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Gentiloni says digital levy to fund NextGenerationEU will be proposed by summer

Catherine Feore

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Today (28 April) the European Parliament debated the future of a digital tax. In a report by Andreas Schwab MEP (EPP, DE) and by Martin Hlaváček MEP (Renew, CZ) the Economic and Monetary Affairs Committee reporters and their colleagues in the Budget Committee called for a fairer outcome and the creation of a new ‘own resource’ to fund the NextGenerationEU and the recovery and resilience fund (RRF).

The MEPs would prefer to have an international agreement negotiated through the OECD Inclusive Framework (IF), but after many delays, MEPs say that a European solution needs to be prepared by the summer even if the IF process has not been resolved. 

Economy Commissioner Paolo Gentiloni agreed with MEPs and said that the US administration did offer a new dynamic in resolving this question, nevertheless the EU would be coming forward with a proposal by the summer that would be compatible with the OECD process and which would respect the EU’s other international commitments, including those under the World Trade Organization. 

Gentiloni said that the two pillars - one based on allocation of taxes based on profits and the other on the need for a minimum corporate tax level - should not be treated separately and should be agreed as a package. 

Both MEPs and the commissioner were aware of the need to create the new ‘own resource’ mandated by heads of government and needed to pay back debt accrued in helping the EU’s COVID-hit economy recover. The deadline for the new resource to become operational is the start of 2023.

Economy

European Year of Rail: Connecting Europe Express will travel across 26 countries in 36 days

EU Reporter Correspondent

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On Europe Day (9 May), the Commission announced the route and timetable of the Connecting Europe Express, as part of the European Year of Rail 2021. Beginning its journey on 2 September in Lisbon and stopping in more than 70 cities in 26 countries, the train will link the Portuguese, Slovenian and French Presidencies of the Council of the EU, arriving in Paris on 7 October. The special train will demonstrate the power of rail to connect people and businesses, and the importance of EU infrastructure policy in making this possible.

Transport Commissioner Adina Vălean said: “Crisscrossing the continent, from Lisbon to Bucharest and from Berlin to Paris, the Connecting Europe Express will follow routes that bind us together – whether countries, businesses or people. While a symbol for connectivity, this train also serves as a reminder that we still have a long way to go and much work to do before rail becomes the transport option of choice for Europeans. Welcome the Connecting Europe Express as it stops at a station near you and join the events taking place around the continent.”

The project is a unique endeavour, involving the European Commission and the Community of European Railway and Infrastructure Companies (CER), European rail operators, infrastructure managers and numerous other partners at EU and local level. At each of the stops, events and other activities, adapted to local COVID-19 measures, will shine a light on the key role that rail plays for our society, but also on the challenges that rail must still overcome to attract more passengers and freight. You can have a look at the main stops or at the full map of the route here, and watch Commissioner Vălean's video message. Find more details here.

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Cities call for new EU pact for just and sustainable recovery

EU Reporter Correspondent

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Social inequalities are deepening. Homelessness and unemployment rates are shooting upwards, and new groups of people have emerged as at risk of poverty and social exclusion. City leaders from around 70 cities, meeting today, one day ahead of the EU Social Summit, have called for a new pact between all levels of government to reverse these dangerous trends and foster a just, sustainable and inclusive recovery.

“As city leaders, we have stepped up our responsibilities to implement social policy and guarantee public social investment over the past 12 months,” said Dario Nardella, president of Eurocities and Mayor of Florence. “But the recovery we now face will take bold actions and imagination to build back better and fairer. Despite repeated calls, many cities are still not consulted in the national recovery plans. That’s a lost opportunity that the EU cannot afford at this time, which will dampen Europe’s ability to bounce back. Without cities, the prospects for a sustainable and inclusive recovery look grim.”

In their conclusions, the city leaders say that the EU social targets for 2030 should be matched by ambitious reforms and investments. Specifically:

  • An annual social summit on the European Pillar of Social Rights action plan, with a meaningful participation from cities.
  • A strong social dimension in the European Green Deal.
  • Strengthen social investment and investment in social infrastructure, including social and affordable housing, as the way to deliver a just recovery, leaving no one behind.

“A new pact must commit the different levels of government to design a recovery response that works for people and planet. When so many people have been so badly affected this year, especially in our cities, now is the time to lend a helping hand, not to turn our backs,” added Nardella.

Cities have already demonstrated their commitment to implementing the European pillar of Social Rights through the 66 city pledges to the Eurocities ‘Inclusive Cities 4 All’ initiative, which have so far mobilised a total of €15bn in municipal investments for social causes.

“We are ready to do even more and work shoulder-to-shoulder with the EU and member states,” concluded Nardella. “In turn, we expect European leaders to engage us as key partners in the EU agenda for recovery.”

“We must use the recovery to prioritise the needs of people through our investments in green and digital reforms!  At the local level we see that social and environmental policies are interrelated,” said Maarten van Ooijen, Chair of Eurocities Social Affairs Forum and Deputy Mayor of Utrecht. “Cities can ensure that people are skilled to match green job opportunities, and we can develop local pacts by bringing together local businesses and training providers. We also need to avoid further deepening of the housing crisis in our cities. With urgent support from the national and EU institutions we can ensure a just recovery through targeted long term social investments in affordable housing” he concluded.

Dario Nardella, President of Eurocities and Mayor of Florence, will deliver the conclusions from the Cities Social Summit directly to European leaders at the EU Social Summit on Friday 7 May 2021.

  1. The following city leaders took part directly in the Eurocities Cities Social Summit, held on 6 May: Dario Nardella, President of Eurocities and Mayor of Florence; Ada Colau, Mayor of Barcelona; Ricardo Rio, Mayor of Braga; Susan Aitken, Leader of Glasgow City Council; Katrin Habenschaden, Mayor of Munich; Anne Hidalgo, Mayor of Paris; Rui Moreira, Mayor of Porto; Ahmed Aboutaleb, Mayor of Rotterdam; Maarten van Ooijen, Chair of Social Affairs Forum and Deputy Mayor of Utrecht; Sonia Fuertes, Commissioner for Social Action, Barcelona; Matteo Lepore, Deputy Mayor of Bologna; Elke Decruynaere, Vice-mayor of Ghent, responsible for education and youth; David McDonald, Deputy Leader of Glasgow; Thomas Fabian, Deputy Mayor of Leipzig; Renaud Payre, Vice President on habitat, social housing and urban policy of Lyon Metropole; André Sobczak, Deputy Mayor of Nantes; Alexandra Sußmann, Vice Mayor, Stuttgart; Betina Beśkina, Deputy Mayor of Tallinn; Marina Hanke, Vice-chair of Committee on European affairs, Vienna; Nina Abrahamzik, Councillor and Chair of the Committee on climate, environmental policy, public services and democracy of Vienna.
  2. The full conclusions from the Eurocities Cities Social Summit can be accessed here  
  3. Eurocities is running a campaign ‘Inclusive Cities 4 All’ engaging mayors and deputy mayors to commit to improve access to social rights, including childcare services and support for children. So far, 66 city commitments have been signed, representing 51 million citizens and totalling a municipal investment of €15bn. All city pledges are available here.
  4. Eurocities wants to make cities places where everyone can enjoy a good quality of life, is able to move around safely, access quality and inclusive public services and benefit from a healthy environment. We do this by networking almost 200 larger European cities, which together represent some 130 million people across 39 countries, and by gathering evidence of how policy making impacts on people to inspire other cities and EU decision makers.

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European Globalization Adjustment Fund: helping redundant workers

EU Reporter Correspondent

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Parliament has updated the European Globalisation Adjustment Fund, making it more accessible and better equipped to tackle global crises.

The European Globalization Adjustment Fund is one of the ways the EU is helping to tackle unemployment. Globalization can cause significant structural changes to world trade, which can lead to workers being laid off.

To support people losing their jobs due to globalisation or the economic fallout from major crises, such as the Covid-19 pandemic, the EU created the European Globalization Adjustment Fund in 2006. It is an emergency solidarity fund, which is used whenever there is a need for it. The fund co-finances projects to help workers find new jobs or set up their own business.

Find out what the EU does to manage globalization MEPs secured these changes to the European Globalisation Adjustment Fund: 

  • Threshold for applications for support lowered to 200 dismissed workers (down from 500) 
  • Possibility to apply for a one-time investment of €22,000 to start a business or to finance employee take-overs 
  • Childcare allowance for child carers when taking part in training or looking for a job 
Background

On 16 January 2019, MEPs voted in favour of plans to reform the fund for the post-2020 period. The aim was to broaden the fund's scope to offer assistance in case of major restructuring events linked to digitalisation, automation and the transition to a low-carbon economy. After successfully negotiating the changes to the fund with the Council in December 2020, MEPs adopted the regulation in April 2021.

The fund will be crucial in helping dismissed workers during these difficult times. It is now better equipped to help us face the challenges ahead and it will cover any type of redundancies following restructuring

Vilija Blinkevičiūtė (S&D, Lithuania)

MEP in charge of steering the proposals through Parliament Share this quote: 

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