State aid modernisation is of strategic importance for the EU in a highly competitive globalised economy. The EESC shares in its opinion the Commission's vision but considers that this ambitious reform needs clarification in certain respects. The importance of this reform and of the EESC's opinion is illustrated by the fact that the rapporteur was invited to meet personally with the Commissioner Almunia.
You are here
The Food and drink Industry is the largest manufacturing sector in the EU economy employing directly 4.25 million workers in the EU. It is a non-cyclical and resilient pillar with a strong presence in all member states. It processes 70% of EU agriculture produce and provides safe, quality and nutritious food to the benefit of European consumers, besides being the largest global exporter of food and drink products. The sector generates 7% of EU GDP and should be an important contributor to achieve the EU target set in the 2020 strategy of achieving the necessary expansion of the manufacturing sector that will make it a contributor of 20% of European GDP.
The EESC supports the Commission's proposal to expand the scope of controls and the competency of the authorities in order to conduct checks and confiscate goods, whenever there is a reasonable indication of illicit activities. The EESC recommends to improve cooperation, both between the competent authorities and between Member States and suggests that penalties should be harmonised across Member States and communicated to the Commission in a coherent way. The Committee also proposes that, in addition to gold, other "highly liquid commodities" should be included in the definition of cash from the moment the new regulation is adopted and it draws attention to the threat of further use of pre-paid cards by criminals and terrorists to covertly finance their activities.
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. For this reason, the EESC considers it essential to have a balanced mix of euro area economic policies, with their monetary, fiscal and structural components properly interlinked. The Committee notes the improving economic situation in the euro area and recommends that, in order to maintain and bolster this, crucial steps be taken to stimulate investment and carry out reforms, while also strengthening the social and democratic dimensions of euro area governance.
The EESC is of the opinion that building economic resilience, an objective that underlies the recommendations of the European Commission on the economic policy of the euro area, is of the utmost importance for the euro area economies. However, the Committee would like to stress that the pursuit of economic resilience should go hand in hand with increased labour market resilience, that is, the capacity of labour markets to weather shocks with limited social costs.
The EESC expresses its support for the Commission in combating the erosion of Member States' tax bases and unfair tax competition. The Committee in this context endorses the introduction of a CCCTB and is also pleased that the Commission has published a list of non-cooperative tax jurisdictions. The EESC goes even further and proposes that EU rules should include sanctions for companies that continue to run their business through tax havens.
The EESC has in numerous opinions urged for a fair, efficient and growth-friendly corporate tax system, based on the principle that companies should pay taxes in the country where profits are generated. Thus, the Committee welcomes the Commission’s initiatives intended to combat aggressive tax planning and broadly supports the proposed measures as regards the essential elements of the two legislative proposals, the Anti-Tax-Avoidance-Directive as well as the Directive on Administrative Cooperation. It advocates for a more precise scope and framework in certain specific areas (such as e.g. the switch-over clause). The Committee urges to finish drawing up the list of countries or regions which refuse to apply good governance standards and considers that the envisaged legislative measures should not apply to SMEs.