Recommendations of organised civil society to address the cost-of-living crisis

Key points

The EESC:

• considers it crucial for the EU to be well prepared to prevent and tackle possible new adverse cost-of-living conditions in good time, with crisis prevention being the primary objective accompanied by improved resilience against risks and as a last resort, mitigation of actual impacts;
• notes that affordable access to good quality services of general interest (SGIs) for all is vital in curbing the cost of living and calls for cooperation and meaningful distribution of tasks between the public, non-profit, and private sectors, while highlighting the role of adequate investment and funding and the development of innovative approaches;
• advocates for a fundamental reform of the design of the energy market to achieve lower and stable energy prices and calls for well-designed reforms in energy taxation and a harm-based phase-out of fossil fuel subsidies, to be undertaken in such a way that costs for households and companies are reduced, contributing to supporting the most vulnerable and stimulating investments in decarbonised energy systems and R&I;
• calls for a modern, innovation-oriented and comprehensive industrial policy to facilitate the ‘reindustrialisation’ of Europe. Access to energy and raw materials at fair prices and to access financing is also crucial, including for SMEs and social economy entities;
• stresses the need for regulatory simplification, the acceleration of permitting procedures and the reduction of non-productive administrative burdens to lower costs and to incentivise innovation, investment and trading – while not lowering social and environmental standards;
• calls for the elimination of market dysfunctionalities, through effective enforcement of existing single market and competition rules and by reducing the remaining barriers to all of the ‘four freedoms’ as well as the ‘fifth freedom’ of innovation and education;
• calls for the active enhancement of trade agreements and economic partnerships – duly taking into account social and environmental standards – to reach new markets and diversified supply chains, thereby decreasing vulnerability to protectionist trade measures and their price impacts;
• deems it important to ensure that policies and measures affecting the cost of living are fair and efficient, whether they concern the green and digital transitions, value chains, social security, taxation, or any other relevant topics;
• calls on the Member States to provide specific support measures targeted to protect the most disadvantaged, based on proper monitoring and impact assessments. Due attention must also be paid to the long-term impacts on future generations when shaping policies to address the cost of living;
• calls for specific efforts to be focused on the provision of adequate and affordable housing for various needs, including for young people. Innovation and appropriate land use planning are needed to speed up construction and renovation. Social housing should be boosted to help make housing accessible and affordable to all;
• highlights the fact that boosting the creation of quality jobs and fostering full, decent and inclusive employment is a fundamental way of securing economic and social resilience to price increases. This requires a favourable environment conducive to entrepreneurship and business, including support for the development of the social economy. The latter is crucial for the creation of jobs for those who are not able to work in the primary labour market;
• emphasises the crucial role of education and skills development in enabling individuals to obtain quality jobs and better earnings. Well-functioning social dialogue and well developed collective bargaining, in line with national practices and the autonomy of the social partners, are pivotal means of addressing the work-related issues of purchasing power, thereby contributing to social cohesion and a decent life for all. Civil dialogue in turn is needed for including citizens’ views in the development of policies affecting their living conditions;
• stresses the fact that addressing the cost of living requires both public and private investments in innovation and infrastructure, covering housing, energy, digital and transport systems, education, healthcare and social services, as well as security and defence capacity. This requires higher productivity and robust economic growth, while securing sustainable and transparent public finances.

This opinion constitutes an umbrella opinion for the 2025 EESC own-initiative opinion package of seven sectoral opinions on the cost-of-living crisis (one from each section plus one from the CCMI, which are outside the Section/CCMI quota for OIOs). These sectoral opinions are tabled in parallel with this umbrella opinion. This eighth opinion in this package will build on the recommendations outlined in the sectoral opinions and provide a short, but comprehensive and cross-cutting list of recommendations from civil society to address the cost-of-living crisis.

Key proposals derived in this opinion build on the recommendations of the following sectoral opinions:

• Fragmentation of supply chains and impact on the cost of living (REX)
• Price hikes in transport, energy and housing: the role of quality public services in tackling the high cost of living (TEN)
• Phasing out fossil fuel subsidies while ensuring European competitiveness, mitigating the cost-of-living crisis, and promoting a just transition (NAT)
• How to address the loss of purchasing power and the risk of rising inequalities, exclusion and marginalization (SOC)
• How single market dysfunctionalities contribute to the rising cost of living (INT)
• Leaving the crises behind – Measures for a resilient, cohesive and inclusive European economy (ECO)
• Reindustrialisation of Europe – opportunity for businesses, employees and citizens in the context of the cost-of-living crisis (CCMI)