27 September 2024
The European Commission has launched the 2024 report on ‘Employment and Social Developments in Europe’ (ESDE), on “Upward social convergence and the role of social investment”. It highlights that social investments and reforms in key areas – including up- and re-skilling, lifelong learning, active labour market policies, early childhood education and care, and active inclusion policies – can boost employment, social inclusion, competitiveness and economic growth.
The report states that the EU labour market has remained robust despite slower economic growth and growing inflation. The EU employment rate has reached a record high (75.3% for individuals aged 20-64), and unemployment rates were the lowest ever recorded (6.1% for individuals aged 15-74). The report identifies job creation in sectors of trade, transport, accommodation, and food services activities as drivers of employment growth.
Despite this increase, labour and skills shortages have remained high in the EU. Job vacancies stayed at record high levels (2.9% for 2023 and 2.6% for Q1 2024), with many companies struggling to recruit and possibly deciding to retain workers even if not fully utilised (so-called labour hoarding). Additionally, labour productivity decreased by -0.8% per employed person compared to 2022.
The report further highlights that well-designed social investment policies can enhance productivity, competitiveness, and economic growth while contributing to upward social convergence. Efficient spending and investment in education, skills development, and active labour market policies are identified as vital to improving labour market outcomes, mitigating labour and skill shortages, and promoting upward social convergence. Complementing social investment, other well-designed social policies, such as social protection and affordable housing, are also promoted as necessary actions to address these issues.
Contact: Guillaume Afellat
On 26 September, Valeria Ronzitti, SGI Europe Secretary General, remotely addressed the Water Festival organised by Utilitalia. SGI Europe had the opportunity to contribute to the afternoon session, dedicated to “collaborations in the European and international field”.
On this occasion, Ms Ronzitti recalled that water is a strategic asset for an overall competitive economy and the environment. She highlighted the importance of protecting and ensuring safety for households, industries and agriculture. She recalled that SGIs and public utilities are crucial in providing safe and clean water to communities, effectively managing wastewater, and maintaining critical water infrastructure. Therefore, investing in SGIs and public utilities, enabling them to perform their vital functions, is essential to building water resilience and ensuring a sustainable water future for all businesses and citizens.
The session was also an opportunity to recall the initiative SGI Europe took forward in March 2024through the joint letter calling for a European Water Resilience Initiative, which called on the European Commission to deliver a Water Resilience Initiative to pave the way for an ambitious water strategy.
Contact: Henriette Gleau
This week, SGI Europe submitted feedback to the European Commission's mid-term evaluation of the Connecting Europe Facility (CEF). The CEF is crucial for developing Europe's critical infrastructure, so SGI Europe is calling for significant budget increases to better align the fund with the EU's climate goals. SGI Europe also emphasises the need to maintain separate budgets for energy, transport, and digital sectors, as each requires specific support for innovative technologies.
SGI Europe highlights that the CEF has played a critical role in supporting Europe's energy and mobility transition and digitalisation. As the EU pushes towards net-zero emissions and sustainable growth, SGI Europe calls for increased investment in innovative technologies, particularly in the energy sector, which requires a more technology-neutral approach. Future CEF funding should prioritise energy projects that support the EU’s decarbonisation, fostering the widespread adoption of clean energy solutions and driving down energy costs.
In digitalisation, SGI Europe emphasises the need for a modern, forward-looking programme that integrates artificial intelligence to support critical infrastructure across Europe. In the face of emerging challenges, CEF funding should better support deploying cutting-edge technologies that underpin Europe's digital future.
It has also highlighted the pressing need to invest more in green transport, particularly railways and urban mobility, which have proven potential to decarbonise Europe's transport sector. Despite the EU’s ambitious goal of reducing transport emissions by 90% by 2050, only 1% of the CEF-Transport budget has been allocated to local public transport. SGI Europe deems this insufficient to meet the EU's targets.
You can consult our feedback to the consultation here.
Contact: Henriette Gleau
On Friday 27 September, SGI Europe attended the meeting of the European Partnership for Integration, a framework for cooperation between the European Commission and European social and economic partners, including SGI Europe, ETUC, BusinessEurope, SMEunited and Eurochambres, to foster the integration of refugees and other migrants in the EU labour market.
The meeting has been an opportunity to receive updates on relevant policy developments, including outcomes of the European Year of Skills and integration-relevant aspects of the Pact on Migration and Asylum, and to exchange views on how the EU-level social partners and the European Commission can maximise synergies between EU funding possibilities for labour market integration. On this occasion, SGI Europe also provided an update on the Labour-Int III project, a multi-stakeholder initiative to foster the labour market integration of third-country nationals in Bulgaria, Italy, Slovenia and Poland, which is in its initial implementation phase.
Under the European Partnership for Integration, the European Commission and European Social and Economic Partners have worked closely together since 2016 to create opportunities for integrating refugees and other migrants into the EU labour market. They have renewed their commitment twice since to reflect on changed circumstances, including the COVID-19 crisis and the war in Ukraine. The European Partnership for Integration remains a great platform to facilitate an exchange between the EU Commission and the social and economic partners and foster our collaboration.
Contact: Cecilia Martin
Partners of the SGI Network gathered at the SGI Europe premises on Wednesday for the first meeting of the Network since the European elections of June 2024. This was the occasion for members of the network to exchange on their respective activities towards the designated new College of Commissioners, Commissioners’ hearings, the Draghi report and the competitiveness-related issues, and the Clean Industrial Deal, one of the seven “100-day initiatives” promised by President Ursula von der Leyen.
Members of the SGI Network also discussed their work towards the new European Parliament. They exchanged information and views on establishing an Intergroup dedicated to Services of General Interest (SGIs) for the ongoing EU legislative term. The growing recognition of the importance of SGIs for the creation of a competitive economy and a future-proof Single Market was put forward in the Letta Report on the Future of the Single Market, as well as in the La Hulpe Declaration and the conclusions of the Competitiveness Council of 24 May 2024. Establishing an Intergroup on SGIs would be another important milestone in that sense.
The SGIs Network gathers associations representing providers and employers of services of general interest (SGIs) and public services. The core common values and messages of the members of the SGIs Network rely on the following principles:
Contact: Benoît Cassorla
On 26 September, the Competitiveness Council met to discuss topics related to European competitiveness. Industry ministers discussed the recently published Draghi Report on the Future of EU Competitiveness and addressed the future of the EU state aid framework as a critical component of the EU economic model.
Key issues on the table include the state aid framework and its alignment with EU policy objectives. Ministers will discuss how state aid contributes to EU policy objectives while maintaining a fair and competitive Single Market. Recent crises have led to more flexible state aid rules, and the current debate emphasises the need for adapting aid for the green and digital transitions and for a push for EU-level funding and streamlined processes. Ministers also highlighted that the consolidation of the Single Market must remain a top priority, with Czechia and Luxembourg advocating for more focus and progress.
During lunch, ministers discussed the challenges faced by SMEs, explored urgent measures to help these businesses thrive beyond their national borders, and potentially revisited the definitions of SMEs and mid-cap companies.
Contact: Ruben Sansom
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