An economy that works for people

Question 1

Definition of priority

Answer 1

Individuals and businesses in the EU can only thrive if the economy works for them.

This is why vDL Commission will focus on strengthening the social market economy,
acutely important at a time when the EU is
redesigning the way our industry and our
economy work.

Our goal for a climate-neutral and healthy
planet must be built on a strong and resilient
social market economy. What we want to
spend on this transition, we first need to earn.

Question 2

Main goals stated in political guidelines

Answer 2

1) Supporting small business: SMEs are backbone of economy, adding 85% of jobs and 99% of companies. EU to focus to make it easier for small
businesses to become large innovators, that is, focusing on making growth finance available. EU will propose dedicated SME strategy, to cut red tape and improve market access. Also finalise CMU to improve access to finance, for example through a private-public fund specialising in Initial Public Offerings of SMEs.

Question 3

Objectives of EU social and employment policy

Answer 3

Main objective Art 3 TEU: the Union has the duty to aim at full employment and social progress

Objectives specifies in Art 151 TFEU:
* promotion of employment, improved living and working conditions
* improved living and working conditions
* proper social protection
* dialogue between management and other members of staff
* development of human resources with a view to ensuring lasting high employment and the combating of exclusion

Question 4

Legal basis social and employment policies

Answer 4

Art 3 TEU

Art 9,10,19,45-48, 156-161 TFEU

Question 5

European Pillar of Social Rights

Answer 5

Signed at Gothenburg Summit in 2017. It is a set of documents containing 20 key principles and rights intended to build a fairer Europe in the fields of labour markets and welfare systems.

Organised around 3 chapters:
Chapter 1: Equal opportunities and access to the labour market
Chapter 2: Fair working conditions
Chatper 3: Social protection and inclusion

In 2021, the European Pillar of Social Rights - Action Plan sets out concrete initiatives to turn key targets into reality. It proposes headline targets for the EU by 2030.

In Porto Summit 2021, the three headline targets for 2030 were prpopsed:
1. at least 78% of the population aged 20 to 64 should be in employment by 2030
2. at least 60% of all adults should be participating in training every year by 2030
3. a reduction of at least 15 million in the number of people at risk of poverty or social exclusion

Question 6

Initiatives that contribute to EPSR

Answer 6

• Directive on platform work (2021): aims at granting legal employment status that corresponds to workers’ actual work arrangements.
• Action Plan on the Social Economy (2021): outlines ipcoming proposals in 3 key areas: 1) Creating the right conditions for the social economy to thrive, through new rulses on public procurement, taxatation, and State Aid on social enterprises
• 2) Opportuniteis and scale and start up of social enterprises: through increased support for social economy in MFF, EU Social Economy Gateway so that actors can find funding opportunities
• 3) Awareness and recognition of social economy: through increased comms activiteis of EC, EC study to get quantitative data on progress of social economy, and trainings of public servants
• Social economy as one of 14 key industrial econsystems in revision of Inustrial Strategy (2021)
• Following evaluation, in Q2 2023 EC to propose reinforced quality framework for traineeships, to improve traineeship conditions for young people
• In 2021 Directive on Fair minimum wages: framework to improve the adequacy of minimum wages and to increase the access of workers to minimum wage protection, while reinforcing collective bargaining. In states with existing statuatory minimum wages, to ensure that their levels are set adequately
• Council recommendation on adequate minimum income (2022)
• Reinforcing the Youth Guarantee (2021): the reinforced Youth Guarantee is a commitment by all Member States to ensure that all young people under the age of 30 receive a good quality offer of employment continued education, apprenticeship, traineeship. At least EUR 22 billion should be spent on youth employment support
• Finally, EC urges MS to make use of funds available under RFF to support reforms and investments

Question 7

Number of people in social economy

Answer 7

There are 2.8 million social economy entities in Europe that employ 13.6 million people

Question 8

Funds available for employment and social affairs

Answer 8

• European Social Fund Plus: EUR 99.3 billion for 2021-2027
• European Globalisation Adjustment Fund for Displaced Workers: pecial EU instrument to express EU solidarity with European workers or the self-employed that were displaced due to restructuring, and to help them find new jobs. EUR 210 million for 2021-2017
• EU Programme for Employment and Social Innovation (EaSI): now under ESF+: to support employment, social policy and labour mobility across the EU. Under direct management of EC. EUR 762 million for 2021 - 2027
• Fund for European Aid to the Most Deprived (FEAD): now under ESF+. EU countries’ actions to provide material assistance to the most deprived. At least 3% of resourses of ESF+ allocation for this aim.

Question 9

Initiatives under equality portfolio

Answer 9

1) Strategy on the rights of the Child and European Child guarantee (
2) European Disability Strategy (2021): 10-year strategy (2021-20230) to improve live and rights of people with disabilities, in line with UN Convention of rights of peole with disabilities. Main actions inlucde the EU disability card (to be proposed in Q4 2023, as currently no mutual recognition and standards), AccessiblEU (knowledge platform), Disability platform.
3) Gender equality strategy (2020-2025): presents policy objectives and actions to make significant progress by 2025 towards a gender-equal Europe. Dual approach of gender mainstreaming with targeted actions. Actions include directive on binding pay transparency measures (2021), European Child Guarantee (2021, proposal for Council recommendation), Directive for gender balance on corporate boards (2022, 40% of underrepresented sex and 33% for directors), European Care Strategy (2022), EU strategy oni mental health (2023, includes women-specific measures)
4) Directive to Combat Violence Against Women (2022). Objetctive: * introduce targeted minimum rules on the rights of this group of crime victims,
* and to criminalise forms of violence against women and of cyber violence. Directive will also criminalise rape based on lack of consent, female genital mutiliation, adn cyber violence.

Question 10

Actors of the EMU

Answer 10

• The European Council – sets the main policy orientations
• The Council of the EU (the ‘Council’) – coordinates EU economic policy-making (mainly SGP) and decides whether a Member State may adopt the euro
• The ‘Eurogroup’ – coordinates policies of common interest for the euro-area Member States
• The Member States – set their national budgets within agreed limits for deficit and debt, and determine their own structural policies involving labour, pensions and capital markets
• The European Commission – monitors performance and compliance
• The European Central Bank (ECB) – sets monetary policy, with price stability as the primary objective and act as central supervisor of financial Institutions in the euro area
• The European Parliament - shares the job of formulating legislation with the Council, and subjects economic governance to democratic scrutiny in particular through the new Economic Dialogue

Question 11

Legal basis EMU

Answer 11

Art 3 TEU
Art Art. 119-144, 219, 282-284 TFEU

Question 12

Main fields of EMU

Answer 12

(i) implementing a monetary policy that pursues the main objective of price stability; **
(ii) avoiding possible negative spillover effects due to unsustainable government finance, preventing the emergence of macroeconomic imbalances within Member States, and coordinating to a certain degree the economic policies of the Member States;
(iii) ensuring the smooth operation of the single market.**
(iv) supervising and monitoring financial institutions

Question 13

Role of national governments in EMU

Answer 13

• fiscal policy that concerns government budgets
• tax policies that determine how income is raised
• structural policies that determine pension systems, labour- and capital-market regulations

Question 14

European semester

Answer 14

Definition. The European Semester is the framework for integrated surveillance and coordination of economic and employment policies across the European Union. It is essentially a yearly exercise to coordinate economic, fiscal, employment and social policy within the European Union.

Question 15

Policies coordinated during European Semester

Answer 15

• fiscal policies, in order to ensure the sustainability of public finances in line with the stability and growth pact
• prevention of excessive macroeconomic imbalances
• structural reforms, focusing on promoting growth and employment
• structural reforms set out in the national recovery and resilience plans
• employment and social policies, in line with the principles of the European Pillar of Social Rights
• Since 2021, also includes progress towards SDGs

Question 16

Key goals of European Semester

Answer 16

• contribute to ensuring convergence and stability in the EU
• contribute to ensuring sound public finances
• foster economic growth
• prevent excessive macroeconomic imbalances in the EU
• monitor the implementation of national recovery and resilience plans
• coordinate and monitor employment and social policies

Question 17

Elements and timeline of European Semester

Question 18

Legal basis European Semester

Answer 18

Art. 121 and 148 TFEU, and “six-pack” six legislative packs that reformed the SGP

Question 19

Timeline European Semester

Answer 19

1. Autumn package (Nov):Kicks off annual European Semester cycle. The Commission sets out general social and economic priorities for the EU and provides EU countries with policy guidance for the following year.
2. After publication of ASGS, Commission continues dialogue with MS, stakeholders and social partners to develop understanding of common challenges. Council and Parliament develop positions to ASGS. Taking into account these inputs, the Spring European Council provides guidance on reform priorities, which should then be reflected in the programmes and plans of Member States.
3. Based on this dialogue and further assessment, the Commission presents in February its annual analysis of the economic and social situation in Member States, including progress in implementing country-specific recommendations issued in previous years and an assessment of possible imbalances.
4. In April, Member States submit to the Commission their national reform programmes on economic policies and stability or convergence programmes on budgetary policies.
5. The Commission analyses them and then issues country-specific recommendations (CSRs) in May,
6. These are endorsed by European Council and adopted by ECOFIN in July. Member States should then incorporate this policy guidance into their annual budgets, national legislation and policy plans.

Question 19

4 priorities of European Semester

Answer 19

• promoting environmental sustainability
• productivity
• fairness
• macroeconomic stability

Question 20

Macroeconomic Imbalance Procedure

Answer 20

The macroeconomic imbalance procedure (MIP) aims to identify, prevent and address the emergence of potentially harmful macroeconomic imbalances that could adversely affect economic stability in a particular EU country, the euro area, or the EU as a whole.

Under the MIP, when a country is found to have an excessive imbalance, it is subject to enhanced monitoring known as the excessive imbalance procedure (EIP). In addition to the increased monitoring countries in the euro area can also face sanctions.

MIP is part of European Semester. In autumn package, alert mechanism report is published, which is starting point of MIB. The AMR uses a scoreboard of selected indicators to screen EU countries for potential economic imbalances needing policy action

On this basis, the AMR identifies countries that need an in-depth review (IDR) by the Commission to assess how macroeconomic risks in the are evolving, and to determine the presence of imbalances or excessive imbalances.

The IDR is included in the annual country report, issued around February.A country may be found to have ‘no imbalances’, ‘imbalances’, ‘excessive imbalances’, or ‘excessive imbalances with corrective action’, which may trigger the excessive imbalance procedure.

Countries with imbalances or excessive imbalances may receive policy recommendations for reducing them in their country-specific recommendations.

Question 21

Elements of Autumn Package

Answer 21

a. It also includes Annual Sustainable Growth Survey, which outlines economic policy agenda for next 12-18 months
b. Alert Mechanism Report: launches the annual Macroeconomic Imbalance Procedure (MIP), which aims to detect, prevent and correct imbalances that hinder the proper functioning of Member States’ economies, or the EMU as a whole.
c. Joint employment report, which analyses the employment and social situation in Europe and the policy responses of national governments.
d. Euro area recommendation: presents tailored advice to euro area Member States on those topics that affect the functioning of the euro area as a whole
e. Opinion on Draft budgetary plans of euro area Member States, which assesses the compliance of draft budgetary plans presented by euro area Member States for the coming year
f. Post programme surveillance reports
g. Employers’ and ETUC’s views/priorities on ASGS

Question 22

Elements in Spring Package

Answer 22

a. Communication,
b. country reports,
c. country-specific recommendations,
d. in-depth revirw for 17 MS,
e. Commission proposal on guidelines for MS employment policies
f. Report under article 126(3) TFEU
g. Post-programme surveillance reports

Question 23

Recovery and Resilience Facility (size and scope)

Answer 23

Through the Facility, the Commission raises funds by borrowing on the capital markets (issuing bonds on behalf of the EU). It finances reforms and investments in EU Member States made from the start of the pandemic in February 2020 until 31 December 2026.

The funds are then available to its Member States, to implement ambitious reforms and investments that:
- make their economies and societies more sustainable, resilient and prepared for the green and digital transitions, in line with the EU’s priorities;
- address the challenges identified in country-specific recommendations under the European Semester framework of economic and social policy coordination

Size: EUR 723.8 billion (EUR 385 billion in loans, EUR 338 billion in grants).

To benefit from support under the Facility, EU governments have submitted national recovery and resilience plans, outlining the reforms and investments they will implement by end-2026, with clear milestones and targets. The plans had to allocate at least 37% of their budget to green measures and 20% to digital measures.

The Recovery and Resilience Facility is performance based. This means that the Commission only pays out the amounts to each country when they have achieved the agreed milestones and targets towards completing the reforms and investments included in their plan.

Question 24

Legal basis monetary policy

Answer 24

Art. 3 TFEU = exclusive competence or the Member States whose currency is the euro.
Art 119-144, 219 and 282-284 TFEU plus Protocol (No 4) to the Lisbon Treaty on the Statute of the European System of Central Banks (ESCB) and the European Central Bank (ECB).

Question 25

Converge criteria (Maastricht criteria) and steps for new MS joining euro

Answer 25

In principle, by adhering to the Treaties, all EU Member States agreed to adopt the euro (Article 3 of the TEU and Article 119 of the TFEU). Denmark does not have to join, as it has an opt-out clause.

At least every two years, the European Central Bank (ECB) and the European Commission examine whether the non-euro area member states (the so-called ‘member states with a derogation’) fulfil convergence criteria and therefore are ready to introduce the euro. They each issue a convergence report presenting their findings.

Maastricht criteria
1. Price stability
The inflation rate cannot be higher than 1.5 percentage points above the rate of the three best-performing member states.

2. Sound and sustainable public finances
   The country should not be under the excessive deficit procedure.
3. Exchange-rate stability
   The country has to participate in the Exchange Rate Mechanism (ERM II) for at least two years, without strong deviations from the ERM II central rate and without devaluing its currency’s bilateral central rate against the euro in the same period.
4. Long-term interest rates
   The long-term interest rate should not be higher than two percentage points above the rate of the three best-performing member states in terms of price stability.

Legal convergence
Candidates to join the euro area must also ensure that national legislation is compatible with the Treaty and the Statute of the European System of Central Banks (ESCB) and the European Central Bank (ECB). The Treaty and Statute provide for the independence of central banks.

The Council of the EU decides whether a country can introduce the euro. Steps:
* it has received a proposal from the Commission
* it has received a recommendation from the euro area member states (QVM)
* it has consulted the European Parliament
* a discussion has taken place in the European Council

The final decision is taken by all EU member states. In EU legislation, this is referred to as the ‘abrogation of the derogation’.

Question 26

ECB new strategy

Answer 26

Published in July 2021

Elements:
1) keep HICP, but inluding owner occupied housing in the medium term
2) An inflation buffer above zero per cent provides monetary policy with space for interest rate cuts in the event of adverse developments
3) new price stability target: The Governing Council considers that price stability is best maintained by aiming for two per cent inflation over the medium term. The Governing Council’s commitment to this target is symmetric (both negative and positive deviations undesired)
4) ECB will include climate considerations not only in monteray policy assessments, buts also in monetary policy instruments (e.g. APP)

Question 27

Legal basis mandate ECB

Answer 27

Article 127(1) of the Treaty on the Functioning of the European Union

Question 28

European Stability Mechanism and ESM treaty review

Answer 28

The European Stability Mechanism is an intergovernmental organisation established by member states of the euro area in 2012. Its mission is to enable the countries of the euro area to avoid and overcome financial crises and to maintain long-term financial stability and prosperity.

Maximum amount of loans in EUR 500 billion. The total equity that was deosited is EUR 80 billion, with MS committed another EUr 625 billion.

The ESM carries out this mission by providing loans and other types of financial assistance to member states that are experiencing or are threatened by severe financial distress. In other words, the ESM acts as a “lender of last resort” for euro area countries when they are unable to refinance their government debt in financial markets at sustainable rates.

The ESM was activated for 5 countries, Greece, Ireland, Portugal, Spain and Cyprus, when these did not have market access anymore

Under 2021 reform, ESM would serve as backstop to Single Reslution Fund. This is important as SRF is too small (EUR 70 billion) to bear the brunt of a widespread banking crisis.

Question 29

Banking Union

Answer 29

The banking union of the European Union is the transfer of responsibility for banking policy from the national to the EU level in several EU member states, created in 2014 as a response to the Eurozone crisis (and following the single rulebook created in response to GFC).

All euro-area MS are part of BU

It has the following objectives
* banks are robust and able to withstand any future financial crises
* non-viable banks are resolved without recourse to taxpayers’ money and with minimal impact on the real economy
* market fragmentation is reduced by harmonised financial sector rules

It consists of two pillars:
- Single Supervisory Mechanism (SSM): The SSM supervises the largest and most important banks in the euro area directly at European level. It is the EU’s supranational bank supervisory body. The responsibility for supervising credit institutions is exercised by the European Central Bank in close cooperation with national supervisory authorities.
- Single Resolution Mechanism (SRM): prupose is to resolve failing banks in an orderly manner with minimal costs for taxpayers and for the real economy. It is made iup of the Single Resolution Board and the Single Resolution Fund. The fund is to be used in cases of bank failure and is financed entirely by Europe’s banking sector.

completing BU
* A third element, a European Deposit Insurance Scheme (EDIS), has been accepted as a legislative priority for 2021. It was proposed by EC in 2015, but legislative process stopped by EP and Council.
* EDIS would apply to deposits below €100 000 of all banks in the banking union

Question 30

Single Rulebook - what it is and key legislations

Answer 30

To ensure a safer financial sector for the single market, the ‘single rulebook’ was created as the backbone of the banking union and financial sector regulation in the EU. The single rulebook consists of a set of legislative texts that all financial institutions (including approximately 8 300 banks) in the EU must comply with, in order to ensure a level playing field across the EU.

Key objectives:

• to eliminate legislative differences among member states
• to ensure the same level of protection for consumers
• to ensure a level playing field for banks across the EU

The pillars of the single rulebook - the legal acts that are most relevant for the banking union - are:

capital requirements directive (CRD IV and V) and capital requirements regulation (CRR I and II)
amended directive on deposit guarantee schemes (DGS)
bank recovery and resolution directive (BRRD I and II)

Question 31

Capital Markets Union

Answer 31

Portfolio: Mairead McGuinnes (Ireland, Financial Services, Financial Stability and the Capital Markets Union)

• The capital markets union (CMU) is a plan to create a single market for capital. The aim is to get money – investments and savings – flowing across the EU so that it can benefit consumers, investors and companies, regardless of where they are located.
• The EU remains 27 capital markets, with cross-border finance hampered. This lack of an EU capital markets union is more than an inconvenience: it weakens Europe’s businesses and households.
• In EU, size of financial markets is 53% of GDP, ini U.S: it is 170%. This also implies also a weaker role of the euro than it could be
• First CMU action plan in 2015

**A CMU will:
**
* * provide businesses with a greater choice of funding at lower costs and provide SMEs in particular with the financing they need
* * support the economic recovery post-Covid-19 and create jobs
* * offer new opportunities for savers and investors
* * create a more inclusive and resilient economy
* * help Europe deliver its new green deal and digital agenda
* * reinforce the EU’s global competitiveness and autonomy

Question 32

Completing CMU

Answer 32

New CMU action plan in 2020
* While progress has been made since the CMU initiative was launched in 2015, EU capital markets remain fragmented. This means that European citizens and businesses are not able to fully benefit from the deep, competitive, efficient and reliable sources of funding and investment that capital markets can offer.
* A strong and complete CMU is needed now more than ever, in order to support the economic recovery following the COVID-19 crisis and finance the green and digital transitions
* The CMU action plan proposes 16 legislative and non-legislative actions to deliver on three key objectives, based on several pillars:
1) Improving access to finance for companies and ensure that EU’s recovery is green, e.g. through support for long-term investment vehicles, supporting access to public markets
2) Make EU safer place for indiviuals to save and invest long-term, e.g. through empowering citizens through finance literay, building retail investor’s trust in capital markets
3) Integrate national capital markets in genuine single markets, e.g. through alleviating tax burden in cross-border investment, facilitating shareholder engagement

Actions announced:
* Create a single access point to company data for investors;
* Support insurers and banks to invest more in EU businesses;
* Strengthen investment protection to support more cross-border investment in the EU.
* Facilitate monitoring of pension adequacy across Europe;
* Make insolvency rules more harmonised or convergent;
* Push for progress in supervisory convergence and consistent application of the single rulebook for financial markets in the EU.

CMU Package November 2021
package of measures to improve the ability of companies to raise capital across the EU and ensure that Europeans get the best deals for their savings and investments.
* The European Single Access Point (ESAP): The ESAP will offer a single access point for public financial and sustainability-related information information about EU companies and EU investment products
* Review of the European Long-Term Investment Funds (ELTIFs) Regulation: improves attractiveness of ELTIFs, e.g. by removing minimum investment threshold
* Review of the Alternative Investment Fund Managers Directive (AIFMD): proposal harmonises the rules related to funds that give loans to companies, which will will facilitate lending to the real economy, while better protecting investors and ensuring financial stability
* Review of the Markets in Financial Instruments Regulation (MiFIR): adjustments to EU trading rules will ensure more transparency on capital markets.They will introduce a “European consolidated tape”, which will give investors access to near real-time trading data for stocks, bonds and derivatives across all trading venues in the EU. This data has so far been available only for handful of professional investors

CMU package July 2022
The European Commission has today put forward measures to further develop the EU’s Capital Markets Union (CMU):
* to make EU clearing services more attractive and resilient, supporting the EU’s open strategic autonomy and preserving financial stability.
* to harmonise certain corporate insolvency rules across the EU, making them more efficient and helping promote cross-border investment.
* to alleviate – through a new Listing Act – the administrative burden for companies of all sizes, in particular SMEs, so that they can better access public funding by listing on stock exchanges.

May 2023 Retail investment Strategy
* Places the consumers’ interests at the centre of retail investing. The aim is to empower retail investors (i.e. “consumer” investors) to make investment decisions that are aligned with their needs and preferences, ensuring that they are treated fairly and duly protected.
* Today’s package aims to achieve that goal and encourage participation in EU capital markets, which has traditionally been lower than in other jurisdictions, such as the United States – even though Europeans have very high savings rates.

Actions:
* Increase transparency and comparability of costs by requiring the use of a standard presentation and terminology on costs
* Improve the way information is provided to retail investors about investment products and services, in ways that are more meaningful and standardised
* Protect retail investors from misleading marketing, makign financial intermediares fully responsible for use of their marketing channels
* Preserve high standards of professional qualifications for financial advisors.
* Empower consumers to make better financial decisions, by encouraging Member States to implement national measures that can support citizens’ financial literacy

Question 33

Strengthening global role of euro

Answer 33

Background
* The euro is the currency of 19 EU countries, over 340 million EU citizens and the second most important currency in the world
* 60 countries and territories (with 175 million people livign in them) have pegged their currency directly or indirectly to the euro
* The latest survey (March 2021) shows that public support for the euro has reached a record high in the euro area: 80% thinks having euro is good
* he euro is well placed to play a stronger international role, as it is backed by a large economic area, well-advanced financial markets, relatively low currency volatility, and an independent central bank with a clear price stability mandate and a prohibition of monetising government deficits.
* An increased international role for the euro is a tool to strengthen Europe’s influence in the world. It will allow the European Union to better protect its citizens and businesses, uphold its values and promote its interests in shaping global affairs according to rule-based multilateralism.

Benefits from stronger euro
* It would ensure more stable financing conditions and attract more investors.
* Lower interest rates paid by European households, businesses and Member States
* Lower cost and lower risk of trading internationally for European businesses
* Stronger autonomy of European consumers and businesses
* Improved resilience of the international financial system and economy, making them less vulnerable to exchange rate shocks.

2021 Strategy on strengthening global role of the euro
* This strategy aims to better enable Europe to play a leading role in global economic governance, while protecting the EU from unfair and abusive practices
* It is based on 3 pillars:
1) Promoting a stronger international role of the euro by reaching out to third-country partners to promote its use, supporting the development of euro‑denominated instruments and benchmarks and fostering its status as an international reference currency. E.g. NGEU borrowing has made euro denomiated onds much more liquid
2) Further developing EU financial market infrastructures and improving their resilience,including towards the extraterritorial application of sanctions by third countries. This will be done through analysing vulnerabilities of key financial market infrastrucutre copmanies as regards the unlawful extraterritorial application of unilateral measures by third countries
3) Further promoting the uniform implementation and enforcement of the EU’s own sanctions. his year, the Commission will develop a database – the Sanctions Information Exchange Repository – to ensure effective reporting and exchange of information between Member States and the Commission on the implementation and enforcement of sanctions.

Question 35

Social Economy Action Plan (2021)

Background, 3 areas for action

Answer 35

Background
* Social economy organisations are entities which put social and environmental purposes first, reinvesting most of their profit back into the organisation.
* There are 2.8 million social economy entities in Europe that employ 13.6 million people and which offer solutions to key challenges in our societies.
* Enhanced support to the social economy not only creates jobs, but also allows organisations to increase their social impact across the EU.

Actions in 3 areas
1) Creating right conditions for the social economy to thrive
EC to propose measures to enable sound regulatory framework in taxation, public procurement, State Aid.
2) Opening opportunities for social economy organisations to start up and scale up
* Among other actions, the Commission will launch a new EU Social Economy Gateway in 2023 to ensure social economy actors can find all the information they need in one place on EU funding, policies, training and initiatives.
* It will also launch new financial products in 2022 under the InvestEU programme and improve access to funding.
* In 2022, the Commission will also set up a European Competence Centre for Social Innovation.

**Making surethe social economy and its potential are recognised **
* The Commission will carry out communication activities emphasising the role and specificities of the social economy.
* Furthermore, the Commission will launch a study to collect qualitative and quantitative data to better understand the social economy across the EU.
* It will also organise training courses for public officials on various topics with relevance for the social economy,

Question 36

Social Economy Measures (2023)

Answer 36

Overview
* Today, the Commission recommends concrete measures to support the social economy, which prioritises people, social and environmental causes over profit.
* The proposal aims to create favourable conditions for social economy organisations to thrive and grow, and raise awareness of their potential,

Proposals
* A proposal for a Council recommendation for Member States to design and implement social economy strategies. These recommendations include (exanples) a) how to design labour market policies, b) how to improve access to public and private funding, c) how to enable access to market opportiniteis nd public procurement, d) how to create a supportive taxation system
* The social economy gateway, a one-stop shop website to provide social economy organisations with information on EU funding, training opportunities and more.

Question 37

IPR Action Plan (2020)

Answer 37

Overview
* Intellectual property (IP) is a key driver for economic growth as it helps companies to valorise their intangible assets.
* IP-intensive industries account for 45% of all GDP and 93% of all EU exports, while the added value of IP is growing across most European industrial ecosystems.
* Globally, IP filings are on the rise, as intangible assets play an increasing role in the global race for technological leadership
* European innovators and creators, in particular SMEs, are often not aware of the benefits of integrating IP in their business strategy. For instance, only 9% of SMEs file for IP protection.
* The import of counterfeited and pirated goods amounts to 6.8% of EU GDP.
* The New EU Industrial Strategy adopted on 10 March this year acknowledged the need for the EU Intellectual Property policy to help uphold and strengthen Europe’s tech sovereignty and promote global level playing field
* The Action Plan builds on the strengths of the European IP framework

Actions
The Action Plan aims at enabling the European creative and innovative industry to remain a global leader and at speeding up Europe’s green and digital transitions. Today’s Action Plan announces measures in five key areas:

1) Improving the protection of IP
* The Action Plan proposes to upgrade a series of existing IP tools and make them fit for the digital age, including improving the supplementary protection certificates (SPC) for patented medicinal
* modernises EU design protection
* It aims at strengthening the protection of agricultural geographical indications (GIs)
* The Commission also launches an industry dialogue to address the impact of new technologies (such as AI and block chain) on the IP system

2) Boost the uptake of IP by small and medium-sized companies (SMEs)
* the Commission proposes measures to improve information and advice.
* It will help coronavirus-affected SMEs better manage and leverage their IP portfolios via a new financial assistance scheme with € 20 million
* It also acts to make it easier to use IP as a lever for access to finance.

3) Facilitate the sharing of IP
* the Commission proposes measures to facilitate the sharing of critical IP in times of crisis, whilst ensuring return on investment.
* The Commission will also work on an improved copyright infrastructure

4) Fight counterfeiting and improve enforcement of IP rights
* The Commission will improve an effective and balanced enforcement of IP rights.
* For instance, as a complement to the upcoming Digital Services Act package, it will establish an EU anti-counterfeiting toolbox to promote and facilitate effective cooperation

5) Promote a global level playing field
* to address challenges on international stage with IP, the Commission aims to strengthen the EU’s position as a global standard-setter in IP.
* It will also step up the EU response to unfair practices committed by third country players, such as industrial espionage or attempts to misappropriate IP in the context of R&D cooperation.

Question 38

Recent development employment policy factsheet

Answer 38

• In 2019, the European Labour Authority was established, with its seat in Bratislava. Its main purpose is to help the Member States and the Commission to ensure that EU rules on labour mobility and social security coordination are enforced in a fair, simple and effective way.
• Directive (EU) 2019/1158 on work-life balance for parents and carers aims to improve access to family leave and flexible work arrangements, further enhancing equality between men and women in the labour market
• After the outbreak of the COVID-19 pandemic, several measures were adopted to address the employment and social consequences of the crisis, such as the Coronavirus Response Investment Initiatives (CRII and CRII+) and the temporary Support to mitigate Unemployment Risks in an Emergency (SURE).
• Furthermore, the Cohesion’s Action for Refugees in Europe (CARE) was launched and pre-financing using resources from the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU) programme was increased to support the Member States and regions in providing emergency assistance to people fleeing Ukraine following Russia’s invasion.
• The Council recommendation on establishing a European Child Guarantee was adopted to prevent and combat social exclusion by guaranteeing the access of children in need to the following key services: early-childhood education and care, education, healthcare, nutrition and housing
• As a tool to fight in-work poverty, Directive (EU) 2022/2041on adequate minimum wages in the EU establishes requirements to ensure that minimum wages as provided for by national law and/or collective agreements are sufficient, and enhances the effective access of workers to minimum wage protectio

Question 39

Employent laws proposed by European Commission

Answer 39

• Health and safety at work (2021 - 2027 staretgic framework on health and safety at work)
• Equal opportunities for women and men: equal treatment at work, pregnancy, maternity leave, parental leave
• The European Youth Guarantee aims to ensure that all people under the age of 30 receive a good-quality offer of employment, continued education, an apprenticeship or a traineeship within four months of becoming unemployed or leaving formal education.
• Protection against discrimination based on sex, race, religion, age, disability and sexual orientation
• Working conditions: minimum wages, part-time work, fixed-term contracts, working hours, employment of young people, informing and consulting employees
• The European Skills Agenda contains 12 actions focused on skills for jobs in order to ensure that the right to training and lifelong learning is fulfilled across Europe. The year spanning from 9 May 2023 until 8 May 2024 has been designated as the ‘European Year of Skills’ with the aim of addressing skills shortages in the EU and promoting a mindset of reskilling and upskilling to help people develop the right skills for quality jobs.

Question 40

Social dialogue

Answer 40

• Under Article 151 TFEU, the promotion of dialogue between management and labour is recognised as a common objective of the EU and the Member States. The aim of social dialogue is to improve European governance through the involvement of the social partners in decision-making and implementation.
• The 2017 European Pillar of Social Rights (EPSR) also provides for respect for the autonomy and the right to collective action of social partners and recognises their right to be involved in designing and implementing employment and social policies,
• The directive on adequate minimum wages in the EU strengthens the use of collective bargaining in wage setting and requires Member States that have a collective bargaining coverage rate below 80% to establish an action plan to promote collective bargaining.
• Under Article 154 TFEU, the Commission must consult the social partners before taking any action in the field of social policy. The social partners may then choose to negotiate an agreement among themselves instead.

Question 41

Equality

Answer 41

Commissioner Dalli highlighted three legislative proposals central to the defence of LGBTIQ rights in the EU:
* The first is the introduction of binding standards for equality bodies and the extension of their mandate to sexual orientation discrimination, especially in the field of employment;
* On 8 December 2022, a proposal for a directive on standards for equality bodies was presented by the Commission. It proposes a set of binding rules to strengthen the role and independence of equality bodies
* The second requires the Member States to work towards achieving the unanimity required to expand the list of EU crimes to include hate speech and hate crimes (Article 83 TFEU). This would allow the Commission to propose legislation criminalising, among other things, crimes motivated by the sexual orientation of the victim;
* The third is a European parenthood certificate, for which Commissioner Dalli stressed the importance of paving the way. The recognition of parenthood is particularly relevant for families with same-sex parents.

• The Commission proposal for a directive on pay transparency, adopted on 4 March 2021, introduces measures to ensure that women and men in the EU receive equal pay for equal work. On 30 March 2023, Parliament approved the Pay Transparency Directive.
• The directive stipulates, among other things, that if pay reporting shows a gender pay gap of at least 5%, employers will have to conduct a joint pay assessment in cooperation with their workers’ representatives

Funding
* The new MFF gives greater priority to gender mainstreaming in the EU budget.
* NextGenerationEU also pays specific attention to gender equality.
* Citizens, Equality, Rights and Values Programme (CERV) specifically covers the allocation of funds to civil society organisations working to promote gender equality and combating violence against women and girls in the EU.

Question 42

The fight against poverty, social exclusion and discrimination

Answer 42

• Combating poverty and social exclusion is one of the specific social policy goals of the EU and its Member States.
• In accordance with Article 153 TFEU, social inclusion is to be achieved solely on the basis of non-legislative cooperation – the open method of coordination (OMC)
• The EPSR action plan of March 2021 contained a number of relevant initiatives: the EU strategy on the rights of the child, the Council recommendation establishing a European Child Guarantee,the European Platform on Combating Homelessness, the Council recommendation on adequate minimum income ensuring active inclusion, the European Care Strategy and a high-level group on the future of social protection and of the welfare state,

Funding
* he ESF+ Regulation (EU) 2021/1057 requires 25% of the funds to be earmarked for social inclusion, at least 3% of the budget to be spent on food aid and basic material assistance for the most deprived
* Two of the six pillars set out in the RRF will contribute to tackling poverty and social exclusion.
* In March 2022, in the context of the Russian invasion of Ukraine, the Commission put forward a proposal for Cohesion’s Action for Refugees in Europe (CARE) to introduce more flexibility in the 2014-2020 cohesion policy rules. Member States can use such resources to finance emergency measures and to provide immediate support in the areas of employment, education and social inclusion
* In the context of the transition towards a climate-neutral economy, the European Union has adopted a series of measures to ensure that poverty and social inclusion do not worsen. Some examples are the Just Transition Mechanism, including the Just Transition Fund, and the proposal for a Social Climate Fund.

Question 43

Cohesion policy overview

Answer 43

• Strengthening its economic, social and territorial cohesion is one of the EU’s main objectives
• Cohesion policy is the European Union’s main investment policy. It provides benefits for all regions and cities in the EU and supports economic growth, the creation of jobs, business competitiveness, sustainable development and protection of the environment.
• From its very beginning, there have been large territorial and demographic disparities in the European Community (now the European Union) which could constitute obstacles to integration and development in Europe

Funding
* The EU supports the achievement of these objectives through the use of the European Structural and Investment Funds (the ESF, ERDF, Cohesion Fund, European Maritime and Fisheries Fund (EMFF)), and the Just Transition Fund (JTF).
* During the 2021-2027 programming period, the EU allocated over EUR 392 billion (current prices) to cohesion policy
* The European Regional Development Fund helps to redress the main regional imbalances in the EU. It supports regions whose development is lagging behind, along with the conversion of declining industrial regions. Size: EUR 226 billion
* The Cohesion Fund provides a financial contribution to projects relating to the environment and to trans-European networks in the area of transport infrastructure. This fund may only be accessed by those Member States whose gross national income per inhabitant is lower than 90% of the EU average. SIze: EUR 42.6 billion, out of which the contribution to the Connecting Europe Facility will amount to EUR 10 billion.
* The allocation of the Union’s financial resources devoted to cohesion policy is focused on two main goals:
Investment for growth and jobs — aiming to strengthen the labour market and regional economies; EUR 322.3 billion
European Territorial Cooperation — supporting EU cohesion through cooperation at cross-border, transnational and interregional level.
* Interreg is the European Union’s instrument to support cooperation across regions and countries: EUR 8 billion
* The new Just Transition Fund, which supports the territories most affected by the transition towards climate neutrality and aims to prevent the growth of regional disparities will have a budget of EUR 17.5 billion. EUR 7.5 billion will come from the MMF and additional EUR 10 billion will come from the NGEU.
* Another new instrument, ReactEU, was adopted in December 2020. It will act as a top-up for 2014-2020 cohesion programmes and will be additional to the cohesion allocations for 2021-2027. ReactEU will support the most important sectors in making a sound recovery following the COVID-19 crisis. Its allocation (until 2023) is EUR 47.5 billion.

Policy objectives
In the period 2021-2027, the cohesion policy has five policy objectives for the ERDF, ESF+, the Cohesion Fund and the EMFF:

A smarter Europe — innovative and smart economic transformation;
A greener, low-carbon Europe;
A more connected Europe — mobility and regional ICT connectivity;
A more social Europe — implementing the European Pillar of Social Rights;
A Europe closer to citizens — sustainable and integrated development of urban, rural and coastal areas through local initiatives.

Question 44

European regional development fund

Answer 44

The ERDF has two main goals, namely:

• Investment for growth and jobs – aiming to strengthen the labour market and regional economies;
• European Territorial Cooperation – aiming to strengthen cross-border, transnational and interregional cooperation within the EU.

Resources assigned to the first goal have been allocated to three different categories of regions:

• More-developed regions whose GDP per capita is above 100% of the EU average;
• Transition regions whose GDP per capita is between 75% and 100% of the EU average;
• Less-developed regions whose GDP per capita is below 75% of the EU average.

FUnds are assigned in certain shares to the 5 objectives of cohesion policy for the current MFF:
* 30% of ERDF go to greener, low carbon transition

Question 45

C

Cohesion Fund

Answer 45

The Cohesion Fund was established for the purpose of strengthening the economic, social and territorial cohesion of the European Union in the interests of promoting sustainable development. In the 2021-2027 programming period it provides support to:

• Investment in the environment, including areas related to sustainable development and energy which present environmental benefits;
• Trans-European networks in the area of transport infrastructure (TEN-T);
• Technical assistance.
• SIze: EUR 42 billion
• The Cohesion Fund is reserved for Member States whose gross national income (GNI) per capita is less than 90% of the EU average.
• 37% of the Cohesion Fund’s total financial allocations are expected to contribute to EU climate objectives.

Question 46

The solidarity fund

Answer 46

• The Solidarity Fund is the main EU instrument for supporting recovery from natural disasters and is an expression of EU solidarity.
• It enables the EU to provide effective support to an EU Member State (or a candidate country) to help it deal with the effects of a major natural disaster, such as a flood, forest fire, earthquake, storm or drought. Since 2020, the Solidarity Fund has also covered major public health emergencies, such as the COVID-19 pandemic.
• Size: Since 2021, the Solidarity Fund and the Emergency Aid Reserve have been financed as one instrument, called the Solidarity and Emergency Aid Reserve (SEAR). The maximum annual budget for the SEAR is EUR 1.2 billion (in 2018 prices).

Question 47

Just Transition Fund

Answer 47

• The Just Transition Fund is one of the European Union’s key tools to support regions in the transition towards climate neutrality by 2050.
• As part of the European Green Deal and with the aim of achieving the objective of EU climate neutrality in an effective and fair manner, the European Commission proposed the creation of a Just Transition Mechanism, including a Just Transition Fund
• It said that the Just Transition Mechanism should focus on the regions and sectors that are most affected by the transition due to their dependence on fossil fuels, including coal, peat and oil shale, and on greenhouse-gas-intensive industrial processes.

The mechanism consists of three pillars:
1. The Just Transition Fund; EUR 17.5 billion /7.5 billion budget + 10 from NGEU)
2. A dedicated scheme under the InvestEU programme;
3. A public sector loan facility provided by the European Investment Bank to mobilise additional investments in the regions concerned.

The Just Transition Fund primarily provides grants. The dedicated transition scheme under InvestEU crowds in private investments. European Investment Bank activities should leverage public financing.

Question 48

European Skilla Agenda

Answer 48

The European Skills Agenda is a five-year plan to help individuals and businesses develop more and better skills and to put them to use, by:

• strengthening sustainable competitiveness, as set out in the European Green Deal
• ensuring social fairness, putting into practice the first principle of the European Pillar of Social Rights: access to education, training and lifelong learning for everybody, everywhere in the EU
• building resilience to react to crises, based on the lessons learnt during the COVID-19 pandemic

Included actions
* Strengthening skills intelligence
* Rolling out the European Universities Initiative and upskilling scientists
* Skills to support the twin transitions
* Increasing STEM graduates and fostering entrepreneurial and transversal skills
* Support people in lifelong learning: A European approach to micro-credentials, Europass platform, Initiative on individual learning accounts

Objectives
* Participation of adults aged 25-64 in learning during the last 12 month: 60%
* Participation of low-qualified adults 25-64 in learning during the last 12 months: 30%
* Share of unemployed adults aged 25-64 with a recent learning experience: 20%
* Share of adults aged 16-74 having at least basic digital skills: 70%

Funding
* RRF will also focus on skills
* ESF+: 61.5 billion
* Erasmus: 16.2 billion
* InvestEU: 4.9 billion
* Plus EU to explore how fiscal frameworks can better support investment and we will promote enhanced reporting on human capital by large companies.

Question 49

Pact For Skills

Answer 49

• The Pact for Skills is one of the flagship actions of the European Skills Agenda.
• The Pact aims to support public and private organisations with upskilling and reskilling, so they can thrive through the green and digital transitions
• National, regional and local authorities; companies; social partners; cross-industry and sectoral organisations; chambers of commerce; education and training providers; employment services – they can all become members of the Pact for Skills.

All members of the Pact can benefit from three dedicated services:

Through the Networking Hub, members can find partners and relevant EU tools (like Europass, Skills Panorama, EURES and the European Network of Public Employment Services). They can also promote their activities.
The Knowledge Hub organises webinars, seminars and peer learning activities for members. It also provides updates on EU policies and instruments, as well as information on projects, tools, and best practices.
In the Guidance Hub, members can find information about EU and national funding opportunities, and guidance to partnering with national and regional authorities.

Question 50

Initiatives that inlcude skills

Answer 50

o European Year of Skills
o ouncil Recommendations on vocational education and training, individual learnign accounts and micro-credentials
o Pact for Skills: 2 million people have benefited from training under Pact and members have invested 160 million in skills initiatives
o Net zero industry academies under Green deal industrial plam
o Under new Innovation Agenda:
 Deep tech talent initiative: Implemented by EIT, will skill 1 million people in deep tech fields over next 3 years (until 2025)
 nnovation Internship Scheme: part of EIC, will allow EU-funded (read: Horizon Europe) researchers to intern at company ufundes by EIC or managed by EIT
 * Digital Europe programme: The European Commission will continue to provide training support to Higher Education Institutes, businesses and research and innovation centres through the Digital Europe programme
 Launch Innovation Talent Platform

o The cohesion policy will dedicate EUR 36.6 billion to the digital transition during the 2021–2027 period, adding to the EUR 16 billion invested between 2014 and 2020, amonh others for skills to bridge digital divide.
o Actions to boost investment in research, skills and innovation under blue economy strategy
- Under New Pact on Asylum and migration: Skills and Talent Package
o Reform of the Blue Card Directive for highly-skilled talent (done)
o Review Single Permit Directive for low and medium skilled workers
▪ Faster processing, not linked to a single employer, more controls
o Review of Long-Term Residence Directive to support intra-MS movement
▪ Cumulate residence periods in different Member States
- International Partnerships: Fight against migrant smuggling + Talent Partnerships for more legal routes to EU or job opportunities at home
- Flexibility and resilience: learning from the lessons of 2015