Changes from report parliamentary committee draft to plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

▸10 unchanged paragraphs

on the European Semester for economic policy coordination: employment and social priorities for 2024

(2023/2116(INI))

The European Parliament,

– having regard to Article 3 of the Treaty on European Union,

– having regard to Articles 9 and 149 of the Treaty on the Functioning of the European Union (TFEU),

– having regard to the Commission communication of 21 November 2023 entitled ‘Annual Sustainable Growth Survey 2024’ (COM(2023)0901),

– having regard to the Commission proposal of 21 November 2023 for a joint employment report from the Commission and the Council (COM(2023)0904),

– having regard to the Commission recommendation of 21 November 2023 for a Council recommendation on the economic policy of the euro area (COM(2023)0903),

– having regard to the Commission communication of 21 November 2023 entitled ‘Alert Mechanism Report 2024’ (COM(2023)0902),

– having regard to the Commission communication of 21 November 2023 on the 2024 Draft Budgetary Plans: Overall Assessment (COM(2023)0900),

Added– having regard to the Council Recommendation of 27 November 2023 on developing social economy framework conditions,

Added– having regard to its resolution of 5 July 2023 on women’s poverty in Europe,

– having regard to the European Pillar of Social Rights (EPSR), proclaimed by the Council, Parliament and the Commission in November 2017,

Added– having regard to the European Social Charter (ESC), referred to in the preamble of the EPSR,

– having regard to the Commission communication of 9 November 2022 entitled ‘Communication on orientations for a reform of the EU economic governance framework’ (COM(2022)0583),

Added– having regard to the Council Recommendation of 30 January 2023 on adequate minimum income ensuring active inclusion,

– having regard to the Commission proposal of 26 April 2023 for a regulation of the European Parliament and of the Council on the effective coordination of economic policies and multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97 (COM(2023)0240),

Added– having regard to the opinion of the European Economic and Social Committee on the Social Progress Protocol,

Added– having regard to its position on the proposal for a regulation of the European Parliament and of the Council on the effective coordination of economic policies and multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97 and to the opinion of the Committee on Employment and Social Affairs thereon (COM(2023)0240 - C9-0150/2023 - 2023/0138(COD)),

Added– having regard to the report of the European Foundation for the Improvement of Living and Working Conditions (Eurofound) and the European Environment Agency of 3 August 2023 entitled ‘Green, clean and keen to converge? A convergence analysis of environmental quality of life in the EU’,,

Added– having regard to the Eurofound report of 21 September 2023 entitled ‘Guaranteeing access to services for children in the EU’,

Added– having regard to the Eurofound report of 28 March 2023 entitled ‘Measures to tackle labour shortages: Lessons for future policy’,

Added– having regard to the Eurofound policy brief of 10 October 2023 entitled ‘Job quality of COVID-19 pandemic essential workers’

Added– having regard to the Eurofound report of 18 October 2023 entitled ‘Bridging the rural-urban divide: Addressing inequalities and empowering communities’,

Added– having regard to the Eurofound report of 25 October 2023 entitled ‘Fit for 55 climate package: Impact on EU employment by 2030’,

Added– having regard to the Eurofound policy brief of 19 December 2023 entitled ‘Intergenerational inequalities: How to close the gaps?’,

Added– having regard to the Eurofound report of 30 November 2023 entitled ‘Right to disconnect: Implementation and impact at company level’,

Added– having regard to the Eurofound report of 29 August 2023 entitled ‘Societal implications of labour market instability’,

– having regard to Rule 54 of its Rules of Procedure,

Changed– having regard to the report of the Committee on Employment and Social Affairs (A9-0000/2023),(A9-0050/2024),

Change 1

ChangedA. whereas, according to the Commission’s 2023 autumn economic forecast, the EU labour market continued to perform strongly in the first half of 2023, despite the slowdown in economic growth;growth and differences reported across Member States and regions, as well as across sectors; whereas employment growth in the EU is projected at 1.0 % this year, with a projected easing to 0.4 % in both 2024 and 2025; whereas the unemployment rate in the EU is expected to remain broadly stable at 6.0 % in 2023 and 20242024, which is the lowest rate ever recorded for the EU, and to edge down to 5.9 % in 2025; whereas gender inequalities in the labour market remain widespread and are reflected in both gender employment and pay gaps; whereas despite some recent improvements, persons with disabilities still face significant barriers in the labour market; whereas youth unemployment remains almost three times higher than that of the overall working-age population in the EU and young people continue to face challenges integrating into labour markets in many Member States;

Change 2

ChangedB. whereas the Annual Sustainable Growth Survey for 2024 highlights that despite marked wage increases in the EU in 2022 and the beginning of 2023, these remained below the high inflation rates and resulted in reduced purchasing power, affecting lower incomes the most; whereas the nominal increases in minimum wages in some Member States did not result in significant gains in purchasing power among minimum-wages earners; whereas real wages in the EU decreased by 3.7 % in 2022, increasing the risk of poverty and in-work poverty;poverty, which is further exacerbated by factors such as family composition (single parent households being especially affected); whereas real wages are expected to increase as of next year2024 as a result of continued nominal wage growth and declining inflation;inflation, albeit with great disparities between countries; whereas in this context, strong social dialogue and effective collective bargaining, in accordance with national practices, is crucial to achieve an overall wage growth that supports purchasing power, notably of low and middle-wage earners;

Change 3

RemovedC. whereas the Commission’s 2023 autumn economic forecast stressed that uncertainty and downside risks to the economic outlook have increased in recent months and that the transmission of monetary tightening may weigh on economic activity for longer and to a larger degree than projected in this forecast, as adjusting the finances of firms, households and governments to the high interest rate environment could prove more challenging;

AddedC. whereas the risk of poverty or social exclusion remains greater for women, young adults, people with a low level of educational attainment and the unemployed; whereas there remain many gaps in access to unemployment benefits and minimum income schemes, including among the self-employed and workers with non-standard contracts, and groups of younger people, with 61 % of unemployed people receiving no benefits or assistance in the EU in 2022; whereas this situation is compounded by the fact that adequate and secure housing is becoming unaffordable for many; whereas Eurofound research shows that both non-permanent contracts and job insecurity are associated with lower trust in other people and a lower perception of fairness;

RemovedD. whereas the digital and green transitions could have a significant impact on the environment and the people affected, but also on the economy, including the labour market;

AddedD. whereas Russia’s unprovoked and unjustified war of aggression against Ukraine has exacerbated existing inequalities within the EU, triggering humanitarian, energy, economic and social crises; whereas we see the detrimental impact of wide income disparities on both economic growth and social unity; whereas fiscal consolidation can only be fair and sustainable if it does not hamper the reduction of social, economic and regional inequalities; whereas the EU is still facing a surge in the cost of living and persistent inflation, largely propelled by soaring prices of energy, fuel, food and essential commodities, and undue, excessive corporate profits in the energy sector, precipitating an economic and social crisis throughout Europe; whereas, energy prices in the EU remain high on average compared to pre-crisis levels and prices in the rest of the world;

RemovedE. whereas with regard to the general escape clause under the Stability and Growth Pact, which expires at the end of 2023, fiscal policy needs to support monetary policy in reducing inflation and needs to safeguard fiscal sustainability, while providing sufficient space for additional investments, including investment in social infrastructure and services and support for long-term growth;

AddedE. whereas the Commission’s 2023 autumn economic forecast stressed that uncertainty and downside risks to the economic outlook have increased in recent months because of Russia’s protracted war of aggression against Ukraine and the wider regional consequences of the Israeli-Palestinian conflict, and that the transmission of monetary tightening may weigh on economic activity for longer and to a larger degree than projected in this forecast, as adjusting the finances of firms, households and governments to the high interest rate environment could prove more challenging; whereas households with flexible rate mortgages are already facing increased costs;

RemovedF. whereas the joint employment report for 2024 provides a first assessment of Member States’ state of play on the three headline targets for 2030 and shows: good progress towards the employment target with an employment level of 74.6 %, but with significant differences according to gender and age; progress by the majority of Member States towards their national poverty reduction targets, but changes in the opposite direction by others; a need for significant progress to reach the EU headline target of 60 % of adults in learning every year in the EU by 2030, from a low level of 37.4 % in 2016;

AddedF. whereas the digital and green transitions could have a significant impact on the environment and the people affected, but also on the economy, including the labour market and companies, and could give rise to further regional disparities if not properly addressed; whereas, if well managed and sufficiently supported, the twin transitions will greatly expand some economic activities while transforming other economic activities and their potential for sustainable growth; whereas a holistic and ambitious policy response at EU level is essential to minimise the social, economic and labour market impact of the transitions while maximising their quality employment potential; whereas under the European Semester framework for economic and social policy coordination, the Recovery and Resilience Facility has addressed the green and digital transitions, in which women are notably under-represented; whereas both territorial and gender perspectives are essential elements for a genuine just transition;

RemovedG. whereas the inclusion of a social convergence framework in the European Semester should foster upward social convergence and should improve the assessment and monitoring of employment and social developments in the Member States and the EU by identifying risks to upward convergence for Member States in the joint employment report based on the Social Scoreboard headline indicators and through the Commission’s publication of social convergence reports for those Member States identified as facing risks to upward social convergence;

AddedG. whereas climate change, global warming and biodiversity loss are accelerating exponentially and the consequences of climate breakdown and extreme weather events are being felt more intensely and more frequently than before by EU citizens; whereas the socio-economic consequences of the green transition will be unevenly distributed across the EU and among its territories and will consequently require the expansion of economic activities related to renewable energy, energy efficiency and the circular economy; whereas 2030 decarbonisation targets have been increased in order to achieve carbon-neutrality by 2050; whereas Eurofound research shows that the EU’s Fit for 55 climate package of legislation is estimated to lead to a net creation of 204 000 jobs in the EU over the 2019–2030 period;

RemovedH. whereas skilled workers that can respond to the demands of the labour market and education, training and lifelong learning are of key importance to ensure sustainable growth, increased innovation and competitiveness and the sustainable and just transition of the EU economy;

AddedH. whereas according to the OECD, 26.7 % of the total workforce of its member countries were in jobs at high risk of automation in 2019; whereas just transition policies should be inclusive and focus primarily on the most affected communities and the most vulnerable groups, but also provide opportunities for skilling, re-skilling and up-skilling and the opportunity to create quality jobs, tackle discrimination at work, protect workers’ rights and raise labour standards within the single market; whereas significant further efforts are needed to improve the digital skills of the EU’s population, particularly among people with low qualifications, older people and third country nationals; whereas digitalisation, robotisation, automation and artificial intelligence must benefit workers and society by improving working conditions and quality of life, ensuring a good work-life balance, creating better employment opportunities and contributing to socioeconomic convergence; whereas workers and their trade unions will play a critical role in anticipating and tackling risks emerging from those challenges;

AddedI. whereas the EU debt-to-GDP ratio is projected to be 79 % for 2024 and 2025; whereas with regard to the general escape clause under the Stability and Growth Pact, which expires at the end of 2023, monetary policy has an important role in reducing inflation, and Member States’ fiscal policy needs to safeguard fiscal sustainability while providing sufficient space for additional investments, including investment in social protection, quality social infrastructure and social services and support for long-term economic growth, strengthening competitiveness and resilience and enhancing democratic legitimacy by increasing the transparency of the debt sustainability analysis and strengthening the role of Member States in deciding their fiscal trajectory; whereas economic coordination policies should aim to implement the objectives of the EPSR and the UN Sustainable Development Goals (SDGs) in order to make progress towards more inclusiveness and resilience; whereas the necessary space for key social investments to implement the principles of the EPSR and to achieve the targets for the reduction of poverty should be ensured in the planned fiscal adjustments of the Member States;

AddedJ. whereas the joint employment report for 2024 provides a first assessment of Member States’ state of play on the three headline targets for 2030 and shows: good progress towards the employment target with an employment level of 74.6 %, but with significant differences between Member States and regions in terms of employment stability, quality of working conditions, gender and age; progress by the majority of Member States towards their national poverty reduction targets, but changes in the opposite direction by others; a need for significant progress to reach the EU headline target of 60 % of adults in learning every year in the EU by 2030, from a low level of 37.4 % in 2016;

AddedK. whereas the inclusion of a social convergence framework in a revised and more democratic European Semester should foster upward social convergence and should improve the assessment and monitoring of employment and social developments in the Member States and the EU by identifying and addressing risks to upward convergence for Member States in the joint employment report based on the Social Scoreboard headline indicators and through the Commission’s publication of social convergence reports for those Member States identified as facing risks to upward social convergence; whereas Eurofound convergence analysis shows that populations at risk of poverty (AROP) and at risk of poverty and social exclusion (AROPE) are more impacted by economic downturns and are more vulnerable to energy crises and inadequate housing; whereas Eurofound research monitoring the progress of the Child Guarantee shows that children in rural areas and those living at risk of poverty are more likely to have a less successful academic path and leave education sooner;

AddedL. whereas upskilling workers for the twin transition and ensuring that they are active players in a changing labour market is of key importance to ensure sustainable growth and development, increased innovation and competitiveness and the sustainable and just transition of the EU economy; whereas there is a need for targeted support and opportunities for recent graduates and young professionals in their first jobs to facilitate their successful integration into the workforce;

AddedM. whereas the ongoing stagnation of manufacturing activities represents an obstacle to the EU’s greater competitiveness; whereas EU businesses are burdened by administrative obstacles that hinder their ability to invest; whereas joint efforts are required to enforce existing rules and remove barriers;

AddedN. whereas in 2017, according to Eurofound, 20 % of jobs in Europe were of ‘poor quality’ and put workers at increased risk regarding their physical or mental health; whereas the health and well-being of essential workers, such as health and care workers, food system workers, cleaners and refuse workers, transport workers, manual workers, and protective services workers was at risk during the COVID-19 pandemic; whereas 23 % of European workers believe that their safety or their health is at risk because of their work and 14 % of workers have been exposed to a high level of psychosocial risk; whereas for a well-functioning modern labour market in the context of the changing world of work, creating a healthy business environment and establishing proper work-life balance are key; whereas Eurofound’s recent research on the right to disconnect shows that a larger share of workers in companies without a right to disconnect policy said they experienced health issues such as frequent headaches, stress and anxiety; whereas in companies with a right to disconnect policy, twice as many workers report very high levels of job satisfaction, and they also report a better work–life balance;

O. whereas, as a result of demographic ageing, the number of people over 65 is rising rapidly and, at the same time, a growing number of critical jobs cannot find suitable candidates to fill open positions, leading to a decrease in the number of employees financing the social welfare model in the EU;

Change 4

RemovedJ. whereas Parliament has repeatedly stressed the importance of its proper involvement in the European Semester process and dialogue in a regular and structured way in order to increase the transparency, democratic accountability and ownership of the decisions taken, in particular by means of an economic and social dialogue;

AddedP. whereas negative demographic trends might magnify regional disparities in the EU, especially in rural and outermost regions; whereas brain drain, both within the EU and outwards, worsens the overall negative impact of these trends; whereas young people are the basis on which Europe’s sustainable economic and social prosperity is built and are a key priority for the EU, as affirmed by the European youth strategy and the reinforced Youth Guarantee; whereas they therefore warrant priority treatment through measures aimed at support, protection, guidance and inclusion, and at enabling them to fully benefit from the new employment opportunities created by the twin transition; whereas Eurofound research shows that income trends among the older population are influenced by effective social protection over the course of their life, while those among younger groups are mostly driven by employment;

Removed1. Stresses that some of the aims of sustainable economic growth must be to ensure an inclusive socio-ecological and digital transformation of our economies to prevent social, economic, digital and environmental imbalances by fighting poverty, reducing inequalities and creating decent jobs with adequate wages and working conditions, while ensuring alignment with the Sustainable Development Goals and the EPSR, as well as to strengthen economic, social and territorial cohesion;

AddedQ. whereas Parliament has repeatedly stressed the importance of its proper involvement in the European Semester process and dialogue in a regular and structured way in order to increase the transparency, democratic accountability and ownership of the decisions taken, in particular by means of an economic and social dialogue; whereas the involvement of social partners and civil society organisations is also crucial to making the European Semester process more democratic;

Removed2. Stresses the importance of up-to-date monitoring of the labour market and of supply and demand for skills at the occupational, sectoral and regional level to assist in the identification and forecasting of relevant occupational and transversal skills needs;

AddedR. whereas Parliament’s Committee on Economic and Monetary Affairs has adopted its position on new economic governance rules, replacing the regulation on multilateral budgetary surveillance, also known as the ‘preventive arm of the Stability and Growth Pact’; whereas the proposal aims at developing more credible and flexible fiscal rules and strengthening the investment, democratic and social dimensions of this framework, including through the implementation of the EPSR and occupational safety and health standards;

Removed3. Stresses the need to invest significantly in people and to offer quality, inclusive and subsidised education and training in areas linked to skills and competences that are in demand in labour markets and future-oriented sectors according to local and regional needs; further stresses the need to address skills mismatches and labour market shortages; underlines the need to ensure that workers are ready for the green and digital transitions, that they can benefit from opportunities for new employment or career progression and that training and education programmes are aligned with the needs of the planet, the economy and society of the future;

Added1. Stresses that some of the aims of sustainable economic growth and development must be to ensure well-being through an inclusive socio-ecological and digital transformation of our economies to prevent social, economic, digital and environmental imbalances by fighting poverty, reducing inequalities and creating decent jobs with adequate wages and working conditions, while ensuring the effective regulation of artificial intelligence in the workplace and alignment with the SDGs and the EPSR, as well as to strengthen economic, social and territorial cohesion;