Debate: The creation of a European Capital of Local Trade
Date: MONDAY, 16 JANUARY 2023
Speaker: Virginijus Sinkevičius
Language: EN

The Petition Committee was unanimous to support this petition, and the Commission also sees value added in this initiative. First, let me emphasise the economic importance of the retail industrial ecosystem. It represents 11.5% of EU value added. It directly employs more than 29 million people across Europe, and it’s key for our citizens. Consumers spend on average 30% of their budget for their shopping through retail. And of course, the SME dimension is crucial: 5.5 million companies are active in the ecosystem, 99% of which are SMEs. And we know how the retail ecosystem was badly hurt by the COVID-19 pandemic. Shops were either closed or bound by stringent precautionary measures. Thanks to a strong and ambitious EU response we managed to alleviate many of these impacts, but still SMEs were the ones which suffered most.  So today the energy crisis is also harsh on retailers and in particular on retail SMEs. We all have in mind the bakeries example, here again we have worked hard to provide emergency solutions through energy policy or state-aid tools. Honourable Members, retailers play a crucial role in our communities. They provide local employment, proximity to consumers and build the social fabric. A thriving small retail sector is essential for attracting city centres. Retail is equally important for maintaining lively rural areas and boosting local supply chains, and through its ‘Revitalise Retail’ actions, the Commission is supporting these objectives. Back in 2018, the Commission published a guide for competent authorities to help them support their local small retailers to modernise and revitalise. Based on the guide, the Commission has organised workshops to encourage sharing best practices. During the COVID-19 pandemic, we held virtual worship workshops with a focus on sharing innovative ways to keep in touch with consumers. And currently we are gathering stories of retail SMEs who have successfully embraced innovative green and digital solutions and transformed their business models. They should provide inspiration for SMEs wishing to respond to the challenges of digital and green transition.  Last but not least, I would like to mention the transition pathways announced in the industrial strategy update. Such pathways support the green and digital transition of industrial ecosystems, among which the retail ecosystem. The Commission is planning the launch of a public consultation on it in the coming months. But it may be not enough. In this context, the Commission considers that the proposal to create a European capital of local trade and small retail can take the Revitalise Retail action even further. Beyond that, the draft resolution also includes several additional proposed measures, which confirms a lot of enthusiasm, and many ideas to support the small retail sector. And we will assess further how to benefit and how to best follow up on these measures while avoiding duplications. And on the central issue of the creation of the European capital of local trade, the Commission would welcome if the European Parliament would support the action through a pilot project, and I’m convinced it would be a very positive development in the long-standing Commission and the European Parliament commitment to support SMEs and in particular retail SMEs.