An economy that works for people

Delivering on our promises

To make our economy competitive and fit for the 21^st century, we aimed to drive forward its modernisation, digitalisation, and decarbonisation. In this way, we can build an economy that works for people and businesses. That brings them prosperity, but which never loses sight of ensuring social fairness.

The cornerstone of our economic policy has been NextGenerationEU, the €800 billion post-pandemic recovery plan that invests in, among others, offshore wind farms, electric trains, top-notch digital public services and world-class hospitals. We encouraged businesses to carry out much needed reforms through State aid measures and made our trade policy more sustainable and assertive.

We supported small and medium-sized enterprises, the backbone of Europe’s economy, to boost their competitiveness. Crucially, we also focused on our human capital – on the skills and the wellbeing of our workers - launching a Pact for Skills, to give workers the training that they need to match business’ needs. On top of this, we established rules to ensure equal pay and improve the minimum wage.

This is our Union powering Europe’s prosperity. 

Promises kept

Economic recovery and modernisation

Launched in May 2020, NextGenerationEU has been providing over €800 billion to invest in strategic reforms and projects to make our economies greener, more digital, competitive and resilient.

Trade and economic security

We agreed a record number of trade deals (42 preferential agreements with 74 countries) and put in place 180 trade defence measures by the end of 2023, protecting almost 500 000 European jobs.
We made unprecedented use of the possibilities offered by our trade policy tools, which has allowed us to reap the benefits of economic openness while addressing the risks of an increasingly polarised world.
The first-ever European Economic Security Strategy identified new risks to our economic security that have emerged as a result of increasing geopolitical tensions and geo-economic fragmentation.

Economic governance

Deal was reached on the most comprehensive reform of the economic governance rules since the financial crisis in February 2024.

State aid

A State aid Temporary Crisis and Transition Framework was adopted in March 2023, approving almost €13 billion in state aid measures to speed up financing for clean-tech production.
Nine Important Projects of Common European Interest were approved with the participation of 22 Member States, in the strategic fields of batteries, microelectronics, hydrogen, and cloud computing.

Skills, labour rights and social protection

We established the Pact for Skills, to give workers the training that they need to match business’ needs.
We proposed rules to improve the working conditions in platform work which in 2021, offered work to over 28 million people.
We set out rules on pay transparency, to make the basic principle that equal work deserves equal pay a reality, no matter whether you are a woman or a man.
We introduced a Child Guarantee, so that families in need can afford childcare, and that mothers and fathers are able to both work and have a family.
The ‘Women on boards’ Directive was adopted, which sets a target of 40% of non-executive directors in listed companies to be women.

Sustainable finance

The EU Taxonomy Regulation – a classification system of sustainable economic activities – has been developed to encompass around 150 economic activities, covering around two thirds of greenhouse gas emissions in Europe.
The Green Bond Standard entered into force in December 2023, ensuring that investors are able to trust that their investments are sustainable.
The Corporate Sustainability Reporting Directive, entered into force in beginning of 2023, allowing investors to access the information they need to understand the sustainability impact of the companies in which they invest.

Digital finance

Since June 2023, the Markets in Crypto-Assets Regulation brings crypto-assets and their service providers under regulation and supervision.
The Digital Operational Resilience Act, in force since January 2023, enhances the cyber security of the financial sector in Europe and makes sure it is able to continue functioning at all times in case of operational disruption.
The Commission put forward new rules for instant payments in euro, adopted by co-legislators in February 2024.
We adopted proposals for a possible future digital euro and safeguarding the legal tender of cash.

Global taxation

We worked with Member States to ensure the adoption of the Directive enacting a minimum effective tax rate for multinationals.
We proposed the 'Business in Europe: Framework for Income Taxation', which will make life easier for both large businesses and tax authorities by introducing a new, single set of rules to determine the tax base of groups of companies.
We proposed the creation of a Head Office Tax System for SMEs to make it easier for SMEs to calculate and pay taxes when operating across borders in the single market.

Customs Union