Gentiloni: “Defend the purchasing power of families.”

Brussels – First, COVID-19, then the high utility bills following the Russian war in Ukraine, tensions with Moscow, and finally, rising inflation. For the European Economy Commissioner, Paolo Gentiloni, “it is not possible to estimate” how much all this affected household wealth and how much any losses have been counter-balanced by the measures launched both at the EU and national levels. But one thing is sure: we need to defend the purchasing power of Europeans. 

In a parliamentary question, the Commission emphasized that it has “advocated that Member States, in accordance with national practices and respecting the role of social partners, support wage developments that mitigate purchasing power losses, especially for low-income earners.”

Labor market, and consequently wages, are the responsibility of the member states. It means that the Commission can do little. But, Gentiloni again points out, there is always the ‘country-specific recommendations‘ card, which with the new stability pact will not be able to be ignored. The EU executive “has formulated a set of country-specific recommendations addressing poverty, social inclusion, and social protection.” Based on these, governments are and will be called upon to work to protect the wealth and purchasing power of households in all member states.