The European Council presidency, the European Central Bank, the European Commission and the President of the Eurogroup held a Macroeconomic Dialogue with European social partners focused on recent economic developments and a Cyprus-presidency theme on artificial intelligence and the future of the EU labour market. The exchange characterised the EU outlook as improving but increasingly fragile amid geopolitical tensions, including conflict in the Middle East, Russia’s war against Ukraine and broader trade tensions, and linked competitiveness to removing Single Market barriers, lowering business costs, innovation and investment in skills. AI was presented as a potential driver of productivity and improved working conditions but also a risk to labour market outcomes and social cohesion, with an emphasis on education, upskilling and reskilling and on cooperation between institutions, governments and social partners. The Commission referenced its recently proposed targeted changes in the Digital Omnibus as part of a broader set of initiatives to support inclusive and responsible AI uptake, while social partner contributions included calls for negotiated workplace deployment, stronger worker protections and binding legislation on AI at work, alongside requests for regulatory simplification and measures tailored to SMEs. The next Macroeconomic Dialogue will be organised under the Irish presidency, which said it will focus on AI and competitiveness and host an International AI and Digital Summit in the second half of 2026.