SMEs

While the recovery after COVID-19 crisis is a top priority, the EESC stresses that this should not steer the EU away from its medium and long-term objectives, as outlined in the European Green Deal, 2020 Sustainable Growth Strategy, and the European Pillar for Social Rights. There is a need for a resilient, technology-driven European economy that is defined by the protection of the environment. The EESC underlines that strategies aimed at enhanced economic sustainability need to be developed around productivity, but they cannot be allowed to happen at the expense of workers' rights and social development. The EESC advocates for re-thinking supply chains, underlines that social aspects should be emphasised, start-ups should be encouraged and that the cornerstone of sustainable economic growth in the EU should be the creation and development of a truly circular economy. Open dialogue with social partners and civil society remains key to setting the economic direction.

This additional opinion complements and updates the proposals made in the yearly EESC AGS opinion. The EESC welcomes country-specific recommendations focus on investment and underlines that special attention must be paid to productive investments and investment in social infrastructure to prioritise sustainable growth. Next year's cycle should contain more CSRs to combat the existential threat of climate change. Investment would also be needed to enable the implementation of the social pillar to prevent an increase of social, economic, and environmental inequality. Taxation should favour this type of investment.

The EESC welcomes the Investment Plan for Europe for its contribution to the promotion of investment in the EU. The Committee calls for clearly set investment targets, regulatory simplification and further guidance in order to achieve greater geographical and sectoral balance. The EESC advocates for strengthened financial capacity for the InvestEU programme within the Multiannual Financial Framework 2021-2027 and calls for more efforts to raise awareness among European businesses and citizens about the benefits obtained from the Investment Plan for Europe.

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.