News

24 July 2026

Newsflash - 24 July 2026

European Commission updates the European Pillar of Social Rights: stronger focus on implementation and Services of General Interest

On 22 July, the European Commission published its Communication on the implementation of the European Pillar of Social Rights, taking stock of progress since the 2021 Action Plan and setting out priorities for the coming years. Rather than proposing a new Action Plan, as had initially been discussed, the Commission has opted for a more targeted approach centred on implementation, affordability, competitiveness and resilience.

The Communication reflects several priorities consistently advocated by SGI Europe. In particular, it places greater emphasis on implementing existing commitments before introducing new initiatives, strengthens the recognition of Services of General Economic Interest (SGEIs) as key enablers of affordable housing, care and social inclusion, and acknowledges that access to essential services is fundamental to affordability, labour market participation and territorial cohesion. The Commission also announces work on new affordability and poverty indicators, moving beyond income-based measures alone.

At the same time, the Communication confirms several forthcoming initiatives that SGI Europe will closely follow, including the Quality Jobs Act, the European Care Deal, and will respond to the consultation of the European social partners on the activation of persons facing significant barriers to employment.

Overall, the Communication marks a positive evolution towards a more implementation-oriented approach and reinforces the contribution of services of general interest to Europe's competitiveness, resilience and social cohesion. SGI Europe will continue to engage proactively with the Commission to ensure that the forthcoming initiatives remain proportionate, respect national competences and social partner autonomy, and fully recognise the role of SGIs in delivering the European Pillar of Social Rights.

Contact:Guillaume Afellat 

Quality Jobs Act: Commission launches second-stage consultation

The European Commission has launched the second-stage consultation of the European social partners under Article 154 TFEU on the Quality Jobs Act, inviting employers and trade unions to comment on possible EU action and to indicate whether they wish to enter into negotiations under Article 155 TFEU. SGI Europe will now prepare its response with the support of an ad hoc group of members.

A first reading suggests that the Commission has incorporated several of the messages put forward by SGI Europe during the first-stage consultation. The consultation continues to emphasise simplification, proportionality, competitiveness and the effective implementation of existing legislation, while recognising the diversity of labour markets and the central role of social dialogue, all key principles advocated by SGI Europe.

At the same time, important differences remain. The Commission appears to place greater emphasis than before on possible action regarding algorithmic management and artificial intelligence at work, while occupational safety and health has become a much more prominent pillar of the initiative. Particular attention is now given to psychosocial, ergonomic and climate-related risks, including heat exposure, reflecting the growing political attention paid to extreme weather events across Europe. The consultation also maintains a strong focus on subcontracting chains and the enforcement of workers' rights, suggesting that these issues remain among the Commission's legislative priorities.

SGI Europe will now assess the consultation in detail and continue to advocate for an implementation-first approach, avoiding unnecessary regulatory overlap and ensuring that any future EU action remains proportionate, workable and fully respects the autonomy of the social partners.

Contact:Guillaume Afellat 

EU Regions Week 2026 – Join the discussion to support turning the Freedom to Stay into concrete EU policies

In the context of the European Week of Regions and Cities 2026, SGI Europe will organise a policy debate on the role of the SGIs in strengthening territorial cohesion and the link with the overall Freedom to Stay agenda. The event will take place on Wednesday 14 October 2026, from 16:00 to 17:30 at Square Brussels.

Registrations to join the event are already open, with a deadline to register on 30 September 2026. Please join and register here!

The policy debate will focus on several transversal questions:

How can the EU guarantee access to highquality and affordable services of general interest for businesses and citizens to settle and thrive wherever they feel at home?

What investments are needed to make the Freedom to Stay a reality on the ground?

How can EU policies better reduce territorial disparities and strengthen regional resilience?

What should Europe’s next priorities be to strengthen Services of General Interest, helping the Freedom to Stay to support the completion of the EU Single Market?

A few questions behind the reflection launched by SGI Europe and their partners in the context of the Coalition for the Freedom to Stay.

Participants will have the opportunity to examine local case studies, exchange perspectives and consider how stronger cross-border cooperation can contribute to territorial cohesion and the functioning of the EU Single Market. Interpretation will be available in English, French and Spanish to support an inclusive discussion.

Contact:Benoit Cassorla

Commission publishes guidance on non-price criteria under the Net-Zero Industry Act

On 22 July, the European Commission published two guidance documents on the application of non-price criteria under the Net-Zero Industry Act (NZIA), one relating to Article 25 on public procurement, and the other to Article 26 on energy auctions.

Under Article 25 of the NZIA, contracting authorities and entities must apply minimum requirements on environmental sustainability and resilience when procuring net-zero technologies. Article 26 of the NZIA requires Member States to integrate non-price criteria into renewable energy auctions, covering both pre-qualification and award stages. These criteria include responsible business conduct, cybersecurity and data security, the ability to deliver projects on time, and contributions to the sustainability and resilience of clean technology supply chains.

The new guidance clarifies when and how Member States, contracting authorities and contracting entities should apply the mandatory non-price criteria under Articles 25 and 26 of the NZIA.

In particular, the documents provide practical recommendations on the design of public procurement procedures and renewable energy auctions that incorporate non-price criteria, as well as how those criteria should be assessed. They further explain the circumstances in which exemptions may apply, such as where the inclusion of non-price criteria would result in disproportionate costs or where no suitable tenders are received. To support implementation, the guidance includes practical examples illustrating how the rules can be applied in different procurement and auction scenarios.

With these non-binding documents, the Commission seeks to ensure a consistent and proportionate application of the requirements across Member States and provide greater legal certainty for public authorities and market participants, with the ultimate goal of scaling up the EU's manufacturing capacity for the net-zero technologies, while reducing strategic dependencies.

Contact:Raquel Carro-Andollo

European Commission publishes EU Electrification Plan and ETS rules

On 17 July, the European Commission published the EU Electrification Action Plan and a comprehensive revision of the EU Emissions Trading System (ETS) to accelerate Europe's energy transition and advance industrial competitiveness. The Action Plan targets structural barriers by narrowing the electricity-gas price gap, empowering Member States to lower taxes and network charges, accelerating grid connections, expanding smart meters, and reducing upfront costs for technologies like heat pumps and electric vehicles.

SGI Europe recognises these proposals as a critical step toward climate neutrality and energy independence. SGI Europe welcomed the focus on overcoming upfront costs through pre-financing mechanisms and the binding requirement for Member States to channel at least 50% of national ETS revenues into sector decarbonisation. However, SGI Europe regrets that smaller consumers and entities of Services of General Interest (SGIs) remain largely neglected, as policy priorities remain overwhelmingly focused on heavy industrial actors.

In parallel, the Commission proposed ETS reforms adjusting the linear reduction factor to 3.7% for 2031–2035 and 1.7% from 2036 onward. Regrettably, carbon pricing will extend to non-hazardous waste incineration from 2031 under a gradual phase-in until 2034. On the other hand, SGI Europe strongly welcomed maintaining the explicit exclusion of hazardous waste treatment from the ETS, recognising the sector's essential role in safeguarding human health and the environment.

Lastly, the reform integrates high-integrity carbon removals, permits limited international carbon credits from 2036, and provides funding via the Industrial Decarbonisation Bank. As a next legal step, the European Parliament and the Council of the EU will review the proposal before inter-institutional trilogue negotiations begin.

Contact:Henriette Gleau

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