Sipilä from the Centre Party, has committed itself to setting up a pilot project for basic income. However, premature enthusiasm should be dampened by realism. For one, it is not entirely clear whether people understand the term in the same way. Many MP’s support a BIG that is conditional, means-tested and non-universal.

Secondly, there are elements in the government, including powerful ministers, who oppose UBI and will undoubtedly do their best to abort, or at least water down, the pilot experiment.

So there are reasons to be optimistic but also reasons to worry about the outcome.

How will this pilot project be conducted?

The government hasn’t announced the details yet. The public announcements have been sparse. The government should roll out more details in the coming months. In the past, Prime Minister Sipilä has expressed his support for a regional study conducted under the advice of experts.

Has the Centre Party of Finland been a strong basic income supporter in the past?

The party has traditionally been in support of a basic income or a negative income tax, at least since the 1990’s. However, unlike the Greens and the Left Alliance, who have quite detailed calculations, the Centre Party has never specified what kind of a basic income model it supports. In addition, the party has been quiet on the issue for a long time. The youth wing of the party, however, has been working together with BIEN Finland to advocate for a proper Basic Income.

Support for the basic income renewed itself in the party since september 2014, after the new party leader Prime Minister Sipilä, expressed his support for setting up a pilot project in Finland. At the same time, the influential think tank Sitra funded a report by Tänk (November 2014), which provided a roadmap for setting up a pilot project for BIG.

These developments have led to this point. However, the leaders of the party are still divided on whether this should be a proper BIG or a means-tested, conditional form of BIG.

How about the other parties involved in the current governing coalition ?

The other government coalition parties (the True Finns and the National Coalition Party) are equally divided on the issue, so it is unclear on whether a “pure” Unconditional Basic Income has any chance of even being tried. The current leadership of those parties is unfortunately quite opposed to the idea, or at least suspicious of it, even though there are many supporters in the rank and file members of the two parties.

So, although the Centre Party has managed to include the basic income pilot project into the government’s agenda, it is not very high on the list of priorities for the other coalition parties.

And, to complicate matters, the new government has expressed its intention to increasing the work requirement of social security in order to reduce the costs of the welfare system, while at the same time pushing for a basic income experiment! The same ambivalence is reflected in their statements released to the media. The schizophrenic push and pull between these mutually incompatible goals — piloting an unconditional basic income and simultaneously increasing the conditionality of social security benefits – makes predicting the future difficult.

In this context, how will BIEN Finland stand?

The BIEN Finland network has strong existing connections to many of the opposition parties (including the Green Party and the Left Alliance, which are both strong supporters of basic income). Due to accidents of history, we have weaker connections to the government coalition parties, with the exception of a handful of MP’s, think tanks and the youth wing of the Center Party, so we have had little influence on the planning of the basic income pilot project.

Nonetheless, we will continue to proactively offer our expertise to the government. We will follow the developments as they happen, and inform the European network as soon as we know more about the upcoming pilot program.

Thank you Otto!


Credit picture: CC Aaronigma

FRANCE: Opinion Poll Shows 60% Support for Basic Income

FRANCE: Opinion Poll Shows 60% Support for Basic Income

According to a recent opinion poll, 60% of people in France support the idea of a Basic Income.

The survey was sponsored by national television channel i-télé, and the liberal think tank Génération Libre [Free Generation], as part of a survey focusing on ‘Liberalism and French people’.

The 968 respondents, representative of the French population, were asked: “Are you in favour of the introduction of a guaranteed Basic Income for all citizens that would substitute most existing benefits?”

16% said they were “absolutely in favour” of the concept, while 44% were “somewhat in favour”.

poll-france

Although there is stronger support for Basic Income among left-wing citizens, the poll shows a majority in favour on all sides of the political spectrum.

The survey was released while the French Movement for Basic Income was holding a major conference at the French Senate (the upper house of Parliament), where several MPs and former minister Delphine Batho expressed their interest in the idea.

The last and first opinion poll in France about Basic Income was released in 2012, and showed 45% of the French were in favour of the idea.

Credit picture CC Dave Shea