Multiannual Financial Framework after 2020 - Related Opinions
The Own Resources Decision (ORD) entered into force on 1 June, enabling the Commission to start borrowing resources for the Next Generation EU (NGEU) recovery instrument. For the EESC, a well-functioning funding strategy is key for the smooth implementation of NGEU. Sound and sustainable funding and solid risk management are in the very interests of civil society. Moreover, borrowing and debt management has to be based on democratic control, legitimacy and transparency.
The EESC stresses how important it is that the Commission manage the funding strategy directly and does not outsource this. The massive engagement on capital markets will be accompanied with a broad set of risks. The EESC supports the establishment of solid risk-management systems and the holding of the 'NGEU account' with the ECB.
The EESC welcomes the new vision for the ERA agenda and is pleased that this is a real "New Deal" for the EU's research, technology and innovation.
The EESC strongly supports the Commission's proposal – Next Generation EU – as a specific tool for a quick and effective recovery.
The EESC takes a very positive view of the Commission's two main decisions:
- to introduce an extraordinary financial recovery instrument as part of the multiannual financial framework
- to raise common debt, which will be repaid over a long period of time, and prevent the extraordinary financial burden from falling directly on the Member States in the short run.
The EESC strongly welcomes the fact that the newly proposed instrument should be closely coordinated with the European Semester process, and furthermore welcomes the Commission's proposal to introduce additional genuine own resources based on different taxes (revenues from the EU Emissions Trading System, digital taxation, large companies' revenues).
The absence of economic and social convergence among Member States and regions is a threat to the political sustainability of the European project and all the benefits it has brought to European citizens. Developing economic and labour market resilience with economic, social, environmental and institutional sustainability should be the principle guiding policies. This will foster upwards convergence and fairness in the transition towards a climate-neutral economy while managing the challenges posed by digitalisation and demographic change.
The EESC notes that the international role of the euro has not yet recovered to the pre-financial crisis level. Whereas the European Commission's proposed measures are welcome and deemed necessary by the EESC, they may not go far enough given the extent of the euro area's social and economic challenges. Social cohesion, economic upward convergence and the promotion of competitiveness and innovation should be the basis on which the euro area's economy gathers pace and supports a stronger international role for the euro.
The opinion tables proposals on how to enhance the European project and bring it closer to its citizens.
The proposal for a Regulation (COM(2018) 366) is based on Article 3 of the Treaty on European Union: the EU pursues the goal
to promote peace, its values and the well-being of its peoples, the EU
shall respect its rich cultural and linguistic diversity, and shall ensure that Europe's cultural heritage is safeguarded and enhanced. But there is a clear perception that the number of challenges to face is larger, in particular the competition from online platforms and search engines, the concentration of the sector around a limited number of big players, or the rise of disinformation. With this new programme, the EU Commission wants to offer opportunities for operators to develop technologically and artistically innovative European trans-border initiatives to exchange, co-create, co-produce, and distribute European works. The purpose is also to strengthen the position of EU actors in the EU and global markets.