MEPs call for a more competitive EU that respects social and labour standards

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• Need to increase public and private investment to fill the funding gap 
• Problem of rising housing prices must be addressed 
• Support for SMEs to foster innovation and create quality jobs 
• Invest more in education, training, and developing skills sets 

On Wednesday, MEPs adopted two resolutions outlining their priorities for the next cycle of economic and social coordination between member states.

Economic priorities

In a resolution on economic policy coordination, MEPs focus on the need to increase public and private investment to address the investment gap, improve competitiveness and entrepreneurship, and continue fiscal consolidation. They say the EU should pursue these objectives while ensuring social cohesion and a high standard of living.

MEPs are worried about slow growth and that more turbulent economic times are on the horizon, and call on member states to reduce excessive government deficits. They also warn about rising house prices.

For the first time, MEPs will review the implementation of the EU’s economic governance architecture following its overhaul in 2024. They say member states should be doing more to apply the recommendations given to them, and that they are not consulting their national fiscal watchdogs enough. MEPs say that the Commission should improve its debt sustainability analyses for each member state, since these are key to the proper functioning of the economic governance process.

The resolution, prepared by Fernando Navarrete Rojas (EPP, ES), was adopted with 469 votes in favour, 162 votes against and 54 abstentions.

Employment and social priorities

In the resolution on the employment and social priorities, MEPs emphasise the importance of reducing the administrative burden for companies, whilst safeguarding labour and social standards. They believe better support for small and medium-sized entreprises (SMEs) can lead to more innovation and better-quality jobs, and that stronger social economy enterprises can promote quality employment opportunities and the circular economy. The report states that fiscal policies under the European Semester must ensure investments align with sustainable growth and the European Pillar of Social Rights (EPSR), in particular on affordable housing, healthcare, and education.

MEPs call on the Commission to implement the EPSR, and welcome the upcoming action plan to advance social progress. To address labour shortages, they stress the need for investments in education and training. They also appeal for more attention to be given to skills development in the workforce. The report emphasises the importance of new technologies, such as AI, and calls on the Commission to propose measures on the use of AI in the workplace. On affordable housing, MEPs call for measures to promote housing investments.

The resolution, prepared by Maravillas Abadía Jover (EPP, ES), was adopted with 351 votes in favour, 260 votes against and 70 abstentions.