The EESC strongly believes in the importance of the next Semester cycle as a key instrument for implementing the Recovery and Resilience Facility.
However, it is still concerned about the lack of clarity in most Member States as regards their National Recovery and Resilience Plan governance systems and the distribution of responsibilities for their implementation.
The EESC would also draw attention to the need to measure progress in implementation, for which good monitoring indicators are needed; in this connection it welcomes the "Recovery and Resilience Scoreboard" initiative.
Moreover, the COVID-19 crisis has highlighted the need for a strong industrial policy to avoid dependence on other economic zones for many products and services.
The EESC wants to see real action in this respect by Member States, in terms of investment in education, infrastructure and industrial policy to raise employment and boost European industry.
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 action plan on Capital Markets Union (CMU) and approves all of the 16 actions proposed by the Commission, but stresses the importance of prioritising and coordinating the initiatives (with concrete milestones to measure progress), emphasises those that it deems most essential and makes targeted complementary proposals. The EESC argues for two key priorities: 1) to improve the efficiency of the CMU by creating the European Single Access point, by applying a single rule-book and by simplifying withholding tax relief at source procedures and 2) implement proposals aimed at facilitating a shift long-term savings towards long-term investments.
EESC opinion: A Capital Markets Union for people and businesses – new action plan
The EESC considers that in addressing the challenges and risks associated with digital transformation, regulation for technology providers, protecting consumers, granting access to financial services, operational resilience and security of network and information systems are crucial for creating the Digital Single Market for financial services. As concerns crypto assets, the EESC endorses the various regulatory adjustment measures envisaged which are needed to modernise financial services, without losing sight of consumer protection and prudential rules.
The EESC welcomes the fact that the Recovery and Resilience Facility regulation confirms the importance of genuine civil society involvement in the development of national plans and advocates for the establishment of binding conditionality for such consultation. To support economic development the EESC considers the full operation of the Single Market as well as fiscal policies and support measures crucial, while calling for the establishment of new fiscal rules that reflect social and economic realities after the pandemic. New instruments to combat tax evasion, undeclared work and the shadow economy are also called for. The EESC also welcomes the inclusion of the green and digital transitions, but regrets the insufficient attention paid to social issues. Efforts to move rapidly towards a green and digital economy must not result in a further increase in poverty and greater social exclusion.
The EESC considers that in addressing the challenges and risks associated with digital transformation, regulation for technology providers, protecting consumers, granting access to financial services, operational resilience and security of network and information systems are crucial for creating the Digital Single Market for financial services. As concerns crypto assets, the EESC endorses the various regulatory adjustment measures envisaged which are needed to modernise financial services, without losing sight of consumer protection and prudential rules.
