The two reports adopted on Wednesday 15 March, by Irene Tinagli (S&D, IT) on the economic policy coordination aspects and by Estrella Durá Ferrandis (S&D, ES) on employment and social priorities, will now feed into the 2023 roadmap to be agreed by EU leaders during the 23-24 March European Council. On Tuesday afternoon, MEPs debated the reports in plenary.

Economic policy coordination

MEPs emphasise the need to rapidly complete the review of the EU’s economic governance system, preferably prior to the ending of the general escape clause which was activated due to the COVID-19 pandemic. MEPs broadly agree with the Commission’s ideas presented in December 2022 and stress that the revised rules must allow sufficient leeway to member states to enact crisis resolution measures. They do however caution on having too much reliance on debt sustainability analyses for the updated rules, arguing that this could undermine transparency, and hamper ownership and predictability.

MEPs also say that the Commission should do more to encourage better fiscal coordination, saying that “it is still largely random if the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate and consistent with the unified monetary policy” led by the European Central Bank.

The report was adopted by 486 votes in favour, 87 against and 57 abstentions.

Employment policy coordination

In a separate report adopted with 319 votes in favour, 171 against and 138 abstentions, MEPs demand the EU addresses the soaring cost of living with a series of concrete social protection measures. In particular, they want the rapid implementation of the provisions established in the Minimum Wages Directive, an EU Directive on minimum income schemes, at least €20 billion to bolster the European Child Guarantee scheme, and build upon the Social Climate Fund to lay the foundations for the development of green social protection schemes at national level.

The employment framework should also reinforce the European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE) to prioritise the fight against unemployment, and make sure that every young person in Europe has access to education, training, paid traineeships and the labour market.

Finally, MEPs call on the Commission for new legislation guaranteeing access to essential services such as housing, energy, transport, water and waste, and a prohibition of energy disconnections for vulnerable groups.