ddrg/super_eurlex huggingface dataset:
3.5.

The EESC considers new funding opportunities to be of crucial importance in supporting the implementation of the Bauhaus objectives and in keeping the momentum of the initiative and the enthusiasm of the different stakeholders. Given that access to the EU’s funding system is extremely difficult — due to complicated funding and award criteria, and numerous other requirements (including pre-financing) — and that the funding rate reached is relatively low, there is a risk that these actions will only reach the ‘usual suspects’ who have experience in submitting European projects, and not the much wider target groups. This problem not only affects the New European Bauhaus but, in this context, it is extremely important to go further and also provide small-scale, easy to access funding opportunities and special financing measures to those without the means to apply for funding. Reaching this target requires close cooperation between the EU Member States, the European Commission, chambers of commerce and of professions, education institutions and other relevant interest groups. It must be ensured that the funding options for the New European Bauhaus at national level are also based on the above principles and that they are available in all Member States.
4.2

Meanwhile, the EESC suggests a number of issues that would need to be reconsidered within the proposals. The EESC stresses in that context that the common public interest to safeguard financial market stability is a top priority and, in this regard, a proper balance with other policy goals needs to be achieved, whereas putting financial stability at risk has to be absolutely avoided. The adoption of Basel III standards in the EU must not undermine the goal of increasing financial market stability in order to be better prepared for economic turbulences and crises in the future. Moreover, the proposed measures should, in any case, ensure that the capitalization of the banks is further strengthened, while also ensuring their competitiveness: (i) To eliminate the conditionality based on uptake of ratings for the transitional solution to reduce the impact of the Output Floor (OF) on unrated corporates (Article 465(3)). This is due to the low coverage of external ratings for the EU market and to avoid over-reliance on external ratings, in line with the Credit Rating Agencies Directive. (ii) As concerns the transitional arrangement for residential mortgages for the output floor, the EESC calls on the Commission to evaluate the opportunity to revise it from several perspectives (loan-to-value, asymmetry between risk methodologies, risk sensitivity) to avoid unintended consequences on access to residential mortgages. However, any revision in this respect should also consider the need to avoid any risks of real estate bubbles. (iii) Further revision of the provisions regarding the Internal Rating-based approach (IRB) allowing the use of real maturities, instead of fixed maturities in order to reflect the real risk embedded. (iv) To maintain the credit conversion factors (CCF) at 20 % for transaction-related contingent items (e.g. performance bonds, bid bonds, warranties) due to its key role in the EU economy, so as to be consistent with the real default data of the relevant market. (v) The capital-market-related provisions should be further evaluated to avoid the risks of a disproportionate impact on hedging, liquidity and funding costs for sovereigns and corporates, and, therefore, to help boost the ability of EU Corporate Investment Banks to compete on EU and international markets. (vi) To amend the calculation of the real contributions of minority interests to the consolidated capital, which currently goes against the goals of the Capital Market Union, impairing the appetite for listing companies.
Opinion of the European Economic and Social Committee on the Proposal for a Council Directive amending Directive 2006/112/EC as regards the extension of the application period of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud

(COM(2022) 39 final — 2022/0027 (CNS))

(2022/C 290/25)

Referral Council of the European Union, 28.2.2022 Legal basis Article 113 of the Treaty on the Functioning of the European Union Section responsible Economic and Monetary Union and Economic and Social Cohesion Adopted at plenary 23.3.2022 Plenary session No 568 Outcome of vote (for/against/abstentions) 194/1/4

Since the Committee endorses the content of the proposal for a Council Directive amending Directive 2006/112/EC as regards the extension of the application period of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud and feels that it requires no comment on its part, it decided, at its 568th plenary session of 23 and 24 March 2022, (meeting of 23 March), by 196 votes to 1 with 4 abstentions, to issue an opinion endorsing the proposed text.
3.2.2.

At the same time, the EESC notes that there is a no clarity as to the responsibility for non-compliance with the obligations prescribed. Since gas storage operators are not free from the influence of third countries, the Committee believes that the legal burden should fall on the Member States. Moreover, the EESC calls for the Regulation to be complemented by a set of effective sanctions that can be imposed by the Commission on Member States, which do not comply with obligations.
2.2.

The empowerment applies to: — the application of temporary measures to induce compliance and/or compensatory measures authorised by an arbitration tribunal at the request of a Party in the event of inadequate or incomplete compliance, or appropriate action in the event that the other Party does not cooperate in facilitating recourse to binding dispute settlement procedures; — remedial measures under the Withdrawal Agreement in relation to a failure to add relevant instruments of Union Law to the Protocol on Ireland/Northern Ireland and/or under the Trade and Cooperation Agreement in relation to subsidies, road transport and fisheries; — rebalancing measures under the Withdrawal Agreement in relation to safeguard measures adopted by the UK under the Protocol on Ireland/Northern Ireland; — rebalancing measures under the Trade and Cooperation Agreement, in relation to safeguard measures which create an imbalance between rights and obligations under the Trade and Cooperation Agreement or any supplementary agreement; or specifically regarding divergences in the areas of labour and social, environmental or climate protection or subsidy control; — countermeasures under the Trade and Cooperation Agreement, in response to rebalancing measures under Article 411 of the Trade and Cooperation Agreement; — safeguard measures under the Withdrawal Agreement (if the application of the IE/NI Protocol leads to serious economic, societal, or environmental difficulties that are liable to persist, or to a diversion of trade), and under the Trade and Cooperation Agreement (in case of serious economic, societal, or environmental difficulties of a sectorial or regional nature that are liable to persist); — suspension of obligations under the Trade and Cooperation Agreement in the event of breach or non-fulfilment of certain conditions, in particular with regard to trade in goods, air transport, road transport, fisheries or Union programmes, or if the United Kingdom fails to pay its financial contributions or introduces significant changes to certain initial conditions.
As part of its fair and sustainable economy package, the Commission also presented a proposal for a corporate sustainability due diligence directive (see opinion INT/973). The EESC considers this proposal an important step in promoting respect for human rights as an obligation for businesses and directors. However, the EESC believes that this proposal still presents many shortcomings (for example, limited individual application, as it only directly applies to large companies and only indirectly to SMEs ; low employee representation) and unclear legal concepts (such as the ‘established’ business relations requirement) that present a danger of being applied in different ways by national authorities and courts, creating legal uncertainties for both workers and companies. Consequently, the EESC calls for a balanced dialogue process between the Commission, the Parliament and the Council to correct these shortcomings and to improve the effectiveness of the regulatory instrument that is ultimately approved.

As part of its fair and sustainable economy package, the Commission also presented a proposal for a corporate sustainability due diligence directive (see opinion INT/973). The EESC considers this proposal an important step in promoting respect for human rights as an obligation for businesses and directors. However, the EESC believes that this proposal still presents many shortcomings (for example, it is to be feared that the provisions of the directive, which does not explicitly include MSMEs, will indirectly be extended de facto (1); low employee representation) and unclear legal concepts (such as the ‘established’ business relations requirement) that present a danger of being applied in different ways by national authorities and courts, creating legal uncertainties for both workers and companies. Consequently, the EESC calls for a balanced dialogue process between the Commission, the Parliament and the Council to correct these shortcomings and to improve the effectiveness of the regulatory instrument that is ultimately approved.
3.17.

The gradual phasing out of fossil fuels will foster the escalation of tensions between EU countries — as importers of these raw materials, and non-EU countries — as suppliers. In this case, in particular, Russia should be taken into account as a local supplier of fuels, whose revenues from the sale of these raw materials constitute a significant part of the budget revenues. In addition, countries in the MENA and sub-Saharan Africa regions whose revenue heavily depends on fossil fuel exports may face significant political and social repercussions that could trigger waves of refugees and migration towards Europe. The change in the model of cooperation can certainly be viewed from a political point of view as a threat to the position of a country whose economy and governance are dependent on revenues from the supply of fossil fuels. Investment and collaborative solutions in promoting green energy could be framed as an opportunity to assist the transition of these economies.
2.3.5

These and other weaknesses in European economy and society, in our social model, are often seen as being exacerbated by new challenges, in the form of economic globalisation, the rise of new technologies and demographic ageing. Longer life expectancy and falling birth rates raise serious issues about the financing of social security systems — pension systems being a prime example. The EESC cautions against drawing simplistic policy conclusions from a number of popular beliefs: — While globalisation does mean that more and more goods and services are traded internationally, it is important to be aware that, taking the EU-25 as a single economic entity, only just over 10 % of European output is exported (or imported). This makes the EU no more open an economy than the US (which is usually seen as much more independent of global forces). Member States must make social and political choices about their welfare systems and necessary reforms. A badly designed benefit system should be reformed for the higher productivity or employment it enables, by providing greater security for beneficiaries, not because of ‘globalisation’. — Similarly, technological change is to be welcomed as raising the productivity of labour, and helping to create the wealth necessary to finance high living standards and levels of social protection. The correct response to technological change is to invest in workers and support adjustment processes through well designed social policies in order to move European companies and workers up the skill ladder. — Demography certainly influences the European Social Model — but the reverse is also true. Sensible childcare policies allow women and men to work without having to choose between a career and a family; active ageing policies keep elderly workers in the labour force, enabling them and society as a whole to benefit from longer life expectancy. Life-long learning promotes adaptability and raises productivity and employment. Moreover, all societies are confronted with demographic problems. — Finally, it is a well-acknowledged fact that Europe needs to develop and coordinate, rather than to limit, European economic policies, as instruments for countering market disturbances such as harmful tax competition. Such disturbances put pressure on social systems and their financial bases. On the other hand, European integration is a powerful force for trade and economic efficiency and, moreover, creates the possibility to regulate some aspects of working and social life at the more relevant European level. Achieving this in the face of institutional diversity is a major challenge to policymakers and not least the social partners.
8.8.

Some of these concerns can be summarised as follows: — the need to strike the right balance between legitimate public policies and investment protection standards in terms of ‘fair and equitable treatment’ and ‘protection against indirect expropriation’, based on clear definitions that reduce the risk of broad interpretation, — a very limited list of legitimate policy objectives, such as the protection of public health, safety, the environment or public morals, social or consumer protection or promotion and protection of cultural diversity which are linked to the right to regulate, — no explicit exclusion of regulations applying to the organisation or provision of public services, — the total exclusion of loss of profit when calculating compensation for investments that have been made, — implementation of the ‘loser pays principle’ may prevent a company, and in particular a SME, from using the system, — the need for references to investor obligations under the ILO Multinational Enterprises Declaration, UN Guiding Principles on Business and Human Rights and OECD Guidelines for Multinational Enterprises, — some lack of clarity on how awards will be recognised and executed by the domestic courts and what the relationship is with the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or the relevant ICSID rules. This should be made clear as investors are already confronted in the current system with enforcement problems, — the need to carefully assess the compatibility of the ICS with the EU legal framework, — the lack of real independence of judges as, in the new proposal, they are still allowed in some cases to work as corporate lawyers, — the need to consider the recommendation of the SIA draft interim technical report on the TTIP to exclude the possibility of public services being challenged under the ICS (20). The EESC calls for the Commission to engage civil society and the European legal community to address these concerns.
5.2.2.

The Committee welcomes the Commission communication ‘Next Steps for a Sustainable European Future’, published in November 2016 (20), which sets out to integrate the SDGs fully ‘in the European policy framework and current Commission priorities’, as indeed it is bound to do under the Lisbon Treaty (21). The SDGs ‘will be a cross-cutting dimension’ for the implementation of the EU’s global strategy. The EU was, as is stated, ‘instrumental in shaping’ this agenda. There will be a close synergy in promoting and implementing the SDGs and in promoting European values around the world, even though the SDGs do not directly promote good governance and the rule of law.
2.7.

In this light, the Committee regrets that the overall EU funding allocated to gender equality measures in the 2014-2020 period is only EUR 6,17 billion, or around 0,6 % of the overall appropriations. The EESC calls for gender equality to remain a stand-alone goal in the future financial frameworks, which also have to show a clear commitment to gender equality and gender mainstreaming and include gender indicators, gender impact assessment and gender budgeting for both the EU and national levels. Attention to gender mainstreaming and the provision of specific funds for gender equality measures should be present not only in programmes addressing employment and social inclusion issues or fundamental human rights (e.g. the ESF, REC, AMIF, EaSI funds), but also in policy fields that are not seen as immediately related to gender equality but could have significant gender effects such as ICT, transport, urban and rural development, business, investment support, sustainable development and environmental policies. Gender equality dimension, assessed on the basis of the gender equality index, should become an integral part of the EU semester process, including country reports and country specific recommendations.
5.5.

There is a huge variety of toolkits available at EU level. Using them depends on a range of criteria: the stage of education, the subject, the education system and the particular nature of education policy in the MS. However, the EESC recommends developing a basic package (small toolkit), concentrated only on topics, for each school in the EU and using it for a new intensive outreach. This package should be made available, in collaboration with the MS’s education ministry, to the school concerned, together with material specific to that country and in cooperation with EU engaged institutions and organisations like the social partners. The package should be available online, on the school website as well as via regional and EU contact points, and include e.g.: — an easy-to-read, compact set of a booklet, brochure for teachers and students (20); — a short video or film created for each country and made by people from that country; — a selection of materials offered at EU level aimed at teaching the EU at school. These should be geared specifically to the various school levels (nursery, primary, secondary and tertiary schools), as well as to the main online links, including the Learning Corner; — material from the MS with tangible examples of good practice.
3.2.2.

Article 6 of the Paris Agreement aims at establishing a framework for countries to cooperate on implementing NDCs, including through market-based approaches. It therefore has the potential to establish a framework for creating an international carbon market under the Paris Agreement. More importantly, it can be a key driver for the uptake and expansion of carbon pricing policies and emissions trading systems. Through Article 6, countries that operate an ETS will be able to link their system to another ETS and use the link as a way to achieve their NDC. Countries will also be able to procure international credits to be used for compliance with their domestic policies through an international market framework. UNFCCC negotiations failed to adopt guidance for the operationalisation of Article 6 at COP24 in 2018 and at COP25 in 2019, due to substantial diverging among some parties. The adoption of Article 6 guidance is now on the table at COP26, and it is crucial to conclude this process without further delays.
3.5.

The EESC calls on the EU and MSs to enhance trade in green solutions by MSMEs by developing and ensuring proper market conditions that do the following. — Provide MSMEs with a level playing field in the single market, in terms of trade in products, technologies and services that contribute to the green transition. — Ensure that MSMEs are given proper access to provide green solutions to the public sector in the context of tenders regarding, for example, construction, technologies and services. It is necessary to make quality-based procedures mandatory for such services, and to reduce capacity requirements that hinder MSMEs in participating in public procurement procedures. — Facilitate equal access to foreign markets of green products, technologies and services by MSMEs, by means of multilateral and bilateral trade agreements. The EESC also encourages MSs to take due account of the needs of MSMEs in their export promotion activities. — Ensure a competitive business environment for EU enterprises in relation to third countries, deploying all means of diplomacy, including in the spheres of climate, resource and trade policy. Specific attention should be paid to China and other emerging markets, through agile and coordinated responses to their sudden moves. — Ensure that standards promoting the green transition are drafted in an MSME-friendly way, and allow for innovation by enforcing equivalent alternative solutions.
No C 114/4 Official  Journal  of the European  Communities 11. 5. 77 
Having  regard  to the  oral  report  made  by  the  HAS  ADOPTED  THE  FOLLOWING  OPINION 
rapporteur,  Mr.  Masprone, 
unanimously: 
Having  regard  to the discussions  at its 147th  plenary 
session  held  on 30 and  31 March  1977  (meeting  of 
30 March),  The  Committee  approves  the Commission's  proposal. 
Done  at Brussels,  30 March  1977. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
Opinion  on the proposal  for a Council  Directive  on the approximation  of the  laws  of 
the Member  States  relating  to parking  lamps  for motor  vehicles 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of the 
European  Communities  No  C 37 of 14 February  1977,  page  52. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 12 January  1977  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  100  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
147th  plenary  session,  held  in Brussels  on 30 and  31 March  1977. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community  and,  in particular,  Article  100 
thereof, 
Having  regard  to the request  for an opinion  made  by 
the Council  of the  European  Communities  on 
12 January  1977, 
Having  regard  to the Decision  taken  by its Bureau  on 
25 January  1977,  instructing  the Section  for Industry, 
Commerce,  Crafts  and Services  to draw  up an opinion 
and a report  on the matter, 
Having  regard  to the  opinion  issued  by the  Section 
for Industry,  Commerce,  Crafts  and  Services  on 
2 March  1977, 
Done  at Brussels,  30 March  1977. 
Basil  de FERRANTI Having  regard  to the  report  submitted  by  the 
rapporteur,  Mr Masprone, 
Having  regard  to the discussions  at its 147th  plenary 
session  held  on 30 and  31 March  1977  (meeting  of 
30 March), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
unanimously: 
The Committee  approves  the Commission's  proposal, 
but would  draw  the EEC  authorities'  attention  to the 
comments  made  in the Section's  report. 
The Chairman 
of the Economic  and  Social  Committee