Changes from report parliamentary committee draft to plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the European Semester for economic policy coordination: employment and social priorities for 2025

(2024/2084(INI))

The European Parliament,

Changed– having regard to Article 3 of the Treaty on European Union,Union (TEU),

Changed– having regard to Articles 99, 121, 148 and 149 of the Treaty on the Functioning of the European Union,Union (TFEU),

Changed– having regard to the CommissionEuropean communicationPillar of 15Social NovemberRights 2024(EPSR) onproclaimed and signed by the AnnualCouncil, SustainableParliament Growthand Surveythe 2025Commission (COM(2024)XXX),on 17 November 2017,

Removed– having regard to the Commission proposal of XXX 2024 for a joint employment report from the Commission and the Council (COM(2024)XXX),

Added– having regard to the Commission communication of 4 March 2021 entitled ‘The European Pillar of Social Rights Action Plan’ (COM(2021)0102) and its proposed 2030 headline targets on employment, skills and poverty reduction,

Changed– having regard to the Commission recommendationcommunication of XXX 2024 for a Council17 recommendationDecember on2024 theentitled economic‘2025 policyEuropean ofSemester the– euroAutumn areapackage’ (COM(2024)XXX),(COM(2024)0700),

Changed– having regard to the Commission reportcommunication of XXX26 November 2024 entitled ‘Alert‘2025 MechanismEuropean ReportSemester: 2025’,bringing the new economic governance framework to life’ (COM(2024)0705),

Changed– having regard to the Commission communicationproposal of 1517 NovemberDecember 2024 entitledfor ‘Drafta Budgetaryjoint Plansemployment forreport 2025:from Overallthe assessment’Commission (COM(2024)XXX),and the Council (COM(2024)0701),

Changed– having regard to the draft Commission staff working document on therecommendation plannedof revisions17 toDecember the2024 Macroeconomicfor Imbalancea ProcedureCouncil Scoreboardrecommendation inon the contexteconomic policy of the regular revieweuro processarea (SWD(2024)XXX),(COM(2024)0704),

Added– having regard to the Commission report of 17 December 2024 entitled ‘Alert Mechanism Report 2025’ (COM(2024)0702),

Added– having regard to the Commission staff working document of 26 November 2024 entitled ‘Fiscal statistical tables providing relevant background data for the assessment of the 2025 draft budgetary plans’ (SWD(2024)0950),

Added– having regard to the Commission staff working document of 17 December 2024 on the changes in the scoreboard the Macroeconomic Imbalance Procedure Scoreboard in the context of the regular review process (SWD(2024)0702),

– having regard to its resolution of 22 October 2024 on the Council position on Draft amending budget No 4/2024 of the European Union for the financial year 2024 – update of revenue (own resources) and adjustments to some decentralised agencies,

Changed– having regard to Mario Draghi’s report onof the9 September 2024 entitled ‘The future of European competitiveness (2024),competitiveness’,

Changed– having regard to Enrico Letta’s report of April 2024 on the future of the single market (2024),market,

Added– having regard to the La Hulpe Declaration on the Future of the European Pillar of Social Rights signed by Parliament, the Commission, the European Economic and Social Committee and the Council on 16 April 2024,

Added– having regard to the Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060,

Added– having regard to the Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97, and in particular to Articles 3, 4, 13 and 27 thereof,

Added– having regard to the Commission communication of 17 January 2023 entitled ‘Harnessing talent in Europe’s regions’ (COM(2023)0032),

Added– having regard to the Commission communication of 20 March 2023 entitled ‘Labour and skills shortages in the EU: an action plan’ (COM(2024)0131),

Added– having regard to the 2020 European Skills Agenda,

Added– having regard to the Commission communication of 7 September 2022 on the European care strategy (COM(2022)0440),

Added– having regard to the Council Recommendation on access to affordable, high-quality long-term care,

Added– having regard to the EU Social Scoreboard and its headline and secondary indicators,

Added– having regard to the Commission communication of 3 March 2021 entitled ‘Union of Equality: Strategy for the Rights of Persons with Disabilities 2021-2030’ (COM(2021)0101),

Added– having regard to the Commission report of 19 September 2024 entitled ‘Employment and Social Developments in Europe (ESDE): upward social convergence in the EU and the role of social investment’,

Added– having regard to the Council Decision on Employment Guidelines, adopted by the Employment, Social Policy, Health and Consumer Affairs Council on 2 December 2024, which establishes employment and social priorities aligned with the principles of the EPSR,

Added– having regard to the Tripartite Declaration for a thriving European Social Dialogue and to the forthcoming pact on social dialogue,

Added– having regard to Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union (Minimum Wage Directive),

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

Added– having regard to the EU Roma strategic framework for equality, inclusion and participation for 2020-2030,

Added– having regard to the United Nations Sustainable Development Goals (SDGs),

Added– having regard to the Gender Equality Strategy 2020-2025,

Added– having regard to the EU Anti-Racism Action Plan 2020-2025,

Added– having regard to the LGBTIQ Equality Strategy 2020-2025,

– having regard to Rule 55 of its Rules of Procedure,

Changed– having regard to the report of the Committee on Employment and Social Affairs (A10-0000/2024),(A10-0023/2025),

Change 1

ChangedA. whereas progress has been made towards achieving the EU’s employment targetstargets, namely that at least 78 % of people aged 20 to 64 should be in employment by 2030, despite the uncertainty created by Russia’s war of aggression against Ukraine and the impact of high inflation,inflation; andwhereas, according to the Commission’s 2025 autumn economic forecast, EU employment has reached a rate of 75.3 %; whereas growth in employment in the EU remained robust in 2023,2023; althoughwhereas highin unemploymenttwo rates,thirds of the Member States, employment growth in particular2023 youthwas unemploymenton rates,track persistto reach the national 2030 target; whereas significant challenges nevertheless persist, such as high unemployment rates in some Member States, particularly among young people and persons with disabilities, as do significant inequalities between sectors and regions, which couldcan negatively affect social cohesion and the well-being of European citizens in the long term;

Change 2

RemovedB. whereas demographic challenges, including an ageing population, low birth rates and rural depopulation, profoundly affect the sustainability of welfare systems and hence represent a structural challenge for the EU economy, and whereas, as underlined in the Draghi report, sustainable growth in Europe depends to a large extent on the inclusion of the active population in the labour market and on a robust welfare system;

AddedB. whereas the European Semester combines various different instruments in an integrated framework for multilateral coordination and surveillance of economic, employment and social policies within the EU and it must become a key tool for fostering upward social convergence; whereas the Social Convergence Framework is a key tool for assessing social challenges and upward convergence within the European Semester and for monitoring social disparities across Member States, while addressing the challenges identified in the Joint Employment Report (JER);

RemovedC. whereas the Letta report deplores the decline in the birth rate, noting the importance of creating a framework to support all families as part of a strategy of inclusive growth and stressing the need to promote family and work-life balance policies;

AddedC. whereas the Union has adopted the 2030 target of reducing the number of people at risk of poverty and social exclusion by at least 15 million compared to 2019, including at least 5 million children; whereas in nearly half of the Member States the trend is heading in the opposite direction; whereas one child in four in the European Union is still at risk of poverty and social exclusion; and whereas the current trend will not make it possible to meet the 2030 target; whereas public spending on children and youth should not be seen only as social expenditure but as an investment in the future; whereas the promotion of strong, sustainable and inclusive economic growth can succeed only if the next generation can develop their full educational potential in order to be prepared for the changing labour market, whereas to meet the 2030 Barcelona targets for early childhood education and care, the EU should invest an additional EUR 11 billion per year;

RemovedD. whereas inflation has increased the burden on households, and housing costs and energy poverty remain major problems;

AddedD. whereas despite a minimal reduction in the number of people at risk of poverty or social exclusion in the EU in 2023, approximately one in five still faces this challenge, with notable disparities for children, young and older people, persons with disabilities, LGTBI, non-EU born individuals, and Roma communities;

RemovedE. whereas labour and skills shortages remain a problem at all levels, exacerbated by a lack of candidates to fill critical positions in key sectors such as education, health and construction, especially in areas affected by depopulation;

AddedE. whereas significant disparities are observed among children from ethnic or migrant backgrounds and children with disabilities; whereas 83 % of Roma children live in households at risk of poverty; whereas the EU and national resources currently deployed are in no way sufficient for addressing the challenge of child poverty in the EU and, therefore, a dedicated funding instrument for the European Child Guarantee as well as synergies with other European and national funds are of the utmost importance in both the current multiannual financial framework (MFF) and the next one;

RemovedF. whereas the crisis in generational renewal and poor access to public services have led to an increased risk of poverty and social exclusion, particularly affecting children and elderly people;

AddedF. whereas the EPSR must be the compass guiding EU social and economic policies, whereas the Commission should monitor progress on the implementation of the EPSR using the Social Scoreboard and the Social Convergence Framework;

RemovedG. whereas social progress in the EU must advance in a manner consistent with the stability objectives of the Maastricht criteria, ensuring that economic integration does not exacerbate inequalities between generations and regions;

AddedG. whereas poor quality jobs among the self-employed are disproportionately widespread while the rate of self-employment is declining, including among young people;

Removed1. Considers that the Commission and the Council should continue implementing the European Pillar of Social Rights, in line with the action plan of March 2021;

AddedH. whereas there are still 1.4 million people residing in institutions in the EU; whereas residents of institutions are isolated from the broader community and do not have sufficient control over their lives and the decisions that affect them; whereas despite the fact that the European Union has long been committed to the process of deinstitutionalisation, efforts are still needed at both European and national level to enable vulnerable groups to live independently in a community environment;

Removed2. Reiterates the importance of supporting the development of skills in the workforce to improve competitiveness and ensure quality employment; urges the Member States to strengthen vocational and digital training while promoting the inclusion of persons with disabilities in the workforce to address labour shortages and support equal opportunities in the labour market, considering that, although there is an improvement, persons with disabilities still face significant obstacles in the labour market;

AddedI. whereas demographic challenges, including an ageing population, low birth rates and rural depopulation, with young people in particular moving to urban areas, profoundly affect the economic vitality and attractiveness of EU regions, the labour markets, and consequently, the sustainability of welfare systems, and further aggravate the regional disparities in the EU, and hence represent a structural challenge for the EU economy; and whereas, as underlined in the Draghi report, sustainable growth and competitiveness in Europe depend to a large extent on adapting education and training systems to evolving skills needs, prioritising adult learning and vocational education and training, and the inclusion of the active population in the labour market and on a robust welfare system;

Removed3. Calls on the Commission to include specific recommendations on housing affordability in the European Semester and to promote housing investment, including through European Investment Bank financial instruments; considers that the revision of the EU regulatory framework for the housing sector should facilitate the construction of accessible and energy-efficient housing that meets the needs of young people, people with reduced mobility and families at risk, as well as protect homeowners from further diminishing supply;

AddedJ. whereas, as highlighted in the Draghi report, migrant workers have been an important factor in reducing labour shortages and are more likely to work in occupations with persistent shortages than workers born in the EU;