Newsflash - 29 September 2023

Enrico Letta started work on the preparation of an independent High-Level Report on the Future of the Single Market

On 15 September 2023, Enrico Letta, former Prime Minister of Italy, was appointed by the European Commission and the European Council to prepare a Report on the Future of the Single Market, as requested by EU leaders during the June 2023 European Council.

In the first phase of work, Mr Letta has started to engage with EU institutions, social partners and other stakeholders to collect diverse opinions and ideas on the needed further deepening of the Single Market. On 18 and 19 September 2023, Enrico Letta was present in Brussels to start this exploratory mission, starting with meetings with MEPs of the Employment and Social Affairs (EMPL) committees and the Internal Market and Consumer Protection (IMCO). During those hearings, topics addressed touched upon, amongst others, the green and digital transitions, the geo-strategic dimension of the Single Market, the link between the Single Market and EU sovereignty, and the social dimension. Mr Letta also met on 18 September with Thierry Breton, Commissioner for the Internal Market, and joined the Council meeting on Competitiveness of 25 September 2023, informing ministers about the proposed outlines of the report.

As an EU cross-industry social partner, SGI Europe also already exchanged views with Mr Letta on 18 September. SGI Europe welcomes the initiative behind this report and calls for an explicit focus on services of general interest (in light of art 14 TFEU and protocol 26 TFEU) and looks forward to contributing to shaping it. SG(E)Is indeed have a central role in the EU social and economic model and the Single Market as the pillar of competition, industrial, energy, transport, digital, social, environmental, and regional policies.

Contact: Benoît Cassorla

Meeting of the SGI Europe’s Energy Task Force on the EPBD and Electricity Market Design

On 28 September, SGI Europe’s Energy Task Force gathered to discuss the revision of the Electricity Market Design Directive and the Energy Performance in Buildings Directive (EPBD). The meeting was chaired by Elmar Thyen.

For this meeting, the members of the task force have welcomed guest speaker Stefan Moser, Head of Unit for Buildings and Products at the European Commission’s Directorate General for Energy, and exchanged views on the ongoing EPBD trilogue and the anticipated difficulties of the implementation, especially in line with the Energy Efficiency Directive. SGI Europe highlights that the climate goals are crucial to steer the EU towards a green growth strategy and must be accompanied by realistic tools and predictable frameworks to achieve climate neutrality.

The current proposal of the European Parliament calls for increasing the renovation rate up to 5%, which means transforming the worst performing buildings of Level G to Level D. Such a request causes triple issues for SGIs: the yearly funding of such transition is estimated to be up to 265 billion per year, in Germany alone. Another bottleneck foreseen is the mobilisation of enough workers with the right skills and access to raw materials. Finally, a persistent lack of planification by Member States to reach the climate targets within the building sector is causing distrust among investors.

As explained in the SGI Europe Trilogue recommendation, an essential prerequisite is that zero-emission buildings in the building stock must be achieved through the highest efficiency standard and using the best available technologies for better emission efficiency. Data collected by SGI Europe members highlight that the complete energy retrofitting of all buildings to high-efficiency levels cannot be financed by tenants, landlords or homeowners, nor by Member States.

SGI Europe asks to ensure that the EPBD Directive does not include a building-specific renovation obligation, as the current proposals lead to a yearly renovation rate of 5%. Considering that the overall goal of the renovation wave is to reach an annual renovation rate of 2- 3%, the entire FF55-package put together (ETS-BRT, RED, EED) should lead to that goal.

Contact: Henriette Gleau

Launch of the second phase consultation of the EU social partners on possible action further improving the quality of traineeships

The European Commission launched on 28 September 2023 the second phase of consultation of the EU social partners on possible action to further improve the quality of traineeships. The second phase consultation document outlines the main results of the first phase consultation and analyses the identified challenges. It also seeks social partners’ views on the objectives and the possible avenues for EU action set out in the document. Finally, it asks whether the social partners wish to enter into negotiations with a view to concluding an agreement under Article 155 TFEU. The consultation document provides:

• evidence on traineeship prevalence and labour market trends,
• an analysis of the challenges, including the misuse of traineeships as disguised employment, genuine traineeships that are non-compliant with EU or national law, the lack of effective enforcement and inspection capacities and poor working conditions (including remuneration) and lack of access to social protection,
• an explanation of the need for, and the added value of, an EU action and the potential avenues for such action.

The Commission finally seeks the views of European social partners on the objectives and possible avenues for EU actions set out in this document, as well as on the willingness of social partners to enter into negotiations with a view to concluding an agreement. SGI Europe will gather evidence and respond to the Commission’s questions set in the consultation document in due time for the deadline of 9 November 2023.

Contact: Guillaume Afellat

Communication of the European Commission ‘Towards a more resilient, competitive and sustainable Europe’ ahead of the Granada Summit on 6 October 2023

On Wednesday, the European Commission adopted a communication “Towards a more resilient, competitive and sustainable Europe”, which provides the institution’s contribution to the Granada Summit. It highlights a pathway for a future-oriented approach to the EU's open strategic autonomy. It addresses upcoming priority policy objectives to build a more resilient, competitive and sustainable economy, protect EU citizens, and guarantee well-being.

The Communication points to specific areas where more efforts are needed, such as building a more innovative and interconnected Single Market, preserving internal cohesion, fostering alliances with international partners and building the EU's capacity as a security provider for its citizens and region. It calls for further work on “de-risking” and reinforcing its economic and industrial base while protecting its economic security and unique social model.

The European Commission is putting forward calls for:

• Bolstering Europe's defence capabilities and building lasting peace in Europe, through the implementation of the European Defence Fund (EDF), the upcoming launch of a European Defence Industrial Strategy to prepare the future framework for defence cooperation and a renewed commitment to future EU enlargements;
• Enhancing Europe's energy security and tackling the climate crisis,
• Building a more robust and sustainable economic base via the completion of the Single Market and decisive actions to de-risking in key areas, amongst others, through the Critical Raw Materials Act, EU Chips Act and the Net-Zero Industry Act,
• Fostering public and private investment, with the deployment of the Recovery and Resilience Facility and the mid-term review of the Multiannual Financial Framework.

The Granada Summit will be a direct follow-up of the March 2022 Versailles Summit, organised by the French Presidency of the Council of the EU. The Versailles Declaration, adopted by EU leaders at the end of this summit, committed the EU to take more responsibility for its security, bolster defence capabilities, and take further steps towards building European sovereignty, reducing dependencies and designing a new growth and investment model. It will also feed into the emerging discussions on the EU's long-term priorities for 2024-2029.

Contact: Maxime Staelens