An EU investment fund for economic resilience and sustainable competitiveness - Related Opinions

The EESC warns that a weak long-term EU budget would undermine competitiveness, cohesion, agriculture and democracy. The Committee calls for a stronger, fairer and future-proof multiannual financial framework (MFF) for 2028 to 2034.

The EESC emphasises that peace must remain a core EU priority and cautions against focusing solely on military threats while overlooking other serious risks to human life. It stresses the importance of diplomacy for conflict resolution and crisis prevention wherever possible.The EESC supports a comprehensive, inclusive European defence strategy that supplements military readiness with civil preparedness. It endorses the European Commission’s Joint white Paper for European Defence – Readiness 2030 and calls for a coordinated EU approach that treats defence, peace and security as shared public goods, underpinned by strong legal, institutional and financial frameworks with democratic oversight.

Given the significance of the provision of public goods for the well-being of the citizens, the EESC believes that particular attention should be paid to providing these European public goods (EPGs) and identifying them in the next multiannual financial framework (MFF) post-2027.

Special attention must be given to ‘functional EPGs’ – those linked to Article 3 TEU – that can ensure the normal functioning of the EU: the completion of the single market; the completion of the economic and monetary union; economic, social and territorial cohesion; EU open strategic autonomy (e.g. the joint EU health policy, food security, the EU energy union); defence and security; EU research and development; and the rule of law.

This own-initiative opinion constitutes the contribution of the ECO section to the 2025 EESC transversal own-initiative opinion package on the cost-of-living crisis, looking at specific economic policy measures that can help make the European economy future-proof.

Information Report ECO/651 and Own-initiative opinion ECO/652 are a continuation of the European Semester Group's (ESG) work to consult annually national economic and social councils, social partners and civil society organisations from EU Member States on reform and investment proposals made in the context of the European Semester and their implementation in the Member States. The Information Report aims to collect the views of social partners and civil society organisations in the Member States on the reform and investment proposals and their implementation, in particular those indicated in the 2024 Country-Specific Recommendations. The Own-initiative opinion aims to complement the Information Report and to include the EESC's policy recommendations based on the results of the stakeholder consultation. It allows the EESC to formulate general and specific considerations, and to present the associated EESC's conclusions and policy proposals.

In view of Europe's current security challenges, in particular with the armed conflict caused by Russia’s full-scale aggression against Ukraine, defence funding places a significant burden on the budgets of many EU Member States, worsening their fiscal position. 

At the same time, the resources that Member States are currently able to allocate to the development of defence capabilities still seem to be insufficient. 

As Europe needs to develop defence capabilities in a more integrated way, there is a need to significantly increase investment in European defence infrastructure and technological innovation to improve preparedness to respond to threats. 

The EESC welcomes the simpler and more transparent economic governance framework, the reduction of the pro-cyclical bias, the improvement in national ownership and strengthened enforcement, the differentiation and more tailored fiscal adjustment path of each Member State, based on a common-risk framework. However, the Committee proposes replacing the requirement obliging any Member State with a budget deficit of over 3% to cut that deficit by an average of 0.5% of GDP annually, and emphasises that the "technical trajectory" should be first in the hands of national governments and, at a second stage, be the result of a technical dialogue with the European Commission In due course. In due time, but by 2026 at the latest, an EU fiscal capacity should be established to meet at least some of the investment needs for common priorities and to allow Member States the fiscal space to meet the fiscal costs of the multiple transitions.

Although considerable progress has already been made towards completing EMU, there is still a need to significantly reinforce all four of its pillars, taking care to maintain the balance between them, as neglecting one or more of these pillars could result in dangerous disparities. Resilience to crises is a necessary, but not sufficient, condition for completing EMU: it also requires a positive vision, as set out in Article 3 of the EU Treaty. The EESC generally calls on the European institutions and national governments to take much more ambitious action in the context of EMU reform in order to achieve a more integrated, more democratic and socially better developed Union.

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.