Opinion of the European Economic and Social Committee – How to address the loss of purchasing power and the risk of rising inequalities, exclusion and marginalisation (own-initiative opinion)
Date: 2025-06-19
Institutions: European Economic and Social Committee
Subjects: European social policy, cost of living, labour market, marginalisation, minimum pay, poverty, purchasing power, services of general interest, social inequality, subsistence level income








C_202504208EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2025/4208


20.8.2025






Opinion of the European Economic and Social Committee
How to address the loss of purchasing power and the risk of rising inequalities, exclusion and marginalisation
(own-initiative opinion)
(C/2025/4208)


Rapporteur: 
Maria del Carmen BARRERA CHAMORRO






Advisors


Ioannis GRIGORIADIS (to Group II Rapporteur)
Tellervo KYLÄ-HARAKKA-RUONALA (to Group I)




Plenary Assembly decision


5.12.2024




Legal basis


Rule 52(2) of the Rules of Procedure




Section responsible


Employment, Social Affairs and Citizenship




Adopted in section


22.5.2025




Adopted at plenary session


19.6.2025




Plenary session No


597




Outcome of vote
(for/against/abstentions)


140/74/15




PREAMBLE

This opinion is part of a wider package of EESC opinions on the cost-of-living crisis. With this package, the EESC is examining the different facets of this policy challenge and presenting a comprehensive and wide-ranging set of recommendations to European and national policy-makers, civil society organisations and other stakeholders. The package includes seven ‘sectoral opinions’
                (1), each dedicated to issues in a specific relevant policy area. In addition, an ‘umbrella opinion’
                (2) presents the overarching policy recommendations to address the cost-of-living crisis as a whole and build resilience against future crises.

1.   Conclusions and recommendations









1.1.


The EESC notes that the cost-of-living crisis has been triggered and exacerbated by the pandemic and recent conflicts around the world, impacting on European citizens and companies. The result has been an erosion of living standards and significant economic challenges. Despite some policy responses, the risk of social exclusion, inequality and marginalisation remains serious, as do the challenges for SMEs in particular. A decisive implementation of policy actions is required.












1.2.


A stronger, fairer and more competitive EU economy with higher levels of decent work will improve the EU’s resilience to crises. Supportive conditions for companies, in particular SMEs, and maintaining the business fabric are especially important.












1.3.


The EESC considers that investment in people and the economy, progressive taxation, quality and affordable public services as well as targeted support for the most vulnerable people in parallel with short and long-term industrial policy and efforts for better competitiveness, are essential to alleviate the cost-of-living crisis and protect against future shocks.












1.4.


The EESC points out that social dialogue remains an important but underused policy tool for tackling challenges in the labour market and the crisis-related risks of loss of purchasing power. Strengthening collective bargaining to improve wages and social protection for workers in balance with productivity developments can contribute to reducing inequalities and eliminating the risks of exclusion and marginalisation.












1.5.


In parallel, dialogue with civil society organisations must be reinforced, as they play a crucial role in addressing inequalities, particularly among the most vulnerable.












1.6.


The EESC acknowledges the importance of wage and minimum wage increases, as key elements in combating the loss of purchasing power and its effect on inequality, exclusion and marginalisation and ensuring the redistribution of wealth. The EESC highlights the positive effect of the Adequate Minimum Wage Directive on wage increases. It encourages Member States to intensify efforts to continue with implementation to achieve its objectives, including providing National Action Plans to increase collective bargaining coverage where this is below 80 %.












1.7.


The EESC recognises that the EU’s capacity to anticipate future crises must be strengthened. To this end, the EESC points out that the social partners and civil society actors at all levels, national and European, have an important role in this process and a proven capacity to adapt and respond to the most difficult situations and in contributing to anti-crisis measures.












1.8.


The EESC recommends that, in order to mitigate the risks of inequality, social exclusion and marginalisation due to the loss of purchasing power, appropriate pricing policies should be put in place at the appropriate level in several fields, including ceilings on energy prices, especially on the cost of energy bills in order to prevent speculation on this fundamental resource, given their impact on other essential goods such as food and prices thereof. In this respect, it would be advisable to reform how the EU energy market operates, to ensure an effective energy system that secures an affordable energy supply.












1.9.


The EESC recognises that the crisis of the loss of purchasing power goes hand in hand with an unprecedented housing crisis. It recommends rapid implementation of affordable housing policies, while fully respecting Member States’ competence in this field, alongside a European strategy to combat homelessness, which is also increasingly affecting working people.












1.10.


The EESC considers it essential to learn from crises and develop preventive policies. It has stated recently that the EU institutions should evaluate the need for a permanent financial instrument building on the experience of the SURE programme, with a view to stabilising the Member States’ social expenditure in the event of external economic shocks and supporting workers and enterprises in the industrial sectors and regions most affected by digital and green transition processes (3). The EESC also believes that to deliver results progress must continue in the EU Member States on the implementation of the recommendation on minimum income.












1.11.


The EESC underlines the role of education as a robust preventive factor in relation to exclusion, marginalisation and inequality. Increased investment in education and skills is a strong lever for increasing incomes and quality jobs and it urges the EU and Member States to increase investment in education. The EESC underlines the importance of well-designed policies in order to address skills gaps and labour shortages, which are reported as one of the major obstacles to investment and growth by companies.












1.12.


The EESC believes that, in order to mitigate the loss of purchasing power in Europe, essential and social services, including those provided by social economy entities, should be developed in a way that addresses barriers to access. It notes that Principle 20 of the European Pillar of Social Rights (EPSR) provides a non-exhaustive list of essential services. The EESC considers them an essential component of transformative social protection systems that help the most vulnerable while ensuring preventive services.












1.13.


The EESC believes that the European Semester with its Social Convergence Framework remains one of the most relevant tools for monitoring the policies and measures Member States have adopted for addressing the crisis resulting from the loss of purchasing power and its effects on inequality and social exclusion and all the concomitant challenges for the European economy and society. The EESC emphasises the importance of strengthening the use of distributional impact assessments, to make sure that policies in all domains do not exacerbate poverty or inequality, while also considering gender and youth perspectives. The corresponding use of disaggregated data should be taken into account across all social policies. The EESC reiterates the importance of social indicators being considered on the same level as economic indicators for the design of measures and policies.












1.14.


Policies implementing the EPSR must be seen in the wider context of the EU’s just transition. Structural inequalities must be addressed and vulnerable groups, who are most affected by the ongoing transition including the loss of purchasing power, should be protected as a priority. Member States must maintain strong social safety nets and the EESC urges the EU to encourage them to improve social security systems to provide adequate income protection during illness, unemployment or retirement. It is also necessary to maintain and reinforce investments in education, training and the promotion of increased labour participation. Adequate public spending in these areas should be ensured (4).












1.15.


The EESC considers it essential that Member States seek ways to mitigate the effects of the loss of purchasing power on inequality and focus on exclusion and marginalisation by designing actions and investments for health, social inclusion and community care, thereby enhancing well-being and resilience in care provision.












1.16.


The EESC welcomes the recent report by the European Committee of Social Rights (ECSR) on the impact of the cost of living crisis on social rights and urges Member States to comply with its recommendations (5).




2.   General comments









2.1.


The EESC notes with concern the loss of purchasing power and the rise in the cost of living experienced by European households, caused by the compounded effects of the COVID-19 pandemic, Russia’s war on Ukraine, the ensuing energy crisis and an unprecedented spike in inflation. The disruption of global supply chains has substantially contributed to higher prices and a further sharp rise in the cost of living. Global warming and the climate crisis have also resulted in higher prices in key agricultural products (6).












2.2.


In 2023, 94,6 million people in the EU (21 % of the population) were AROPE (7) and 10,6 % of the population could not adequately heat their home. Housing costs have reduced disposable income and by 2023, for 10,6 % of households in cities and 7 % of households in rural areas, housing costs exceeded 40 % of their disposable income (8).












2.3.


Despite lower inflation, citizens still face the challenges of the higher cost of living. Rising prices, the cost of living and the economic situation were the top concerns of citizens voting in the elections (9), including 40 % of 16–30-year-olds (10).












2.4.


High energy prices seriously hamper the competitiveness of European industries, companies and especially SMEs, also leading to increased prices for the products and services they provide.












2.5.


While the effects of the loss of purchasing power are felt by a majority of households, low and lower middle-income households are the most exposed in a majority of Member States (11). Gender, age, disability, ethnicity, income level and home ownership status can also disproportionately affect people’s ability to afford basic necessities.












2.6.


In 2023, 24,8 % of children in the European Union were at risk of poverty or social exclusion (AROPE), highlighting the persistence of high child poverty levels in one of the world’s wealthiest regions. Child poverty rates rose in 16 EU countries while the overall risk of poverty decreased in the EU as a whole (12). Women and families with children are particularly vulnerable: almost half (48 %) of parents had cut back on their own food to feed their children (13). In-work poverty decreased only slightly, to 8,3 % in 2023 (by 0,2 pp). Despite the protective effect of work, many workers remain at risk of poverty (AROPE) (14).












2.7.


The EESC underlines the role of education as a very strong predictor for poverty levels. In 2023, almost one third (28,8 %) of the EU population with a low education was considered subjectively poor.












2.8.


Public services address citizens’ basic needs, contributing to their well-being and social cohesion and providing stability in the economy. High-quality, affordable and accessible public services are also crucial in helping to mitigate the impacts of cost-of-living increases, particularly for those in the bottom quintile of the income distribution, who are disproportionately impacted by rises in the cost of living.












2.9.


The EESC is also concerned about the effect of a US-EU trade war on inflation, the EU economy, companies and citizens’ purchasing power, particularly the most vulnerable. It stresses that the EU and Member States must take appropriate measures to counteract these potential impacts.












2.10.


The EESC notes that despite recent improvements (15) in the economy, new uncertainties are again causing growth to slow, while inflation remains a concern. Real wages remain below 2019 levels and significant differences in average wages persist across Europe (16). Wealth inequality remains a significant problem in the EU: the top 10 % held 56 % of net wealth while the bottom half held just 5 % (17).












2.11.


European households’ loss of purchasing power may become a serious public health problem. Under-nutrition or malnutrition are a real threat for significant segments of the population (18). Approximately one tenth of households face catastrophic health spending, i.e. out-of-pocket health care payments exceeding the resources they have available to pay for health care (19). This can impact on preventive care and delay diagnosis, with severe impacts for individuals and on healthcare systems.




3.   Specific comments









3.1.


The cost-of-living crisis has increased hardship and financial insecurity across Europe, though its impact varies across countries (20). There is considerable overlap in how governments have chosen to offset variations in income levels, and in the priority given to different types of aid.
While tackling the cost-of-living crisis is largely a national competence, there is ample scope for measures at European level in preventing new crises and strengthening crisis resilience and for mutual learning to support national measures with good practices, which should be studied and emulated.












3.2.


The EESC considers that stronger, well-functioning social dialogue and collective bargaining, in line with each Member State’s industrial relations practices and in full respect of social partners’ autonomy, are valuable for tackling the loss of purchasing power and related challenges.












3.3.


The EESC notes that periods of high inflation pose specific challenges for social partners and that collective bargaining rounds and agreements might not address the increase in inflation. It also notes, however, the wide range of mechanisms through which collective agreements attempt to link wages to inflation trends to avoid unexpected losses in purchasing power and that social partners can also adopt ad hoc mechanisms to cope with an inflation crisis. Skills gaps and labour shortages persist in the EU, and are reported as one of the major obstacles to investment and growth by companies. At the same time, almost 25 % of working-age people in the EU remain inactive (21). This underlines the importance of well-designed active labour market policies. Exchanges of best practices on reforms to public employment services to improve their efficiency and cooperation between public and private employment services are needed.












3.4.


As required by the Directive on adequate minimum wages in the EU (AMWD), Member States with a collective bargaining coverage rate of less than 80 % should quickly provide a framework of enabling conditions for collective bargaining and, in consultation with the social partners, design their National Action Plans to promote collective bargaining. The Commission should provide relevant support, including for ongoing capacity-building, and take relevant enforcement action.












3.5.


The specific role of social dialogue must be fully recognised and respected, while acknowledging the distinct role of civil dialogue. Civil society organisations can play a crucial role in participatory policymaking in non-work-related issues representing those outside the formal labour market and also contribute to addressing inequalities, particularly among the most vulnerable groups.












3.6.


Safeguarding purchasing power should also be one of the criteria to be taken into account when adjusting minimum wages. The EESC welcomes the increase in national minimum wages announced for 2025, notably the significant increases in most of the central and eastern European Member States (22). For the new 2025 rates, it notes that structural uprates closely linked to the provisions of the AMWD can be observed (23).












3.7.


The overall stabilising effect of minimum income systems for the economy should also be noted in this context. The EESC insists that it is necessary for minimum incomes to be kept in line with inflation, especially with the rise in the cost of living, and this should be done on a regular basis. Strengthening the implementation of the provisions of the Council Recommendation of January 2023 on an adequate minimum income guaranteeing active inclusion is also vital (24).












3.8.


The EESC believes that decent working conditions must be ensured by implementing and applying the existing EU and national rules covering e.g. non-discrimination, social protection, health and safety protection, retraining and upskilling of workers, social dialogue and trade union representation, decent wages, as well as gender equality and, in particular, equal pay for work of equal value.












3.9.


Digital poverty and exclusion in the EU should be monitored and assessed in relation to access to essential services (25).












3.10.


Access to affordable and healthy food must be integrated into the framework of essential goods and services, linked with healthy people and a healthy planet in the European Green Deal (26).












3.11.


The EESC stresses the need for more effective investments in public services and infrastructure, including healthcare, education and taking health and housing into consideration together, to provide adequate and affordable social housing, alongside other social investments. Targeted support for social economy organisations can contribute to strengthening social infrastructure, creating quality jobs and ensuring access to affordable essential services. It warns that this should not be jeopardised by increased investment in the defence industry, notably when many Member States are facing fiscal constraints and a return to funding cuts for essential public services. It also calls for measures that enhance economic growth and productivity to enable investment in service of the common good.












3.12.


The EESC emphasises that the right to food, adequate housing and water and sanitation are human rights and that all European citizens should have effective access to them. Adequate housing implies both affordability (27) and the ability to maintain a warm home, including preventing permanent energy disconnections for people in vulnerable situations as a guarantee measure to prevent exclusion and poverty where appropriate.












3.13.


The EESC considers it essential to promote exceptions to the application of European internal market and competition rules to the provision of essential services – to protect citizens’ access to services, even where a Public Service Obligation exists (28).












3.14.


The EESC recommends ensuring compliance with the body of legislation on services of general interest and other legislation including the regulation on categories of aid compatible with the internal market, the Services Directive, consumer protection measures and the Quality Framework for Services of General Interest in the EU (29).












3.15.


The EESC believes that, to mitigate the loss of purchasing power in Europe, essential and social services should be further developed to overcome barriers to access. The EESC notes that Principle 20 of the EPSR provides a non-exhaustive list of essential services.












3.16.


The fight against energy poverty and exclusion must become a key priority. In the framework of the EPSR poverty reduction target, Member states have a set of policy tools that set clear targets, assess and address the needs of vulnerable households (30).












3.17.


The EESC considers that the European Semester with its Social Convergence Framework remains one of the most relevant tools for monitoring the policies and measures Member States have adopted to address the crisis resulting from the loss of purchasing power and its effect on inequality and social exclusion and all the concomitant challenges for the European economy and society. The EESC emphasises the importance of strengthening the use of distributional impact assessments to make sure that policies in all domains do not exacerbate poverty or inequality (31), while also considering gender and youth perspectives. The corresponding use of disaggregated data should be taken into account, when relevant, in all social policies. The EESC reiterates the importance of social indicators being considered on the same level as economic indicators for the design of measures and policies.












3.18.


The EESC believes that the lessons learnt during the COVID-19 crisis – which legitimised the implementation of softer fiscal policies through the general safeguard clause – should be carefully analysed and assessed, and mechanisms to trigger the necessary domestic investments and reforms and avoid cuts to social investment in the longer term should be provided for (32).






Brussels, 19 June 2025.


The President


of the European Economic and Social Committee

Oliver RÖPKE
               





(1)  EESC opinions on 
Reindustrialisation of Europe – opportunity for businesses, employees and citizens in the context of the cost-of-living crisis
 (OJ C, C/2025/4206, 17.8.2025, ELI: http://data.europa.eu/eli/C/2025/4206/oj),

Leaving the crises behind – Measures for a resilient, cohesive and inclusive European economy
 (OJ C, C/2025/3195, 2.7.2025, ELI: http://data.europa.eu/eli/C/2025/3195/oj),

How single market dysfunctionalities contribute to the rising cost of living
 (OJ C, C/2025/3189, 2.7.2025, ELI: http://data.europa.eu/eli/C/2025/3189/oj),

Phasing out fossil fuel subsidies while ensuring European competitiveness, mitigating the cost-of-living crisis, and promoting a just transition
 (OJ C, C/2025/3191, 2.7.2025, ELI: http://data.europa.eu/eli/C/2025/3191/oj),

Fragmentation of supply chains and impact on the cost of living
 (OJ C, C/2025/4209, 17.8.2025, ELI: http://data.europa.eu/eli/C/2025/4209/oj),

How to address the loss of purchasing power and the risk of rising inequalities, exclusion and marginalisation

,

Price hikes in transport, energy, housing: role of quality public services in tackling high cost of living
 (OJ C, C/2025/3192, 2.7.2025, ELI: http://data.europa.eu/eli/C/2025/3192/oj).

(2)  ECO/660 
Recommendations of organised civil society to address the cost-of-living crisis
 (ongoing).

(3)  Resolution of the European Economic and Social Committee – Contribution to the 2025 European Commission’s work programme (OJ C, C/2025/760, 11.2.2025, ELI: http://data.europa.eu/eli/C/2025/760/oj) 8.11.

(4)  
            Protecting Health Rising cost-of-living crisis | EuroHealthNet.

(5)  
            Cost of Living Crisis – Social Rights-ECSR.

(6)  
            Agricultural prices 2023 -EUROSTAT.

(7)  
            Poverty & Social Exclusion 2023 – EUROSTAT.

(8)  
            Housing in Europe – 2023 EUROSTAT.

(9)  
            EU Post-electoral survey 2024.

(10)  
            Youth survey 2024.

(11)  
            Labour market and wage in EU- EC.

(12)  
            Realities in EU progress gaps EUROCHILD.

(13)  
            Progressive Yearbook 2023 FEPS P 101.

(14)  
            Employment & Social Developments EU 2024 – EC P 35.

(15)  
            https://www.oecd.org/en/publications/oecd-economic-outlook-interim-report-march-2025_89af4857-en.html.

(16)  
            Employment Outlook 2024 | OECD.

(17)  
            https://www.imf.org/en/Blogs/Articles/2024/11/18/new-european-wealth-gauge-helps-policymakers-address-inequality.

(18)  
            Almost 1 out of 10 in the EU could not afford proper meal – News articles – Eurostat.

(19)  
            Health at a Glance EU 2022 | OECD.

(20)  
            Progressive Yearbook 2023 FEPS.

(21)  
            Inactive-population-in-Europe-by-country STATISTA.


(22)  
            Rises in national minimum wages 2025 –EUROFOUND.

(23)  
            Rises in national minimum wages 2025 –EUROFOUND.

(24)  
            Council Recommendation adequate minimum incomes 2023 (OJ C 41, 3.2.2023, p. 1).

(25)  
            Report-2022 essential-services-EAPN.

(26)  
            Report-2022 essential-services-EAPN.

(27)  
            Unaffordable and inadequate housing in Europe | EUROFOUND p 35.

(28)  
            Report-2022 essential-services-EAPN.

(29)  
            Report-2022 essential-services-EAPN.

(30)  
            Cost-living-crisis-and-energy-poverty-EUROFOUND 2022.

(31)  See La Hulpe Declaration.

(32)  See La Hulpe Declaration.




ANNEX
The following amendments, which received at least a quarter of the votes cast, were rejected during the discussions (Rule 74(3) of the Rules of Procedure);

AMENDMENT 5


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 3.3


Amend as follows:







Section opinion


Amendment




The EESC notes that periods of high inflation pose specific challenges for social partners and that collective bargaining rounds and agreements might not address the increase in inflation. It also notes, however, the 
wide range of
 mechanisms through which collective agreements attempt to link wages to inflation trends to avoid unexpected losses in purchasing power 
and that social partners can also adopt ad hoc mechanisms to cope with an inflation crisis
. Skills gaps and labour shortages persist in the EU, and are reported as one of the major obstacles to investment and growth by companies. At the same time, almost 25 % of working-age people in the EU remain inactive[1]. This underlines the importance of well-designed active labour market policies. Exchanges of best practices on reforms to public employment services to improve their efficiency and cooperation between public and private employment services are needed.


The EESC notes that periods of high inflation pose specific challenges for social partners and that collective bargaining rounds and agreements might not address the increase in inflation. It also notes, however, the 
various country-specific
 mechanisms through which collective agreements attempt to link wages to inflation trends to avoid unexpected losses in purchasing power. Skills gaps and labour shortages persist in the EU, and are reported as one of the major obstacles to investment and growth by companies. At the same time, almost 25 % of working-age people in the EU remain inactive[1]. This underlines the importance of well-designed active labour market policies. Exchanges of best practices on reforms to public employment services to improve their efficiency and cooperation between public and private employment services are needed.










[1]


Inactive-population-in-Europeeurope-by-country STATISTA.












[1]


Inactive-population-in-Europeeurope-by-country STATISTA.









Reason

It is better to refer explicitly to the various mechanisms in some Member States.







Outcome of the vote





In favour:


82




Against:


111




Abstention:


7





AMENDMENT 6


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 3.4


Amend as follows:







Section opinion


Amendment




As required by the Directive on adequate minimum wages in the EU (AMWD), Member States with a collective bargaining coverage rate of less than 80 % should 
quickly
 provide a framework of enabling conditions for collective bargaining and, in consultation with the social partners, design their National Action Plans to promote collective bargaining. The Commission should provide relevant support, including for ongoing capacity-building, and take relevant enforcement action.


As required by the Directive on adequate minimum wages in the EU (AMWD), Member States with a collective bargaining coverage rate of less than 80 % should provide a framework of enabling conditions for collective bargaining and, in consultation with the social partners, design their National Action Plans to promote collective bargaining. The Commission should provide relevant support, including for ongoing capacity-building, and take relevant enforcement action
. However, the AMWD is subject to a pending CJEU case (C-19/23) questioning its legality
.





Reason

It should be clarified that the AMWD is still subject to a pending CJEU case C-19/23.







Outcome of the vote





In favour:


81




Against:


119




Abstention:


7





AMENDMENT 7


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 3.6


Amend as follows:







Section opinion


Amendment






Safeguarding
 purchasing power 
should also be
 one of the criteria to be taken into account when adjusting minimum wages. The EESC 
welcomes
 the increase in national minimum wages announced for 2025, notably the significant increases in most of the central and eastern European Member States[1]. For the new 2025 rates, it notes that structural uprates 
closely linked to the provisions of the AMWD
 can be observed[2].




According to the AMWD,
 purchasing power 
of statutory minimum wages is
 one of the criteria to be taken into account when 
setting or
 adjusting minimum wages. The EESC 
notes
 the increase in national minimum wages announced for 2025, notably the significant increases in most of the central and eastern European Member States[1]. For the new 2025 rates, it notes that 
minimum wages have been increased above inflation, and
 structural uprates can be observed[2].










[1]


Rises in national minimum wages 2025 –EUROFOUND.












[1]


Rises in national minimum wages 2025 –EUROFOUND.














[2]


Ibid.












[2]


Ibid.









Reason

According to the AMWD the criteria referred to in Article 5 concern statutory minimum wages. The Eurofound source points out that minimum wages have increased above inflation.







Outcome of the vote





In favour:


84




Against:


124




Abstention:


4





AMENDMENT 8


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 3.7


Amend as follows:







Section opinion


Amendment




The overall stabilising effect of minimum income systems for the economy should also be noted in this context. 
The EESC insists that it is necessary for
 minimum incomes to 
be kept in line with inflation
, especially 
with
 the rise in the cost of living
, and this should be done on a regular basis
. Strengthening the implementation of the provisions of the Council Recommendation of January 2023 on an adequate minimum income guaranteeing active inclusion is also vital[1].


The overall stabilising effect of minimum income systems for the economy should also be noted in this context. 
Member States should assess
 minimum incomes 
regularly and, when appropriate, make adjustments
 to 
respond to changing situations
, especially 
to
 the rise in the cost of living. Strengthening the implementation of the provisions of the Council Recommendation of January 2023 on an adequate minimum income guaranteeing active inclusion is also vital[1].










[1]


Council Recommendation adequate minimum incomes 2023.












[1]


Council Recommendation adequate minimum incomes 2023.









Reason

Inflation is not the only cause for rising living costs.







Outcome of the vote





In favour:


82




Against:


121




Abstention:


4





AMENDMENT 9


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 3.10


Amend as follows:







Section opinion


Amendment




Access to affordable and healthy food must be 
integrated into the framework of essential goods
 and 
services
, linked with healthy people and a healthy planet in the European Green Deal[1].


Access to affordable and healthy food must be 
enhanced by ensuring favourable conditions for sustainable farming
 and 
food production in the EU
, linked with healthy people and a healthy planet in the European Green Deal[1].










[1]


Ibid.












[1]


Ibid.









Reason

New definitions cannot ensure access to affordable and healthy food, but it requires thriving and sustainable food production within the EU.







Outcome of the vote





In favour:


87




Against:


120




Abstention:


2





AMENDMENT 10


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 3.11


Amend as follows:







Section opinion


Amendment




The EESC stresses the need for more effective investments in public services and infrastructure, including healthcare, education and taking health and housing into consideration together, to provide adequate and affordable social housing, alongside other social investments. Targeted support for social economy organisations can contribute to strengthening social infrastructure, creating quality jobs and ensuring access to affordable essential services. It 
warns that this should not be jeopardised by increased investment in the defence industry, notably when many Member States are facing fiscal constraints and a return to funding cuts for essential public services. It
 also calls for measures that enhance economic growth and productivity to enable investment in 
service
 of the common good.


The EESC stresses the need for more effective investments in public services and infrastructure, including healthcare, education and taking health and housing into consideration together, to provide adequate and affordable social housing, alongside other social investments. Targeted support for social economy organisations can contribute to strengthening social infrastructure, creating quality jobs and ensuring access to affordable essential services. It also calls for measures that enhance economic growth and productivity to enable investment in 
the various dimensions
 of the common good
. The EESC emphasises that the financing of essential services must be ensured at all times
.





Reason

It is important to ensure adequate funding of essential services, without putting various components of the common good against each other.







Outcome of the vote





In favour:


86




Against:


123




Abstention:


3





AMENDMENT 12


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 3.13


Amend as follows:







Section opinion


Amendment




The EESC considers it essential to promote 
exceptions to
 the application of European internal market and competition rules to the provision of essential services – to protect citizens’ access to services, even where a Public Service Obligation exists[1].


The EESC considers it essential to promote the application of European internal market and competition rules to the provision of essential services – to protect citizens’ access to services, even where a Public Service Obligation exists[1].




[1] Report-2022 essential-services-EAPN.


[1] Report-2022 essential-services-EAPN.





Reason

It is important that citizens can benefit from the internal market and rule-based competition also when essential services are concerned.







Outcome of the vote





In favour:


96




Against:


121




Abstention:


3





AMENDMENT 13


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 3.17


Amend as follows:







Section opinion


Amendment




The EESC considers that the European Semester with its Social 
Convergence Framework
 remains one of the most relevant tools for monitoring the policies and measures Member States have adopted to address the crisis resulting from the loss of purchasing power and its effect on inequality and social exclusion and all the concomitant challenges for the European economy and society. The EESC emphasises the importance of strengthening the use of distributional impact assessments to make sure that policies in all domains do not exacerbate poverty or inequality[1], while also considering gender and youth perspectives. The corresponding use of disaggregated data should be taken into account, when relevant, in all social policies. The EESC reiterates the importance of social indicators being considered 
on the same level as economic indicators
 for the design of measures and policies.


The EESC considers that the European Semester with its Social 
Scoreboard
 remains one of the most relevant tools for monitoring the policies and measures Member States have adopted to address the crisis resulting from the loss of purchasing power and its effect on inequality and social exclusion and all the concomitant challenges for the European economy and society
. Furthermore, the EESC perceives the Social Convergence Framework as an opportunity to improve the coordination of national efforts to achieve upward social convergence. It should also lead to better use of the current governance architecture in the EU
. The EESC emphasises the importance of strengthening the use of distributional impact assessments to make sure that policies in all domains do not exacerbate poverty or inequality[1], while also considering gender and youth perspectives. The corresponding use of disaggregated data should be taken into account, when relevant, in all social policies. The EESC reiterates the importance of social indicators being 
properly
 considered for the design of measures and policies.










[1]


See La Hulpe Declaration.












[1]


See La Hulpe Declaration.









Reason

Social Scoreboard is more relevant in this context. In the last sentence, ‘properly’ is wider and covers all relevant aspects of consideration. In a spirit of compromise we are also proposing to add a sentence about SCF later in the paragraph.







Outcome of the vote





In favour:


96




Against:


130




Abstention:


2





AMENDMENT 1


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 1.6


Amend as follows:







Section opinion


Amendment




The EESC acknowledges the importance of 
wage
 and minimum 
wage increases
, as key elements in combating the loss of purchasing power 
and
 its effect on inequality, exclusion and marginalisation and ensuring the redistribution of wealth
. The EESC highlights the positive effect of the Adequate Minimum Wage Directive on wage increases. It encourages Member States to intensify efforts to continue with implementation to achieve its objectives, including providing National Action Plans to increase collective bargaining coverage where this is below 80
 %.


The EESC acknowledges the importance of 
wages
 and minimum 
wages, together with social protection, active labour market policies and taxation systems
, as key elements in combating the loss of purchasing power 
in a fair way, thereby reducing
 its effect on inequality, exclusion and marginalisation and ensuring the redistribution of wealth.





Reason

Wages are only one dimension of purchasing power, and the text ignores the unemployed and those in otherwise vulnerable situations.







Outcome of the vote





In favour:


90




Against:


119




Abstention:


5





AMENDMENT 2


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 1.8


Amend as follows:







Section opinion


Amendment




The EESC recommends that, in order to mitigate the risks of inequality, social exclusion and marginalisation due to the loss of purchasing power, appropriate pricing policies should be put in place at the appropriate level in several fields, including 
ceilings on
 energy 
prices
, 
especially on
 the 
cost
 of energy 
bills in order to prevent speculation on this fundamental resource, given their impact
 on other essential goods such as food and prices thereof. In this respect, it would be advisable to reform how the EU energy market operates, to ensure an effective energy system that secures an affordable energy supply.


The EESC recommends that, in order to mitigate the risks of inequality, social exclusion and marginalisation due to the loss of purchasing power, appropriate pricing policies should be put in place at the appropriate level in several fields, including 
in
 energy 
policy
, 
given
 the 
impact
 of energy 
prices
 on other essential goods such as food and prices thereof. In this respect, it would be 
most
 advisable to 
encourage green energy transition and
 reform how the EU energy market operates, to ensure an effective energy system that secures an affordable energy supply.





Reason

Properly implemented transition to clean energy is the most sustainable way towards lower energy prices.







Outcome of the vote





In favour:


86




Against:


126




Abstention:


6





AMENDMENT 3


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 1.13


Amend as follows:







Section opinion


Amendment




The EESC believes that the European Semester with its Social 
Convergence Framework
 remains one of the most relevant tools for monitoring the policies and measures Member States have adopted for addressing the crisis resulting from the loss of purchasing power and its effects on inequality and social exclusion and all the concomitant challenges for the European economy and society. The EESC emphasises the importance of strengthening the use of distributional impact assessments, to make sure that policies in all domains do not exacerbate poverty or inequality, while also considering gender and youth perspectives. The corresponding use of disaggregated data should be taken into account across all social policies. The EESC reiterates the importance of social indicators being considered 
on the same level as economic indicators
 for the design of measures and policies.


The EESC believes that the European Semester with its Social 
Scoreboard
 remains one of the most relevant tools for monitoring the policies and measures Member States have adopted for addressing the crisis resulting from the loss of purchasing power and its effects on inequality and social exclusion and all the concomitant challenges for the European economy and society
. Furthermore, the EESC perceives the Social Convergence Framework as an opportunity to improve the coordination of national efforts to achieve upward social convergence. It should also lead to better use of the current governance architecture in the EU
. The EESC emphasises the importance of strengthening the use of distributional impact assessments, to make sure that policies in all domains do not exacerbate poverty or inequality, while also considering gender and youth perspectives. The corresponding use of disaggregated data should be taken into account across all social policies. The EESC reiterates the importance of social indicators being 
properly
 considered for the design of measures and policies.





Reason

Social Scoreboard is more relevant in this context. In the last sentence, ‘properly’ is wider and covers all relevant aspects of consideration. (The SOC section draft opinion actually had the wording ‘Social Scoreboard’ in the text of point 1.14 and the SOC section accepted the point with ‘social scoreboard’ in the text. In the SOC section opinion sent to the plenary the term was nevertheless changed to ‘Social Convergence framework’). In a spirit of compromise we are also proposing to add a sentence about SCF later in the paragraph.







Outcome of the vote





In favour:


93




Against:


130




Abstention:


2





AMENDMENT 15


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 1.3


Amend as follows:

The following paragraphs of the section opinion were amended to reflect the amendment adopted by the assembly but received more than one quarter of the votes cast (Rule 74(4) of the Rules of Procedure):






Section opinion


Amendment




The EESC considers that investment in people and the economy, 
fair
 taxation, quality and affordable public services as well as targeted support for the most vulnerable people in parallel with short and long-term industrial policy and efforts for better competitiveness, are essential to alleviate the cost-of-living crisis and protect against future shocks.


The EESC considers that investment in people and the economy, 
progressive
 taxation, quality and affordable public services as well as targeted support for the most vulnerable people in parallel with short and long-term industrial policy and efforts for better competitiveness, are essential to alleviate the cost-of-living crisis and protect against future shocks.














Outcome of the vote





In favour:


111




Against:


109




Abstention:


4





AMENDMENT 14


SOC/823


Loss of purchasing power/inequalities, exclusion, marginalisation


Point 1.16


Amend as follows:







Section opinion


Amendment




The EESC 
takes note of
 the recent report by the European Committee of Social Rights (ECSR) on the impact of the cost of living crisis on social rights and 
its recommendations for the
 States 
Parties
 to 
the European Social Charter under the Council of Europe
[1].


The EESC 
welcomes
 the recent report by the European Committee of Social Rights (ECSR) on the impact of the cost of living crisis on social rights and 
urges Member
 States to 
comply with their recommendations
[1].




[1] Cost of Living Crisis – Social Rights-ECSR.


[1] Cost of Living Crisis – Social Rights-ECSR.














Outcome of the vote





In favour:


140




Against:


76




Abstention:


15







ELI: http://data.europa.eu/eli/C/2025/4208/oj
ISSN 1977-091X (electronic edition)