The EESC stresses that a real growth strategy at EU and national level is needed to support the creation of better and more stable jobs for young people.
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 introduction of further risk sharing is to be accompanied by further risk reduction in the Banking Union. Both the EDIS and the relevant risk reduction measures have to be dealt with in parallel and without delay and actually put into effect. An EDIS will have a positive impact on the situation of individual Member States and banks by being more able to cushion local shocks. This may discourage speculation against specific countries or banks, thus reducing the risk of bank runs. At the same time it will further weaken the link between the banks and their national sovereigns. It is imperative that the existing legislative framework of the Banking Union is fully implemented by all Member States. It is important that the Commission carry out a comprehensive in-depth impact study in order to further strengthen the legitimacy of the proposal.
A number of topical industrial developments and trends are currently at the focus of attention. At the same time it should be recognised that people must live everywhere in Europe, including in many regions that these innovative trends are not likely to reach even in the next 50 years. Without undermining their importance and while supporting the political efforts promoting these trends, it is necessary to recall that these businesses are the key element in the creation of new activity and value in resource-constrained areas and are crucial to enhancing economic prosperity and cohesion across Europe. Against this background, the main objective of the opinion is to identify and analyse the particular challenges these businesses face and find solutions and possibilities to support them.
The EESC considers the proposed European Investment Stabilisation Function (EISF) as a step towards closer euro area integration, and possibly an attempt to encourage non-euro Member States to join the single currency. However, the EESC is of the view that a well-crafted union-wide insurance scheme that acts as an automatic stabiliser amidst macroeconomic shocks would be more effective than the proposed EISF.
Although considerable progress has already been made towards completing EMU, there is still a need to significantly reinforce all four of its pillars, taking care to maintain the balance between them, as neglecting one or more of these pillars could result in dangerous disparities. Resilience to crises is a necessary, but not sufficient, condition for completing EMU: it also requires a positive vision, as set out in Article 3 of the EU Treaty. The EESC generally calls on the European institutions and national governments to take much more ambitious action in the context of EMU reform in order to achieve a more integrated, more democratic and socially better developed Union.
The Committee reiterates that the ambitious challenges facing the EU make it not only desirable but also necessary to increase the size of the EU budget so as to revitalise economic growth and employment. Furthermore, it welcomes the moves to improve and simplify the structure of the EU budget, so as to substantially deflate the issues of fair return and horizontal fairness between the Member States, focusing instead on effectively achieving Europe's strategic objectives. The EU budget should be exemplary, efficient, effective and transparent, so that it gains credibility in the eyes of the European public.