Euro area economic policy 2025

Key points

The EESC:

• calls for urgent economic policy measures to ensure economic and systemic resilience and for measures to ensure sustainable and resilient economic growth in the euro area, especially when compared with its biggest competitors in the world economy;
• recommends deepening the internal market, adopting and putting in place measures for a jointly coordinated industrial policy as well as for national structural reforms without delay. Excessive administrative and regulatory measures need to be addressed;
• points out that it appears necessary to interlink ensuring fiscal sustainability with the need to release funds, not only to restore economic prosperity, but also because it is in the public interest;
• supports the focus on raising competitiveness, especially by closing the investment gap with the US and other major competitors in the world economy, as well as putting in place the conditions for venture capital, especially to support start-ups and to scale up firms and companies;
• considers that the economic policy of the euro area Member States is not only about stability, sustainability and fine-tuning key macroeconomic indicators, but also, and above all, about deep structural and institutional reforms;
• points out that institutional and legislative measures for labour market flexibility, real wage growth and labour productivity therefore need to be revised, social security will need to be bolstered, with support for inclusion and access to housing;
• notes that given the higher spending to finance the transition, defence and the ageing population and the increased expenditure to meet borrowing costs and service debt, it is important to ensure a credible medium-term fiscal framework;
• supports the Commission’s efforts to make the public finances more efficient overall and to reduce the amount of money kept in tax havens. The EESC also supports the G20’s plans for a corporation tax;
• stresses the need for additional accountability and commitment when adopting and putting in place the individual measures. To meet the extraordinary challenges ahead, all competent and responsible parties will, more than ever, need to engage in dialogue and work together to put the euro area economies on a sustainable and resilient path.