According to Reuters, firms would have to appoint women to at least 40% of non-executive director roles or 33% of all board jobs by 2027.

This is the latest attempt to advance a draft law that has been stalled for a decade and with the initial approval that came this week, the ministers of the 27 member states can start talks on the plan with the European Parliament.

The proposed legislation would apply to companies that are listed or have at least 250 employees, with estimates suggesting it could affect some 2,300 firms and 450 million people.

With this first approval there are no proposed sanctions for firms failing to meet the goals. Companies are, however, obligated to introduce clear policies aimed at alleviating the gap.

Inequalities between women and men in the labour market have widened during the pandemic, erasing at least two years of progress made over the past decade, according to the PwC Women in Work Index report, which shows that it will now take years and even decades to close the gap.

The estimates show that it will be necessary 33 years for female labour force participation rate to match men’s current 80%, 9 years for female unemployment rate to match men’s current rate and 63 years to close the gender pay gap.