The European Commission has renewed its commitment to strengthening Europe’s social model, warning that rising living costs, rapid advances in artificial intelligence and

persistent inequalities require further action across the bloc.

The Commission has adopted a new communication on the European Pillar of Social Rights, describing it as the EU’s “social shield and compass” for navigating a period of major economic and technological change.

The document reviews progress made since the Pillar was introduced and sets out new priorities aimed at ensuring that Europe’s social model continues to protect citizens while supporting growth and competitiveness.

European Commission President Ursula von der Leyen said Europe’s social system remained one of its greatest strengths.

“As technological shifts transform our daily lives, and as rising costs put pressure on households across our Union, we stand firm in our commitment to fairness, opportunity and solidarity,” she said.

The Commission identified three areas requiring urgent attention: tackling the cost of living, preparing workers for the impact of artificial intelligence, and reducing inequalities.

Cost of living remains a key challenge

Millions of households across the EU continue to face pressure from high housing costs, energy bills, services and essential goods.

The Commission said it would continue supporting policies aimed at reducing poverty risks and improving access to basic services.

It highlighted the role of quality employment in addressing financial pressures, noting that minimum wages have increased significantly across the EU since the introduction of new European rules on fair pay.

The Commission also warned that a large pool of potential workers remains outside the labour market.

To address this, it is launching consultations with European social partners on possible EU measures to help people facing major barriers to employment move into work.

Officials said the initiative would contribute to reducing poverty, improving labour market participation and strengthening Europe’s competitiveness.

AI transformation creates opportunities and concerns

The rapid spread of artificial intelligence is reshaping workplaces across Europe, creating opportunities for innovation and productivity while raising concerns about jobs, skills and social inclusion.

The Commission said Europe must prepare citizens, businesses and public services for the changes ahead.

As part of this effort, it plans to establish a new high-level group examining the impact of AI on employment and labour markets.

The group will assess how technology can be used to support workers while ensuring that the benefits of AI are shared across society.

Commission targets inequality and equal opportunities

The new strategy also focuses on tackling long-standing inequalities that affect social cohesion and Europe’s economic future.

While progress has been made in recent years, the Commission said gaps remain in areas including income, employment opportunities and access to services.

Future measures will include support for small and medium-sized businesses in implementing the EU Pay Transparency Directive, as well as new initiatives on migration, youth policy and equal opportunities.

Later this year, the Commission is expected to present a Quality Jobs Act, following its roadmap for improving employment standards across the EU.

It will also consider new ways to measure job quality, alongside existing targets for employment, skills development and poverty reduction.

A decade-long social agenda

The European Pillar of Social Rights was launched in 2017 and contains 20 principles covering fair working conditions, social protection and equal opportunities.

It has guided major EU initiatives, including the European Child Guarantee and the EU Minimum Wage Directive.

At the 2021 Porto Social Summit, EU leaders, institutions and social partners agreed to place social issues at the centre of European policymaking and established three targets for 2030: increasing employment, expanding access to training and reducing poverty.

The Commission said the latest communication aims to ensure that Europe’s social model remains capable of protecting citizens while adapting to technological, economic and demographic change.