MEPs debated on Tuesday 5 July, with the Commissioner for Social Affairs, Nicolas Schmit, and the Czech Minister for Social Affairs,Mikuláš Bek, on how to mitigate the impact on households of inflation and rising energy prices caused by the war in Ukraine.
In this debate, which was also devoted to upholding the principles of the European Pillar of Social Rights, MEPs expressed their concern for European households, especially the most vulnerable, and called on European leaders to impose taxes on the profits of energy giants, to make full use of the money from the European recovery plan, to develop tax incentives to help create jobs and to reduce household taxation. The idea of capping energy prices was also raised.
Other MEPS from the far right accused the ‘European Green Deal’ of causing additional costs for households and inflation and called for a halt to any initiative, which the European Commissioner dismissed, as the ‘Green Deal’ had not yet produced its effects and it was time, for some Member States “to restart coal-fired power stations”.
Several MEPs, such as the Dutch MEP Agnes Jongerius (S&D), also called for a “minimum income directive as soon as possible”, as the Commission has announced a recommendation on the subject by the end of the year.
Other MEPs called for emergency measures to calm rising food prices and for a special Social Summit to be convened to discuss these challenges.
The Commissioner recalled that the EU has already put in place tools to mitigate the effects of inflation on the weakest, such as the directive on the adequate minimum wage, which will give “a positive impetus”, the child guarantee, which will also have an effect, the Social Climate Fund, which the Czech minister has undertaken to negotiate with the Parliament as soon as possible, and the RepowerEU initiative, which will eventually allow for phasing out Europe’s dependence on hydrocarbons.
The Commissioner also indicated that the Commission was reflecting on innovative instruments, inspired in particular by SURE, which helped at least 19 countries during the Covid-19 crisis to support their short-time working schemes. He also insisted on the need for the EU27 to coordinate their efforts to tackle the decline in purchasing power. (Original version in French by Solenn Paulic)