News

13 September 2024

Newsflash - 13 September 2024

Publication of the Draghi Report “The Future of European Competitiveness”

On Monday, 9 September, Mario Draghi published his long-awaited report ‘The Future of European Competitiveness’, prepared on request from the European Commission. The report consists of two parts. Part A is a shorter ‘Competitiveness Strategy for Europe’, while part B contains the comprehensive ‘In-depth Analysis and Recommendations’.

The report makes horizontal and sector-specific recommendations, which can be very relevant to SGIs. Overall, the report highlights that :

  • Europe has faced prolonged slow growth, resulting in a widening GDP gap with the US, primarily driven by a slowdown in productivity.
  • Fragmentation of the Single Market and slow decision-making further hinder competitiveness.
  • Europe’s ambitions to digitalise, decarbonise, and enhance defence capacity are expensive and call for more ambition.

It also presents ways to address those challenges and ensure that the EU gives a new boost to its competitiveness in key sectors (such as energy, critical raw materials, tech, energy-intensive industries, transport, defence and pharma). Overall, Mario Draghi calls on the EU to put a specific focus on:

  • Closing the innovation gap with global competitors, in particular China and the US
  • Aligning decarbonization with competitiveness
  • Increasing security and reducing strategic dependencies

In a dedicated press conference, European Commission President Ursula von der Leyen confirmed that the report will be used to prepare the mission statements for the new Commissioners, highlighting the importance of the report for the new Commission’s agenda.

SGI Europe’s General Secretariat is currently reviewing the report in detail. Once we have done so, we will get back to you with an analysis of the most relevant elements for SGIs.

Contact: Ruben Sansom

A.C.C.E.S. project kick-off conference on 30 September 2024

On Monday 30 September 2024 (from 12:00 to 18:30), SGI Europe will hold the kick-off conference of its  A.C.C.E.S. project. The meeting will occur at Martin’s Brussels EU Hotel (Boulevard Charlemagne 80, B-1000, Brussels). You can still register to attend via the following form.

The in-person-only event will be an opportunity to discuss the climate change impacts and infrastructure challenges in the water, energy, and housing sectors across Europe and exchange ideas and opinions on how to ensure the availability, affordability and quality of these essential services across Europe. Furthermore, stakeholders operating in the three sectors will present and exchange the best practices to ensure the accessibility and availability of the services.

Please note that the working language of the conference will be English, and no interpretation will be provided. You are welcome to join us for an offered light lunch right before the beginning of the event. SGI Europe will offer a networking cocktail at the end of the day.

Contact: Cecilia Martin

EU publishes its 2024 State of the Energy Union Report

On Wednesday 11 September, the European Commission presented the 2024 State of the Energy Union Report, outlining significant progress in energy security and the clean energy transition. The report reaffirms the EU’s commitment to its 2030 energy and climate goals while acknowledging the need for strengthened future efforts.

Key achievements include renewable energy generating half of the EU’s electricity in early 2024 and reducing Russian gas imports from 45% in 2021 to 18% by mid-2024. The EU also met its 90% winter gas storage target by August, well ahead of schedule. Greenhouse gas emissions fell by 32.5% from 1990, while the economy grew by 67%. Globally, the EU led initiatives to triple renewable energy capacity and double energy efficiency improvements, endorsed by all Parties at COP28.

The report highlights the need for further efforts to meet the 2030 climate targets, particularly in energy efficiency. Member States are urged to update their National Energy and Climate Plans (NECPs) to ensure collective progress. Support for Ukraine’s energy system also remains strong, with over 40% of EU donations dedicated to stabilising Ukraine’s grid. The Ukraine Energy Support Fund mobilised over €500 million by mid-2024. New legislation protects vulnerable consumers from energy crises, and the Social Climate Fund will provide €86.7 billion for energy-efficient housing and clean mobility.

Looking ahead, the EU faces challenges in meeting renewable energy and efficiency goals, increasing energy poverty, and addressing global competition in net-zero technologies for 2030. Joint action and more coordinated policies are critical to overcoming these hurdles.  

SGI Europe emphasises the need for a comprehensive energy sector integration plan to be included in the next European Commission work programme. This plan should reinforce the clean technology strategy, develop a strong job market to meet energy transition goals in transport, energy, and housing, and increase public and private financing dedicated to the green transition.

Engaging SGI Europe as one of the EU social partners and key experts in the Clean Transition dialogue will be vital to ensuring the success of these initiatives.

Contact: Henriette Gleau

Stakeholder consultation on the future of the Single Market and EU Competitiveness

On Wednesday 11 September, the Committee of the Regions’s ECON Commission organised a stakeholder consultation the future of the Single Market and the EU’s competitiveness.

The meeting followed this week’s publication of Mario Draghi’s report on competitiveness and Enrico Letta’s report on the future of the single market earlier in the year. The discussion revolved around the expectation that although elements of the Letta and Draghi reports may make it into the Commission’s plans, we cannot be too confident that many of our more ambitious proposals go through. Especially with regard to joint spending and borrowing, it will be very difficult to find the political will of Member States to turn the ideas into reality.

Ms Isabel Yglesias Julià of the Employers Group I highlighted that much of the work done by the Belgian Presidency of the Council of the European Union in the first half of the year was about ensuring that SG(E)Is can function well in the single market. She also stressed that member states' gold plating of EU legislation needs to be reduced to create a level playing field within the market and remove the excessive burden on companies.

As both reports call for investments across many different sectors, money will likely be cut from the EU budget in all areas that are not considered key priorities. Therefore, regions must show how cohesion funds will be used to address the challenges mentioned in the reports.

SGI Europe’s recent Opinion on competitiveness aims to show how SGIs, through their contribution to stronger regions, are key to sustainable and long-term economic competitiveness. This position will be developed in more detail at the joint Internal Market and Sustainability Board meeting on 27 September. 

Contact: Ruben Sansom

Social Partners seminar on working time flexibility on 3 October 2024

Since 2016, as part of their project activities, the European social partners have been organising two annual meetings as part of a dedicated working group on improving the performance of the labour market and social systems. The next meeting of this dedicated working group will address the topic of shaping working time and the role collective bargaining plays in this regard.

The seminar will explore social partner perspectives on this topic and address critical priorities, including chosen sectors’ needs related to working time and challenges and opportunities linked to modern working time organisation. Working time flexibility is essential to enterprises attracting and retaining talent. Offering schedule flexibility in job advertisements increases the likelihood that people will apply.

Properly designed working-time arrangements can mutually benefit workers and employers as they can improve working conditions and allow workers to have a better balance between paid work and their personal lives. At the same time, it is the employer’s prerogative to organise work. They can better adapt their workforce to fluctuations in the workload. Appropriate working-time arrangements can make enterprises more sustainable by, for example, decreasing absenteeism, lowering employee turnover, and improving employee morale and attitudes and operational efficiency. This, in turn, improves productivity, quality and performance.

The social partners meeting on 3 October intends to facilitate mutual learning on the policy initiatives and the concrete actions by social partners in this field, as well as social partners’ involvement in government-led or tripartite actions. SGI Europe and its members will participate in the event to reflect SGI Employer's priorities and challenges regarding working time organisation.

Contact: Guillaume Afellat

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