Changes from report parliamentary committee draft to plenary report

Change 3

AddedEXPLANATORY STATEMENT

AddedThis report sets out Parliament’s employment and social priorities for the 2026 European Semester in a context marked by moderate economic growth, persistent social disparities, demographic change and structural labour and skills shortages. While employment levels in the EU remain comparatively high, poverty and social exclusion continue to affect more than one in five Europeans, with particularly severe impacts on children, persons with disabilities, Roma, women and other vulnerable groups. The report therefore calls for a stronger integration of social objectives into the core of EU economic governance.

AddedThe European Semester must function as a genuinely balanced framework, embedding the European Pillar of Social Rights (EPSR) at the heart of fiscal and macroeconomic coordination. The report stresses that competitiveness, sustainability and social justice must reinforce, not undermine, one another. It calls for full implementation of the EPSR, for measurable social targets to guide country-specific recommendations, and for stronger use of the Social Convergence Framework and Social Scoreboard to identify risks and ensure upward social convergence.

AddedCombating poverty remains a central priority. The report welcomes the forthcoming EU Anti-Poverty Strategy and insists that it address the multidimensional nature of poverty with clear objectives, adequate funding and robust monitoring. Particular emphasis is placed on eradicating child poverty. The report also reiterates the need to strengthen minimum income protection and to address in-work poverty through effective implementation of existing legislation.

AddedInvestment in people is presented as a cornerstone of sustainable growth. The report underlines that social investment, including in education, lifelong learning, affordable housing, health and long-term care, supports productivity, labour market participation and social cohesion. It calls for full use of the Recovery and Resilience Facility, improved guidance on leveraging private investment, and stronger monitoring of social investment gaps. The social economy is recognised as a key driver of inclusive local development, quality job creation and support for the green and digital transitions.

AddedAddressing labour and skills shortages requires improving job quality, strengthening workers’ rights and collective bargaining, enhancing access to training, and facilitating fair labour mobility and skills recognition. The report stresses the importance of an individual right to training, stronger validation of non-formal skills, and targeted activation measures to increase participation of underrepresented groups. It also highlights the importance of legal migration policies that respond to labour market needs.

AddedThe report further calls for greater attention to affordable housing, deinstitutionalisation and community-based care, gender equality, disability inclusion, intergenerational fairness and territorial cohesion. It emphasises that demographic transformation requires policies that increase labour market participation while ensuring dignified pensions, sustainable care systems and quality public services.

AddedFinally, the report advocates for a more democratic and transparent Semester process, with stronger involvement of Parliament, social partners, civil society and regional and local authorities. By aligning economic governance with social priorities and long-term investment in human capital, the European Semester can better contribute to resilience, cohesion and sustainable prosperity across the Union.