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The Committee gives a guarded welcome to the two communications from the Commission on the introduction of a Competitiveness and Convergence Instrument and on ex-ante coordination of plans for major economic policy reforms. It is disappointing that they provide little additional detail to the concepts already outlined in the Blueprint, which therefore renders assessment difficult. While these two proposals could be a help to Member States in difficulty, restoring growth and capacity to the most needy areas may be hampered or delayed because the focus of concern is that the measures taken must also benefit the euro area as a whole. The Committee questions the added value of a CCI and the additional bureaucratic burden that the proposed ex-ante coordination may bring. The EESC wishes to continue the debate as developments evolve.
The Committee recommends that future crises in the European Union should be managed by striving for a better balance between fiscal and social objectives and urges the Commission to design "supplementary economic and social recovery" programmes, to be applied at the same time as or at the end of an adjustment programme. The EESC recommends that in any future crises situation, the EU Institutions should be solely responsible for developing and implementing the adjustment programmes and stresses that social partners and representatives of civil society must be included in the programme's monitoring and assessment panel, on an equal footing with representatives of the EU, the ECB and other bodies.
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.
The EESC welcomes this legislative proposal which ensures the effective resolution of failing financial institutions within the EU, and supports the introduction of harmonised rules regarding intra-group financial support. The Committee also stresses that the Central Banks, including the ECB, have to be involved in the assessment of the recovery and resolution plans, while remaining independent. Professional advice of consumer organisations, trade union representatives, etc., should also be sought. The Committee encourages a greater degree of certainty for the institutions by introducing explicit and more clearly defined rules. The opinion demands more clearly defined rules for the Special Manager (SM) as a highly intrusive early intervention measure, and points out the need for additional clarifications regarding both the bail-in tool and the Resolution Authorities (RAs).
The EESC strongly endorses the Commission's initiative to extend the duration and increase the financing of the European Fund for Strategic Investments (EFSI) and welcomes the positive results of the first year and considers the SME "investment window" a success. The Committee recommend that EFSI 2.0 should aim for ever greater involvement of private capital; stresses the importance of keeping a market-driven emphasis, reinforcing the additionality of the EFSI and calls for a more balanced geographically coverage across the EU. The EESC also recommends bolstering the European Investment Advisory Hub (EIAH) and the reinforcement of the social dimension of EFSI deployment. It is also in favour of using the EFSI to nurture the development of a shared industrial and dual technology base in the European defence sector. Finally, in the view of the Committee it is important to raise the visibility of EFSI funding.
The international economic and financial crisis exposed the structural limitations and contradictions in EMU, depriving the euro of its propensity to attract. The EESC believes that the single currency will be unsustainable unless we achieve convergence between the economic capacities of the euro area countries and improve overall competitiveness, objectives which require economic as well as political commitment. The Treaty on Stability, Coordination and Governance stresses stability without proposing joint financial instruments for recovery and employment. Europe needs to go back to generating wealth in order to redistribute it fairly. Briefly, these are the EESC's four recommendations for completing the euro framework, i.e.