Background
Responses to inflation and the energy crisis
Households and businesses across the EU have been facing rising prices in basic goods including predominantly energy and food. The rise in the cost of living has been driven by the energy crisis and by the disruptions of supply chains as a result of sanctions imposed on Russia and Belarus, the stop of production in and exports from Ukraine, and by the strain on supply chains caused by the COVID-19 pandemic. Together with pressures on already strained housing markets, this creates a substantial threat to people’s purchasing power and standard of living, but also to companies’ viability.
The database will continue to map policies (including collective agreements, company cases or other initiatives) aimed at addressing and cushioning the impacts of this new crisis on EU companies, workers and citizens.
Green transition
Within the Recovery and Resilience Facility (RRF) as part of the NextGeneration EU programme, Member States have drafted national RRF plans in which they outline their envisaged policies, and for which EU funding will be obtained following approval by the European Commission. About 40% of the expenses shall be related to promoting the green transition.
Update requirements
Responses to inflation (continuation of T1 and T2 update):
Potential cases could include, for instance: the setting up of price control committees with social partner support, the take up of aspects related to the crisis in collective bargaining as a response [provided agreements were reached], support for companies with a large decline in trade volume; fiscal policies to cushion the price of energy costs; the update of short-time working schemes to the new context; heating and fuel cost support for the most vulnerable or for all groups of workers or companies; measures to promote energy savings, etc.
Please make sure to include new measures to support households, including for example income support (one-time support cheque, one-off payment), reductions in VAT and energy-related taxes, increases in means-tested benefits, deferral of mortgage repayments, credit lines between the governments and consumers to allow consumers to delay the payments of their energy bills, increases of in-kind benefits, price caps. Measures to support SMEs as well as larger companies, such as reduction of taxes or subsidies.
Correspondents may also include new short-time work schemes or extensions thereof as well as other job retention schemes, as well as labour market policies that have been developed in the context of the current energy crisis, such as up- and re-skilling of the labour force as well as other active labour market policies (ALMP) measures. Please make sure to include these measures in the corresponding categories, for instance under the subcategory ‘Active labour market policies (enhancing employability, training, subsidised job creation, etc.)’ under the category ‘Promoting the economic, labour market and social recovery’ while selecting ‘War in Ukraine’ as context.
Socio-economic policies supporting the green transition, including green collective bargaining:
Correspondents are asked to familiarise themselves with these plans, and to include in the database the most important policy measures that fall into Eurofound’s field of interest once the legislation has been passed. Note that Eurofound’s field of interest relates to initiatives which cushion the socio-economic effects (for citizens, workers and businesses) of the green transition. General measures of a more technical nature, e.g., investments into transitioning to renewable energy sources at a large scale, are not in the scope.
Examples of larger collective agreements which support aspects of the green transition are of particular interest.
Of particular interest also are policy measures which relate to multiple policy contexts and address more than one policy target. For example: policies to reduce energy consumption can be related to the war in Ukraine and its impact on prices, but can also contribute to the green transition.
Measures to support refugees from Ukraine and COVID-19-related measures promoting the recovery:
Correspondents are also asked to keep an eye on the most important policy measures related to COVID-19 and to support refugees from Ukraine under the temporary protection directive. Correspondents should include new information on the ‘Use of measure’ and provide information on cases that have ended or have been extended. Please note that Eurofound has introduced a new variable in the database indicating whether a policy is ‘Active’ but has passed its end date, which should make the identification of cases that need to be ‘closed’ easier.
In Eurofound’s field of interest this could include continued support for labour market integration of refugees from the Ukraine, the provision of housing, the opening of new school classes, the creation of work-related matching platforms, offering active labour market programmes targeted at refugees, and how their rights on access to the labour market, health and social protection are implemented by the member states, etc.
For COVID-19 related cases, the correspondents may focus on short-time working schemes – which are likely to be amended in the new crisis context; but also other nation-wide large scale recovery packages.
Summary of expected policies for the T3 update:
Hence, the new round of updates seeks to capture support measures in reaction to the social and economic consequences of the rising inflation, and on measures to support the green transition, such as:
- Support for companies hit by economic restrictions or changes in supply chains or increased prices;
- Support for workers/citizens to deal with increased energy or food prices;
- Policies that facilitate the green transition, targeted at businesses, workers and citizens.
Correspondents are asked to identify such measures introduced by governments, social partners, companies and other organisations, be they based on legislation, collective agreements or any other type of initiative. The identification shall be based on desk research. Potential sources include governmental websites and related government institutions, social partner website and their media, NGOs, the media, etc.
Priority should be given to larger scale and nation-wide policies, though also innovative smaller scale, regional or company measures can be included. The focus of Eurofound’s areas of expertise should be kept in mind when selecting the cases: Working conditions, Employment, Industrial Relations and Living Conditions. Out of scope are for instance measures aimed at easing border controls or regulating the residency status of refugees; or measures of a more technical nature facilitating the green transition.
For both including new measures and updating existing ones, please pay particular attention to include the amount of beneficiaries (‘Use of measure’ box) as well as the overall budget (‘Content of measure’ box), even if you only have expected values, if effective ones become available they may always be included in another round updates. Be mindful about the end date and to mark measures as temporary. You could also briefly discuss the timeline of the measure in the ‘Content of measure’ box.