Abstract
Globalisation and recent crises - including the COVID-19 pandemic, inflation, geopolitical conflicts, and rising raw material costs - have placed European competitiveness under severe pressure. This uncertainty disproportionately affects workers, as evidenced by the growing number of working poor across the European Union. In response, the European Commission is developing new strategies following the Mario Draghi report, while political debate on economic competitiveness intensifies. This paper argues that strengthening the social dimension of the European economic model is essential to address these challenges. Social dialogue and collective bargaining are not only mechanisms for improving wages, working conditions, and workers’ rights but also strategic tools for enhancing the competitiveness of European companies. The European Pillar of Social Rights identifies social dialogue as a cornerstone of EU policy, reaffirmed by the Val Duchesse Tripartite Declaration of January 2024, which emphasizes its role in fostering social cohesion and democratic resilience. By analysing the central role of social partners at both European and national levels, this study highlights how coordinated actions, negotiations, and agreements can mitigate socio-economic risks and support sustainable growth. Particular attention is given to European Sectoral Social Dialogue, which enables tailored solutions for specific industries through joint initiatives and agreements. These sectoral mechanisms are critical for developing a competitive model that combines economic performance with social equity, ensuring that Europe remains globally competitive while safeguarding its social fabric and demonstrating that effective social dialogue is indispensable for reconciling economic objectives with social justice in the European Union. This article then advances the debate by highlighting the strategic role of sectoral social dialogue in fostering sustainable European competitiveness.