Over the past few years, in the face of global challenges, the cost-of-living crisis, climate change and the complexities of the digital transition, the European Union has redoubled its efforts to protect and empower people and communities. In 2025, its work to improve living and working conditions for everyone continued apace. The year was defined by initiatives to tackle labour and skills shortages, thereby supporting the EU’s sustainable and inclusive growth and ensuring its competitiveness. The EU continued to support new measures so workers can enjoy their social rights. In addition, ensuring all citizens are treated fairly and equitably, regardless of background, remained a key priority, with the introduction of a crucial framework to combat gender-based violence, along with plans to strengthen consumer rights.

The European Pillar of Social Rights – open a new tab. functions as a beacon guiding the EU towards a strong, social Europe that is fair, inclusive and provides equal opportunities for all. In 2025, the European Commission carried out a review of the European Pillar of Social Rights Action Plan – open a new tab. with the aim of better implementing the pillar, turning its 20 key principles – open a new tab. into concrete action to benefit citizens. In parallel, the Commission started working – open a new tab. on the upcoming EU Anti-Poverty Strategy, the first of its kind at the EU level.

Social dialogue plays a crucial role in keeping European enterprises competitive, increasing their productivity, providing quality jobs and ensuring social fairness. On 5 March, the Commission and its cross-industry social partners signed a new Pact for European Social Dialogue – open a new tab., which will strengthen the role of the social partners in shaping labour market, employment and social policies. Additionally, the European Parliament and the Member States reached a political agreement during the year on the revised European Works Council Directive – open a new tab., which strengthens the meaningful involvement of employees in company decisions to help manage change in transnational settings.

The social economy has firmly established itself as an integral part of the EU’s economy and society, contributing to Europe’s prosperity, competitiveness and resilience. In 2025, the Commission launched the midterm review – open a new tab. of its 2021–2030 Social Economy Action Plan – open a new tab.. Already, more than 4.3 million associations, cooperatives, mutual societies, foundations and social enterprises pursue activities that prioritise social and environmental objectives over profit.

EU targets for 2030

• At least
  78 % of the population aged 20 to 64 should be in employment.
• At least
  60 % of all adults should participate in training every year.
• At least
  15 million fewer people should be at risk of poverty or social exclusion.

Skills for the EU’s prosperity and for economic and societal resilience

Human capital is key to the EU’s prosperity, democracy, economic and societal resilience, and unique social market economy. To be competitive and prepared for the future, the EU needs to support and prepare its citizens with the skills needed for success in education, work and daily life, as highlighted by the Competitiveness Compass – open a new tab. (see Chapter 2).

This is why, in March, the Commission launched the union of skills – open a new tab., a comprehensive strategy aiming to support the development of quality, inclusive and adaptable education, training and skills systems to increase the EU’s competitiveness. Enhanced skills intelligence at the EU level will be of key importance in this context, for effective and targeted policies. The union of skills also builds on and works synergistically with action already taken under the European Education Area (EEA).

Attracting talent from non-EU countries is on of the key objectives of the union of skills. In November, the Parliament and the Council of the European Union also reached a political agreement on the EU Talent Pool – open a new tab., a key tool to address the EU’s labour and skills shortages. It will be a user-friendly, modern and trustworthy platform to match jobseekers from non-EU countries with EU employers. Moreover, a Marie Skłodowska-Curie action ‘MSCA Choose Europe’ pilot project was launched in 2025 to increase the attractiveness of European research careers by addressing the issue of precarity and offering excellent working conditions.

Providing quality jobs

Ensuring the availability of quality jobs not only helps to foster social fairness but also contributes to a robust and competitive industrial landscape. The Commission adopted the Quality Jobs Roadmap – open a new tab. in December. Prepared with the close involvement of social partners, it focuses on creating and preserving quality jobs, particularly during the clean and digital transitions, while ensuring that workers’ rights keep pace with a modern economy. The roadmap also calls for the enforcement of existing rights, quality services for all and across regions, adequate funding, and strengthened social dialogue and collective bargaining. In conjunction, the Commission launched the first-stage consultation on a quality jobs act – open a new tab. to gather social partners’ views on a potential initiative in this field.

Supporting workers

While digital tools provide both workers and employers with more flexibility, allowing for greater autonomy and innovation, there are also increasing calls for safeguards to ensure that digitalisation does not weaken workers’ rights. In 2025, the Commission continued to take steps towards defending workers’ right to disconnect and to fair telework, concluding second-stage consultations with social partners. Furthermore, by the end of the year, the Commission had successfully concluded the work of the expert group dedicated to the transposition of the Platform Work Directive – open a new tab. into national law, which Member States are required to do by December 2026.

In July, the Commission proposed stronger safeguards for workers exposed to hazardous substances with new chemical exposure limits – open a new tab.. The measures are expected to prevent around 1 700 cases of lung cancer and 19 000 other serious illnesses over the next 40 years and could save up to €1.16 billion in healthcare costs. The Commission’s proposal will be discussed by the Parliament and the Council. In a similar vein, the EU also published a new indicative list of hazardous medicinal products – open a new tab., along with guidelines for managing health and safety risks relating to asbestos – open a new tab..

In an increasingly challenging geopolitical environment, the European Globalisation Adjustment Fund for Displaced Workers – open a new tab. continued to assist workers dismissed due to major restructuring events. As a flagship initiative of the Action Plan on the Future of the Automotive Sector – open a new tab., the Commission proposed to amend the fund to allow companies to request support for workers facing imminent redundancy.

Funding under the European Globalisation Adjustment Fund for Displaced Workers

• €8 million to support 2 400 workers dismissed after the bankruptcy of Belgian coach manufacturer Van Hool.
• €1 million to support 417 former employees in Belgium after the closure of chip manufacturer BelGaN’s factory.
• €3 million to help 915 workers dismissed following the closure in Germany of Goodyear’s production site in Fulda and the partial shutdown of the site in Hanau.
• €8.5 million to support 5 800 workers dismissed after the bankruptcy of battery maker Northvolt in Sweden.

Furthermore, in May, trade unions and employers’ organisations from five sectors signed guidelines – open a new tab. to prevent and tackle violence and harassment related to work. These expand the scope of the existing guidelines to include cyberviolence and underscore the principles of gender equality and anti-discrimination.

Affordable housing and energy

The plan also proposes measures for a more productive and innovative construction and renovation sector that will address the mismatch between housing supply and demand through the European Strategy for Housing Construction – open a new tab.. Bolstering this is the New European Bauhaus – open a new tab. initiative, in relation to which the Commission adopted a communication and a proposal for a Council recommendation – open a new tab. in December, together with the European Affordable Housing Plan. The initiative seeks to foster sustainable, inclusive and aesthetically pleasing spaces, products and lifestyles, aligning with the European Green Deal and the Clean Industrial Deal, while respecting diverse cultures and traditions.

The issue of access to affordable housing is not confined to lower income groups. As such, in 2025, the Commission proposed to revise the Decision on Services of General Economic Interest – open a new tab., with the aim of ensuring that State-aid rules facilitate investment in both affordable housing and social housing. The Commission will work with national, regional and local authorities to simplify rules and procedures that restrict housing supply, with a particular focus on planning and permitting. A new legislative initiative on short-term rentals will support areas under housing stress.

By addressing the underlying causes of the housing crisis in a comprehensive way, this plan will be particularly beneficial for those most affected: young people, students, essential workers, people with a low income and other disadvantaged groups. The Commission will mobilise new investment in student and social housing and help Member States put in place better solutions for homeless people based on Housing First principles.

The EU is not only working to make housing more affordable but also helping consumers cut their energy costs. The Action Plan for Affordable Energy – open a new tab. will bring relief to households and businesses facing high energy bills (see Chapter 2), with the savings from reducing Europe’s dependence on fossil fuels potentially reaching €130 billion by 2030. Additional tailored solutions developed throughout the year, such as the revised rules on the energy consumption of electrical appliances in standby mode – open a new tab. – which have applied since 9 May – will further reduce energy use.

Youth engagement and participation

The importance of young people in shaping the EU’s future is reflected in the Political Guidelines – open a new tab. for the 2024–2029 Commission. The EU is committed to hearing what young people have to say and addressing their concerns directly.

The new President’s Youth Advisory Board – open a new tab., the annual Youth Policy Dialogues – open a new tab. and the Commission’s Youth Check – open a new tab. put young people at the heart of the EU’s policymaking. In 2025, the Commission applied the Youth Check to its annual work programme for the first time, consulting young people and youth civil society on key initiatives of significant relevance for young people. Moreover, all Commissioners organised Youth Policy Dialogues to encourage young people to share their perspectives, making sure their voices are heard at the highest level of EU decision-making.

The President’s Youth Advisory Board brings together one young representative from each Member State’s National Youth Council and one from the European Youth Forum – open a new tab., along with observers from candidate countries and potential candidates for EU accession. It advises the President on issues that matter most to young people, shares their perspectives on policies developed by the Commission and puts young people at the heart of EU policymaking.

Supporting education and building bridges

The union of skills significantly builds on and is being implemented together with the EEA – open a new tab., an initiative to help Member States build more inclusive and resilient education and training systems. In June, the Commission published a report on the interim evaluation of the EEA – open a new tab., which serves as a basis for the Council to agree on a new strategic cooperation framework for 2026–2030.

An Action Plan on Basic Skills – open a new tab. and a STEM Education Strategic Plan – open a new tab. will also come under the union of skills. These aim both to support Member States’ efforts to ensure that all people – from early childhood through to adulthood – have strong basic skills and to increase the share of students enrolled in STEM (science, technology, engineering and maths) fields, with a special focus on female students.

The successful roll-out of the union of skills and the EEA relies on robust support for education and training. Erasmus+ – open a new tab. is a lasting EU success story, with nearly 40 years of impact on the personal and academic growth of more than 16 million people. In this context, the Commission proposed to increase the budget of the Erasmus+ programme by 50 % to help young people, adult learners and staff undertake a learning mobility experience in other Member States, thus reinforcing a sense of connection, common EU values and civic engagement. The proposal also aims to extend the programme’s scope to cover volunteering, creating a one-stop shop for all EU-funded youth projects and initiatives.

The 2025 European Education and Skills Summit – open a new tab., under the theme ‘Fuelling Europe’s growth’, focused on preparing Europe’s education systems for rapid societal and economic change. Ministers, policymakers, educators, students, social partners and industry leaders discussed how education can strengthen Europe’s competitiveness, cohesion and democratic values. The Commission also presented the new Education and Training Monitor – open a new tab. and the Erasmus+ Annual Report 2024 – open a new tab..

Steadfast in its dedication to ensuring a robust EEA, in 2025 the Commission convened the first European Degree Forum – open a new tab. in Florence, Italy. It brought together more than 160 representatives of national authorities, universities, quality assurance agencies and student organisations to prepare the ground for the roll-out of a joint European degree label under the Florence Pledge.

Education and skills development is not just confined to universities, however. A variety of stakeholders, such as vocational education and training (VET) providers, schools and labour market stakeholders, benefit from Erasmus+ learning mobility and cooperation projects. The Centres of Vocational Excellence – open a new tab., a flagship initiative of Erasmus+ in the VET field, saw a record number of applications in 2025, reaching a total of 303, up from the previous year’s 132. For the 2021–2027 period, the Erasmus+ programme has allocated an indicative budget of €400 million to finance these centres. In the 2025 call for interest, the budget available allows at least 15 new Erasmus+ projects to be funded.

The European Alliance for Apprenticeships – open a new tab. hosted its most recent high-level event – open a new tab. over the summer, bringing together more than 230 participants. Key stakeholders, policymakers, social partners, education providers, companies and apprentices gathered to explore how apprenticeships can drive Europe’s clean transition and develop a skilled, resilient workforce for the future. Together with the European Training Foundation – open a new tab., it also organised a seminar for partner countries in Montenegro – open a new tab. in October.

For the first time, the Action Plan on Basic Skills, part of the union of skills, also recognises citizenship skills alongside those such as literacy, mathematics and science. With this in mind, the theme for the 2025 edition of the European Innovative Teaching Award – open a new tab. was ‘Citizenship education – Participation in democratic life, common values and civic engagement’. During the year, through Erasmus+ Jean Monnet Learning EU initiatives – open a new tab., 106 proposals were selected to deliver a minimum of 120 hours of EU democracy and values teaching per school over a three-year period. The Jean Monnet school networks also expanded in 2025. These networks are composed of institutions across at least three Member States, and help integrate EU topics into primary, secondary and VET classroom learning.

Additionally, in 2025, the Commission launched two DiscoverEU – open a new tab. application rounds, offering more than 75 000 travel passes to 18-year-olds across Europe. DiscoverEU helps young people explore the continent’s shared cultural heritage and gain skills and competences that will serve them throughout their lives. These rounds took place in the context of the 40th anniversary of the Schengen Agreement, marking four decades of free movement across much of Europe.

A Culture Compass for Europe

In an era of rapid change, it is imperative to recognise and fully harness culture’s potential and to address the challenges facing the culture and creative sectors and industries. The Commission has therefore presented a Culture Compass for Europe – open a new tab., establishing a vision and setting out key directions for placing culture at the heart of EU policymaking. The compass’s ambition is underpinned by 20 flagship initiatives, including a proposal for an EU Artists Charter to improve working conditions for artistic and culture professionals.