Budgets, Italy beats Finland. EU human capital alarm

Surprising is the situation of Finland and The Netherlands, two traditionally virtuous countries. The Commission has announced that it will suggest to the Council the opening of an excessive deficit procedure against Helsinki: "The deficit above the reference value in 2025 (4.5% of GDP, ndr) cannot be entirely explained by increased defence spending". As for the Netherlands, the national budget 'is at risk of non-compliance' with the pact, and must therefore be amended.

Returning to Italy, the Commission has once again determined that the country will be the subject of a report on its macroeconomic imbalances in the spring. There is more. Italy, along with eight other countries, will also be the subject of a report on the social situation. The country is among the worst off in terms of youth unemployment, gender gap and level of gross disposable income. Spain, Greece, Bulgaria, Romania, Lithuania, Latvia, Finland and Luxembourg will also be the subject of the report.

With regard to the social situation, in a context of near economic stagnation, the European Commission published for the first time a recommendation all about human capital in the European Union. In a 2024 survey, 77 per cent of European companies pointed to a skills shortage, particularly in the more technical professions. By 2027, the EU will need 6.2 to 7.0 million specialists in artificial intelligence alone.

In this context, the European Commission suggests in its report to reduce barriers to entry into technical professions; to revive collaboration between universities and businesses; to make the teaching profession more attractive; to improve teaching in mathematics and science, including artificial intelligence; to optimise public spending on education; and to promote private investment in on-the-job training.