Debate: Tackle the cost of living crisis: increase pay, tax profits, stop speculation
Date: WEDNESDAY, 14 DECEMBER 2022
Speaker: Mikuláš Bek
Language: EN

Russia’s illegal and criminal war of aggression has come at a high human cost. We think first and foremost of the innocent victims in Ukraine and the millions of displaced Ukrainians. But Putin’s war comes also with a human and economic cost for Europe. Soaring inflation and high energy prices have been a severe blow to household purchasing power and business costs.  Allow me to focus my intervention on some of the most recent developments and decisions of the Council to tackle what is clearly a main concern of EU governments.  In November, the Council adopted the guidelines for employment and social policies of Member States for the coming months and year. These guidelines react to key employment and social challenges of the last year and this year. Following that, the Commission adopted its autumn package for the Semester of Economic Governance 2023.  The cost of living crisis was one of the topics discussed last week by ministers at the Employment, Social Policy, Health and Consumer Affairs Council. The Council discussed the European Semester autumn package, where the Commission listed the main challenges caused by Russia’s war of aggression against Ukraine. Historically high energy prices, high inflation rates, supply shortages, increased debt levels and rising borrowing costs are affecting business activity and eroding households’ purchasing power.  All the Ministers welcomed the autumn package and the priorities set out therein, tackling the immediate difficulties that people and businesses are facing while pursuing effective labour market policies that drive the twin transition in a fair way and deliver on our climate objectives.  Given different national contexts, Member States respond differently to the situation. Some governments provide for direct support to vulnerable households or use tax reductions on certain commodities, whereas others focus on job insertion schemes or the green transition. Many Ministers stressed also the needs of upskilling and reskilling of both unemployed and employed people, including for the twin transition.  At the same EPSCO Council meeting, the Ministers adopted a political agreement on a recommendation on adequate minimum income, ensuring active inclusion. This recommendation contains several measures for further work on areas such as the adequacy of income support, access to inclusive labour markets, ensuring access to essential services, or the effectiveness and governance of social safety nets. Furthermore, Member States are recommended to ensure that all persons lacking sufficient resources are covered by a minimum income set by law.  Let me also mention other important instruments adopted at last week’s EPSCO Council. They are the recommendation on long—term care and the recommendation on early childhood care and education – the Barcelona Targets for 2030, a principal instrument of the European care strategy. Both instruments promote social fairness and intergenerational solidarity while leading to the creation of jobs. They also unlock labour resources for other sectors by alleviating the family care burden.  Another measure to tackle the cost of living is the Directive on minimum wages that we adopted together earlier this year. It is worth to remind that this directive aims to help to achieve decent working conditions and a decent standard of living for employees in Europe.  I look forward to listening to your views on what can be done to alleviate the burden of the crisis on the people in Europe. Thank you very much for your attention.