Summary of Opinions - 523Rd Plenary of 22/23 February 2017

European Economic and Social Committee

Brussels, 24 March 2017.

EESC-2017-00534-00-00-TCD-TRA (FR/EN) 1/21

Contents:

1.ECONOMIC GOVERNANCE / FINANCIAL INSTRUMENTS / TAXATION

2.ENVIRONMENT, AGRICULTURE AND FISHERIES

3.TRANSPORT / COMMUNICATION

4.INDUSTRY / INNOVATION

5.EXTERNAL RELATIONS

6.SOCIAL AFFAIRS

The following opinions were adopted:

1.ECONOMIC GOVERNANCE / FINANCIAL INSTRUMENTS / TAXATION

• Improving double taxation dispute resolution mechanisms

Rapporteur:Krister Andersson (Employers' Group – SE)

Reference:COM(2016) 686 final – 2016/0338 (CNS) - EESC-2016-06092-00-00-AC-TRA

Key points:

The EESC

• welcomes the Commission proposal for a Council Directive to improve double taxation dispute resolution mechanisms in the EU.

• agrees with the Commission that double taxation is one of the biggest tax obstacles to the Single Market.

• recognises that eliminating double taxation is not by itself sufficient to create a level playing field in the area of taxation.

• is pleased that the proposed directive adds targeted enforcement blocks to address the main identified shortcomings in the Union Arbitration Convention.

• also welcomes the flexibility provided to Member States to agree bilaterally on a case by case basis to alternative dispute resolution mechanisms.

• would like to stress the urgency of implementing this proposal.

Contact:Juri Soosaar

(Tel: 00 32 2 546 9628 - email: )

• Specific measures to Member States affected by natural disasters

Rapporteur:Pietro Vittorio Barbieri (Various Interests' Group – IT)

Reference:COM(2016) 778 final – 2016/0384 (COD)

EESC-2017-00042-00-00-AC-TRA

Key points:

The EESC endorses the Commission's proposal as regards specific measures to provide additional assistance to Member States affected by natural disasters.

The EESC supports:

• the introduction of a separate priority axis for reconstruction operations supported by the European Regional and Development Fund (ERDF) within an operational programme, without the need for national co-financing;

• extending the eligibility period of expenditure;

• the proposal to allow a Member State which has already included operations it has carried out in a payment application to the Commission, to make the necessary adjustments for the next payment application;

At the same time, the EESC believes that the fund needs to be revised once again in order to further clarify its scope and considers that the fund is an important demonstration of European solidarity and that Europeans should be made more familiar with it.

Contact: Helena Polomik

(Tel: 00 32 2 546 9063 - email: )

• Opinion of the European Economic and Social Committee on Establishing the EFSD Guarantee and the EFSD Guarantee Fund

Rapporteur:Jan Simons (Employers -NL)

Reference:COM(2016) 586 final

Key points:

The European Economic and Social Committee (EESC) welcomes the establishment of the European External Investment Plan (EIP) and the proposal for a Regulation on the European Fund for Sustainable Development (EFSD) and establishing the EFSD Guarantee and the EFSD Guarantee Fund as steps in the right direction towards tackling the causes of irregular migration at its roots. The eradication of poverty is also a goal on which the EFSD should focus. The Committee calls for a particular focus on resolving the situation in the countries that are the main source of migration where economic, social and security conditions have led to economic devastation and spiralling poverty while blocking any efforts towards sustainable development.

The Committee refers to its previous opinions where it has stressed the need to involve the private sector in development on condition that such development is in line with the sustainable development goals and that the private sector respects basic economic, environmental and social rights, the core International Labour Organisation (ILO) conventions and the Decent Work Agenda. This should apply also to the investment projects financed by the EFSD.

The Committee considers the proposal on the EFSD compliant with its recommendation to use development assistance as a multiplying factor for matching private capital with investments in developing countries and to link them to clearly defined aims, such as the creation of more and better jobs, production quality improvement and transfer of management know-how to the private sector.

The Committee calls on the Commission to study and analyse the experience of the implementation of the Investment Plan for Europe and the European Fund for Strategic Investment to avoid any shortcomings and obstacles taking into consideration that the situations in the partner countries covered by the EFSD are much more complicated than those in the EU Member States.

The Committee welcomes the coordination of the cooperation and governance through the strategic board of the EFSD where all the relevant institutions and bodies should be represented. Given the irreplaceable role of civil society in development cooperation, the EESC asks to be given the status of observer on the strategic board and recommends involving the representative civil society organisations in partner countries in the decision making process, including the preparation of concrete projects.

The Committee recommends that the one-stop shop to be established for the investors should not be limited to investment issues but should provide guidance and all necessary information and contacts for those who would like to engage in development activities.

The Committee would suggest that the Regulation include the commitment to extend the validity of the EFSD and the Guarantee beyond the limit of 2020 after the evaluation of the results of its implementation and calls on the Commission, the Council and the EP to take this into consideration when preparing the new Multiannual Financial Framework.

Contact:Tzonka Iotzova

(Tel.: 00 32 2 546 8978 - e-mail: )

• Euro area economic policy (2017)

Rapporteur:Javier Doz Orrit (Workers' Group - ES)

Co-rapporteur:Petr Zahradník (Employers' Group - CZ)

Reference:COM(2016) 726 final and COM(2016) 727 final

EESC-2016-05954-00-00-AC-TRA

Key points:

The EESC welcomes the European Commission's recommendation for a positive fiscal stance for the euro area that also respects the long-term fiscal sustainability objectives.

The EESC encourages the European Commission to allow for significant increases in public investment which, under specified conditions, should not be taken into account when calculating the deficit targets of the Stability and Growth Pact (SGP).

The EESC welcomes the emphasis on building on the existing Investment Plan, which should ensure that funds are directed towards countries in which investment has fallen particularly severely.

The EESC welcomes the European Commission's call for a symmetrical adjustment shared both by Member States with deficits and those with surpluses.

Productivity growth should be a priority objective of structural reforms. These should ensure the fair distribution of productivity gains in order to ensure stronger demand and supply-side improvements.

Strengthening and promoting social and civil society dialogues both at the national and the euro area level is of paramount importance for agreeing and successfully implementing the policies that are necessary for recovery and long-term economic sustainability.

Effective measures against money laundering, tax offenses, the use of tax havens and unfair tax competition between Member States will also help to achieve the objectives of the SGP.

The EESC supports the creation of a European Deposit Insurance Scheme and calls for the creation of a common backstop for the Single Resolution Fund of the banking union to be speeded up.

The EESC supports the initiatives to complete EMU, including a strong European Pillar of Social Rights, more fiscal flexibility and a fiscal capacity for the euro area with a Euro Treasury.

The EESC calls for a clear commitment of the Member States to implement the policies they agree on at Council level, thus avoiding uncertainty and creating a conducive investment environment.

Contact:Alexander Alexandrov

(Tel: 00 32 2 546 9805 - email: )

• Annual Growth Survey 2017

Rapporteur:Etele Baráth (Various interests-HU)

Reference:SC/046 EESC-2016-05339-00-01-PAC-TRA

The European Economic and Social Committee (EESC) endorses the priorities set out in the European Commission's 2017 Annual Growth Survey.

The European Semester is seen as a good instrument for further progress in policies and reform, leading to recovery and employment. The AGS 2017 outlines the most pressing economic and social priorities, accompanied by specific recommendations, however the EESC takes very seriously the negative aspects of the rules of the Stability and Growth Pact and Country-Specific Recommendations applied at national level to set the euro area fiscal stance.

The EESC welcomes, in principle, the missions set out in the 2017 growth survey, as well as the distribution of tasks between the Commission and the Member States. It repeats its proposal – made previously, in its analysis of the 2016 growth survey – to supplement the European Semester. As well as increasing investment, structural reforms and strengthening macroeconomic balance, the main objectives should also include progress to be made in terms of "beyond GDP" indicators (social, environmental and sustainability targets).

In the EESC's view, a clear and comprehensible overview of the political and strategic positions for the near future and for the longer term is essential. It is important that the priorities of the Juncker Commission as well as the 2030 targets, based on the Europe 2020 strategy (and which also cover sustainable development), jointly determine development processes.

Analysing the consistency between traditional cohesion policy – currently undergoing a mid-term review – and its financing (ESI Funds) on the one hand, and the new investment instruments (EFSI) on the other hand, should be a focus of the Annual Growth Survey.

Contact:Jakob Andersen

(Tel.: 00 32 2 546 9258 – e-mail: )

• Banking reform - Creditor hierarchy in insolvency

Rapporteur:Daniel Mareels (Employers' Group – BE)

Reference:COM(2016) 853 final – 2016/0363 (COD)

EESC-2017-00002-00-00-AC-TRA

Key points:

The EESC

• welcomes the Commission's proposal to amend the Bank Recovery and Resolution Directive (BRRD) to establish a harmonised national ranking of unsecured debt instruments in insolvency proceedings.

• reminds of its previously adopted position that in the event of a bank crisis, it is essential that the private capital of shareholders and other bank creditors be called on in the first instance ("bail-in"), in order to avoid the need to call on public money or taxpayer funds.

• fears that recent development resulting in Member States legislating individually in this area may give rise to difficulties and calls for a harmonised approach at EU level, so that the same BRRD rules apply everywhere. This will prevent undesirable competition in the market.

• deems a harmonised approach important in order to create a more level playing field between institutions and Member States and to reduce risks in the financial sector.

• welcomes the fact that the proposal contributes to the robustness of the resolution mechanism and, at the same time, improves and may speed up its operational applicability.

• finds that the new rules should not only facilitate and broaden as far as possible the issuance of the unsecured debt instruments in question, but also offer the greatest possible clarity and legal certainty to all parties, including investors.

• supports the proposed approach whereby the new rules are only applied to future issuances of the debt instruments.

Contact:Gerald Klec

(Tel: 00 32 2 546 9909 - email: )

2.ENVIRONMENT, AGRICULTURE AND FISHERIES

• Agriculture in trade agreements (Own-initiative)

Rapporteur:Jonathan Peel (Employers – UK)

Key points:

As part of the 1994 Uruguay Round Agreement on Agriculture (URAA), members of the newly established WTO (replacing the GATT, or General Agreement on Tariffs and Trade) agreed to initiate further negotiations "for continuing the agricultural trade reform process" by the end of 1999. In 2001 this "built-in reform agenda" in turn became part of the Doha Development Agenda (DDA).

Core to the Doha Declaration was the "Single Undertaking", whereby nothing was agreed until everything was agreed. However this was effectively broken in Bali in 2013, through the Trade Facilitation Agreement and a number of other agreements, furthered by the specific agreements on agriculture reached in Nairobi.

Although the Nairobi Ministerial Declaration states: "We note, however, that much less progress has been made in Agriculture", the decision taken there to eliminate export subsidies was described by the WTO Director General as "the WTO's most significant outcome on agriculture" in 20 years.

Realistically however the Doha process as such has run its course, with fresh thinking and fresh input now needed, not only for future multilateral negotiations but also for what might best be achieved at bilateral or regional level without distorting the global picture.

Nevertheless, as the EC Communication "Trade for All" states, multilateralism lies at the heart of world trade and must remain "the cornerstone of EU trade policy". The WTO develops and enforces the rules of global trade, and ensures global compatibility. There remains a real danger that bilateral agreements could set potentially overlapping and even conflicting rules.

The EU carries weight as the world's largest exporter and importer of agricultural products, it is no longer seen to be defensive on agriculture, it has a proven sustained interest in trade and development and above all it showed in Nairobi it has the ability to produce fresh and balanced thinking.

Contact:Arturo Iniguez

(Tel.: 00 32 2 546 87 68– email:)

• Procedural rules in the field of environmental reporting (category C)

Reference:EESC-2017-00680-00-00-AC-TRA

Key points:

Since the Committee endorses the contents of the proposal and has already set out its views on the subject in its earlier opinion 1491/90 adopted on 18.12.1990, it decided to issue an opinion endorsing the proposed text and to refer to the position it had taken in the above-mentioned document.

Contact:Cécile Laszlo

(Tel.: 00 32 2 546 80 39 email:)

• Mid-term evaluation of the LIFE Programme (Exploratory opinion at the request of the European Commission)

Rapporteur:Lutz Ribbe (Various interests – DE)

Reference:EESC-2016-03894-00-00-AS-TRA

Key points:

The section opinion states that it is still too early to carry out a proper assessment of the LIFE programme over the 2014-2020 period; nonetheless, it gives recommendations on the new features introduced in the programme from 2014 onwards (such as the so-called "Integrated Projects" and the new financial instruments) and reiterates the strong support of the Committee to an independent funding programme dedicated to the environment, biodiversity and resource-efficiency.

The main points of the opinion are:

• the LIFE programme has been an essential part of the EU environmental policy over the past 25 years, contributing directly to demonstrating the EU's added value to citizens; it also contributes to addressing the implementation gap affecting the EU environmental legislation;

• the LIFE programme has proved to be a flexible instrument, adapting over time to new constraints and challenges;

• the LIFE programme is too often used to offset the consequences of measures and policies which undermine the natural capital and biodiversity in the EU; much more consistency between public departments is needed to make sure that action under the LIFE programme does not come as a mere correction of other measures;

• the current policy consisting in funding the Natura 2000 network primarily through the EU's regional development funds and the second pillar of the Common Agricultural Policy is considered unsatisfactory. The opinion proposes to change this policy, by increasing substantially the LIFE budget and by earmarking a portion of it to Natura 2000;

• the opinion generally welcomes the new features introduced in the programme in 2014 as new evidence showing how flexible it is, but it is still too early to assess them properly;

• when it comes to project selection, the opinion states that the co-funding rates currently applied are often a barrier for potential applicants, especially from the NGO community; it calls on the Commission to consider higher co-funding rates in some cases;
• last but not least, considering the recent successes of international negotiations such as the 2030 Sustainable Development Agenda and the Paris Agreement on climate change, the opinion highlights that the LIFE programme will have to fulfil new tasks and be expanded after 2020, including, for instance, on climate adaptation.

The Commission asked both the EESC and the European Committee of the Regions to draw up exploratory opinions on the mid-term evaluation of LIFE. The CoR adopted its opinion on this subject at it last plenary session on 8-9 February.

Contact:Fabien Porcher

(Tel.: 00 32 2 546 90 98 email: )

3.TRANSPORT / COMMUNICATION

• Decarbonisation of transport

Rapporteur:Stefan Back (Employers - SE)

Reference:COM(2016) 501 final

EESC-2016-004961-00-00-AS-TRA

Key points:

The EESC endorses the European Strategy for Low-Emission Mobility (the strategy), including its aims and methods, and its holistic approach, which provides coherence between transport and other policy areas. It would have liked this approach to be further developed in terms of the links between the strategy and the communication on the upgrading of the internal market. This also applies with regard to the prospects of the digital economy and the development of a sharing economy and a circular economy. It underscores the potential effects of these developments on transport patterns, and draws attention to their social implications.

The EESC welcomes efficiency-enhancing measures and the importance attached to promoting multimodality and incentivising a shift toward lower emission modes. It likewise welcomes the attention paid to alternative fuels. However, it regrets the silence on improved access to the road haulage market and on the improved energy efficiency enabled by the European Modular System for vehicle combinations. It proposes that the Commission should publish a yearly emission scoreboard for the transport sector.