Commission takes stock of the implementation of social rights in the EU.

On 22 July, the European Commission published a Communication assessing progress towards the objectives of the European Pillar of Social Rights (EPSR). Against the backdrop of rising living costs, the impact of artificial intelligence (AI) on the world of work, and growing social inequalities, the Commission identifies the need for renewed action in European social policy.

Since its proclamation in 2017, the European Pillar of Social Rights has provided the political framework for social standards in the European Union (EU). It sets out principles for fair working and living conditions as well as social inclusion. While previous efforts primarily focused on job creation, skills development and poverty reduction, the Commission is now introducing additional social policy priorities.

Progress at different speeds

The Commission reviews developments since the 2021 EPSR Action Plan, which established social targets to be achieved by 2030. It highlights the steady increase in the EU employment rate, which reached 76.1% in 2025, bringing the Union closer to its target of at least 78% employment by 2030.

Progress towards the two other headline targets has been considerably slower. In 2022, only 39.5% of adults participated in learning activities, compared with the target of 60% by 2030. The gap is even more pronounced in the area of poverty reduction. Since 2019, the number of people at risk of poverty or social exclusion has fallen by only around 3.5 million. As a result, the objective of lifting 15 million people out of poverty by 2030 appears increasingly difficult to achieve.

Affordable housing and job quality at the centre of social policy

The Commission identifies rising living costs—particularly for housing, energy, food and transport—as the most pressing social challenge. It therefore intends to present an Affordable Housing Act later this year, bringing together measures to address the shortage of affordable housing across the EU. To mitigate the impact of increasing living costs, the Commission also points to existing legislative initiatives, including the EU Minimum Wage Directive, which aims to promote adequate minimum wages across the Member States, and the new rules on platform work, designed to strengthen the protection of people working through digital labour platforms such as food delivery or ride-hailing services.

Looking ahead, the Commission intends to place greater emphasis on the quality of jobs. Fair wages, social protection, occupational health and safety, and equal opportunities are considered essential for both social cohesion and Europe's competitiveness. To support these objectives, the Commission plans to present a Quality Jobs Act by the end of 2026, bringing together measures to improve job quality across the EU.

In parallel, the Commission has launched a consultation for European social partners to identify barriers to labour market participation. In addition, the forthcoming Fair LabourMobility Package is expected to improve the situation of mobile workers and cross-border commuters.

The Commission also intends to give greater political prominence to the care sector. Executive Vice-President and Commissioner for Social Rights and Skills, Quality Jobs and Preparedness, Roxana Mînzatu, announced that the Commission will build on the existing European Care Strategy by presenting a European Care Deal next year, with measures including tackling labour shortages in the care sector.

The impact of artificial intelligence on the world of work

For the first time, the Commission dedicates a separate chapter of the Communication to artificial intelligence and its implications for social policy. According to the Commission, AI will fundamentally transform skills requirements and the organisation of work. Many workers will therefore need to acquire new competences or further develop existing ones. To better assess AI's impact on labour markets and support preparations for these changes, the Commission announced the establishment of a high-level expert group

Assessment by the German Social Insurance

With this Communication, the Commission reaffirms its ambition to further develop the European Pillar of Social Rights as the guiding framework for European social policy. The focus is on the effective implementation of the social rights already enshrined in the Pillar. The German Social Insurance welcomes the Commission's objective of combining competitiveness with strong social rights. Investments in education, skills, health and social security are not only a defining feature of the European social model but also a prerequisite for productivity, innovation and economic resilience.