The EESC welcomes these proposals on sovereign bond-backed securities (SBBSs), which fit into the broader context of completing the Banking Union and building a Capital Markets Union (CMU). Moreover, the proposals also have the potential to make a positive contribution to financial stability and resilience. The EESC has been strongly advocating a weakening of the link between banks and their home countries ("sovereigns") and therefore welcomes that SBBSs aim to contribute to this. The EESC considers that in conceptual terms, the idea of SBBSs is an attractive one and feels that the only way to find out whether banks will switch from bonds from their home countries to SBBSs for their investments and whether investors will be prepared to buy "junior" tranches in sufficient quantities to justify the creation of SBBSs, is to test this new financial instrument - the SBBS - on the market.
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The EESC supports the Commission's Action Plan on financing sustainable growth, aimed at reorienting capital flows towards sustainable investment, and welcomes the legislative proposals stemming from it, on fiduciary duties, a taxonomy and benchmarks. The proposed gradual approach for its implementation, beginning with the work on a European sustainability taxonomy, is preferable. However, a subsequent extension of the initial taxonomy, based on environmental aspects, to social sustainability and governance goals will be necessary. Attention should be paid to the feasibility and proportionality of legal obligations.
The EESC supports the Commission's Action Plan on financing sustainable growth, aimed at reorienting capital flows towards sustainable investment, and welcomes the legislative proposals stemming from it, on fiduciary duties, a taxonomy and benchmarks. The proposed gradual approach for its implementation, beginning with the work on a European sustainability taxonomy, is preferable. However, a subsequent extension of the initial taxonomy, based on environmental aspects, to social sustainability and governance goals will be necessary. Attention should be paid to the feasibility and proportionality of legal obligations.
Europeans need more (and better) Europe. The powers and financial resources currently allocated to the EU have been increasingly misaligned with the concerns and expectations of Europeans. The EESC, in accordance with the European Parliament's position, therefore proposes that the expenditure and revenue figure reach 1.3% of GNI. The proposed level of commitments of 1.11% of the EU's GNI is too modest to credibly deliver on the political agenda of the EU.
The EESC recognises the high European added value of the programmes where the MFF 2021-2027 concentrates the main increases in expenditure. However, the Committee questions the fact that these increases are made at the cost of strong cuts in cohesion policy (-10%) and the Common Agricultural Policy – CAP (-15%).
The EESC thinks that, in addition to strengthening the coordination between supervisory authorities and streamlining procedures, operations should also be coordinated with other relevant parties to tackle money laundering and terrorism financing effectively. The EESC stresses the importance of internal and external communication on money laundering and financing of terrorism. The key element in internal communications is improving and protecting information streams between the supervisory bodies concerned; in the case of external communication, the public in question should be provided with information and made aware of the different ways this kind of crime may be presented, as a means of preventing and preparing for it.
The opinion, requested by the Romanian Presidency, aims to look at possible ways through which people can acquire solid knowledge about the European Union, its foundations, procedures and actions, as well as its positive achievements and the concrete benefits it offers. This type of education would contribute towards building citizens' ownership over the European decision-making process and ensure that their vision, needs and priorities are adequately reflected in the European agenda at all levels.
The Instrument for Pre-accession Assistance (IPA) aims to prepare candidates and potential candidates for the rights and obligations of EU membership. First established for the 2007-2013 programming period, under the 2014–2020 MFF it is called IPA II. Its beneficiaries include the Western Balkan countries (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, Serbia, the former Yugoslav Republic of Macedonia) and Turkey. The proposed financial envelope for IPA III for the period 2021-2027 accounts for a 13 % increase compared to current IPA II funding, or €14.5 billion in current prices. The general objective of the IPA is to support EU aspirants to adopt and implement all reforms (political, institutional, legal, administrative, social and economic) required to comply with EU’s values and to progressively align to EU rules, standards policies and practices on their path towards EU membership.
This proposal is part of the Multiannual Financial Framework (MFF) outlined in the European Commission’s Communication ‘A modern Budget for a Union that Protects, Empowers and Defends – The Multiannual Financial Framework for 2021-2027’. On 14 June 2018 the European Commission presented the budget for the external action of the European Union, which includes and the Neighborhood, Development and International Cooperation Instrument (NDICI) and the European Instrument for Nuclear Safety.
The EESC notes that achieving clean energy is a high priority and to this end fusion energy is recognised as a potential long-term solution with Europe being at the forefront of developing fusion technologies which are carbon-free, sustainable and help secure our mix of energy supplies.
The EESC emphasises that the high level of long-term investment needed for the development of a fusion power plant does still entail some industrial risk, but in the event of success the realisation of a fusion power plant would be a newly introduced factor that would significantly change the existing energy supply by providing a disruptive innovation, with fusion fuel being abundant and virtually inexhaustible.
The EESC endorses the Commission's proposal and highlights the suggestions for future support put forward in the opinion.
The EESC does not suggest amending the proposal, but instead calls for closer monitoring of activities in areas raised in the opinion, particularly a sustainable development oriented approach in the choice of energy sources; proper consideration of the specific situation in Lithuania in particular, as well as in other countries concerned with regard to socio-economic aspects; dissemination throughout the EU of knowledge acquired in the area of dismantling and on the issue of training workers; safe and sustainable management of nuclear waste generated; and strengthening of performance indicators by including performance in relation to protecting workers from radiation.