What changed between the draft committee report and the plenary report

Change 3

Added:EXPLANATORY STATEMENT

Added:This year’s report on the European Semester for economic policy coordination focuses on the employment and social priorities for 2025 in a context of moderate economic growth, rising inequalities, and ongoing geopolitical instability. While labour markets remain relatively stable, the cost-of-living crisis, demographic shifts, and skill shortages continue to challenge the EU’s social and economic resilience.

Added:To address current labour market challenges, the report emphasises the need to modernise labour markets, strengthen social protections, and invest in human capital. Access to lifelong learning and vocational training are s crucial to enhance labour market participation and preparing workers for structural changes, including the youth. The report stresses the importance of aligning education and training systems with market needs.

Added:The report underlines the critical role of the social economy in fostering inclusive growth and job creation. It highlights that social economy enterprises reinvest earnings into social objectives, contributing to both economic resilience and social cohesion. The report calls for stronger support for the social economy and specific policies to facilitate its expansion.

Added:In addition, the report underscores the importance of SMEs and start-ups in recruiting and retaining qualified workers. SMEs are the backbone of economic growth, driving employment and innovation. By prioritising the removal of bureaucratic and fiscal barriers, the EU can encourage more businesses to grow and create stable, high-quality jobs.

Added:The report also stresses the need for a strong commitment to social investment, particularly in areas such as affordable and energy-efficient housing. The European Semester should ensure that public and private investments address rising housing costs and support social inclusion as well as protect homeowners and those willing to be. The European Affordable Housing Plan is a welcome initiative, and the report calls for better coordination of existing EU funding instruments to facilitate housing construction, renovation, and accessibility, particularly for young people, low- and middle-income families, and individuals with reduced mobility.

Added:Addressing poverty and social exclusion remains a central priority. The report emphasises the importance of ensuring that employment policies promote quality jobs and fair wages, while also recognising the need to strengthen targeted social support for vulnerable groups. The role of education and training is particularly relevant in tackling youth unemployment and early school leaving, ensuring that young people acquire the skills necessary to enter the workforce successfully.

Added:The report underscores the importance of supporting rural and depopulated areas by reinforcing investment in public services, infrastructure, and economic opportunities through innovation to address regional disparities and ensure territorial cohesion. It also highlights the need for a long-term approach to demographic challenges, such as an ageing population and workforce shortages, which should be prioritised in the EU’s cohesion policy.

Added:The report calls to facilitate labour mobility within the EU, to improve the recognition of skills and qualifications, and enhance efforts to attract and retain talent in sectors with severe shortages, all while implementing policies that support social inclusion and equal opportunities to ensure that economic transitions do not exacerbate existing inequalities.

Added:The report emphasises the importance of aligning fiscal policies with social objectives while ensuring economic stability within the European Semester. It highlights the need for investments in education, skills development, and labour market reforms as essential for long-term growth and competitiveness, urging efficient use of EU funds to support these goals. Additionally, the report calls for Member States to prioritise investments in education, training, and social inclusion, while maintaining long-term fiscal sustainability.

Added:The report focuses also on the promotion of work-life balance, with the aim of improving the quality of life for all workers and their families. Any family friendly policies are welcome in this purpose. Innovative ideas should be explored such as a European card for large families and a European action plan for single parents in order to ensure support in all Member States.

Added:In conclusion, this report presents a comprehensive vision for aligning economic policies with social priorities, ensuring that the European Semester serves as a framework for stability, growth, and social well-being. The challenges ahead require a balanced approach that supports labour market resilience, strengthens social protections, and fosters long-term investments in human capital and regional development. By addressing these priorities, the EU can build a more prosperous and cohesive economic model that benefits all citizens.