Strasbourg (Brussels Morning Newspaper) – MEPs debated the 2025 European Semester for economic policy coordination with Vice President of the Commission Minzatu and Polish Minister Szlapka for the Council. Concerns over a sudden increase of investments in defence were addressed.
The debate opened with a presentation by MEPs Navarrete Rojas and Abadía Jover – both from the EPP Group and members of the Spanish Partido Popular – of their report on the 2025 European Semester, the Commission’s plan to coordinate the economic and social policies across member states.
Given the new and significant commitment of the EU to increase investments in defence, concerns have been raised in the last few weeks over a potential exception of defence spending from the fiscal rules, and on the impact on member states’ economies and society.
The report: we need “sustainable growth”
The Parliament’s report stressed on the need to turn the commitments of the structural fiscal plan into tangible action as soon as possible, and to ensure that the European fiscal rule is “credible” for small business.
It advocates for strong and responsible fiscal policies that need to be stricter to meet the necessary demands, and that also allow economic growth at the same time.
Emphasis was also put on the housing crisis, which requires an increase in supply and therefore cutting of red tape, and investments in social economy as well.
Europeans shouldn’t have to leave home to seek opportunities,
MEP Abadía Jover said.
No at defence expenditure at the cost of the people
Some MEPs expressed concerns over an increase in military expenses that leaves social policies and the fundamental needs of European citizens behind.
Suddenly there are billions of euros for defense spending but nothing for hospitals, schools, or the environment. Suddenly there is no global warming, no poverty, and all we need is missiles. What you are preparing is a social war,
said MEP Manon Aubry from The Left group.
EU Commission Vice President Minzatu addressed this concern in her final remarks, saying that fiscal sustainability and social convergence framework are equally taken into account, and that coordination of economic policies is more crucial than ever in an uncertain geopolitical environment.
Geopolitical uncertainty
In his initial remarks, Polish Minister Szlapka for the Council explained that, although the labour market is resilient and the service sector is expanding, Europe‘s recovery has been slow, also due to geopolitical uncertainty.
As of today, the United States is applying a 25% tariff on imports of steel and aluminium, and the EU Commission announced countermeasures to respond proportionally.
MEPs are expected to vote on the 2025 European Semester for economic policy coordination later today.
