Debate: European Semester for economic policy coordination  - European Semester for economic policy coordination: Employment and social priorities for
Date: TUESDAY, 14 MARCH 2023
Speaker: Jessika Roswall 
Language: EN

The European Semester remains a very important framework to ensure effective policy coordination across four dimensions: environmental sustainability, productivity, fairness and macroeconomic stability. All of these are key for the economic prosperity and sustainable competitiveness of our Union. The policy coordination is more important than ever, as we are facing multiple challenges resulting from Russia’s war of aggression against Ukraine. Our post-COVID recovery is being challenged at various levels and this requires policy measures that are supportive of inclusive and sustainable growth. Rising inflation, interest rates and energy prices have left many companies and households struggling. Given this mix of challenges, our policies must remain coordinated and flexible. The EU and the Member States must work both on immediate actions to address the current challenges and notably the long strategy to boost competitiveness and productivity for a green and digital transition. These crucial questions will be on the agenda at the next week’s European Council. We must step up our efforts to implement the digital and green transition. This requires swift, targeted and coordinated actions both at the EU and national levels to carry out structural reforms. With NextGenerationEU and REPowerEU, we also have funding to finance key investments and reforms in Member States. Honourable Members, so far, labour markets are proving surprisingly resilient. But there are several challenges. Real wages are declining, which are weighing on households. At the same time, employers are finding it hard to hire in some sectors. That is why we need more ambitious actions at the EU and national level to promote skills through education, training, upskilling and reskilling. Therefore, I am happy that this is emphasised in the European Year of Skills 2023. In the context of demographic challenges, these actions will contribute to meet the challenges of labour shortages and the transformation of jobs. Policies geared towards skills and competences for the green transition hold the key to Europe’s full resilience and prosperity. Honourable Members, as Council Presidency, we intend to ensure a smooth European Semester cycle and that all parties concerned do their utmost to achieve the common objectives of seeing the country-specific recommendations approved by the European Council in June. Allow me also to add a word on the reform of the EU economic governance framework. The Council has been working intensely on the Commission’s orientation for this reform, and the Presidency has worked hard to find a compromise. We hope that we will find a compromise that all States can agree on. Many of the multiple challenges we are facing require ambitious reforms and substantial investments. Moreover, we need to address the increase of public debts as a result of the COVID crisis and the war in Ukraine. Reducing these high levels of debt should be done in a gradual and realistic manner. We now stand ready to examine the Commission’s new legislative proposal on economic governance.