The Sword and the Shield: The Directive on Adequate Minimum Wages in the EU.

This article analyzes Directive 2022/2041 (EU) on adequate minimum wages, focusing on its core pillars of wage adequacy, collective bargaining coverage, and the reduction of in-work poverty. It traces the directive’s development from the European Pillar of Social Rights and Commission proposals through to its adoption, highlighting its aim to balance EU social policy ambitions with Member States’ competence in wage-setting. The directive establishes procedural obligations for setting adequate statutory minimum wages and promotes collective bargaining, especially where coverage is below 80%, while recognizing the limits of minimum wage policies in fully addressing in-work poverty. Controversies include the EU’s legal competence to legislate on wages and the directive’s impact on diverse national industrial relations systems. Overall, the directive marks a significant shift in EU social policy by introducing binding measures to improve wage conditions across Member States, though its effectiveness will depend on national implementation and broader social policies.