A Social Imbalances Procedure in the EU Semester can help to better balance the EU economic, social and environmental goals

The challenges from the COVID-19 pandemic, the green and digital transitions and the economic and social consequences of the war in Ukraine require a reinforced EU social governance toolbox. In the present context, SGI Europe sees a clear added value in creating a Social Imbalances Procedure (SIP) as a counterpart to the procedures addressing macroeconomic imbalances and excessive public debts and deficits.

Valeria Ronzitti, SGI Europe General Secretary, commented:

“Social imbalances can severely affect the labour market across the EU. Some of these imbalances, such as youth unemployment and child poverty, have negative economic spill-over effects in the competitiveness of the eurozone and endanger the political stability of the EU. SGI Europe supports developing SIP to rebalance the economic and social dimensions of the EU, sheltering social policies from crises and implementing the European Pillar of Social Rights.”

“The in-depth monitoring, via the Social Scoreboard, of indicators connected to the EU target to reduce the number of people at risk of poverty or social exclusion should be a key focus. In light of the recent crises, the accessibility and affordability of essential and enabling SGIs, such as housing and healthcare, should be a priority. SGI Europe also calls to take better take into account energy and transport poverty and their impact on inclusion.”

“There is potential in reinforcing the social aspect of the European Semester’s governance with improved analysis of critical situations in the policy areas identified in the Joint Employment Report and the Social Scoreboard. This should lead to a reinforced understanding of the causes of social imbalances, more-in depth analysis in the country reports and better-targeted country-specific recommendations.”

“Social Imbalances Procedure could be an important step towards reinforcing the governance of EU social and economic policy and helping to reconcile it with the existing structure for surveillance of macroeconomic and budgetary policies. This should help to the elaboration – at both EU and national levels – of more balanced policies, making it possible to effectively achieve the economic, social and environmental objectives of the EU.”