Debate: EU initiatives to address the rising cost of living, including the implementation of the European Pillar of Social Rights
Date: TUESDAY, 5 JULY 2022
Speaker: Mikuláš Bek 
Language: EN

Let me start by commending Parliament for placing such an important topic on the agenda of this plenary. We are living through challenging times with direct effects on European households and companies. It is therefore our collective responsibility to address those challenges at all levels and find solutions that protect our citizens and our economies. I will use this intervention to touch upon the most critical aspects of the current situation and to present the concrete measures that the Council has taken or is considering in each of the relevant policy areas. Inflation is a major concern for all of us, as Russia’s war of aggression exacerbated the rise in the price of energy, food and commodities. This has a direct impact on our citizens and on our businesses. It has become clearer than ever that the Union’s energy security is indispensable for a successful, sustainable and inclusive recovery from the crisis. It is a fact that high energy prices weigh particularly heavily on the most vulnerable parts of our populations. Therefore, alleviating energy poverty and addressing the social consequences of the rise in energy prices is one of the main priorities of the Presidency. Last month, the Council agreed its negotiating position on the revision of the Energy Efficiency Directive, which would oblige Member States to take measures to implement energy efficiency improvements for people affected by or at the risk of energy poverty. In addition, the ongoing revision of the Energy Performance of Buildings Directive will facilitate more targeted financing to investments in the building sector, thus supporting vulnerable consumers and fighting energy poverty. Let me recall that on 29 June the Council also agreed its negotiating position on the Social Climate Fund Regulation under the Fit for 55 package. The new fund should help tackle energy poverty by supporting vulnerable households, micro—enterprises and transport users particularly affected by the impact of the new emissions trading system for buildings and road transport. The Council remains ready to engage in negotiations with the European Parliament for a fast adoption of this important file so the support can reach the most vulnerable as soon as possible. What is more, the Council recently also adopted a recommendation on a fair transition to climate neutrality. This recommendation encourages Member States to put in place measures to support those most affected by the green transition, in particular those in vulnerable situations, and to accompany them towards economic activities that contribute to climate and environmental objectives. In October, we will hold a conference on tackling energy poverty, focusing on the EU approach and sharing the best practices. In the framework of the European Semester, the Council will adopt on 12 July country—specific recommendations for all the Member States. The recommendations from the Commission for 2023 take into account the worsened economic outlook and the higher inflation compared to the Commission’s 2022 winter forecast. As a result, for 2022 and 2023, it is recommended that national fiscal and social policies take into account continued temporary and targeted support to households and firms most vulnerable to energy price hikes. The national recovery and resilience plans cover a broad range of reforms and investments that strengthen Member States’ social protection systems. These measures focus on the effectiveness, quality and resilience of social protection systems and include also specific measures addressing, for instance, the inclusion of people with disabilities, increasing the adequacy and sustainability of social benefits, and improving the living conditions of elderly people in need of care. The European Pillar of Social Rights supports and guides our work in the social policy areas. The commitment of the Council and its Member States to the Porto Declaration and to achieving the headline targets by 2030 was reinforced by setting national targets on employment, skills and the fight against poverty. Beyond setting national targets, let me stress that important concrete achievements have been made since the Porto Summit. Last month, the co—legislators reached an historic agreement on the directive on adequate minimum wages in the EU. This should significantly contribute to reducing in-work poverty and to improving upward social convergence. The Council has also approved in June 2021 the European Child Guarantee to address the problem of children at the risk of poverty. The implementation of this recommendation is one of our priority areas. We believe that strong political commitment, ambitious national action plans and strong governance at national level are crucial to ensure an efficient implementation. In line with this commitment, we will organise a high—level presidency conference entitled ‘Child Support in the context of the Child Guarantee’ later this week on 7 and 8 July. Rising inflation and the impact of the war waged by Russia in Ukraine create real risks also for youth employment. In the framework of the implementation of the Reinforced Youth Guarantee, the Member States can better design and put in place policies for youth. Let me recall that the Council recommendation on the Reinforced Youth Guarantee recognises the partnerships between Youth Guarantee providers and other social services, including social housing and accessibility services, as cross—cutting enablers for its implementation. President, honourable Members, I thank you for the attention.