The EPP Group’s economic relief package
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5. Mai 2022 In Aktuell, EN

The EPP Group’s economic relief package

High energy prices, disrupted supply chains, the transition towards climate neutrality, as well as new legislation in the pipeline – our businesses in Europe are bearing the brunt of all these developments. Individually, each would have been ambitious, but manageable. Taken together, their cumulative effect may endanger our businesses and the jobs they provide.

We cannot turn a blind eye to the deep and potentially devastating effects the war may have on our economy. Therefore, the EPP Group in the European Parliament proposes the following Economic Relief Package for Businesses including economic, budgetary and legislative elements without compromising our 2030/2050 climate targets:

  • Make full use of all means available in the current MFF(e.g. flexibility provisions, mobilisation of MFF special instruments, CAP crisis reserve, EMFAF/fisheries instruments), re-use of the entire amount of 2014-2020 decommitments, including from the European Structural and Investment Funds, and keep liquidityin the market, for example by postponing payments for ETS allowances until the end of 2022;

  • Too many straws will break the camel’s back. Therefore, we need the Commission to provide a sector-by-sector analysis of the cumulative effectof higher energy and raw material prices, new legislation and the impact of the war. We need to immediately ease the burden on businesses by invoking a regulatory moratoriumand delay those acts that would unnecessarily increase costs for businesses already under strain (such as REACH). The EPP Group also supports the proactive implementation of the One-In-One-Out principlewhich should be included in the preparatory phase of every legislative act;

  • Reduce the cost of doing businessby lowering VAT and energy taxes and abolishing levies on energy. Increase aid for businesses by ensuring a flexible application of state aid rules. Reduce energy pricesby considering to postpone the coal and nuclear phase-out & reviewing a price-setting mechanism. And a diversification strategy to ensure the supply of critical raw materials, such as rare earth metals;

  • “Construct-EU”: mobilise €11.6 bn of the 2022 cohesion appropriations, transferred from 2021, to cover retroactively inflation costs for infrastructure projects caused by the price hike in construction and raw materials (transport, energy, digital etc.);

  • Upgrade energy infrastructure and storage capabilitiesin order to ensure that Europe can be more self-sufficient. Set up an EU-wide strategy for energy security including mandatory storage thresholds and major investments to upgrade the grid for future requirements. We want to ensure that Europe is never again dependent on Russian energy;

  • When circumstances change, our budget has to change. The EPP Group demands a revision of the MFFto accommodate the increased financing needs (an ad-hoc revision or by advancing the MFF mid-term revision), following an in-depth analysis of the long-term implications of the war on existing EU policies, as well as the shift to new political priorities and emerging needs;

  • Fully utilise and expand the scope of RRF loans. More than €200 bn of RRF loans have not yet been contracted (MS can submit requests until August 2023). The RRF Regulation should be amended, enabling interested MS to use the remaining amount for loans to finance multi- country projects in the field of energy security, e.g. energy interconnections and cross-border infrastructure.