European Union

The deadlock in the Nagorno-Karabakh negotiation process coupled with the concentration of foreign fighters and transfer of arms in Armenia is a distressing signal for an imminent escalation or a new war, writes Vasif Huseynov.

The EU needs a “robust, comprehensive and positive agenda” to effectively protect and reinforce EU values, according to the Civil Liberties Committee.
Committee on Civil Liberties, Justice and Home Affairs

Source : © European Union, 2020 - EP

The EU needs a “robust, comprehensive and positive agenda” to effectively protect and reinforce EU values, according to the Civil Liberties Committee.
Committee on Civil Liberties, Justice and Home Affairs

Source : © European Union, 2020 - EP

MEPs on the European Parliament's Civil Liberties Committee have questioned EU plans to establish a bloc-wide facial recognition database for use by police authorities, citing the potential abuse of data as well as the likelihood of false positives.

Length of video : 91'

Disclaimer : The interpretation of debates serves to facilitate communication and does not constitute an authentic record of proceedings. Only the original speech or the revised written translation is authentic.
Source : © European Union, 2020 - EP

The European Commission made a fresh bid to update the EU’s ageing air traffic management system on Tuesday (22 September), pinning its hopes of a long-overdue agreement on COVID-19’s impact on aviation and Brexit.

Talks on a new EU-Africa partnership have been derailed by the COVID-19 pandemic, EU foreign affairs chief, Josep Borrell, conceded on Monday (21 September), as a key summit of the two sides has been postponed until 2021.

100 years ago, on May 18, 1920, Karol Józef Wojtyła was born in the Polish town of Wadowice. Leading the Catholic Church since October 1978, Pope John Paul II left a bright and indelible mark in the history of mankind and...

With domestic violence and health issues having affected French women more than men during the COVID-19 health crisis, the economic consequences of the pandemic have also impacted the country's employment sector and have widened the gender inequality gap. EURACTIV France reports.

The European Union recovery fund could greatly increase the stability of the bloc and its monetary union. But the fund needs clearer objectives, sustainable growth criteria and close monitoring so that spending achieves its goals and is free of corruption. In finalising the fund, the EU should take the time to design a strong governance mechanism.

Ursula von der Leyen during the recovery fund negotiations in July. Photo: Etienne Ansotte / European Union

In late July, the European Council created the European Union recovery fund, a major new policy instrument that could substantially increase the stability of the EU and its monetary union, and under which the bloc will for the first time borrow and pay out large sums as grants. But the Council deal lacks a clear strategy to ensure the money boosts inclusive, sustainable growth and avoids corruption. This gap must be plugged, because the recovery fund will be delegitimised if wasted. The ongoing negotiations between the European Parliament, the Commission and the Council (the trialogue) provide an opportunity for improvement and should focus on three crucial points.

First, the goal needs to be more clearly stated: providing a boost to Europe’s sustainable growth potential. The current focus on speedy disbursement suggests policymakers still hope the EU funds can play a countercyclical role, but this will not work. The Council wants to commit 70% of the main instrument, the recovery and resilience fund (RRF), in 2021-2022, but only a quarter of disbursements are planned for these two years. All EU countries can go to the markets to borrow and it is national budgets that can and should be used to support economies reeling under the immediate effects of the pandemic. EU funds, meanwhile, should be part of a medium-term strategy clearly focussed on quality spending. This will provide some protection against the permanent damage to Europe’s growth potential COVID-19 is likely to leave in its wake. The EU funds should thus be about medium-term growth objectives and not countercyclical fiscal policy.

The second question then is how to achieve quality spending that would boost sustainable growth. The European Council conclusions from July include some vague statements about linking EU funds to the European Semester, the EU’s annual process to steer member states towards inclusive and sustainable growth and digital transformation. But the European Semester has proven to be a rather ineffective bureaucratic process that EU countries too often disregard.

It is easy to see how such a bureaucratic process will trigger a bottom-up approach driven by special interests in EU countries in which spending plans are labelled, as requested by the European Commission, “green, social and digital.” Plans will be sent to Brussels and result in large pay-outs with little benefits. While the design of the recovery fund, with its predominant focus on the RRF, puts national governments in charge, clear conditions are still crucial for sustainable growth goals to be achieved. A recent study proposes the use of recovery funds for major structural reforms, such as in the education system, public administration efficiency and climate goals. The new EU funding is a unique opportunity to provide the ‘carrot’ for genuine structural reforms.

Quality spending requires good governance. The third issue is therefore monitoring so that spending achieves its goals and is free of corruption. Unfortunately, EU funding has a mixed record of avoiding corruption. Meanwhile, academic work has confirmed that the vast amounts of common agricultural policy funds do not achieve Europe’s green goals despite repeated claims to the opposite. The current governance of EU funds can be regarded as unsuitable for achieving stated political goals.

The European Parliament rightly insists on a strong say. A better ‘red-card’ procedure to stop pay-outs in case money does not achieve the political ambitions is needed. The currently proposed process foresees the Commission asking for opinions from the Economic and Financial Committee, a group of top finance ministry officials, on whether political targets of the funds have been achieved. The committee shall strive for consensus but if one or more countries disagrees, the matter will be referred to the European Council. But state secretaries discussing a Commission report will not provide the accountability necessary for the EU’s biggest borrowing programme. Even members of the European Council will not challenge their peers unless there are blatant breaches of agreements.

Instead of intergovernmental debate, real political accountability is needed to avoid corruption and the failure to achieve the EU’s political ambitions of green and inclusive growth. This political accountability should also ensure that the interests of the EU as a whole are considered. The European Parliament should therefore insist on receiving regular and detailed reports from the Commission and should hold hearings with the involved Commissioner to bring about transparency and public accountability. Moreover, the Parliament should entrust the European Court of Auditors and the European corruption watchdog OLAF with constant monitoring of the spending.

Negotiators should take the time to design a strong governance mechanism. Europe cannot afford to waste its resources.

This opinion piece is republished with permission from Bruegel.

The post Without good governance, the EU borrowing mechanism to boost the recovery could fail appeared first on Ideas on Europe.

Welcome to EURACTIV’s weekly Transport Brief – your one port of call for all the news moving the world and much more!

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The Court of Justice confirms the Commission decision approving United Kingdom aid for Hinkley Point C nuclear power station

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