The new EFSI position paper releases its recommendations for the way forward

In May 2023, the European Commission unveiled its annual Spring Package for the European Semester, providing a comprehensive overview and recommendations for all 27 Member States. The package includes communication, country reports, country-specific recommendations (CSRs), and employment policy guidelines.

Country reports took stock of the implementation of recovery and resilience plans, offering insights into Member States’ resilience. Instead, the CSRs, focused on guiding nations in addressing economic and social challenges not fully addressed in their recovery plans. From the analysis of both country reports and CSRs it follows that, despite the European Semester’s commitment to implementing the European Pillar of Social Rights (EPSR), outcomes fell short, with vulnerable families and children still dealing with pandemic aftermaths and additional challenges arising from the war in Ukraine.

While the European Semester, serving as the primary fiscal-based guidance mechanism, plays a crucial role in directing EU policies, including the European Care Strategy, its recommendations for this sector are notably vague and lack in specificity. This is why, towards its continuous advocacy action, EFSI calls for a more ambitious approach. 

The general overview provided by country reports and CSRs unveils the need for Member States to address key needs in the Personal and Household Services (PHS) sector. These include ensuring affordable, high-quality, and accessible care, strengthening social protection systems, and addressing labor shortages by making the sector more attractive.

Given the lack of prioritisation of PHS agenda, EFSI calls for:

1.       Comprehensive Care approach: encouraging the European Semester to adopt a cohesive approach, aligning recommendations with the European Care Strategy, comprehensively addressing home-based care and PHS services.

2.       Prioritizing Social Inclusion: emphasizing the importance of social inclusion and progress in both the European Semester and the revision of EU fiscal rules, effectively implementing the European Pillar of Social Rights (EPSR).

3.       Designing Long-Term Strategies: setting out and implementing a long-term strategy embracing resilient fiscal and social policies, capable of anticipating and mitigating future challenges while ensuring coherence across sectors and governmental levels.

4.       Strengthening Social Dimension: enhancing the social dimension in the EU Economic Governance Review, monitoring employment and social challenges in Member States, and revising EU fiscal rules to align with evolving social needs.

5.       Cross-Cutting Approach: advocating for a transversal approach, recognizing the interdependence of economic, social, environmental, and health issues.

6.       Balancing Care Adequacy and Fiscal Sustainability: implementing measures to improve the adequacy of care while preserving fiscal sustainability, acknowledging the socio-fiscal incentives’ earn-back effects in PHS.