In its Autumn Package, which comprises most notably this year’s Annual Sustainable Growth Survey and proposals for a Joint Employment Report and a Recommedation on the economic policy of the euro area, the European Commission proposes to face the various and large-scale social, financial-economic, environmental and political challenges in the EU and the Member States with a coordinated and integrated set of measures, spanning the four dimensions of environmental sustainability, industrial productivity, social fairness, macroeconomic stability.

The European Commission notes in particular:

• that inflation is likely to remain high and ease only gradually to 7.0% in 2023 and 3% in 2024
• that unemployment levels have generally remained low but that inflation and high energy prices pose risks of reduced working hours and job losses and hence higher unemployment, compounded by falling demand.
  
• that nominal wages increased substantially in 2021 and 2022 but were outpaced by inflation, leading to falling real wages and purchasing power
• government expenditure has been substantial but also often socially ineffective – for instance with energy support measures currently representing 1% of GDP in the EU but more than 70% of supporting measures not being focused on vulnerable households and exposed firms.

CESI Secretary General Klaus Heeger said: “We welcome the analysis of the European Commission. The autumn package makes a convincing case on how to square the social and financial needs of workers, citizens and their families with currently restricted public budgets.”

He added: “After years of large-scale public spending after migration challenges, the Covid pandemic and the war in Ukraine, public budgets are strained. We need to continue investing but overly expansive fiscal policy risks adding to inflation. Therefore we need to become better in targeting those that need support. We can only spend every Euro once. I welcome that the approach to call to end scattergun expenditure in exchange for tailored support, and to reform taxation systems and improve revenue collective to support the crisis response capacity of fiscal policy. I also appreciate the urge of the European Commission towards social partners to support wage developments that mitigate the loss in purchasing power of wage earners.”

He concluded: “For us, continued investments in public services and administrations are key to support vulnerable workers and citizens especially in terms of crisis. Corporate profits need to be effectively and adequately taxed to provide important fiscal space for crises responses for workers, citizens and families. Such support should also include SURE-inspired mechanisms where crises lead to rising unemployment.”