Without a strong social foundation, the CID risks repeating the mistakes of the past, exacerbating inequalities, disregarding workers, and abandoning communities both within the EU and in partner countries.

The CID commits to ‘a just transition that delivers quality jobs and empowers people, while promoting social cohesion and equity across all regions.’ While this ambition is admirable, the CID lacks some of the crucial instruments needed to achieve it and raises serious concerns about whether it can deliver on its promise. A recent statement developed within the framework of the European Alliance for a Just Transition highlights the key questions that EU policymakers must address when developing the legislation, guidelines, action plans and other instruments linked to the CID.

Firstly, to strengthen the social dimension of the  EU's industrial strategy, the CID must be rooted in the European Pillar of Social Rights. The first step is to acknowledge that principles alone are not enough: without concrete, enforceable measures, the Pillar is bound to be little more than empty words. A truly competitive and resilient green economy must actively prevent social and fiscal dumping, ensure that state aid and public procurement are conditioned on strong social criteria, and require transitioning companies to respect workers' rights and contribute their fair share in taxes. Yet on all these fronts, the CID remains glaringly silent, casting serious doubt on the Commission's political will to deliver a transition that puts people and the environment before profits and markets.

Secondly, regions and territories are on the frontline of industrial strategies: they are where the green transition will be won or lost, and where its social consequences will be felt most deeply. Yet the CID offers little in the way of concrete guarantees that it will strengthen social and economic cohesion across Member States. If the EU is serious about building a just and inclusive industrial future, it must put place-based investment, local capacity-building, and long-term regional infrastructure at the heart of its strategy. Member States must also be actively encouraged to channel national resources toward shared, pan-European priorities, and be held accountable for doing so. None of this will be possible unless the Commission makes funding for a socially just transition a top political priority in the current and post-2027 budget.

Given the current geopolitical and geo-economic circumstances, the Commission may be tempted to sideline a Social Europe, but this would be a huge mistake. Now is the time to mobilise all available investment tools to strengthen the social and environmental pillars of the EU’s industrial strategy. The CID claims to support this aim by leveraging the European Social Fund+ and Erasmus+ to boost industrial competitiveness, particularly through the so-called 'Union of Skills.' Yet the Commission offers no concrete guarantees that these funds will remain true to their social and environmental missions. This is a serious concern: employers in transitioning sectors will have a critical role to play for investment in the long-term training of Europe’s future workforce and in ensuring its meaningful involvement in the green transition. Equally, the EU must step up coordination with Member States to ensure that social protection systems, including income support, and access to essential services, such as social services, do not merely stagnate but converge upwardly with the changing world of work. Anything less would be a betrayal of the promise of a just transition.

Moreover, social dialogue must be treated as the foundation of a high-impact industrial policy, not as an embellishment. An ambitious industrial strategy will not gain the support of all the parties involved and affected if it fails to promote a model of democratic governance. It will not work for people unless all voices, including trade unions, civil society, social economy actors, and local communities, are meaningfully represented at the decision-making table. The CID has so far largely reflected the interests of the largest polluting companies, sidelining those most affected by the transition, notably the groups already exposed to socio-economic insecurity. It is essential that workers and their unions have a real say in the investment decisions and transition planning that will affect them, through collective bargaining and social dialogue. It is also key that communities shape the decisions impacting their lives at all levels through institutionalised civil dialogue. As things stand, the CID shows no sign of contributing to a genuine social contract.

Lastly, the CID must address the social and environmental impacts of trade and industrial policies on workers and communities not only within EU borders, but also in partner countries. This means forging partnerships that contribute to the sustainable development of partner countries, while respecting existing country- and region-led initiatives and governance frameworks. At a time when the Corporate Sustainability Due Diligence Directive is being significantly weakened, there is growing uncertainty whether the EU’s Clean Trade and Investment Partnerships and the Global Gateway strategy will uphold the highest standards of transparency and democratic participation, including the right of communities to free, prior, and informed consent. Sustainable industrial policy also depends on generating local added value, enabling technology transfer, and providing technical assistance, especially for communities and workers currently reliant on fossil fuel exports or high carbon emissions sectors. A just transition within Europe cannot succeed without a credible and alternative trade model that contributes to a socially just transition beyond its borders.

The CID offers an opportunity to reshape Europe’s industrial future and advance the European Green Deal — but only if people and the planet are prioritised over profit. Real change requires a shift in power, not just technological shifts. This begins with establishing binding social standards, investing heavily in regional development, ensuring meaningful participation and fostering global solidarity. For a fair and resilient industrial strategy, the EU must treat the social dimension not as an afterthought, but as its foundation.