EESC calls for bold new strategy to tackle cost-of-living crisis and build lasting resilience

At its April plenary session, the European Economic and Social Committee (EESC) adopted a key opinion, outlining a broad strategy to address the ongoing cost-of-living crisis and strengthen the EU’s long-term economic and social resilience. Focused on the economic aspects, this opinion is among the first to be adopted in a wider set of coordinated recommendations to address the cost-of-living crisis, to be unveiled over the coming months.

In total, the EESC’s cost-of-living crisis package will include seven sector-specific opinions, culminating in a comprehensive umbrella opinion in July. Together, these opinions underscore the EESC’s belief that the challenges and uncertainties the EU faces demand not incremental adjustments but a deeper structural challenge that requires a strategic shift in Europe’s economic model. The goal is to provide clear, actionable guidance for EU institutions, national governments, social partners and civil society.

From short-term relief to long-term resilience

This opinion, drafted by the EESC’s Economic and Monetary Union (ECO) section, highlights that while inflation is starting to ease, its impact remains sharply felt, especially by low-income households and in vulnerable regions. Energy prices in Europe continue to be nearly double those in the US and China, putting extra strain on families and businesses, and threatening social and regional cohesion.

This ‘shockflation’,” driven by systemic supply shocks, goes beyond what monetary policy alone can address. It calls for new, coordinated responses.

‘The EU must not apologise, but approach the challenges confidently’, says EESC rapporteur Elena Calistru. ‘We’ve achieved remarkable progress in social cohesion and human development. Now we need confidence, coordination and commitment to reinforce these gains for the future’.

Building a more resilient EU economy

The EESC’s vision centres on shifting from reactive crisis management to proactive resilience-building. A key proposal is the creation of a permanent EU resilience monitoring system, capable of tracking supply chains, price movements and market risks in real-time. This would allow for earlier, more targeted policy responses.

To support inclusive and sustainable growth, the EESC suggests several major reforms, including:

• A permanent EU fiscal stabilisation tool, building on NextGenerationEU
• Identifying and addressing the 20 most critical supply chain dependencies
• A €700 billion annual investment effort (1% of EU GDP) focused on infrastructure, digitalisation and energy security

Putting people at the heart of the strategy

Social cohesion is also a cornerstone of the EESC’s recommendations. The Committee calls for EU funding and procurement to be linked to strong labour standards, such as collective bargaining and decent work. It also advocates targeted support for those most affected by the crisis, using a new EU-wide vulnerability mapping tool. Additionally, the EESC stresses the need for investment in people, especially through digital skills training, AI integration and support for fair labour market transitions. These investments are not only socially just but also crucial for Europe’s future competitiveness in a rapidly changing world.

A balanced path forward

To manage inflation more effectively, the EESC calls for a smarter approach that addresses supply-side pressures through closer coordination between monetary and sectoral policies. It also supports cutting unnecessary red tape for SMEs, while maintaining high social and environmental standards. Crucially, the Committee rejects the idea that competitiveness should come at the expense of people or the planet. Instead, it promotes a balanced competitiveness strategy that aligns sustainability, social inclusion, and economic strength, and that builds on our shared European values.

This opinion is more than a set of proposals; it is a call to rethink the EU’s economic future. With this package of opinions on the cost-of-living crisis, the EESC urges Europe’s leaders to act boldly and collectively.

‘The EU has the tools, the talent and the institutions’, concludes Elena Calistru. ‘What we need now is the political will to act’.