EESC info

Still time for organisations and individuals engaged in promoting European culture and heritage to apply for the EESC's 2018 Civil Society Prize in a bid to both raise their profile and get a cash injection to fund their future projects.

Potential candidates can apply until 7 September. The prize is intended for civil society organisations and individuals who have been active in:

• raising awareness of the multiple layers and richness of European identities;
• harnessing the full potential of Europe's cultural wealth;
• facilitating access to European cultural heritage; and
• promoting European values such as respect for human dignity and human rights, freedom, democracy, equality and the rule of law.

A total of EUR 50 000 will be awarded to a maximum of five winners.

The prize is open to all civil society organisations officially registered within the European Union as well as individuals acting at local, national, regional or European level.

The Civil Society Prize, now in its tenth year, was launched by the European Economic and Social Committee to reward and encourage tangible initiatives and achievements by civil society organisations and/or individuals that have made a significant contribution to promoting the common values that bolster European cohesion and integration. In 2017 the prize focused on quality employment and entrepreneurship.

The full list of requirements and the online application form are available here. (dm)

The energy transition can benefit Europe's regional economies. The transition to decentralised, renewable and digitalised forms of energy supply would have economic benefits for the regions of the European Union, in addition to environmental benefits. In a report by Lutz Ribbe, the EESC says that there are at least four reasons why smart energy production can help regional economies and it asks the European Commission to systematically link future regional and social cohesion policy to the Energy Union initiative.

Although public and political debate at European level tends to focus on the environmental benefits of, or the risks associated with, the decentralised transition, the Committee makes a different point and says that the development of renewable energy could bring about economic benefits for EU regions. The energy transition represents a great opportunity for local economies, especially for structurally weak and rural European regions. The EESC opinion, adopted at the plenary session on 11 July 2018, stresses that the carbon-free production of energy could benefit regions by:

• reducing the need for fuel imports;
• generating economic value within the region concerned, above all if ownership remains local;
• creating sustainable and quality jobs through the installation, operation, and maintenance of renewable energy production;
• and, lastly,
• increasing regional tax revenues.

In a debate on the energy transition at the EESC's July plenary session, Maroš Šefčovič, Vice-President of the European Commission responsible for the Energy Union, stressed how important it was to link the EU's energy initiatives to regional policy and development and to strengthen cooperation between EU bodies and civil society.

"It is at the local level that plans and political commitments are turned into concrete projects. The Energy Union cannot be built here in Brussels, but in our cities and in our villages. It has to be a collective effort, where we come up with creative solutions," said Mr Šefčovič.

Mr Šefčovič reaffirmed the Commission's commitment to future action aimed at removing the current barriers preventing people from active and full participation as "prosumers" in the energy transition, as well as building trust among green energy investors.

EESC President Luca Jahier concluded by emphasising the vision of the EESC and its role in ensuring that everybody's voice was heard: "The EESC tries to make sure that by bringing together the expertise of organised civil society from across Europe, no one is left behind in the modernisation of Europe's economy, whether in terms of environment, jobs and opportunities to create economic value, or as a consumer". (mp)

The European Economic and Social Committee (EESC) has called on the EU institutions and Member States to step up their efforts to protect women and girls with disabilities, who continue to face multiple forms of discrimination in EU society on the grounds of both their gender and disability, often resulting in their social exclusion.

Despite constituting 16% of the total female population in Europe, this group of 40 million women is one of the most vulnerable and marginalised in European society.

In the opinion adopted in July, the EESC stated that the EU and its Member States lacked a strong legal framework to protect and safeguard the human rights of all women and girls with disabilities.

"Women with disabilities need special support, yet there is no proper focus on them in any of the EU strategies, either in the strategy on women or in the strategy on persons with disabilities. It is as if they have disappeared, as if they are of lesser value than the rest of the population," said Gunta Anča, the rapporteur for the opinion and a member of the European Disability Forum board.

The EESC urged the EU and its Member States to implement the UN Convention on the Rights of Persons with Disabilities, particularly Article 6, which concerns women with disabilities.

It stressed the need for the EU countries to join the Istanbul Convention on combating violence against women and domestic violence, to which women with disabilities are three to five times more likely to fall victim than their peers without a disability.

The opinion will feed into the European Parliament's forthcoming report on the same topic in the autumn. (ll)

Any solution for the taxation of digital business models proposed for EU level must be in line with common international corporate taxation practice and agreements, says the EESC in a recently adopted report. Instead, the European Commission's legislative package aims to tax businesses' turnover rather than profits, and to levy taxes where sales take place instead of where value is created.

In the EESC's view, this approach could jeopardise the integrity of the EU single market and lead to double taxation. The complexity of international tax systems and therefore uncertainty for investors could increase. Given these concerns, the EESC is calling on the Commission to carry out a complementary impact assessment of the proposed measures.

It is very important to develop new principles on how to attribute corporate profits for digital activities to an EU country and tax them, says the EESC in its report. Digital companies should contribute to public finances just like traditional businesses and share the tax burden needed to finance public services, but any solution should be fair and consensus-based and create a level playing field for all EU economies.

Despite its concerns, however, the EESC sees the Commission's digital tax initiatives as a step in the right direction and welcomes its ambition to find a global solution. The Commission has launched an international debate and now it is of the utmost importance that the Member States come to a common position and advance the ongoing discussions, so as to achieve the necessary global solution at OECD level. (jk)

The measures proposed by the European Commission concerning the development of technology for the financial sector (FinTech) in Europe must be adjusted so as to balance market stimulation and the security and stability of the financial and economic system. In the EESC's view, the proposed Action Plan is a good basis but additional measures are needed to tap the full potential of FinTech and ensure certainty, protection and equal market conditions for all market participants.

The EESC believes that FinTech players should be subject to the same rules as the financial sector, particularly as regards resilience, cyber security and supervision, and that rules to ensure uniform development of FinTech in the EU are needed. The Commission should clarify the responsibility of companies offering cloud services as regards the protection of personal data they host, and identify possible rules.

However, the EESC supports the Commission's Action Plan, as it could contribute to the completion of the Capital Markets Union, the EMU and the Digital Single Market. The EESC also welcomes the Commission's proposals for an enabling framework for crowdfunding as providing new opportunities and more certainty and protection for all market participants. But at least in the initial stages, there should be an even stronger focus on risk aspects associated with crowdfunding operations and markets in order to better identify them or mitigate them where possible, and to ensure certainty and protection for all concerned parties.

In addition, the issues of money laundering, terrorism financing and taxation related to crowdfunding need to be better addressed and provisions to regularly monitor and assess the proposed EU regime should be introduced. (jk)

The EESC welcomes the proposals on non-performing loans (NPLs) made by the European Commission. Although the Committee suggests an impact assessment for the proposed regulation, it believes that the proposals will contribute to strengthening the EMU and to moving towards the completion of the banking union.

Additional measures at EU level are needed to reduce the volume of NPLs and prevent such loans from accumulating. It is also vital to remove impaired debts from financial institutions' balance sheets so as to avoid the consequences of over-indebtedness in the future and to enable banks to focus on lending to businesses and citizens. In future, credit institutions should ensure responsible lending.

The EESC opinion on the Commission proposals questions the "one-size-fits-all" approach and the calendar for the provisioning of new NPLs under the proposed statutory prudential backstops. The application of backstops should consider the differences between national civil laws and the length of procedures in civil courts. The proposed calendar could force banks to sell new NPLs quickly – a drawback for the companies concerned.

Assessing the potential impact of the proposed regulation on banks, on the transmission of credit to households, on SMEs and on GDP growth is therefore highly recommended in order to see whether the proposed regulation is suitable and effective.

The Commission's proposals encourage the development of secondary markets for NPLs. The EESC believes that regulators should not encourage the sale of NPLs, because of the risk that NPLs are being sold for a lower price on secondary markets than the value they could reach by means of recovery within banks. (jk)

The EESC believes that an updated Drinking Water Directive – following the Right2Water citizens' initiative - should be based on the WHO guidelines. It should embrace the human right to access to water. The EESC opinion Drinking water directive calls for a stop to water privatisation and wants to see measures that motivate people to make considered use of this finite resource. The Committee also wants potential problems in the mineral water industry to be anticipated.

The EESC regrets that the Commission's proposal does not clearly recognise the universal right of access to drinking water and sanitation called for by the ECI initiative and the Sustainable Development Goals. The WHO model, based on minimum quantities of water per person per day, could be a viable option.

"Drinking water is a primary good which is essential for the health, well-being and dignity of every human being as well as being crucial for economic and productive activity, and should no longer be privatised," said Gerardo Larghi, rapporteur for the opinion.

Appropriate measures targeting both individuals and industry and agriculture, should be implemented to discourage disproportionate water use.

Anticipative measures including restructuring the industry and reskilling its workers should help cushion the expected repercussions on mineral water producers. (sma)

Migration was one of the main topics when Gernot Blümel, Austrian Minister for the EU, Arts, Culture and Media, presented Austria's EU programme at the EESC plenary session on 11 July.

"The EU may fail over the migration issue, over Schengen, over upholding fundamental values. More than a Europe that Protects, we should stand for a Europe that protects, promotes and shares," said EESC president Luca Jahier.

Gabriele Bischoff, president of the Workers' Group, said that workers supported a different concept of a Europe that protects. "Particularly at a time where trust in Europe is fading, citizens need to know that Europe can ensure their rights and freedoms", she said.

Arno Metzler, president of the Diversity Europe Group, said: "I hope that Austria's presidency will defend humanity and ensure that we work together. Migration is only one aspect, but we need to work together on other issues too, such as digital trade, free trade, citizen participation and the MFF."

Jacek Krawczyk, president of the Employers' Group, underlined that Europe was also about its values, which were non-negotiable. He said: "Europe is still at a crossroads. We need to be clear on the direction we want to take. Undermining Schengen would have devastating consequences for business and for all citizens".

Minister Blümel defended the planned migration centres outside Europe. "As long as it remains possible to get on a boat which could be a ticket to Europe, people will continue to die in the Mediterranean", he said. (sma)

Transport plays a key enabling role in making sustainable development a reality. It contributes to the economy, trade and employment, but raises issues with regard to the environment, traffic and safety. In a report by Tellervo Kylä-Harakka-Ruonala, the EESC reviews the UN Sustainable Development Goals (SDGs) and, by providing a cross-cutting approach where the economic, social and environmental aspects come together, urges the Commission to prepare a new and integrated framework for future EU transport policy.

"Transport is a fundamental policy of the European Union but, unfortunately, its policy-making is still characterised by silos, making for fairly fragmented approaches and initiatives. For example, market issues are part of transport policy while climate and energy-related issues fall under the Energy Union," said Ms Kylä-Harakka-Ruonala.

The opportunities and challenges brought about by digitalisation and robotisation also have to be properly managed. "Transport must be accessible, affordable, smooth and effective, as well as safe and secure, to enable the mobility of people and goods. To this end, and in line with the SDGs, we need significant investments in proper infrastructure, innovation and efficient transport systems, including public transport," concluded Ms Kylä-Harakka-Ruonala.

The opinion also stresses that it is vital to involve civil society in the preparation and implementation of transport policy. The public sector must have a central role but bottom-up initiatives and partnerships must also be facilitated. (mp)

Digital transition in the EU should be underpinned by respect for European values and supported by more robust social policies so as to ensure that no one is left behind. European society as a whole – workers, companies and the general public alike – should instead be able to benefit from the huge potential offered by new technologies, the European Economic and Social Committee (EESC) said at its July plenary.

In its opinion on EU concepts for transition management in a digitalised world of work, requested by the Austrian Presidency of the EU, the Committee lists a number of priorities for the EU which should make sure that the benefits of digitalisation can be reaped. They include upskilling European workers, strengthening social security systems and ensuring diversity in the workplace so that, for example, jobs in digital sectors are no longer dominated by men.

The EESC warned, however, that investment in social policies accounted for only 0.3% of total public expenditure in the EU, and said that this should be beefed up.

Reiterating its support for a “human-in command” approach to digitalisation, the EESC said it encouraged the development of socially responsible artificial intelligence that served the common good.

“The lack of clarity surrounding how algorithms work and how they make the choices that are beyond human control poses massive challenges for the EU and fundamental questions about the society we want to live in,” the EESC concluded. (ll)

Members of the European Economic and Social Committee  and representatives of Montenegro's civil society met in Podgorica on 17 July to discuss the state of play and the work ahead in Montenegro's EU accession negotiations and adopted a joint declaration.

The EU-Montenegro Joint Consultative Committee (JCC) called for increased efforts from the Montenegrin government to meet the benchmarks set for closing the negotiating chapters, especially the interim benchmarks on the rule of law.

Regarding social policy and employment, the JCC stressed the importance of labour law as a basis for the structural reform of the labour market, which would be beneficial to the country's overall economic and social situation. In order to prepare for the free movement of workers, the JCC called on the Montenegrin authorities to start preparing in good time to participate in the coordination of social security systems and the EURES employment service network, as well as for the use of the European Health Insurance Card. As regards the situation of the media and civil society organisations in the country, the JCC expressed concern about freedom of the press, specifically as regards the national public broadcaster RTCG.

The next meeting of the JCC – its 12th - will be held in Brussels in the second half of 2018. The JCC is made up of twelve members, six from each side, representing the EESC and Montenegrin civil society.(ks)

The Africa-EU Economic and Social Stakeholders' Network sees young people in Africa as key actors in Africa's economic and social development. Their annual meeting focused on Africa's young people as a driver of economic development and as the age group most concerned by migration.

Participants pointed out in the final declaration that "the role of civil society in Africa-EU relations is to make a structured, regular contribution to the EU-Africa strategy and to stress the need for them to take part in the proper platforms for addressing recommendations to political bodies with the aim of ensuring good governance and citizen participation".

Young African entrepreneurs from Burkina Faso, Kenya, Swaziland and Madagascar, representing the geographical diversity of Africa, presented their success stories. By doing so, they demonstrated just how energetic and entrepreneurship-minded the young people of Africa are, encouraging and inspiring people across Africa and Europe.  "The economic development is there. We need the tools, not European funds. We need to do better in Africa or we will all come to Europe," said Fahiz Diallo, a young entrepreneur from Burkina Faso, who is running a prefabricated construction business.

The conclusions of the meeting will be sent to the EU and African institutions and political authorities as the contribution of non-state actors to EU-Africa relations.(ks)

By the EESC's Employers' Group

The European economy loses over 2% of productivity per year due to a skills mismatch, according to a recent study commissioned by the European Economic and Social Committee (EESC). This means a loss of 80 cents per hour of work. The situation will get even worse if no reforms are undertaken.

According to the study, companies across most of the EU are witnessing a growing shortage of workers with adequate skills. In some occupations, such as ICT professionals, medical doctors, and science, technology, engineering and mathematics (STEM) professionals, as well as teachers, nurses and midwifes, the impact is already significant. There is also a shortage of intermediate-level skilled profiles such as truck drivers, cooks and welders.

Consequences include additional spending on employee training, loss of competitiveness and slower recruitment processes. Over 70% of companies engaged in professional, scientific or technical services and 67% of ICT companies admitted that skills mismatches have a serious effect on their human resources policies.

The companies surveyed pointed to insufficient traditions in lifelong learning and (re)qualification as the key factor in skills mismatches. People under 24 and over 65 are the most severely affected by mismatches. The least likely to be affected are those aged 40 to 54.

Efficient vocational education and training, more lifelong learning and effective labour intermediation are key to bridging the gap, as is improving skills evaluation to help identify in advance the skills that will be needed in the future.

Slow educational reforms, over-reaching labour market regulations, excessive labour taxation and arbitrary wage-setting mechanisms are policy-related causes of skills mismatches. Change must be implemented both by national and local authorities and by stakeholders – educational institutions, employers and workers themselves.

The study was prepared by the Institute for Market Economics at the request of the EESC's Employers' Group and can be downloaded at: http://europa.eu/!dM96Ft (jl)

By the EESC Workers' Group

A study by the EESC's Workers' Group of national strategies on Work 4.0 shows that the involvement of the social partners is essential and that workers are worst hit where collective bargaining has declined.

The pace of digital transformation and the challenges arising as regards the regulation and the quality of employment call for comprehensive policy responses. According to OECD estimates, 14% of jobs are at high risk of automation and 31% will undergo significant change in the next 15-20 years.

The study's findings point to a strong demand for higher-skilled workers and to an erosion of middle-skilled, middle-income jobs in the future – in other words, more inequalities.

The study refers to ILO findings on the platform economy whereby gaps or grey areas in the law that have provided fertile ground for the development of non-standard, low-quality working conditions resulted from the decline of collective bargaining in certain countries.

Entitled Overview of the national strategies on work 4.0 - a coherent analysis of the role of the social partners, the study calls for:

• a strengthening of social dialogue through the direct involvement of social partners in the shaping of a just digital transition process to ensure quality jobs and decent wages;
• universal social protection schemes;
• updated occupational health and safety standards for new technologies;
• the anticipation of job creation and
• the designing of training programmes.

It will be officially presented and discussed on 18 October 2018 at a Workers' Group event. (prp)

by the EESC's Diversity Europe Group

A structured brainstorming session organised by the EESC's Diversity Europe Group on 20 July encouraged participants to think out of the box and come up with ideas to feed into proposals for the Sibiu Summit on the Future of Europe.

The event was entitled Regaining Citizens’ Trust and Confidence in the EU and raised the following core questions:

• What should be the EU's overarching/horizontal priorities?
• How can we regain citizens' trust and confidence: promoting an effective European social policy, combating poverty and social exclusion and defending a just migration system?
• How can we stimulate balanced economic growth and protect rights?
• How can we deliver a sustainable environment in partnership?
• How can we effectively promote and communicate Europe, whilst allaying security concerns and populist fears?
• What else do Europeans want and how could the EU deliver?

The event kick-started the Group's contribution to the EESC's From Krakow to Sibiu and beyond Roadmap, a project launched by the Enlarged Presidency in Krakow on 11 June, calling on all EESC bodies - the three Groups, the Sections, Observatories and temporary groups -­ to define their priorities for the future of Europe with a view to the Sibiu Summit in March 2019.

The discussion highlighted a variety of ideas related to youth, sustainable development, SMEs, peace, fundamental rights, the liberal professions, new forms of cooperation, rule setting, transparency, social innovation and communication on Europe.

The specific recommendations will be reworked into a full list of priorities in the near future. (ih)