EESC proposes a roadmap to ease cost-of-living pressures and build resilience

With energy bills up, housing out of reach, and food prices still rising, the European Economic and Social Committee (EESC) has adopted a set of civil society-backed recommendations to tackle the cost-of-living crisis. Part of a broader EESC package, the opinion outlines urgent EU and national actions to protect vulnerable groups, promote fairness and build long-term economic and social resilience.

The cost-of-living crisis, sparked by the COVID-19 pandemic and intensified by Russia’s war against Ukraine, has revealed major weaknesses in Europe’s economic and social systems. Surging energy costs, rising food prices and housing shortages have hit millions of people hard, especially those already on low incomes. 'Although inflation has started to slow [down], prices remain well above pre-crisis levels. This isn't just hitting the most vulnerable, it's hitting the backbone of our society', explained Group II rapporteur Thomas Kattnig. 'We need to improve access to affordable housing, boost the creation of quality jobs and increase investment in public services and preparedness.

In this context, the EESC opinion entitled "Recommendations of organised civil society to address the cost-of-living crisis" argues that tackling the crisis requires more than temporary relief. It demands long-term investment, stronger public services and policy coherence across economic, social and environmental dimensions.

What needs to change

To help households cope and to prepare Europe for future shocks, the EESC outlines several key areas for reform:

• Access to essential services: Everyone should be able to afford basic services like energy, housing, healthcare and education. The EESC advocates better coordination between public, private and non-profit actors, with adequate funding and innovative delivery models.
• Energy market reform: Volatility in energy markets has driven up living costs across the board. The Committee calls for structural reform of the EU’s energy system, including a fair, gradual end to fossil fuel subsidies and increased investment in clean, reliable and affordable energy.
• A stronger industrial foundation: Europe’s economic resilience depends on rebuilding its industrial capacity. That includes securing access to raw materials, supporting SMEs and social enterprises, and developing fair trade partnerships to provide a buffer against external shocks.
• Smarter, simpler regulation: Reducing red tape and streamlining administrative processes can lower costs and spur innovation. The EESC calls for reforms that cut unnecessary burdens while upholding high social and environmental standards.
• Social support that works: The crisis has deepened existing inequalities. The EESC proposes targeted support for those most in need, such as minimum income schemes, rent subsidies and access to quality jobs, and it calls for inclusive civil and social dialogue to ensure policies reflect people’s real concerns.

Spotlight on housing, employment and skills

The opinion places particular emphasis on housing, which remains a growing source of insecurity for many Europeans. Group III rapporteur, Krzysztof Balon: 'We are calling for a large-scale increase in affordable and social housing, with special attention paid to [the situation of] young people and people with disabilities. We also recommend revising EU state aid rules to allow more flexible support for housing initiatives.'

Job creation and access to decent work are seen as central to both economic recovery and social resilience. The EESC advocates fair wages, inclusive employment policies and strong backing for the social economy. Investment in skills and education, especially lifelong learning and reskilling, is identified as key to helping people adapt to a fast-changing labour market.

A future-ready EU economy

Beyond short-term relief, the EESC makes the case for a more integrated and forward-looking EU economic model. 'Strengthening the Single Market, promoting investment and ensuring sustainable public finances are all seen as critical for long-term prosperity', explained group I rapporteur Krister Andersson. 'At the same time, the green and digital transitions must be managed in a way that ensures European competitiveness and a strong industrial base, and also protects social cohesion'. The EESC warns against short-sighted decisions and stresses the importance of assessing how policies affect both today’s vulnerable groups and future generations.

The EESC's message is clear: Europe must treat this crisis not just as a warning, but as an opportunity to reshape its economic and social future. With the right mix of vision, investment and inclusion, the EU can emerge stronger, fairer and more resilient.