Overview of recent decisions on EU social policy.

On 9 March, Ministers for employment and social affairs met in Brussels for a meeting of the Council for Employment, Social Policy, Health and Consumer Affairs (EPSCO). Discussions focused on employment and social policy. Key topics included the European Semester, quality jobs and investment in people, in particular children and youth.

EU equality strategies

At its meeting, the Council inter alia addressed the Gender Equality Strategy 2026–2030 and the EU Anti-Racism Strategy. In the debate on the Gender Equality Strategy, the Cypriot Council Presidency and the European Commission emphasised that equality is not only a normative issue but also makes economic and societal sense: a more equal society is more resilient, sustainable and economically stronger. In the context of the Anti-Racism Strategy, the European Commission said that it would initially focus on the implementation of existing measures and, where appropriate, their further development. A financial envelope of €3.6 billion was mentioned, although its financing remains unclear.

Investment in people

The Council approved conclusions on investing in children. It was emphasised that investment in children should not be seen as a cost factor but as an investment in the future. Particular attention was given to tackling child poverty. In addition, ministers held an exchange of views on breaking the poverty cycle. The European Commission stated that the first EU Anti-Poverty Strategy is to be presented in May. In this context, Germany underlined the need for a strong European Social Fund Plus (ESF+) in the next Multiannual Financial Framework and highlighted the importance of investment in education and social inclusion at European level.

European Semester

The Council adopted the Joint Employment Report and endorsed the related conclusions. Based on the European Pillar of Social Rights, the report identifies current progress and challenges. It highlights that the EU labour market has proven resilient despite economic and geopolitical uncertainties. The unemployment rate fell to a historic low in 2024, while the employment rate reached a new record in the first half of 2025. However, it is noted that labour productivity growth remains stagnant. To strengthen the EU’s competitiveness and innovation capacity in the long term, the report emphasises the importance of investment in human capital and measures to improve job quality.

Quality jobs

Ministers also held an exchange of views on the use of artificial intelligence (AI) to support quality employment and workers’ rights. In particular, they discussed how reforms aimed at better matching labour supply and demand in the context of AI-driven changes can be further supported through the European Semester, and which additional measures are required at national and EU level. Many Member States emphasised the importance of comprehensive investment in digitalisation as well as upskilling and reskilling measures. Greece underlined that potential impacts on social protection – for example due to a possible decline in social security contributions resulting from increased use of AI – need to be addressed at an early stage.

Posting of third-country nationals

At the initiative of the Netherlands – supported, inter alia, by Austria, Belgium, Luxembourg and Germany – the issue of the posting of third-country nationals was discussed. According to the supporting Member States, there is currently a lack of sufficient legal clarity. In particular, existing rules set the general framework for posting controls but do not adequately take into account the residence-related dimension for third-country nationals. The European Commission acknowledged the need for action and pointed to enforcement deficits in the existing legislation. It is examining various options and intends to cooperate more closely with the European Labour Authority. The Fair Labour Mobility Package announced for the autumn could also be relevant in this context.