In the face of monumental geopolitical shifts, we have to make the European Union stronger through the enhanced economic governance that upholds the commitment to social justice and sustainability; urge the Socialists and Democrats as the European Parliament adopts its annual reports on the European semester today.

In negotiations on economic aspects, for the first time, the S&Ds have secured a joint call from a majority of democratic political groups in the European Parliament for EU instruments to invest in shared European priorities – a fair green and digital transition, social priorities, and defence capabilities. This is vital for Europe’s long-term competitiveness and security.

On the other hand, negotiations on employment and social aspects were marred by the conservatives’ backtracking on workers’ rights and child poverty. The S&Ds denounce this experience as further proof that on social matters the European People’s Party (EPP) can no longer be trusted as a reliable negotiator.

Claire Fita, S&D negotiator on economic aspects of the European semester, said:

“This report will have a far-reaching impact, as it marks the first time the S&Ds have united a majority of all democratic forces in a joint call to strengthen the economic governance through EU investment instruments to advance common European priorities.

“We cannot ignore the impending expiration of the Recovery and Resilience Facility, a key investment instrument across Europe, by the end of 2026. Without decisive action, we risk a sharp decline in public investment in our shared European priorities.

“One of the victories in preparing this report is that, despite attacks from conservatives and the far right, we reaffirmed the European Green Deal and the European Pillar of Social Rights as the foundations of a fair, sustainable and socially just Europe.

“Special attention is also given to the housing crisis, which has profound implications on the lives of many Europeans and is undermining economic resilience and social stability. Failure to address this crisis will deepen inequalities. We need a holistic strategy to ensure affordable and decent housing for all.”

Idoia Mendia, S&D negotiator on employment aspects of the European semester, said:

“It is both shameful and disgraceful that we can no longer negotiate in good faith with our conservative colleagues. Today, the EPP has again betrayed our agreements. What is even more concerning is that they are doing so at the expense of workers and children.

“Despite the EPP’s repeated attempts to remove the reference to a dedicated budget of at least 20 billion for the European Child Guarantee – just as they did yesterday in the report on the European Social Fund – we managed to protect it this time. However, in a blatant violation of our agreement, undermining workers’ rights, they significantly weakened the report’s ambitions on artificial intelligence legislation, the right to disconnect, minimum income and psychosocial risks.

“For the S&Ds, it remains essential that social justice holds the same value and weight as economic, defence and environmental priorities in this process. The path to competitiveness can only be built on social progress, supported by a permanent EU investment instrument. Ultimately, the goal is to improve people’s well-being.

“The principles of the European Pillar of Social Rights and the UN Sustainable Development Goals must remain the guiding compass for reforms and investments.”

Note to editors

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. The Parliament adopts two separate reports – one on economic aspects and the other on employment aspects.