The Commissioner for Jobs and Social Rights, Nicolas Schmit, did not hide his scepticism regarding the social component of the ‘Fit for 55’ legislative package (designed to accelerate the 55% reduction in European emissions) presented by the European Commission on 14 July, in an interview transmitted by Luxembourg radio station 100.7 on Thursday 15 July.
“I think there is an absolute need for improvement. This has been shared by several Commissioners and therefore we think that we have to come back to this. We achieved that we will discuss in September on a text explaining which social impacts and consequences for the labour market are to be expected. Which means that we will come back to the issue”, said the Commissioner. According to Nicolas Schmit, a number of commissioners had reservations. He added, “and I am one of them”.
The problem is that the Social Climate Fund does not contain recommendations on how Member States should compensate for the social consequences of the extension of the ETS to the transport and buildings sectors.
It lacks a menu of policies to direct social spending for the most vulnerable through direct financial compensation. A recommendation should be presented in the next few months, at the particular request of Nicolas Schmit.
Generally speaking, several Commissioners (six, according to Luxembourg radio) expressed similar doubts about the link between the extension and the Social Fund, as well as about the scope of the Fund, which is too much imbued with an ‘investment’ component and not enough with a direct income support component for the most vulnerable.
Several MEPs (from the centre to the left of the House), as well as trade unions, shared this analysis when the package was presented. They believe that the proposed extension of the ETS market risks provoking a backlash among Europeans, similar to the Yellow Vests movement in France (see EUROPE 12762/6). (Original version in French by Pascal Hansens)