You are here
The EESC welcomes initiatives to foster productive investment and the formation of long-lived tangible and intangible capital but urges the Commission to give greater attention to the need to finance more "socially useful" capital investment. If banks are likely to play a less prominent role in the future as providers of long-term financing, then opportunities may arise for other intermediaries such as national and multilateral development banks, institutional investors, sovereign funds and, crucially, bond markets. The EESC welcomes the recent recapitalisation of the EIB as this will strengthen its ability to leverage additional private investment finance and to play a stronger countercyclical role in investment funding and credit supply to SMEs..
A genuine stabilisation of the economic and monetary union (EMU) can only succeed if the deficits in the EMU architecture are solved and to this end major reforms are undertaken. The longer the current austerity policy continues, that primarily looks at spending cuts without the addition of an effective investment plan and measures to enhance income through growth, social cohesion and solidarity, it will become increasingly clear that Europe's economic integration and prosperity is at risk from growing social inequalities. The EESC calls for greater "parliamentarisation" of the euro area, with a grand EP committee comprising all members of parliament from the euro area and from those countries wishing to join (26 Member States), combined with stronger coordination of members of parliament from the euro area on EMU issues (COSAC +).
The European Economic and Social Committee (EESC) warns against granting China market economy status (MES) and calls on the European institutions to promote fair international competition and actively defend European jobs and European values with efficient trade defence instruments (TDIs). In its opinion, adopted at its 514th plenary session on 14th July, the EESC points to the disastrous impact a possible granting of MES to China would have on Europe's industry and consequently on Europe's labour market. The EESC insists on China's fulfilment of the five EU criteria for achieving the MES.
This opinion is part of a wider package of four EESC opinions on the future of the European economy (Deepening of the Economic and Monetary Union and Euro area economic policy, Capital Markets Union and The future of EU finances). The package of opinions underscores the need for a common sense of purpose in the Union governance, which goes far beyond technical approaches and measures, and is first and foremost a matter of political will and a common perspective. Against this background the Committee advocates the exploration of tools to improve economic governance in the EMU, for instance by creating a permanent Euro Finance Minister, while ensuring full democratic accountability. Bundling competences would enhance coherence of EMU policies.
The EESC welcomes the Investment Plan for Europe for its contribution to the promotion of investment in the EU. The Committee calls for clearly set investment targets, regulatory simplification and further guidance in order to achieve greater geographical and sectoral balance. The EESC advocates for strengthened financial capacity for the InvestEU programme within the Multiannual Financial Framework 2021-2027 and calls for more efforts to raise awareness among European businesses and citizens about the benefits obtained from the Investment Plan for Europe.
The EESC encourages the Commission to pursue its efforts to develop policy proposals aimed at promoting the creation of innovative and high growth firms. These policy proposals should strengthen the single market, reinforce the clusters and ecosystems in which innovative start-ups are created, develop the equity component of the European capital markets, encourage an academic agenda focusing on jobs for the future and minimise the cost and red tape involved in starting a new entrepreneurial venture.