The EU must ensure a progressive economic policy to fight inflation as well as social and environmental imbalances so we can realise an inclusive socio-ecological transformation of our economies that benefit all, urged S&Ds as the European Parliament today adopted its annual reports on the European Semester.

The European Semester, introduced in 2010 as a response to the financial crisis, is a cycle of fiscal, economic, labour, and social policy coordination within the EU. Its purpose is to closely coordinate and follow the policies of EU member states to avoid similar crises in the future.

The European Parliament traditionally presents its positions on this process before the European Commission adopts country specific recommendations to EU member states regarding their fiscal, economic, labour, and social policies. It adopts two separate reports - one on economic aspects, and one on employment aspects.

Irene Tinagli MEP, Chair of the European Parliament’s committee on economic affairs and S&D negotiator on the economic report on the European Semester, said:

“In times of Russia’s war against Ukraine, adequate and coordinated fiscal and economic policies in support of European families and companies are needed more than ever. This is what the report advocates on our initiative. Importantly, the report also calls for quick progress on the reform of the EU fiscal rules along the lines of the Commission's communication of November 2022. Europe needs a new economic governance framework that combines high levels of investment and sustainability of public finances.”

Estrella Durá Ferrandis MEP, S&D negotiator on the employment report on the European Semester, said:

“We must ensure an inclusive socio-ecological transformation of our economies, preventing imbalances by fighting poverty, reducing inequalities, and creating decent jobs with adequate wages and working conditions. The principles of the European Pillar of Social Rights and the Sustainable Development Goals (SDGs) must be the compass guiding reforms and investments. Social rights might have the same importance as macroeconomic and environmental targets with the common goal of improving the well-being of the people in the EU.”