EESC info

The 18 July plenary session of the European Economic and Social Committee (EESC) played host to Finland's Minister of Social Affairs and Health Aino-Kaisa Pekonen, who presented the programme of the Finnish EU presidency. This includes a special focus on sustainability and the wellbeing of citizens. Ms Pekonen also highlighted enhancing the rule of law and EU values among the presidency's other priorities. 

Introducing Aino-Kaisa Pekonen's speech, EESC president Luca Jahier spoke of the main challenges the Finnish EU presidency would have to address. "The implementation of Agenda 2030", said Mr Jahier, "will need a holistic approach that requires economic and social challenges to be addressed together." With this in mind, Ms Pekonen announced: "Finland wants to have an impact on the EU's future and this future should be socially, economically and ecologically sustainable."

The EU's global leadership in climate action is therefore a key priority for Finland's presidency. To this end, it expects to reach an agreement on the main elements of a long-term plan committing the EU to climate neutrality by the end of 2019, as requested by the European Council.

The Finnish presidency will also strengthen dialogue not only with other global actors, but also within the EU with other institutions and partners. "Dialogue with social partners is one of the priorities of the Finnish presidency", concluded Ms Pekonen. "The EESC plays a key role and we are pleased that it is drafting key opinions that are in line with our proposals." (dgf)

At its plenary session on 18 July, the European Economic and Social Committee (EESC) hosted a debate with Conny Reuter, co-chair of the EESC's Liaison Group with European civil society organisations and networks.

Mr Reuter presented the conclusions and the recommendations of the 2019 Civil Society Days, which took place in mid-June in Brussels, exploring the theme of sustainable democracy. He also spoke of the role of the Liaison Group, established in 2004 as a unique body within the EU, created to ensure a permanent dialogue between the EU institutions and the European network of civil society organisations at the EU level.

"We are here to promote civil dialogue of a progressive and inclusive Europe," Mr Reuter told the plenary, stressing the Group's important role of offering an EU perspective on vital topics and policies, rising above national interests.

The EESC President Luca Jahier commended the good work of the EESC Liaison Group: "We are trying to build bridges and not to shut doors. We are here to work together for a better Europe," he stressed.

As a symbol of their close cooperation, every year the Liaison Group and the EESC organise the Civil Society Days in order to highlight the contribution of civil society organisations to the building of a European Union which is more in tune with citizens' aspirations. The event has just marked its 10^th anniversary. Mr Jahier said the Civil Society Days have become one of the Committee's flagship events. In June, more than 250 participants attended the event. (ll)

The EESC backs the EU action plan on batteries put together by the European Commission but points out that it needs to be stepped up and implemented swiftly.

There is a real risk that very large parts of the European automotive industry will relocate their production to regions close to battery cell production units, mainly in Asia. In the opinion drafted by Colin Lustenhouwer and adopted at the July plenary session, the EESC throws its support behind the European Commission's Strategic Action Plan on Batteries but warns that it needs to be beefed up and implemented quickly to avoid the possible move of European car factories outside the EU.

"The stakes are very high. We are talking about the jobs of some 13 million European workers in the sector," said Mr Lustenhouwer. "There is clearly a widespread sense of urgency among policy-makers, scientists and businesses. They realise that it is late, even too late. We need effective, safe and environmentally‑friendly batteries."

Batteries have become indispensable in our daily lives. At the moment, the EU lags far behind, both in terms of development and production and is dependent on non‑EU countries, in particular Asia. The Commission's first progress report on the implementation of the Strategic Action Plan on Batteries, published in April 2019, shows that a variety of actions have been launched to develop a significant battery industry in the EU. However, much more has to be done in the EU in the coming years to develop the sector, focusing on investments and innovation. (mp)

So far, actions to boost the development of a circular economy in Europe have centred on production, getting industries to introduce circular business models and bring circular options to the market. Now conditions are ripe for getting consumers involved, and empowering them to make sustainable purchasing choices in their daily lives, says an EESC report adopted in July.

In the report, entitled Consumers in the circular economy, the European Economic and Social Committee calls for a strategic shift to place consumers at the centre of public policy on the circular economy at all levels of government in Europe.

In the first stage of the circular economy, consumers have been confined to the role of urban agents recycling domestic waste while the focus was on business. European Commission initiatives, the EESC points out, have targeted regulation and production, boosting recycling levels and introducing the concept of eco-design.

"Now it is time for the Circular Economy 2.0 to tackle the consumer end", says EESC rapporteur Carlos Trias Pintó, urging the European Commission to spearhead the shift in its forthcoming initiatives.

This second phase, he stresses, will hinge on consumer information. Information and education, are key factors in steering consumers towards circular behaviour patterns. Education and lifelong learning must therefore be put in place and consumers provided with the most objective information possible.

The EESC makes the case for voluntary labelling as a step towards mandatory labelling, indicating the product's social and environmental footprint – emission reduction, biodiversity conservation, resource efficiency or avoidance of components with a high environmental impact, estimated lifespan, possibility of obtaining spare parts and options for repair.

However, even though information and education can go a long way towards steering consumers towards green, repairable, long-lasting products, many people will not be able to afford them. As an incentive, the EESC suggests that the Member States could adopt a rewards-based approach and local administrations could use public procurement to support sustainable suppliers. (dm)

The EU needs to place greater emphasis on short supply chains and agroecology in farming in order to preserve its agriculture and make it more resilient to new challenges such as climate change. Agroecology is also a way of securing our food supply and of making our food healthier, thus raising its value. Short supply chains will help smaller farms to increase their income and enliven rural areas.

"Short supply chain initiatives have the potential to create jobs and growth and consequently wealth, particularly in rural areas. The challenge is therefore to empower operators to create local food systems based on local governance. Digitalisation plays - and will also in the future play - a key role, both in production and processing and in buying and selling", explains Geneviève Savigny, rapporteur for the opinion on promoting short and alternative food supply chains in the EU: the role of agroecology.

In order to roll out the agroecology project across Europe, the EESC proposes a structured multifaceted action plan involving regional, national and EU levels. Existing programmes should also be directed towards supporting measures in agroecology and short supply chains.

A comprehensive food policy, which the EESC has been advocating for years and for which it could be a facilitator, could form the framework for the action plan. (sma)

According to the EESC, the European manufacturing system can only make an effective and competitive transition to a cutting-edge digital and environmentally-friendly economy when it is ready for significant investment in innovation. The steps planned by the European Commission to facilitate better development of the manufacturing system should therefore be based on a real awareness of companies' – especially SMEs' – needs. 

Manufacturing accounts for 17.3% of Europe's GDP and representing 80 % of exports. "In view of these impressive numbers, it is essential that Europe pool its forces to maintain and even strengthen this sector", said Antonello Pezzini, rapporteur for the EESC's information report on incremental innovation in high manufacturing areas.

The EESC calls on Europe and its Member States to put in place appropriate educational strategies, which are crucial to acquiring new skills and developing new career paths. 

The current industrial revolution uses digital models such as cloud computing and big data, and is moving towards the prospect of the internet of things and "smart" goods. Artificial intelligence is of particular importance in this process, as it has the potential to double annual growth rates within 20 years.

"Europe needs to take decisive steps regarding digital technology and facilitate high tech access to SMEs. The EESC therefore calls for special measures and policies that enable SMEs to increase networking with larger companies and also introduce incentives triggering cooperation in innovation between small and large companies", concluded Mr Pezzini. (sma)

The EU should renew its system of economic policy coordination and governance based on a new EU strategy post-2020 for sustainable development, to increase the efficiency of actions and the sustainability of results, says the EESC.

In this context, in a recently adopted opinion the EESC welcomes the Commission's proposal to build up stronger links between the European Semester and cohesion funding under the next MFF. It believes that these links have huge potential to improve coordination and governance of the EU's economic policy.

The EESC proposes moreover that a renewed system of EU governance should rely more on its understanding of and cooperation with civil society and enhance multi-level public administration. In this context, it proposes establishing an EESC information centre for stakeholders.

Another EESC opinion calls for closer links between the EFSI, its follow-up – the InvestEU programme – and other European or national investment programmes. It recommends setting clear investment targets, regulatory simplification and further guidance in order to achieve greater geographical and sectoral balance in the framework of the Investment Plan for Europe.

If the EU uses the European Semester as the most important element of economic policy coordination, it could contribute to the implementation of these recommendations. (jk)

In July, the EESC presented proposals for the economic agenda of the upcoming legislative period and recommended that they should form the basis of a new EU economic strategy.

Future economic policy and governance should, in the EESC's view, take account of geopolitical and societal challenges, such as the global economic slowdown, unresolved trade disputes, Brexit, climate and demographic change, growing inequalities and the fourth industrial revolution, and contribute to strengthening resilience to crises and the sustainability of the economic model. These challenges require a far-reaching economic strategy with clear policy objectives and a more coherent economic governance framework.

All four pillars of EMU – the monetary and financial, the economic, the social and the political – must be reinforced in a balanced way and a positive narrative for the future development of the EU economy is needed. The EESC calls amongst other things for the creation of a fiscal capacity at euro area level, the balancing of supply- and demand-side measures and enhanced involvement of the European Parliament, social partners and civil society organisations in key social and economic policy decisions.

Regarding upward convergence, the EESC believes that education and training, R&D and innovation need to be promoted. These measures can strengthen the competitiveness of the EU economy based on its capacity to increase its productivity and living standards in a sustainable manner while at the same time becoming climate neutral.

More information: ECO/492 & ECO/493 (jk)

The European Economic and Social Committee (EESC) calls on the Commission to reflect in more depth on policy options that help both to reduce greenhouse gases, thus fighting climate change, and to maintain competitiveness. The goal must be to better protect and promote the EU's resource and energy-intensive industries (REII), otherwise Europe runs the risk of losing jobs to less clean economies and missing its goal of reducing greenhouse gas (GHG) emissions.

"The current Emissions Trading System (ETS) aimed at encouraging investment falls short, since its application worldwide is not in reach for the time being. If it is only applied in Europe, it brings the risk of carbon leakage and consequently investment leakage", warned Aurel Laurenţiu Plosceanu, rapporteur for the EESC's opinion on The sectoral industrial perspective of reconciling climate and energy policies, adopted on 17 July. "Future investment by the EU and the Member States should be concentrated on RDI and the deployment of low to zero-carbon technologies for both the REIIs and the necessary electric power generation. Another focus must be on education and training of their workforce", added co-rapporteur Enrico Gibellieri.

Since energy costs in for instance the steel, aluminium and glass industries represent around 25% of total costs, the costs of greenhouse gas (GHG) emissions are also high. With the ETS in place, European products will become more expensive and run the risk of being replaced by cheaper products on the international market. (sma)

The EESC's annual opinion on the State of the Energy Union takes stock of progress so far and calls on the European Commission to focus more on social aspects.

"The Energy Union is not a reality yet. It may be a reality in terms of EU policy decisions, but it is still not a reality in the daily lives of European citizens." That was the firm view  advanced by Christophe Quarez at the July plenary session, echoing the argument in his opinion – adopted by the assembly – that the energy transition had not yet happened on the ground. He went on: "Now that EU policymakers have laid the foundations of the Energy Union, a lot remains to be done in the next few years."

The change of format in the decision-making process for energy policy, both at EU and national level, was key, said Mr Quarez. We needed to move from "decisions by a few" to "action by all". "This has never been so achievable," he added, "given the rise in climate awareness among EU citizens, especially Europe's young people."

Welcoming the Fourth Report on the State of the Energy Union issued by the European Commission in April 2019, the Committee expressed once again its support for the objectives of the Energy Union and stressed the importance of the engagement and mobilisation of European society in its entirety to take full ownership.

Citizens should drive the energy transition and nobody should be left behind. The social implications of these changes have to be considered, with a new social pact between all parties involved. Citizens should also be able to contribute to all major political decisions relating to climate change, especially at EU level, through a permanent citizens' dialogue. (mp)

Originally associated with cryptocurrencies, blockchain and distributed ledger technology (DLT) are in fact very versatile and can be usefully applied to the social economy. However, it is important to regulate them properly and gear them towards delivering benefits for all, allowing everyone to participate, says the EESC in a report issued at its July plenary.

The EESC has drawn up a long list of possible applications for blockchain and DLT that could be of great interest to social economy enterprises. These include tracing donations and fundraising, improving the governance of social economy organisations, authenticating activities, certifying skills, making intellectual property rights and copyright clearer and more certain, providing secure telemedicine and e-care systems and making agricultural products fully traceable and identifiable.

Nevertheless, the huge potential of the new digital technologies, coupled with the considerable investment required, also exposes blockchain technology to the risk of concentration of data and technological networks being subject to speculation, warns the EESC.

It is important that there be public measures to support the development of these technologies in a participatory and accessible way, and the involvement of civil society is imperative.

EU regulation makes sense because this technology uses chains that can be created irrespective of national borders. The large investments required call for coordinated, structured European action.

Read the EESC's opinion entitled Blockchain and distributed ledger technology as an ideal infrastructure for the social economy (dm)