• Council of the EU
• Press release
• 9 March 2026 14:07

Macroeconomic dialogue with the social partners on 9 March 2026

The Council presidency, the European Central Bank, the European Commission and the President of the Eurogroup met with European social partners on 9 March 2026 to discuss recent developments of the economic situation, as well as a thematic topic chosen by the Cyprus Presidency: “Artificial Intelligence and the Future of the EU labour market: Safeguarding EU Competitiveness and Social Cohesion”.

Today’s exchange with European social partners provided a valuable opportunity to discuss the current economic outlook and the challenges faced by the European economy. Ongoing geopolitical tensions, continue to test our resilience. Although the economic outlook has been improving, clouds are still looming, forcing us to remain cautious. We also had a timely discussion on artificial intelligence and the future of the EU labour market, a topic put forward by the Cyprus presidency. Artificial intelligence has the potential to strengthen productivity and competitiveness. At the same time, it poses challenges both in the labour market and the cohesion of our societies. To this end, it is well understood that uptake of AI should also be accompanied by appropriate investment in skills, education and reskilling. Close cooperation between governments, institutions and social partners will be essential to ensure that the digital transformation supports both economic growth and social cohesion.

Makis Keravnos, Minister for Finance of the Republic of Cyrpus, current holder of the presidency of the Council of the EU

The EU economy started the year on firmer ground than expected, but the outlook has become more fragile. The war in the Middle East is adding new disruption and uncertainty to the global economy. If tensions persist, they could weigh on growth and complicate the inflation outlook. Our resilience also continues to be tested by Russia’s war against Ukraine and broader trade tensions. In this context, we must stay focused on strengthening Europe’s competitiveness, working closely with social partners. This means removing barriers in the Single Market, lowering the cost of doing business and innovating in Europe, and investing in skills. Artificial intelligence can also help boost productivity and improve working conditions. That is why the EU is supporting its uptake in an inclusive and responsible manner through a broad set of initiatives, including the targeted changes recently proposed by the Commission in the Digital Omnibus.

Valdis Dombrovskis, Commissioner for Economy and Productivity, European Commission

AI is changing the foundations of our society. This is a reality we must accept and an opportunity we should seize. At a time when Europe is facing structural demographic challenges and slower potential growth, AI can provide a much-needed boost to the productivity of the European economy. To realise the potential of AI, we must leverage our comparative advantage: our highly skilled workforce. It is therefore essential to invest in lifelong learning, upskilling and reskilling. At the same time, Europe must remain focused on its long-term growth strategy. Here, too, AI can be a lever for improving our competitiveness.

Kyriakos Pierrakakis, President of the Eurogroup

Rising tensions and conflicts in the Middle East once again expose Europe’s vulnerability to energy price shocks. Europe cannot build competitiveness on structurally high and volatile energy costs. Reforming electricity market design and preventing windfall profits must go hand in hand with large-scale public investment in clean energy and grids. More broadly, Europe needs a real investment leap (mindset) to support its industrial transformation, including Eurobonds. Investments must be linked with social conditionalities. With the new Industrial Accelerator, the EU must deepen a genuine “Made in Europe” strategy that delivers quality jobs, extending it to strategic sectors such as digital infrastructure, cloud, payments and key industrial value chains.

And on AI, one thing must be clear: technology does not fire workers – employers do. AI must be integrated into the workplace in a negotiated way, with better wages, strong worker protections and quality jobs so that workers get their fair share, and with the human-in-control principle. This is why we need a strong Quality Jobs Act delivering binding legislation, among others, on AI at work.

Esther Lynch, General Secretary of the European Trade Union Confederation (ETUC)

The improved sentiment about EU policy intentions can only be sustained by delivering concrete measures that are felt be companies on the ground and that will have a positive effect on Europe’s attractiveness for investment.

AI has the potential to strengthen productivity as well as support the development of quality jobs only if the EU creates the necessary breathing room for European companies to invest and innovate in a responsible manner.

Markus J. Beyrer, Director General of BusinessEurope

In an environment of heightened geopolitical risks, Europe must mobilise every lever that strengthens long-term resilience and competitiveness. Artificial intelligence can offer real productivity gains in energy, transport, healthcare and other Services of General Interest. However, scale alone is not enough: deployment must secure critical infrastructure, reinforce our strategic autonomy and ensure that no region is left behind.

Valeria Ronzitti, SGIEurope Secretary General

Weak competitiveness is a challenge negatively affecting SMEs, particularly in the manufacturing sector. SMEunited therefore calls on the European Union for stronger efforts to increase productivity, with dedicated measures to reduce regulatory burden, simplify, and improve access to skills and funding. On artificial intelligence, economic and fiscal policies should reflect the diversity of SMEs and incentivise investments in training and reskilling, while ensuring high-quality advisory services to effectively enable AI integration.

Véronique Willems, SMEunited Secretary General

Harnessing the transformative power of artificial intelligence is fundamental to enhancing the EU’s competitiveness. This will be a strong focus for the Irish Presidency in the second half of the year, during which Ireland will host a dedicated International AI and Digital Summit. Innovation must be embraced, but it must also be guided by trust, responsibility, and confidence, and embedded in European values. Doing so in a manner that ensures social cohesion across Member States is therefore equally fundamental. I welcome the focus that the Cyprus Presidency has brought for this meeting of the Macroeconomic Dialogue at Political Level, which is both timely and meaningful.

Simon Harris, Tánaiste and Minister of Finance (next Irish Presidency: July-December 2026)

There are a lot of unknowns regarding AI. However, given its nature and the experience of other technological advances in history, it certainly poses risks for social cohesion in the labour market, notwithstanding productivity benefits it might bring. If we don’t tackle these risks correctly, we might lose some of those benefits.

Engagement with social partners is crucial to navigate these risks in a sound and beneficial way for everyone. Their role is essential when strengthening active labour market policies, and especially measures of support for learning as well as establishing a correct regulatory environment that is light enough for SMEs, fast adoption, and investment.

Darius Trakelis, EFC Member (future Lithuanian Presidency: January-June 2027)
The next macroeconomic dialogue will be organised under the Irish presidency.

• Macroeconomic dialogue of 10 March 2026 (video and photo)

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