Sittings · Document

REPORT (2025/2131(INL)) 2025-12-12

With recommendations to the Commission on just transition directive in the world of work: ensuring the creation of jobs and revitalising local economies

Committee on Employment and Social Affairs · Rapporteur: Jana Toom

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

with recommendations to the Commission on just transition directive in the world of work: ensuring the creation of jobs and revitalising local economies

(2025/2131(INL))

– having regard to Articles 153 and 225 of the Treaty on the Functioning of the European Union (TFEU),

– having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

– having regard to Rules 47 and 55 of its Rules of Procedure,

– having regard to Articles 4, 9, 46, 149, 151, 153, 162, 164, 174 to 178 and 349 TFEU,

– having regard to the Commission communication of 11 December 2019 on the European Green Deal (COM(2019)0640),

– having regard to the Commission communication of 4 March 2021 on the European Pillar of Social Rights Action Plan (COM(2021)0102),

– having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (RRF),

– having regard to Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund (JTF),

– having regard to Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing the European Social Fund Plus (ESF+) and repealing Regulation (EU) No 1296/2013,

– having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013,

– having regard to Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060,

– having regard to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC,

– having regard to the European Added Value Assessment briefing of September 2025, entitled ‘Just transition directive in the world of work: ensuring the creation of jobs and revitalising local economies,

– having regard to its resolution of 23 November 2023 on job creation – the just transition and impact investments,

– having regard to the International Labour Organization’s (ILO) resolution concerning a just transition towards environmentally sustainable economies and societies for all,

– having regard to Enrico Letta’s report of 10 April 2024 entitled 'Much more than a market',

– having regard to Mario Draghi’s report of September 2024 entitled ‘The future of European competitiveness’ (the ‘Draghi report’),

– having regard to the Quality Jobs Roadmap,

– having regard its resolution of 10 September 2025 on Role of cohesion policy in supporting the just transition,

– having regard to the Council Recommendation on fair transition towards climate neutrality from 2022,

– having regard to the Council Recommendation on fair transition towards climate neutrality from 2022 and the key messages from EMCO and SPC on its implementation,

– having regard to its resolution of 17 December 2020 on a strong social Europe for Just Transitions,

– having regard its resolution of 9 September 2025 on public procurement,

– having regard to the Political guidelines for the European Commission 2024−2029,

– having regard to the Commission communication of 26 February 2025 on the Clean Industrial Deal (COM (2025) 85 final),

– having regard to the Commission communication of July 2025 “Framework for State Aid measures to support the Clean Industrial Deal” (C/2025/3602),

– having regard to the La Hulpe Declaration on the future of the European Pillar of Social Rights of 16 April 2024,

– having regard the Opinion on the dimensions of job quality of the Employment Committee (EMCO) of the Council of the European Union of 6 June 2025,

– having regard the Opinion of the European Economic and Social Committee on Towards a just transition legislative proposal and EU policy tools that enable a more social European Green Deal of 4 December 2024,

– having regard to the report of the Committee on Employment and Social Affairs (A10-0261/2025),

A. whereas the green and digital transitions are having a profound transformative effect on Europe’s economies, societies, regions and workplaces in different ways, requiring comprehensive social and employment policy measures to prevent adverse impacts and promote economic, social and territorial cohesion; whereas ensuring an effective shift to a climate-neutral and digitalised economy and a reduction on energy supply dependencies is essential for Europe’s long-term prosperity, wellbeing, sustainability, growth and competitiveness; whereas the ultimate success of the twin transition will depend heavily on ensuring that transition is just and inclusive for workers, businesses and regions and that it contributes to social justice for all, with particular focus on the most vulnerable, in order to ensure that no one is left behind; whereas a fair transition alone could yield 261 billion euro per year in benefits, particularly by addressing social inequalities and regional disparities; whereas the pathways of each affected region will be different, based on their economic and social realities;

B. whereas the effects of the twin transition on employment are asymmetrical across the Union and the socio-economic impact varies greatly across different regions; whereas a spatial challenge arises, as jobs in the modern, resource-efficient and competitive economy may be created in different regions from those experiencing job losses;

C. whereas the transitions must be managed in a way to ensure social inclusion, to reduce poverty and inequalities, and to seize the potential to create quality jobs, foster democracy at work, protect workers’ rights and raise labour standards across affected sectors;

D. whereas EU labour markets remain territorially divided and whereas job quality and employment contracts show a rise in non-standard forms, especially among youth;

E. whereas managing the shift to a carbon neutral economy should not only support transitions to new quality jobs in emerging sectors but also maintain and adapt existing jobs and sectors to more sustainable and clean industries and technologies for people, especially those living in more impacted territories; whereas a particular focus on regions and industries dependent on fossil fuels is crucial as these will have to be redesigned to meet the Union’s climate commitments; whereas it is important that everyone, including workers and jobseekers are supported in managing transitions in order to foster understanding and acceptance and effectiveness of the goals of the 2050 long-term strategy; whereas as shown by Eurofound research, broad involvement of civil society, social partners and public authorities in the transition process is critical to securing and fairly distributing the returns from economic activity and resources, as well as navigating conflicts;

F. whereas Europe’s economic transformation requires a strong focus on competitiveness and growth; whereas entrepreneurs and job creators must be given the right conditions to invest and expand, and ensuring efficient use of funds is essential to attract private investment; whereas it is important that citizens, in both urban and rural areas, are engaged in and supportive of a just transition that balances competitiveness with solidarity, and that they can be confident their job, income and way of life will be safeguarded so that no one is left behind;

G. whereas while a number of important Union legislative and non-legislative initiatives aim to or can help address the impacts of the twin transition (in particular, the Just Transition Mechanism, the JTF, the EGF, the Union of Skills, the Social Climate Fund, the ESF+ and the RRF) and enhance competitiveness, gaps remain in the legislative and policy framework when it comes to disruptions at the workplace, workers’ rights, social protection, social dialogue and education and training opportunities; whereas only action at Union level can ensure real added value and concurrent upward social convergence to make the promise of ‘leaving no-one behind’ a reality, while taking into account national labour market models and traditions;

H. whereas the Draghi report identifies persistent skills shortages as a barrier to innovation, technology adoption and decarbonisation efforts in turn hampering growth and competitiveness; whereas nearly four in five small and medium sized businesses in the EU report difficulties in finding workers with the right skillset; whereas a decline in education and training systems, particularly adult education and training, are failing to prepare the workforce for the twin transitions; whereas participation in adult learning remains insufficient as only 39.5% of adults engage in training annually, far below the 2030 target of at least 60% and some 50 million more workers would need to receive training in order to reach it;

I. whereas through investing in high-skill development, the EU can foster a virtuous cycle of increased productivity, higher wages, and greater economic equality; whereas almost 50% of adults may need upskilling or reskilling; whereas the EU's energy sector alone will require at least 145.000 skilled workers by 2030; whereas clean tech is one of the drivers of economic prosperity in Europe, contributing to 30% of EU growth and creating millions of jobs in 2023 alone;

J. whereas Europe’s strategies for skills, competitiveness and investment should create opportunities for both large companies and SMEs, while also addressing national, regional and local needs; whereas policies that reinforce industrial capacity, encourage entrepreneurship and build a workforce with skills adapted to local realities are essential to ensure that all Europeans can benefit from growth and innovation;

K. whereas adequately funded welfare and social protection systems are a prerequisite for ensuring a fair and just transition towards climate neutrality and digital transformation; whereas the Draghi report further stresses the need to ensure that productivity growth and social inclusion go hand-in-hand with Member States’ welfare systems which are critical to provide strong public services, social protection, housing, transport and childcare during the transition; whereas quality jobs, decent working conditions, access to social protection, social dialogue and collective bargaining play a crucial role in attracting and retaining the workforce and are important for the Union’s competitiveness and workplace democracy;

L. whereas according to the Commission report on Employment and Social Developments in Europe 2024 (ESDE 2024), constraints on participation in adult education and training are attributed to barriers such as perceived lack of necessity, insufficient supply or difficulties in accessing relevant quality training, schedule conflicts, balancing family responsibilities and financial constraints; whereas the Draghi report calls for the EU to ensure that all workers have a right to education and retraining, allowing them to move into new roles as their companies adopt technology, or into quality jobs in new sectors;

M. whereas an integrated policy mix combining education and skills development, finance and industrial policy is a key enabler for Europe’s competitiveness, social resilience and fairness, strategic autonomy, investment and sustainable job creation; whereas the green and digital transition requires significant investments in reskilling, upskilling, vocational education and training and lifelong learning to equip workers with both the technical skills specific to each occupation and the core soft skills required; whereas older, low-skilled and female workers may face greater obstacles in ‘skilling up’ and competing for new jobs; whereas education and training efforts must therefore be closely linked with just transition policies; whereas disadvantaged workers and communities will require targeted support to ensure they are not left behind;

N. whereas important economic disparities continue to exist between EU Members States and regions, with big differences in terms of GDP since 2012, linked to the share of industry in economic activity;

O. whereas the Letta report considers that the freedom of movement and the 'freedom to stay’ are two sides of the same coin and must be developed together; whereas the Letta report considers the freedom of movement should be a free choice, and not as a necessity to compensate for the lack of jobs in some regions; whereas the report stresses the need to provide opportunities for citizens in all regions, especially in rural areas, including the need for quality jobs, and the need to tackle inequalities within and between countries; whereas the green transition if not adequately designed and supported, could affect vulnerable regions in Eastern and Southern Europe disproportionally more in terms of unemployment risks and job losses; whereas coal-dependent territories add a further layer of vulnerability with employment rates 10-15% below the EU average;

P. whereas the Quality Jobs Roadmap is expected to promote measures that support Member States and industries in providing decent working conditions and access to training, setting high standards for health and safety at work, ensuring fair job transitions for workers and self-employed notably and collective bargaining, with a view to attracting talent and contributing to the competitiveness of European industries; whereas, in this context the Commission is expected to discuss a framework with social partners to support restructuring processes at EU and Member State level; whereas this framework will be focused on just transition, on anticipation of change, early intervention when there is a threat of restructuring, and an improved information and consultation;

Q. whereas the administrative and technical capacity of local stakeholders involved in the design and implementation of the Just Transition needs to be strengthened; whereas Member States still face significant challenges in effectively managing and implementing EU funds at local level and in assessing the various impacts of climate policies; whereas the implementation of the Just Transition Fund has been slow, as shown by the payment rate of only 32.2% by the end of 2024; whereas the number of jobs created by the JTF is not on track to cover the number of jobs forecast to be lost as carbon-intensive industries shift to cleaner technologies; whereas SMEs form the backbone of the European economy and create a large share of permanent local jobs; whereas specific provisions for SMEs are needed to strengthen their role in the Just Transition;

1. Highlights that the successful transition to more sustainable energy sources, and modernised industries and a more digitalised economy will play a major role in the long-term competitiveness of Union businesses on the global market and must lead to the creation of quality jobs in the Union; underlines the need to ensure that businesses and workers are well equipped to take advantage of the opportunities arising from the switch to new and innovative solutions and underlines the importance of decent work and jobs covered by collective agreements, which are indispensable to ensure social progress and acceptance of the transition; believes that a legislative framework to address the challenges and opportunities of a just transition in the workplace is essential to ensure adequate minimum standards the that provide clarity and structure for both workers and employers in anticipating and managing change and ultimately improve the Union’s resilience, competitiveness and upward social convergence and social justice; stresses that regions can support the just transition by combining social protection, economic diversification, and territorial coordination to reduce negative impacts, strengthen local economies and promote inclusive development;

2. Highlights that the impact of decarbonisation on employment goes beyond reductions in fossil fuels sectors and will have a broader impact in terms of job redefinition and overall labour market transition; welcomes in this regard the announcement of a Quality Jobs Act with the aim to ensure employment practices keep up with developments in the modern economy; stresses the need for this Act together with the forthcoming update of the European Pillar of Social Rights Action Plan and the new Quality Jobs Roadmap to include a set of concrete measures that tangibly improve the working conditions, health and safety, democracy at work, collective bargaining coverage and training and skills of workers’ and the self-employed, as well as ensure the effective enforcement of EU employment and social policy legislation; stresses that such measures also provide an opportunity to support Union employers, particularly SMEs, to retain and improve their competitiveness by providing a clear framework, including practical guidance and supportive tools for anticipating and managing change in partnership with workers and to invest in vocational education and training (VET), up-skilling and re-skilling workers to address skills and labour shortages that impede productivity and growth as well as future perspectives for workers;

3. Stresses that digitalisation must be implemented in a human-centred way, preventing excessive surveillance of workers and ensuring the right to disconnect, as well as fair working time arrangements.

4. Reiterate its call on the Commission, following consultation of the social partners to propose a directive to ensure a just transition in the world of work and facilitate the Union’s transition to a sustainable, climate-neutral, and digital economy; believes that this proposal should include, on the basis of an impact assessment, measures to ensure, inter alia:

(a) a dedicated framework to anticipate and manage change through the mandatory and timely information and consultation of workers and their representatives, social dialogue and collective bargaining on the design of just transition measures and mechanisms;

(b) an individual right to training for workers during working hours;

(c) the establishment of national just transition strategies, that include regional and sectoral plans, developed and implemented with the involvement of social partners, while avoiding unnecessary administrative burdens on the Member States;

(d) the development of business support programmes, in particular for SMEs, which ensure full respect for their obligations under EU and national social and labour law and collective agreements and the promotion of enterprise-level transition plans;

(e) a monitoring structure that can deliver strategic foresight;

5. Highlights that the anticipation and management of change is paramount for both employers, and workers, and regional and local authorities and communities to successfully navigate the green and digital transition and effectively deal with the economic challenges brought on by adverse geopolitical events and turn these into opportunities; stresses that planning ahead for the transition can proactively prevent redundancies and lead to job creation, build long-lasting resilience in business and make best use of available resources; emphasises that such plans require decisions likely to lead to substantial changes in work organisation and, therefore, must be developed in a wide-ranging partnership through the framework of social dialogue and collective bargaining, with full respect for the right to information and consultation; calls on the Commission in this regard to monitor and enforce the full implementation of the framework set out in Directive 2002/14/EC; further calls on the Member States to enable social dialogue at relevant levels to facilitate job-to-job transitions, in particular for occupations that may disappear or be significantly reduced; recalls the early warning tools provided for in Directive 2019/1023 and believes adapting such tools to also include circumstances relevant to the twin transition would ensure better detection and response to upcoming shifts in businesses operations; stresses the need to provide businesses with incentives to establish their own transition plans; emphasises that stakeholders and civil society must be involved from the earliest stages of transition planning, ensuring meaningful participation rather than late-stage consultation;

6. Highlights that the shortage of skilled workers can be meaningfully abated only by addressing the availability and accessibility of education, (re)qualification, and training opportunities as well as improving working conditions; stresses that social dialogue between workers and employers on the modalities of training opportunities that are aligned with labour market needs and that respect work-life balance is essential and should be facilitated; strongly believes that an individual right to training for workers during working hours which addresses the main barriers to pursuing training can ensure quality upskilling or reskilling, employee training and career development support for a predictable and stable supply of skilled workers for employers; stresses the need for tackling the cost barrier by ensuring training is cost-free for workers, supported by funding, tax incentives and partnerships; stresses that national institutions and social partners are responsible for the training of employees and highlights their essential role in the implementation of the right to training; calls in this regard for Member States to prioritise and promote training schemes developed jointly by workers and their employers, ensuring that upskilling and reskilling respond to real demand and contribute to career progression;

7. Underlines the need to meaningfully involve young people in the design, implementation and monitoring of policies related to a fair and just transition; calls for strengthened efforts to implement the Youth Guarantee, ensuring increased earmarking by Member States to allocate at least 15 % of their ESF+ resources to targeted actions and structural reforms supporting quality youth employment, vocational education and training – particularly through paid, high quality traineeships and apprenticeships – and facilitating transitions from school to work, reintegration into education or training, and second-chance education;

8. Stresses the need for Member States with the involvement of regions to support businesses and workers by developing transition strategies and policies for a just transition at the national level tailored to local specificities; highlights that such national strategies should identify the impact of transitions on regions, individual sectors and the respective workforce and should set out a comprehensive and cross-cutting plan to mitigate the impact; underlines the importance of developing long-term vision and strategy for local and regional economic transition by involving public and private actors, civil society, and social economy; stresses that direct investments in innovation and improving regional attractiveness through upgrading and providing high-quality, affordable and accessible infrastructure, public services and amenities are necessary to retain workers and generate quality jobs;

9. Considers it essential to promote the economic viability of European industrial companies and, in so far as is possible, prevent closures and forced redundancies; stresses the importance of supporting enterprises, in particular SMEs, to prevent forced redundancies, such as through temporary support programmes to protect employment during transitions, to avoid the loss of strategic industrial capacity and skilled workforces; notes that, when job-to-job transition is necessary, keeping workers in the same region while allowing them sufficient time for reconversion while limiting personal financial losses is essential; demands stronger protections against unfair dismissals and calls for workers affected by restructuring to be ensured access to adequate compensation, retraining opportunities and support in securing new employment;

10. Stresses that Eurostat’s regional projections indicate a continued decline in the working-age population across many territories during the 2020s and 2030s, particularly in regions already affected by ageing and geographical mobility ; underlines that such trends risk weakening labour supply, and in turn threaten long-term development, at the very moment when skilled workers are essential for the green and digital transitions; Emphasises the importance of people’s ‘right to stay’ in their regions or local areas and the need for targeted strategies for rural and peripheral areas; calls on the Commission and the Member States to support place-based policies that create economic opportunities for both people and companies in rural regions, attract private investment, and generate local jobs; underlines that such strategies are necessary to strengthen economic opportunities in rural areas, support quality job creation, innovation, local industrial renewal and, ultimately, ensure that citizens can build their future in their communities;

11. Recalls that SMEs are the main generators of durable local employment; stresses the need to facilitate simplified, proportionate and SME-friendly access to transition funding, including by allowing for clustering arrangements for accessing funds and reporting obligations, digital one-stop-shops and mandatory technical assistance to guide project design and compliance; urges Member States and regional authorities to establish and strengthen business support programmes in the affected regions to help start-ups and SMEs grow and succeed; highlights that investment incentives coupled with social conditionalities can help attract firms to vulnerable regions while ensuring sustainable development of the local economy; stresses the need to help companies, in particular SMEs, to address skills shortages in the Union and to promote reskilling and upskilling, helping people to get the right skills for quality jobs; calls on the European Commission to ensure dedicated support for SMEs under the future just transition financing; further calls on the European Commission to keep track of SMEs participation in just transition programmes;

12. Highlights that the social economy, in particular work integration social enterprises, play a crucial role in ensuring inclusive and fair transitions; stresses the need for support in the access to funding, capacity-building and technical assistance;

13. Calls on the Commission and the Member States to facilitate both large-scale and small-scale investments and design policies that unlock economic opportunities for the private sector, in particular for SMEs, by reducing administrative burden, lowering co-financing requirements and simplifying access to funding while respecting workers’ and consumer protection rights; underlines that such investment is essential to strengthen Europe’s industrial and technological base, create high-quality jobs, and secure a skilled workforce that is adapted to local realities, resources and specific needs, in order to fully harness regional potential and drive competitiveness, sustainable growth and long-term value creation; stresses that entrepreneurs and small companies are central to investment, innovation and job creation particularly in rural and less-developed regions, and that funding windows and technical assistance must be tailored to their needs to fully harness their potential in the green and digital economy and drive sustainable growth and long-term value creation;

14. Notes the lack of accurate disaggregated data on the number of jobs lost, created or impacted by the twin transitions; underlines the importance of forecasting changes in the labour market and trends in skill needs for effective policy and timely responses; stresses the need to identify, exchange and promote best practices; calls for the consolidation of the collection of relevant data and analysis of the impact of transition policies; welcomes the inception of the pilot project for the EU Fair Transition Observatory; stresses that energy and transport poverty indicators should be systematically integrated into just transition monitoring structures to ensure funding and job creation measures target vulnerable households first;

15. Encourages community-level renovation schemes covering neighbourhoods or villages, reducing costs, strengthening cohesion, and accelerating transition.

16. Regrets that the proposal for the Multiannual Financial Framework 2028-2034 does not include a stand-alone instrument to address the Just Transition; highlights that dedicated funding continues to be necessary to support the impacted regions address the challenges stemming from the Green Transition; calls in this regard for an extended and enlarged Just Transition Fund for the post-2027 programming period, ensuring that it operates under shared management and partnership principles within the framework of cohesion policy and with an increased budget; stresses that the new Fund should support employers in providing workers’ right to training as well as the roll out of transition plans at enterprise level; stresses that training should be of a high quality, aligned with the needs of the labour market, and lead to qualifications and credentials that are validated through transparent and clear certification systems which allow for mutual recognition between Member States; urges for transition funding to include social conditionalities to support inclusion;

17. Recalls that despite its transformative ambitions, the JTF has encountered significant challenges in achieving its objectives, particularly in ensuring equitable outcomes and providing access to the fund for small and medium-sized enterprises; calls for simplified access to the Just Transition Fund for SMEs by providing technical assistance and reducing administrative burdens;

18. Highlights the importance of digital skills development for workers at both basic and advanced levels; underlines the need to equip citizens with essential digital literacy, data awareness and the safe use of online tools to remain employable and adaptable, while also fostering more advanced competences;

19. Stresses that education and training institutions need to enhance the relevance of their training to meet competitive labour market needs and prepare learners, trainers and teachers with the relevant knowledge and skills to be active agents of change in a just transition towards environmentally sustainable economies and a society for all; emphasises that effective training depends on the availability of teachers and trainers with current knowledge on sustainable and green economy, energy efficiency and green and digital technologies; highlights that their role is critical in promoting the right skills and competences for both the younger and older generations of workers and appropriate reskilling and upskilling training for the persons affected by the green transition; stresses that the education and training of such teachers and trainers should therefore be a priority in any skills response strategy at European, national, regional and local levels;

20. Stresses that direct public and private investment into clean infrastructure, renewable energy projects and circular economy activities are necessary to revitalise local economies and contribute to the creation of quality jobs; highlights the need to leverage regional assets by investing in sectors where regions already have strengths or comparative advantages; believes that regional specialisation can form the basis of green industrial clusters; highlights that supporting research and innovation and encouraging collaboration between universities and businesses can drive new sustainable business models;

21. Stresses that a coherent, integrated policy mix is necessary for delivering on the objectives of the just transition; calls for climate and industrial measures by the EU to take into consideration inclusion, social protection and skills objectives; highlights the importance of ensuring that European and national funds are used to facilitate the green and digital transition, including by promoting social dialogue and collective bargaining; calls for EU funding and State aid by Member States to be aligned with a European industrial policy, in order to offer high-quality jobs, promote collective bargaining, respect of EU labour rights and standards, improve the competitiveness of European businesses and ensure improved working conditions;

22. Calls on the Member States to ensure sufficient funding for quality skills and vocational training programmes as a long-term investment in workers and businesses’ productivity, growth and competitiveness; calls on Member States, with the support of the Commission, to strategically leverage existing Union instruments to implement the Union of Skills, particularly the Skills Guarantee; calls on Member States to increase the use of national Emission Trading Scheme revenues for the training of workers and labour reallocation particularly for workers in carbon-intensive regions; calls on the Commission to explore and issue guidance on how public-private partnerships between Member States and enterprises can fund the training, reskilling and upskilling of workers in particular the right to training for individual workers;

23. Recalls the importance of disability mainstreaming and an intersectional approach addressing young, older, low-skilled and female workers across policy measures addressing the twin transition such as provision of reasonable accommodation in education and training;

24. Recalls the role that the European Globalisation Adjustment Fund for Displaced Workers (EGF) plays in supporting workers affected by the green and digital transitions during its remaining programming period and encourages Member States, with the support of the Commission, to make full use of the Fund; welcomes the aim of the proposed revision to the current EGF to proactively support workers affected by imminent job displacement and speed up the approval procedure for applications; stresses the importance however of ensuring enterprises undergoing restructuring who wish to apply for the Fund do so in full consultation with workers and their representatives including in the design of the personalised package of measures; notes with concern the discontinuation of the (EGF) in the proposal for the Multiannual Financial Framework 2028-2034; stresses the importance of active labour market and social protection measures in reintegrating displaced workers into the labour market following major restructuring events; calls on the Commission to ensure continued dedicated support for workers at risk from or displaced by major restructuring events in the next MFF;

25. Recalls the importance of ensuring a high level of workers’ occupational health and safety; stresses the importance of proactively addressing evolving OSH risks to work tasks, patterns and workplaces, particularly environmental and psychosocial risks, in the context of the twin transition; calls on the Commission to conduct a comprehensive review of the current strategic framework on health and safety at work and the existing OSH legislative framework with a view to identifying remaining gaps and ensuring the EU acquis remains fit for purpose as well as feeding into the design of the post 2027 strategic framework;

26. Stresses that workplace transformations and restructuring during the twin transition may trigger psychosocial risks such as stress, uncertainty, and the threat of job loss; highlight the need for protecting the mental health and psychosocial well-being of workers during transitions, including through workplace risk assessments and support services; calls for mental health support programmes, including counselling, stress management, and work-life balance schemes, to be integrated into company-level transition plans;

27. Highlights the importance of supporting workers in strengthening their transformative, core and cognitive skills such as creative and critical thinking, foresight, resilience, flexibility and agility, motivation and self-awareness, curiosity and lifelong learning – in recognition of the importance of workers’ ability to adapt to disrupted workplaces, self-efficacy, and generate new solutions that the green and digital transformations require;

28. Welcomes the Cedefop policy brief on building a European qualifications map, which strengthens transparency, comparability and portability of qualifications across Europe; stresses that such a map must go beyond an academic exercise and serve as a practical tool for competitiveness, labour-market relevance and mobility; calls on the Commission and the Member States to ensure that the European qualifications framework is firmly linked with economic needs, industrial policy and investment in skills and to thoroughly and systematically map the current skills gap at regional level as well as to forecast the future skills demand; underlines that such mapping should include impact analysis and lead to sectoral and territorial measures to benefit the potential of the green transition across all regions;

29. Highlights that strong social safety nets and social protection systems are essential to support workers and to ensure social cohesion during periods of transition; calls on Member States, in consultation with social partners and relevant civil society organisation, to modernise and strengthen their social protection systems and essential public services while ensuring their long-term sustainability and without increasing the financial burden on SMEs, with particular focus on healthcare, transport, education, social inclusion policies, income support and affordable housing as well as support to not-for-profit social service providers, in order to ensure resilience against shocks resulting from the twin transition impacting the labour market and that employees affected by job loss can maintain their standard of living as much as possible;

30. Urges the Member States to fully implement the Council Recommendation on social protection for workers and the self-employed; calls on the Commission to monitor risks and progress towards such actions through the Social Scoreboard and the Social Convergence Framework; stresses the importance of ensuring national Public Employment Services offerings are relevant to changing labour market developments to ensure support to and facilitate people changing jobs due to transitions;

31. Stresses the importance of targeted policies to support people most affected by the twin transitions, and in particular those in vulnerable situations; underlines that active support and early interventions are needed to prevent people in vulnerable situations from falling into long periods of unemployment or becoming discouraged workers; calls on the Member States to significantly increase active support to quality employment, in particular by supporting access to and preservation of quality employment, promoting entrepreneurship and stimulating the creation of quality jobs; highlights the role of work integration programmes, targeted procurement and local public works in generating transitional jobs; stresses the need for capacity building of local and regional authorities to successfully mobilise investment, engage with target groups in the development and delivery of social support schemes and to measure distributional effects;

32. Underlines the need to support short-time work schemes and the importance of targeted support for workers affected by transitions, building on the positive experience of SURE; calls for the Commission to propose a reinforced SURE mechanism aimed at the green and digital transition, as supporting such temporary employment-protection measures in times of crises can stabilise public expenditure dedicated to employment policies and just transition measures to mitigate the immediate impacts on jobs of the necessary transformation of the EU economy in line with the goals of a just transition;

33. Stresses that the impact on employment will differ across regions and populations; highlights in this regard the need to engage and empower local citizens and stakeholders, including relevant civil society organisations to be active actors in the transition; stresses that local and regional authorities should be directly involved in the design, selection and monitoring of projects to ensure funding addresses specific local needs and supports diversification of regional economies; stresses that public authorities must engage in strategic consultation and cooperation with social partners during the management of the transition; stresses that meaningful participation can be ensured through early-stage consultations and clear mandates and voting rights for social partners, SMEs, civil society, social economy and youth in regional coordination bodies;

34. Underlines that collective bargaining is central to fair wages, social justice, and democracy at work, yet coverage remains uneven; recalls the obligation of Member States with collective bargaining coverage below 80% to establish national action plans with clear timelines and specific measures to increase coverage; calls on the Commission to provide guidance and support to the Member States to strengthen bargaining systems, particularly at sectoral level, with the full involvement of social partners; stresses that the EU and Member States should support funding for capacity building of social partners, particularly at the regional level, as part of implementing the Council recommendation on ensuring a fair transition towards climate neutrality to engage in structured social dialogue and collective bargaining on enterprise-level transition plans;

35. Calls on the Commission to carry out an impact assessment complemented by a competitiveness and SME test and to submit, by 31 January 2027, on the basis of Articles 153(2), point (b), in conjunction with Article 153 (1), points (a), (b), (e) and (h) TFEU and the result of the aforementioned steps, a legislative proposal on the just transition in the world of work, following the recommendations set out in the Annex hereto, which would address the remaining gaps in existing legislation and avoid creation of overlapping legal instruments;

36. Considers that the financial implications of the requested proposal should be covered by existing budgetary allocations;

37. Instructs its President to forward this resolution and the accompanying recommendations to the Commission and the Council.

ANNEX TO THE MOTION FOR A RESOLUTION: RECOMMENDATIONS AS TO THE CONTENT OF THE PROPOSAL REQUESTED

A European directive for just transition in the world of work: ensuring the creation of jobs and revitalising local economies

The European Parliament considers that the Commission’s proposed legislative act should provide for the following principles and aims:

Recommendation 1: General objective of the proposal

The general objective of the proposal should be to establish a Union framework of policy measures that can be put in practice in regions affected by the green and digital transition with the aim of ensuring a socially fair and inclusive transition and the creation and protection of quality jobs.

Recommendation 2: Form of the proposal

The proposal should take the form of a Directive.

Owing to the need for a comprehensive package of measures necessary to achieve this objective, the proposal should include elements in the following fields:

(a) working conditions;

(b) the integration of persons excluded from the labour market;

(d) improvements of the working environment to protect workers’ health and safety.

Recommendation 3: Subject matter of the proposal

The proposal should focus on the following policy measures:

(a) establishing a dedicated framework to anticipate and manage change in regions and sectors facing transitions on the basis of the principles of mandatory and timely information and consultation of workers and their representatives, of social dialogue and of collective bargaining;

(b) ensuring that the right to information and consultation of workers and their representatives, as laid down in Directive 2002/14/EC and in national provisions, is effectively applied in the context of transitions;

(d) establishing national just transition strategies, with a particular focus on developing long-term vision for local economies and workforce in all affected regions and sectors, to be designed and implemented through meaningful involvement of the social partners and local actors;

(e) developing support programmes for businesses, in particular SMEs and local actors in order to encourage local job-creation;

(f) ensuring the matching of labour and skills supply and demand through a combined use of labour market intelligence, enhanced collaboration of local actors and social partners with training providers, and the promotion of company-level transition plans;

(g) developing a monitoring structure to deliver strategic foresight on transition impacts and labour market developments.

Recommendation 4: Implementation and enforcement

1. The proposal should respect the Member State’s prerogative to apply or to introduce laws, regulations or administrative provisions which are more favourable to workers or to encourage or permit the application of collective agreements which are more favourable to workers and should not constitute valid grounds for reducing the general level of protection already afforded to workers within Member States.

2. The proposal should respect the autonomy of social partners, including the right to negotiate and conclude collective agreements and allow them, upon a joint request, to be entrusted with its implementation, provided that the national system can at all times guarantee the results sought under the proposal.

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she included in her report input on matters pertaining to the subject of the file that she received, in the preparation of the report, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

European Trade Union Confederation (ETUC)

2. Representatives of public authorities of third countries, including their diplomatic missions and embassies

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that she has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

11.12.2025

OPINION OF THE COMMITTEE ON LEGAL AFFAIRS ON THE LEGAL BASIS

Mrs Li Andersson

Chair

Committee on Employment and Social Affairs

BRUSSELS

Subject: Opinion on the legal basis of the Just transition directive in the world of work: ensuring the creation of jobs and revitalising local economies (2025/2131(INL)

Dear Madam Chair,

On 13 May 2025, the Coordinators of the Committee on Employment and Social Affairs (EMPL) mandated the Chair to request an authorisation to draw up an own-initiative legislative report (INL) pursuant to Article 225 of the Treaty on the Functioning of the European Union (TFEU) and Rule 47 of the Rules of Procedure of the European Parliament (RoP), with recommendations to the Commission on a ‘Just transition directive in the world of work: ensuring the creation of jobs and revitalising local economies’. The authorisation was granted by the Conference of Presidents on 2 July 2025.

In accordance with Rule 47(3) RoP, the committee responsible for the subject-matter is to request an opinion on the appropriateness of the legal basis from the committee responsible for legal affairs, which is to be delivered without undue delay. Such request was sent on 17 November 2025 by the Chair of the EMPL committee.

The Committee on Legal Affairs has considered the matter of the appropriateness of the legal basis proposed in the draft INL in question at its extraordinary meeting on 11 December 2025.

II - Background

The request for authorisation of the INL was made pursuant to point VIII of Annex VI to the Rules of Procedure, which confers on the EMPL committee the competence in the area of employment policy and all aspects of social policy including working conditions, social security, social inclusion and social protection.

The purpose of the INL is to invite the Commission to propose legislative measures on Just Transition in the world of work, to enhance job creation and revitalisation of local economies.

The EMPL Committee has consistently underlined the importance of a socially fair transition, especially for communities and workers disproportionately impacted by the move away from fossil fuels and carbon-intensive industries. The EMPL Committee dealt with such issues as part of its report on “Job creation – the just transition and impact investments”, which highlighted the pivotal role of the JTF in addressing the social dimensions of the green transition. The Committee also called for adequate financial resources for the JTF, an expansion of its scope, and better coordination with other financial instruments to ensure comprehensive support for affected workers and regions.

The European Commission is to produce a mid-term review of the JTF by 30 June 2025 (included in the Commission Work Programme 2025 for Q2). This review intends to evaluate progress towards the specific objective set out in Article 2 of Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021 establishing the Just Transition Fund, of ‘enabling regions and people to address the social, employment, economic and environmental impacts of the transition’. The findings of this review can provide factual data to elaborate further analyses and allow progress on challenges like tackling long-term employability of displaced workers, supporting reskilling responding to the local labour market demands, and reducing the risk of poverty and exclusion of the local most vulnerable groups.

In this context, EMPL intends to take the opportunity to call on the Commission to propose a comprehensive directive on a Just Transition to ensure broad support for affected workers. The aim of this INL proposal is to put forward a framework for the just transition to ensure that national and regional efforts result in the creation of jobs in the affected regions. The framework should include strategies and concrete measures that incentivise the development of viable economic alternatives and that attract the necessary investment. In addition, the report is intended to serve as Parliament’s input for the Commission’s Quality jobs roadmap.

The INL is primarily based on Article 153(2), point (b), in conjunction with Article 153(1), points (a), (b), (e) and (h) TFEU, which cover issues related to protecting health and safety of workers, working conditions, information and consultation of workers and integration of persons excluded from the labour market.

III - The relevant Treaty Articles

Title X of Part three TFEU, on “Social policy”, reads, inter alia (emphasis added):

Article 153

(ex Article 137 TEC)

1. With a view to achieving the objectives of Article 151, the Union shall support and complement the activities of the Member States in the following fields:(a) improvement in particular of the working environment to protect workers’ health and safety;

(a) improvement in particular of the working environment to protect workers' health and safety;

(b) working conditions;

(d) protection of workers where their employment contract is terminated;

(e) the information and consultation of workers;

(f) representation and collective defence of the interests of workers and employers, including co-determination, subject to paragraph 5;

(g) conditions of employment for third-country nationals legally residing in Union territory;

(h) the integration of persons excluded from the labour market, without prejudice to Article 166;

(i) equality between men and women with regard to labour market opportunities and treatment at work;

(j) the combating of social exclusion;

(k) the modernisation of social protection systems without prejudice to point (c).

2. To this end, the European Parliament and the Council:

(a) may adopt measures designed to encourage cooperation between Member States through initiatives aimed at improving knowledge, developing exchanges of information and best practices, promoting innovative approaches and evaluating experiences, excluding any harmonisation of the laws and regulations of the Member States;

(b) may adopt, in the fields referred to in paragraph 1(a) to (i), by means of directives, minimum requirements for gradual implementation, having regard to the conditions and technical rules obtaining in each of the Member States. Such directives shall avoid imposing administrative, financial and legal constraints in a way which would hold back the creation and development of small and medium-sized undertakings.

The European Parliament and the Council shall act in accordance with the ordinary legislative procedure after consulting the Economic and Social Committee and the Committee of the Regions.

In the fields referred to in paragraph 1(c), (d), (f) and (g), the Council shall act unanimously, in accordance with a special legislative procedure, after consulting the European Parliament and the said Committees.

The Council, acting unanimously on a proposal from the Commission, after consulting the European Parliament, may decide to render the ordinary legislative procedure applicable to paragraph 1(d), (f) and (g).

3. A Member State may entrust management and labour, at their joint request, with the implementation of directives adopted pursuant to paragraph 2, or, where appropriate, with the implementation of a Council decision adopted in accordance with Article 155.

In this case, it shall ensure that, no later than the date on which a directive or a decision must be transposed or implemented, management and labour have introduced the necessary measures by agreement, the Member State concerned being required to take any necessary measure enabling it at any time to be in a position to guarantee the results imposed by that directive or that decision.

4. The provisions adopted pursuant to this Article:

- shall not affect the right of Member States to define the fundamental principles of their social security systems and must not significantly affect the financial equilibrium thereof,

- shall not prevent any Member State from maintaining or introducing more stringent protective measures compatible with the Treaties.

5. The provisions of this Article shall not apply to pay, the right of association, the right to strike or the right to impose lock-outs.

Title XVIII of Part three TFEU, on “Economic, social and territorial cohesion”, reads, inter alia (emphasis added):

Article 174

(ex Article 158 TEC)

In order to promote its overall harmonious development, the Union shall develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion.

In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions.

Among the regions concerned, particular attention shall be paid to rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps such as the northernmost regions with very low population density and island, cross-border and mountain regions.

Article 175

(ex Article 159 TEC)

Member States shall conduct their economic policies and shall coordinate them in such a way as, in addition, to attain the objectives set out in Article 174. The formulation and implementation of the Union's policies and actions and the implementation of the internal market shall take into account the objectives set out in Article 174 and shall contribute to their achievement. The Union shall also support the achievement of these objectives by the action it takes through the Structural Funds (European Agricultural Guidance and Guarantee Fund, Guidance Section; European Social Fund; European Regional Development Fund), the European Investment Bank and the other existing Financial Instruments.

The Commission shall submit a report to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions every three years on the progress made towards achieving economic, social and territorial cohesion and on the manner in which the various means provided for in this Article have contributed to it. This report shall, if necessary, be accompanied by appropriate proposals.

If specific actions prove necessary outside the Funds and without prejudice to the measures decided upon within the framework of the other Union policies, such actions may be adopted by the European Parliament and the Council acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee and the Committee of the Regions.

IV – CJEU case-law on the choice of legal basis

The Court of Justice of the European Union (CJEU) has traditionally viewed the question of the appropriate legal basis as an issue of constitutional significance, guaranteeing compliance with the principle of conferred powers (Article 5 of the Treaty on European Union) and determining the nature and scope of the Union’s competence.

According to well-established case-law, the legal basis of a Union act does not depend on an institution's conviction as to the objective pursued but must be determined according to objective criteria amenable to judicial review, including in particular the aim and the content of the measure.

If examination of a measure reveals that it pursues a twofold purpose or that it has a twofold component and if one of those is identifiable as the main or predominant purpose or component, whereas the other is merely incidental, that measure must be based on a single legal basis, namely that required by the main or predominant purpose or component. Only exceptionally, if it is established that the act simultaneously pursues a number of objectives, inextricably linked, without one being secondary and indirect in relation to the other, may such an act be founded on the various corresponding legal bases. This would however only be possible if the procedures laid down for the respective legal bases are not incompatible with and do not undermine the right of the European Parliament.

V – Aim and content of the INL

Recommendation No 1 of the INL proposal, as shaped by the final compromise amendments, sets out the general objective of the proposal: ‘the general objective of the proposal is to establish a Union framework of policy measures that can be put in practice in regions affected by the green and digital transition with the aim of ensuring a socially fair and inclusive transition and the creation and protection of quality jobs’.

Paragraph 1 of the motion for a resolution sheds further light on the aim of the INL proposal: “[Parliament] believes that a legislative framework to address the challenges and opportunities of a just transition in the workplace is essential to ensure adequate minimum standards that provide clarity and structure for both workers and employers in anticipating and managing change and ultimately improve the Union’s resilience, competitiveness and upward social convergence and social justice.”

It can, therefore, be inferred that, according to Recommendation No 1, the general objective of the INL proposal consists of two related but distinct elements: (a) the aim of ensuring a socially fair and inclusive transition; (b) the creation and protection of quality jobs.

Incidentally, it should be stressed that the objective of the INL proposal is formulated in very broad terms, which makes it more difficult to precisely establish a concrete link with any specific element under Article 153(1) TFEU.

Consequently, the fields of competence under Article 153(1)(a), (b), (e) and (h) TFEU could appropriately underpin the future legislative proposal, should the latter concretise the INL proposal’s general objective with reference to these four elements. However, if the general objective is to go beyond the contours of Article 153(1) TFEU, then a supplementary legal basis might be necessary (see part VI - Analysis, below).

With regard to the content of the INL proposal, Recommendation No 2 (as specified in the draft report and not amended by the compromise amendments) specifies that the proposal should take the form of a Directive, and that it should include elements in the following fields: (a) working conditions;(b) the integration of persons excluded from the labour market;(c) the information and consultation of workers; (d) improvements of the working environment to protect workers’ heath and safety. It is evident that these elements squarely correspond to Article 153(1)(b), (h), (e), and (a) TFEU, respectively. There is nothing that would exclude the use of all four fields of competence should, indeed, the future legislative proposal contain such autonomous and distinct, yet indissociably linked, elements.

Next, Recommendation No 3 sets out the actual content of the INL proposal and contains the following policy measures:

(b) ensuring that the right to information and consultation of workers and their representatives, as laid down in Directive 2002/14/EC and national provisions, is effectively applied in the context of transitions;

(e) developing support programmes for businesses, in particular SMEs and local actors in order to encourage local job creation;

(g) developing a monitoring structure to deliver strategic foresight on transition impacts and labour market developments.

VI – Analysis

(a) Article 153 TFEU

As a preliminary point, it should be highlighted that the proposed policy measures lack, to a large extent, specificity, which, therefore, entails that the following analysis lacks the required precision when assessing the compatibility with the invoked legal basis.

First, with regard to Article 153(1)(a) TFEU, which allows for Union action (pursuant to Article 153(2)(b) TFEU) related to the improvement of the working environment to protect workers’ health and safety, there is no specific provision under the measures mentioned in Recommendation No 3 which would reveal the need to resort to this field of competence.

It is only paragraph 10c of the motion for a resolution that explicitly refers to occupational health and safety issues. According to it, ‘...[Parliament] stresses the importance of proactively addressing evolving OSH risks to work tasks, patterns and workplaces, particularly environmental and psychosocial risks, in the context of the twin transition; calls on the Commission to conduct a comprehensive review of the current strategic framework on health and safety at work and the existing OSH legislative framework with a view to identifying remaining gaps and ensuring the EU acquis remains fit for purpose as well as feeding into the design of the post 2027 strategic framework’.

Consequently, it does not seem necessary to resort to the field of Article 153(1)(a) TFEU, given the content of the INL proposal, as outlined in Recommendation No 3. However, should the future legislative proposal substantially expand on workers’ health and safety matters, in line with paragraph 10c, then such a choice could be deemed necessary.

Second, with regard to Article 153(1)(b) TFEU, which allows for Union action (pursuant to Article 153(2)(b) TFEU) on matters related to “working conditions”, it should be reminded that this field has a particularly wide scope, as it can cover any measure broadly falling under this umbrella term of “working conditions”.

Point (c) of Recommendation No 3 refers to the establishment of an individual right to training for workers during working hours, which, broadly, corresponds to the improvement of working conditions. Paragraph 5 of the motion for a resolution further adds that: “[Parliament] highlights that the shortage of skilled workers can be meaningfully abated only by addressing the availability and accessibility of education, (re)qualification, and training opportunities as well as improving working conditions; stresses that social dialogue between workers and employers on the modalities of training opportunities that are aligned with labour market needs and that respect work-life balance is essential and should be facilitated; strongly believes that an individual right to training for workers during working hours which addresses the main barriers to pursuing training can ensure quality upskilling or reskilling, employee training and career development support for a predictable and stable supply of skilled workers for employers...”.

Therefore, Article 153(1)(b) TFEU could constitute an appropriate field of competence for this autonomous component of the INL proposal.

Third, with regard to Article 153(1)(e) TFEU, which allows for Union action (pursuant to Article 153(2)(b) TFEU) related to information and consultation of workers, points (a) and (b) under Recommendation No 3 are relevant in this respect. Under point (a), information and consultation of workers is mentioned within the context of a dedicated framework to “anticipate and manage change in regions and sectors facing transitions”. It is unclear whether the mandatory and timely information and consultation of workers and their representatives simply functions as an underlying principle which should underpin this dedicated framework, or whether this would, perhaps, entail more concrete arrangements that should be implemented in this regard. Point (b) refers to the effective application of the right to information and consultation of workers and their representatives, as laid down in Directive 2002/14/EC and national provisions.

Paragraph 4 of the motion for a resolution adds the following: ‘[Parliament] highlights that the anticipation and management of change is paramount for employers, and workers, and regional and local authorities and communities to successfully navigate the green and digital transition and effectively deal with the economic challenges brought on by adverse geopolitical events and turn these into opportunities; stresses that planning ahead for the transition can proactively prevent redundancies and lead to job creation, build long-lasting resilience in business and make best use of available resources; emphasises that such plans require decisions likely to lead to substantial changes in work organisation and, therefore, must be developed in a wide-ranging partnership through the framework of social dialogue and collective bargaining, with full respect for the right to information and consultation; calls on the Commission in this regard to monitor and enforce the full implementation of the framework set out in Directive 2002/14/EC...’

Consequently, the substantive provisions the INL proposal intends to set out in relation to information and consultation of workers remain largely undefined. It seems that Article 153(1)(e) TFEU could be appropriately utilised here; however, the concrete measures should be crystallised in a more tangible way in the future legislative proposal, to the extent that these may amount to a self-standing substantive component that should be inextricably linked with other substantive components under different fields of competence, if applicable.

Lastly, with regard to Article 153(1)(h) TFEU, this field of competence allows for Union measures (pursuant to Article 153(2)(b) TFEU) related to the integration of persons excluded from the labour market, without prejudice to Article 166 TFEU. It is not evident which of the measures mentioned under Recommendation No 3 would entail minimum harmonisation requirements for the integration of persons excluded from the labour market, nor is it explicit which category of such persons would be targeted.

Paragraph 6a of the motion for a resolution highlights that ‘...[Parliament] demands stronger protections against unfair dismissals and calls for workers affected by restructuring to ensured access to adequate compensation, retraining opportunities and support in securing new employment”; with reference to the pending revision of the European Globalisation Adjustment Fund for Displaced Workers (“EGF Regulation”), in paragraph 10b, Parliament ‘stresses the importance of active labour market and social protection measures in reintegrating displaced workers into the labour market following major restructuring events;’ and ‘calls on the Commission to ensure continued dedicated support for workers at risk from or displaced by major restructuring events in the next MFF’.

Therefore, in light of paragraph 6a, Article 153(1)(h) TFEU could be an appropriate field of competence for measures taken for the reintegration of displaced workers to the labour market, bearing, however, in mind that any such support, if framed in the context of the next MFF, may require the legal basis under Article 175(3) TFEU (see also below on this), as this is the case with the EGF Regulation.

Paragraph 10a of the motion for a resolution could also possibly correspond to this field of competence. Indeed, Paragraph 10a reads as follows: ‘[Parliament] recalls the importance of disability mainstreaming and an intersectional approach addressing young, older, low-skilled and female workers across policy measures addressing the twin transition such as provision of reasonable accommodation in education and training”. However, it is important to stress that recourse to this field of competence should not override the harmonisation prohibition under Article 166 TFEU, on matters related to the content and organisation of vocational training.

(b) Article 175 TFEU

It should be noted that certain measures included in Recommendation No 3 raise the question of compatibility with Article 153(1) TFEU, thus leaving open the need to resort to supplementary or alternative legal bases, depending on the development of the future legislative proposal.

For instance, as mentioned above, point (d) of Recommendation No 3 refers to the establishment of national just transition strategies, with a particular focus on developing a long-term vision for local economies and workforce in all affected regions and sectors. Moreover, point (e) refers to the development of support programmes for businesses, to encourage job creation.

Paragraphs 6 and 7 are also relevant, in this regard. Paragraph 6 refers to the national just transition strategies which ‘should identify the impact of transitions on regions, individual sectors and the respective workforce and should set out a comprehensive and cross-cutting plan to mitigate the impact;’; [Parliament] underlines the importance of developing long-term vision and strategy for local and regional economic transition by involving public and private actors, civil society, and social economy;’ and ‘stresses that direct investments in innovation and improving regional attractiveness ...are necessary to retain workers and generate quality jobs’. In Paragraph 7 Parliament ‘urges Member States and regional authorities to establish and strengthen business support programmes in the affected regions to help start-ups and SMEs grow and succeed; highlights that investment incentives coupled with social conditionalities can help attract firms to vulnerable regions while ensuring sustainable development of the local economy; ... calls on the European Commission to ensure dedicated support for SMEs under the future just transition financing; further calls on the European Commission to keep track of SMEs participation in just transition programmes”.

To the extent that the future proposal may require action, especially in the form of financial measures with reference to relevant EU funding programmes, to serve social, economic and territorial cohesion in an autonomous manner, as this could be inferred from the above-mentioned paragraphs, then supplementary legal bases could be required. The main option would be Article 175(3) TFEU, according to which, if specific actions prove necessary outside the Structural Funds and without prejudice to the measures decided upon within the framework of the other policies of the Union, then the European Parliament and the Council shall adopt such actions in accordance with the ordinary legislative procedure and after consulting the European Economic and Social Committee and the European Committee of the Regions. It should also be reminded, in this respect, that the establishment of the abovementioned Just Transition Fund has also been based upon Article 175(3) TFEU.

c) Additional elements

In addition, Article 149 TFEU allows for the adoption of incentive measures designed to encourage cooperation between Member States and to support their action in the field of employment through initiatives aimed at developing exchanges of information and best practices, providing comparative analysis and advice as well as promoting innovative approaches and evaluating experiences, in particular by recourse to pilot projects. However, it is clear that such a legal basis excludes any harmonisation of the laws and regulations of the Member States. If the intention, therefore, is to put forward a Directive harmonising national laws, per Recommendation No 2, then Article 149 TFEU cannot be used as it only allows for the adoption of incentive measures.

VII – Conclusion and recommendation

At its meeting of 11 December 2025, the Committee on Legal Affairs accordingly decided by 19 votes to 2 and 3 abstentions, that the INL proposal could be appropriately based on Article 153(2)(b), in conjunction with Article 153(1)(b) TFEU. However, this should also be depicted more clearly in the proposal’s objective, which remains very broad in its current form.

Regarding 153(1)(a) and (h) TFEU, the objective and content of the INL proposal do not offer any concrete elements which would genuinely justify recourse to these fields of competence. However, they can be deemed appropriate should the future legislative proposal expand on those elements, given the impetus provided by the relevant paragraphs of the motion for a resolution.

Regarding 153(1)(e) TFEU, the relevant policy measures, as currently set out, do not allow for a concrete verification of the appropriate choice of this field; however, it may prove to be appropriate depending on the development of a future legislative proposal.

In addition, the Committee on Legal Affairs concluded that supplementary legal bases, such as Article 175(3) TFEU, might be appropriate given that the INL proposal seems to be expanding beyond the field of social policy, as evidenced, first and foremost, by the title itself, which refers to the revitalisation of local economies, thus related to economic and social cohesion, more broadly.

Yours sincerely,

Ilhan Kyuchyuk

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

Date adopted

3.12.2025

Result of final vote

–:

Members present for the final vote

Maravillas Abadía Jover, Grégory Allione, Li Andersson, Marc Angel, Pascal Arimont, Konstantinos Arvanitis, Nikola Bartůšek, Gabriele Bischoff, Vilija Blinkevičiūtė, Andrzej Buła, David Casa, Estelle Ceulemans, Leila Chaibi, Per Clausen, Henrik Dahl, Johan Danielsson, Marie Dauchy, Margarita de la Pisa Carrión, Mélanie Disdier, Niels Geuking, Isilda Gomes, Alicia Homs Ginel, Irena Joveva, Martine Kemp, Marit Maij, Jagna Marczułajtis-Walczak, Eleonora Meleti, Idoia Mendia, João Oliveira, Branislav Ondruš, Aodhán Ó Ríordáin, Hristo Petrov, Dennis Radtke, Nela Riehl, Liesbet Sommen, Villy Søvndal, Pál Szekeres, Georgiana Teodorescu, Romana Tomc, Jana Toom, Raffaele Topo, Francesco Torselli, Brigitte van den Berg, Marianne Vind, Mariateresa Vivaldini, Jan-Peter Warnke, Séverine Werbrouck

Substitutes present for the final vote

Raúl de la Hoz Quintano, Jaroslav Knot, Arba Kokalari, Lara Magoni, Sara Matthieu, Kim Van Sparrentak, Angelika Winzig

Members under Rule 216(7) present for the final vote

Adrian-George Axinia, Emmanouil Fragkos

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

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