EU Affairs Highlights 2019 Why the EU matters for business in ?

Over 70% of the national regulations are drafted and approved in Brussels.

The EU regulates the Single Market – the free movement of goods, services, capital and people.

Romania’s exports to the EU amount for +70%, and imports for +70% of the total; EU also sets trade deals with other economies across the world for preferential trade.

The EU sets the policy directions for all major areas of impact for business: competition, banking, consumer protection, digitalisation, corporate social responsibility, climate change, etc.

The EU is a net contributor to the Romanian economy with EUR 33 billion (2007-2018).

The EU provides €80 billion budget (2007-2020 – Horizon 2020) for research and innovation focused on science, industrial leadership and tackling societal challenges that Romanian firms and institutions can access.

EUR 439.4 billion in additional investment set to trigger in strategic investment across the EU via the Junker Plan (2015 -2020); InvestEU Program is expected to mobilise at least EUR 650 billion in additional investment in 2021-2027.

A suite of EU programs that help enterprises, including Romanian ones, to access finance and markets, and support entrepreneurship, business creation, internationalization and growth.

1 EU Affairs | Highlights 2019 2019 was particularly important with reconfirming the trust citizens across the continent have in the EU project – a hystorical turnover for the (EP) elections in support of the pro-european political parties. This gives a solid mandate to the new leadership in the EP and European Commission (EC) to continue the consolidation of the EU in the next 5 years by tackling systemic challenges such as climate change, future of work, migration etc. A more prosperous Romania needs to pair sustainable and predictable public policies and national consultations with a consolidated relationship with the EU and responsibility over what is happening in Bruxelles. Concordia has made a commitment to be the channel with the EU for the business envionment when joining BusinessEurope in 2019 and wants to contribute to a proper national dialogue about Romania’s agenda and objectives in the EU. We are talking too little about an agenda that has increasing impact at national level, and about how we can realize the full potential for economic development given the size of the country and its resources. At the turn of the decade, 2020 is a good year to start taking more about the European topics and to be more engaged in making it happen. Steven van Groningen, Concordia President

Concordia Employers Confederation (CPC) is a representative confederation for the businesses in Romania with members from eight of the most important economic sectors – automotive, energy and utilities, banking, HoReca, IT, retail and transport representing over 300 000 employees and over 1 500 companies of all sizes, with Romanian and foreign capital alike. Concordia is the only Romanian member in BusinessEurope and International Employers Organisation representing its members at EU and international level.

EU Affairs | Highlights 2019 2 European elections – May 2019 In May, the EU member states voted for the members of the European Parliament with a five-year mandate (2019-2024).

Romania The turnover reaches a historical 51.20% (higher than the EU 50.66%) compared to only 32.44% in 2014, while thousands of abroad not getting to vote after queueing for hours at voting stations across Europe to cast ballots. The high turnover could also be explained by the fact that in the same time a referendum on justice was held. 51.20% 50.66% RO EU 42.97% 42.61% 32.44% 29.47% 27.67%

2007 2009 2014 2019

PSD party in power is defeated by PNL and comes second separated by less than 0.5% of votes by USR-Plus new alliance. ALDE does not make it to the EP. 27.00%

22.50% 22.36%

6.44% 6.57% 5.76% 5.26% 4.11%

PNL PSD USR Pro PMP UDMR ALDE Other PLUS Romania parties

The results reflect to a great extent a national agenda and the frustration over the current Government and leading party. However, though the EU specific agenda was not much debated, PSD was the only party to put on stage a nationalistic discourse and had a track record of anti-EU stance (Romania is not accountable to the UE, the EU is interfering into internal matters, etc.). In this context, the EU was looked at as a savior or at least a safety net for democratic principles and rule of law. In a Flash Eurobarometer from April 2019, „Hope” was the word most often associated with the EU by Romanians1.

Distribution of votes by gender Rural/Urban distribution of votes

Men Urban 4,368,696 votes 4,140,737 votes

Women Rural 4,588,970 votes 3,814,222 votes

1https://www.secure.europarl.europa.eu/at-your-service/files/be-heard/eurobarometer/2019/emotions-and-political-engagement-towards-the-eu/report/ en-flash-2019.pdf

3 EU Affairs | Highlights 2019 Number of votes by age group and gender

Men Women 82,037 votes 367,665 18-24 374,387 82,689 votes votes years votes

663,899 25-34 692,349 votes years votes

831,805 35-44 842,460 votes years votes

1,648,343 45-64 1,706,796 votes years votes

856,984 65+ 972,978 votes years votes

Given a higher sophistication of the topics for the EP elections and the joint referendum, a higher proportion of the urban voters was present; however, there was a lower share that expected of younger voters.

The profiles of voters for the main political parties

National Liberal 2020 Alliance Social Save Romania Party (PNL) Union (USR) & (PSD) Freedom, and Solidarity Party (PLUS)

Private sector Private sector Retired 33% employee 51% employee 58%

Adults Youth Elderly 30% 36-64 years 50% 18-35 years 42% 65+ years

56% Rural 78% Urban 53% Rural

Elementary Higher Elementary 42% education 47% education 55% education

56% Earnings 47% Earnings 65% Earnings P<1,500R RON OSPER1,500 - 4,000 RON <1,500 RON ITY

EU Affairs | Highlights 2019 4 32 Romanian members of the European Parliament

Siegfried Mircea-Gheorghe Rareș BOGDAN MUREŞAN HAVA PNL PNL PNL

Marian-Jean Cristian-Silviu Gheorghe FALCĂ MARINESCU BUŞOI PNL PNL PNL

Dan-Ştefan Vasile BLAGA MOTREANU PNL PNL PNL

Gheorghe-Vlad Loránt VINCZE NISTOR UDMR UDMR PNL

Ramona Traian BĂSESCU STRUGARIU PMP PMP PLUS

Dragoş Vlad-Marius BOTOŞ Nicolae ŞTEFĂNUȚĂ TUDORACHE USR USR USR

Clotilde ARMAND Dragoş PÎSLARU USR USR USR

Adrian-Dragoş Dacian CIOLOŞ BENEA USR PSD PSD

Maria GRAPINI Cristian TERHEŞ PSD PSD PSD

Claudiu MANDA PSD PSD PSD

Victor NEGRESCU* Corina CREȚU PSD Pro Romania Pro Romania

*Romania will get one more MEP seat after Brexit.

5 EU Affairs | Highlights 2019 The distribution of Romanian MEPs across European political groups:

S&D 10 8 PPE 14

S&D - The Progressive Alliance of Socialists and Democrats Renew Europe - The Renew Europe group PPE - The Group of the European People's Party

PNL 10 (27,00%)

14 PPE

Coalitia 2020 8 (22,36%) USR + PLUS

10 S&D

PSD 8 (22,50%)

PMP 2 (5,76%) Renew 8 Europe Pro România 2 (6,44%) UDMR 2 (5,26%) PLANET

EU Affairs | Highlights 2019 6 One year before the elections, the Eurobarometer shows that two thirds of Europeans believe their country has benefited from being a member of the EU (the highest percentage since 1983) and 60% of Europeans consider EU membership a good thing2. However, in the May 2019 elections, turnout surges across Europe, but pro-EU parties suffer while hanging on, populists Euro-skeptics make gains, social democrats fall back in European Parliament election.

France Marine Le Pen's far-right National Rally scored a first-place (24%) finish in the European election in , besting President 's Renaissance (22.5%).

Germany The Greens did very well, becoming the main party on the left, while the Social Democratic Party did very badly, which may prompt the party to leave the existing coalition. The governing Christian Democrats (CDU), also lost some ground, while the far-right populists, the Alternative for Germany, got about 11%.

UK The UK's Brexit Party, formed just six weeks ago, has clinched almost as many votes as the Liberal Democrats and the Labour Party combined. Nigel Farage's Brexit Party took 31.71% of the votes, reflecting growing political dissatisfaction with major parties in the UK.

Italy Matteo Salvini, whose right-wing nationalist League party is predicted to win over 30% of the Italian vote, is hoping to found a new grouping, the European Alliance for People and Nations, with the support of a dozen other parties.

Spain Socialists (PESOE) won most votes in European and local elections. The Socialists won 20 seats in the European Parliament, PP 12 seats, Ciudadanos seven and Vox three.

Hungary It was another night of election success for Prime Minister Viktor Orban, whose party is for the moment a suspended member of the center-right EPP group. Winning 52% of the vote, he declared his anti-immigration platform a success.

Poland The ruling conservative Law and Justice (PiS) party won 43% of the vote, ahead of the pro-European Coalition.

Greece Greek Prime Minister Alexis Tsipras called a snap general election after his leftist Syriza party suffered a severe beating in Sunday’s European and regional elections. Results showed that Syriza has won only about 24% of the vote, while the opposition party won 33%.

Belgium Also held national and regional elections. There was a big victory in the Dutch-speaking north of Flanders for Vlaams Belang, a far-right, anti-immigrant separatist party. It may become the second-largest party in the Flemish parliament behind the N-VA, another nationalist party. Greens and Socialists did well in Brussels and French-speaking Wallonia.

Austria The ruling People's Party (ÖVP) has won with a record 34.9%, despite a scandal that has led to the collapse of its coalition government with the far right.

2 https://www.europarl.europa.eu/news/en/headlines/eu-affairs/20180522STO04020/eurobarometer-survey-highest-support-for-the-eu-in-35-years

7 EU Affairs | Highlights 2019 Takeaways

End of the The center-right European People's Party (EPP) and the center-left Socialists and Democrats (S&D) are set to remain the two largest two-party rule blocs, but have lost seats to the center, left and nationalist right.

The center-right European People's Party (EPP) and the center-left A Green wave Socialists and Democrats (S&D) are set to remain the two largest blocs, but have lost seats to the center, left and nationalist right.

The great mobilization across the EU, from institutions, civic Mobilization movements and brands to take people out to vote worked pretty well. The turnout for the EU as a whole is expected to top 50%, the first works increase in turnout in 40 years and the best since 1994.

This was to be the election that sparked a right-wing force to seize the agenda in Europe. It has not quite happened. Mixed picture The two dominant nationalist figures in France and Italy won the national vote. Viktor Orban’s anti-immigration policy is reconfirmed. for nationalist But in the Netherlands the Freedom Party of Dutch anti-Islam politician Geert Wilders has lost all its seats in EP, Spain’s new right far-right Vox party getting only 6.2% of the vote, down from the 10.3%.

EU Affairs | Highlights 2019 8 The new coniguration of political groups at EU levels

The European People’s Party clung to first place but will have a slimmer plurality in Parliament after voters delivered gains to , Greens and far-right populists. EPP holds 180 seats — down from 216. The S&D comes second with 154 seats, down from 187. A new centrist-liberal coalition led by French President Emmanuel Macron and Dutch Prime Minister , including also the former ALDE – Renew Europe - comes third, with 108 seats, then the Greens with 74. This is the most fragmented configuration the European Parliament has seen, making it more difficult for consensus to be reached. In this set-up, the greatest gain for Romania comes from the confirmation of Dacian Cioloș (USR-PLUS) as the Chair of the Renew Europe group in the EP.

Renew Europe 14.38% EPP 24.23% Greens/EFA 9.85%

ECR 8.25% S&D 20.50%

ID 9.72% 751 GUE /NGL NI 7.59% Seats 5.48% Political Chair Number of group or co-chairs members

Group of the European People's Party (Germany). 182 (EPP) Chairing the group since 2014 (24.23%)

Group of the Progressive Alliance of Iratxe García (Spain). 154 Socialists and Democrats in (20.50%) the European Parliament (S&D) Renew Europe group Dacian Cioloș (Romania). Agricultural 108 commissioner (2010-2014) (14.38%)

Group of the Greens Ska Keller (Germany) and 74 /European Free Alliance Philippe Lamberts (Belgium) (9.85%) (Greens/EFA) Identity and Democracy Marco Zanni (Italy). 73 (ID) (9.72%) European Conservatives Ryszard Legutko (Poland) and 62 and Reformists (ECR) Raffaele Fitto (Italy). (8.25%) Confederal Group of the Manon Aubry (France) and 57 European United Left Martin Schirdewan (Germany), (7.59%) - Nordic Green Left MEP since 2017. (GUE/NGL)

Independent (NI) 41 (5.48%)

9 EU Affairs | Highlights 2019 As for the EP Committees, Romania got one Chairmanship position for the Industry, Reseach and Energy Committee; initially to Adina Vălean and, after her departure to the European Commission, to Cristian Bușoi (both PNL/EPP). All committee chairs available here

See below the other positions of all Romanian MEPs in the main EP Committees:

Committee on Budgets Committee on Agriculture and Rural Development - USR, Renew Europe Daniel Buda (Vice-chair) - PNL, EPP Sigfried Mureșan - PNL, EPP Carmen Avram - PSD, S&D Nicolae Ștefănuță - USR, Renew Europe Dacian Cioloș - PLUS, Renew Europe Dragoș Benea - PSD, S&D Committee on Employment and Social Affairs Dragoș Pîslaru - PLUS, Renew Europe Committee on Foreign Affairs Eugen Tomac - PMP, EPP Traian Băsescu - PMP, EPP - PSD, S&D Committee on the Environment, Public Health and Food Safety Committee on International Trade Rovana Plumb - PSD, S&D Mihai Tudose - PRO Romania, S&D Nicolae Ștefănuță - USR, Renew Europe Iuliu Winkler - UDMR, EPP – PNL, EPP Committee on Budgetary Control Committee on Regional Development Corina Crețu - PRO Romania, S&D Cristian Ghinea (Vice-chair) - USR, Renew Europe Cristian Ghinea - USR, Renew Europe Dragoș Benea (Vice-chair) - PSD, S&D Claudiu Manda - PSD, S&D Corina Crețu - PRO Romania, S&D - PNL, EPP Committee on Petitions Gheorghe Falcă - PNL, EPP Committee on Industry, Research and Energy Cristian Terheș - PSD, S&D Cristian Bușoi (Chair) - PNL, EPP Lorant-Gyorgy Vincze - UDRM, EPP Dan Nica - PSD, S&D Committee on Constitutional Affairs Committee on the Internal Market and Consumer - PSD, S&D Protection Lorant-Gyorgy Vincze - UDRM, EPP Maria Grapini (Vice-chair) - PSD, S&D Vlad Botoș - USR, Renew Europe Committee on Civil Liberties, Justice Dan Motreanu - PNL, EPP and Home Affairs Vasile Blaga - PNL, EPP Committee on Economic and Monetary Affairs Rareș Bogdan - PNL, EPP Sigfried Mureșan - PNL, EPP Tudor Ciuhodaru - PSD, S&D Dragoș Pîslaru – PLUS, Renew Europe - PLUS, Renew Europe Dragoș Tudorache - PLUS, Renew Europe Committee on Transport and Tourism Gheorghe Falcă - PNL, EPP Marian-Jean Marinescu - PNL, EPP Cristian Terheș - PSD, S&D

EU Affairs | Highlights 2019 10 EU Top Jobs

Following the European Parliament elections, the (heads of states or governments) negotiate the EU top jobs for the 2019-2024 mandate with the aim to strike a balance that would make all EU blocks happy, reflect the new political architecture of the EP to cast its vote, and reflect the strongest voices in the EU and the dominant doctrine. Given fragmented results for the EP, the incoming Brexit, the French-German tandem and the Euro-skeptic Eastern voices, the three-day long negotiations results came out to surprise everyone – a list of the compromise. This time The Council ignored the Spitzenkandidaten process favored by the Parliament, where candidates declared themselves before the European elections. EPP's Manfred Weber did not get enough support to stay in the game. , the first vice-president of the European Commission was rejected by the Eastern block following his strong speeches against the national leaders breaking the rule of law. The "new Europe" (Central and Eastern) is not represented at top EU level.

President of the European Parliament David-Maria Sassoli Italian MEP David-Maria Sassoli was elected president of the European Parliament thanks to a recommendation from EU leaders to put a Socialist at the helm of the legislature. He is a former TV journalist and his rise to power is unexpected. Sergei Stanishev, a Bulgarian and the president of the Party of European Socialists was expected to take this position to provide an Eastern European balance. The European Parliament also elected 14 Vice-presidents coming from six political groups and ten member states. None of them is from Romania.

President of the European Commission Von der Leyen was the incumbent Minister of Defense in Germany at the time of her nomination and member of Merkel's conservative Christian Democrats (CDU) since 2005. She is the first second tier politician in this position and also marks the first time in more than 60 years that a German has been given the post, as well as the first time ever for a woman to lead the EC.

President of the European Council Charles Michel Michel was the Prime Minister of Belgium at the time of nomination. He entered politics as a teenager and was the youngest member of the Cabinet (as an Interior Minister, and later as a Development Minister). His father was also a MEP and .

High representative of the union for foreign affairs and security policy Borrell is a top Spanish diplomat, former Minister of Foreign and European Affairs and President of the European Parliament (2004-2007) on behalf of S&D. The concerns over his nomination relate to his open support for Iran and anti-Catalan separatist movement.

President of the European Central Bank Christine Lagarde Lagarde was the Managing Director of the International Monetary Fund serving on a second term at the time of her nomination. Lagarde was previously a French Minister of Finance and Minister of Trade.

11 EU Affairs | Highlights 2019 The new European Commission – portfolio & priorities

Promoting Building a Developing Protecting European climate-neutral, a strong citizens interests and green, fair and vibrant and freedoms values and economic base on the social Europe global stage

European Council’s In June 2019, the European Council agreed on A new strategic agenda for the EU 2019-2024 with four main priorities Strategic Agenda 2019-2024

In line with the Strategic Agenda, President Ursula von Ursula von der Leyen’s der Leyen published her Political Guidelines for the new European Commission focusing on six headline ambitions POLITICAL GUIDELINES for Europe over the next five years and well beyond: FOR THE NEW EUROPEAN COMMISSION

A European An economy A Europe fit Protecting our A stronger A new push Green Deal that works for the European way Europe in the for European for people digital age of life world democracy

The European Parliament confirmed the new European Commission led by Ursula von der Leyen with 461 votes in favor, 157 against and 89 abstentions. The new team took office on December 1st and kicked off the term with trip to UN Climate Conference.

Please see the full structure and read the mandates of each portfolio on the following page.

EU Affairs | Highlights 2019 12 Highlights

Social dimension Implementation of the European Pillar of Social Rights A fair minimum wage for all EU workers - set according to national traditions, through collective agreements or legal provisions European Unemployment Benefit Reinsurance Scheme Transform Youth Guarantee into a permanent instrument to fight youth unemployment A new European Gender Strategy Binding pay transparency measures Set quotas for gender balance on company boards

Economics & finance A new Industrial Strategy The EU and international corporate tax systems are in urgent need of reform A common consolidated corporate tax base A new Digital Services Act will upgrade our liability and safety rules for digital platforms

Environment and climate The first European Climate Law to enshrine the 2050 climate neutrality target into law The Action Plan on Financing Sustainable Growth A Sustainable Europe Investment Plan that will support €1 trillion of investment over the next decade Increase the ’s emissions reduction target for 2030 towards 55% in a responsible way A New Circular Economy Action Plan

To implement this mandate, the new structure of the College of Commissioners for 2019-2024 ended up as a historical hierarchical break-through that reflects the political priorities launched by von der Leyen in August and is designed to tackle the urgent policy challenges faced by the EU.

The posts include an executive vice president focused on climate change - Green Deal; a commissioner tasked with overseeing a new department for defense industry and space; and vice presidents focused on values, democracy, and the "European Way of Life." In this format, the Commission has also tried to achieve historical gender balance and strives for absolute balance between political affiliation and geography. However, due to controversial nominations, in some member states the gender balance was slightly adjusted and the confirmation took a bit longer than expected.

13 EU Affairs | Highlights 2019 The European Commission's political leadership

Executive VP for European Green Deal Frans Timmermans (the Netherlands) The portfolio includes carbon emissions, European Climate Law, economy and transport, circular economy and sustainable food, zero-pollution ambition

Executive VP for Europe Fit for Digital Age (Denmark) The portfolio includes industrial policy, artificial intelligence, digital taxation, Digital Services Act, new SMEs strategy, competition policy

Executive VP for Economy that Works for People (Latvia) The portfolio includes the European Pillar of Social Rights, social dialogue, European Semester, Sustainable Europe, Investment Plan, territorial cohesion, Banking & Capital Markets Unions, FinTech strategy

High Commissioner for Foreign Affairs & VP, A Stronger Europe in the World Josep Borrell (Spain) The portfolio includes the European Defense Union, external financial instruments

VP for Inter-institutional Relations and Foresight Maroš Šefčovič (Slovakia)

VP for Values and Transparency Věra Jourová (Czech Republic)

VP for Democracy and Demography Dubravka Šuica (Croatia) The portfolio includes the impact of demographic change on different groups in society and on areas and regions disproportionately affected & report with actions in 6 months

VP for Protecting our European Way of Life (Greece) The portfolio includes skills, education and integration

Budget and Administration (Austria)

Trade (Ireland)

Innovation and Youth Marya Gabriel (Bulgaria) The portfolio includes the Digital Education Action Plan, Horizon 2020, disruptive research & innovation

Economy (Italy) The portfolio includes the European Semester, Stability & Growth Pact, InvestEU, taxation, customs union Jobs and Social Rights (Luxembourg) The portfolio includes European Pillar of Social Rights, social dialogue, European minimum wage, platform work, European Labour Authority, skills agenda

EU Affairs | Highlights 2019 14 The European Commission's political leadership

Agriculture (Poland)

Cohesion and Reforms (Portugal)

Neighborhood and Enlargement Olivér Várhelyi (Hungary)

Health ()

Justice (Belgium)

Transport Adina Vălean (Romania) The portfolio includes ETS, smart & automated mobility, internal market for transport & TEN-T

Equality (Malta)

Internal Market (France)

Home Affairs (Sweedan)

Crisis Management Janez Lenarčič (Slovenia)

International Partnerships (Finland)

Environment and Oceans Virginijus Sinkevičius (Lithuania)

Energy ()

15 EU Affairs | Highlights 2019 Concordia’s EU Agenda for 2019-2024

Concordia members share the EU values and recognize the strong link between EU law and national legal and regulatory framework. As the only Romanian member of BusinessEurope, employers’ representative organisation in EU social dialogue, Concordia attached importance to the EU agenda and publishes own agenda for the next years. It includes, among other, single market, European social dialogue, transport, industrial policy, energy & climate, social affairs.

Foster economic and social convergence among member states driven by productivity gains and competitiveness: keep member states to their commitments regarding labour market, education and training and social protection reforms in the context of the European semester; support those member states that may be lagging behind in the use of structural funds to ensure productive investments; ensure the free movement of workers irrespective of the sector; give the necessary space to the European level social dialogue & support capacity building of social partners via European Social Fund for MFF 2021-2027;

Promote a solid economy and put in place a more strategic competitiveness and industrial policy to allow European industrial and services value chains to compete with global economic powers and increase growth and employment in Europe, including:

support a draft of a EU industrial policy as requested by the European Council on 21-22 March 2019; more strategically support value chains gathering industry, services, SMEs and large companies that are key to EU industrial competitiveness and technological leadership; adress the shortcomings on the labour market – quantitative and qualitative deficit – with a balanced approach concidering the impact on CEE; ensure that member states respect the Stability and Growth Pact whilst being able to continue to draw on the in-built flexibility to support structural reforms and productive public investment; support and facilitate research, development and innovation throughout the EU to regain world leadership in technology and to bring innovative products and services to the market, taking into account reasing pressure from outside the continent; take the lead in developing a framework that will allow businesses and entrepreneurs to make the switch from traditional modes of economic development to a more sustainable system; considering Romania’s plans to adopt the Euro, foster better cooperation with the National Bank of Romania and the „Inter-ministerial Committee for the Adoption of the Euro” in order to better understand the specifics of the country’s plans to adopt the euro. Thus, any legislation pertaining to the European banking system should be duly scrutinized in terms of implementation in Romania and the effects that could generate in the country’s economy. This is also valid in the context of existing initiatives by the European Parliament towards boosting the European banking union, through which consumers could benefit from an integrated European banking system.

Keep close the economic & political relations with the Eastern Partnership countries, fostering reforms and contributing to peace and prosperity at EU borders.

Continue working on better regulation, giving more attention to the impact of new EU legislations on our competitiveness and attractiveness as a place to invest - make sure that a sound impact assessment is carried out on all new EU proposals both before submitting them to the Council and Parliament, taking into account the cumulative effect of EU legislation on companies, especially SMEs and the impact of new EU legislations on EU’s competitiveness and attractiveness as a place to invest compared to the rest of the world and make sure that this assessment is updated throughout the EU legislative process.

EU Affairs | Highlights 2019 16 Concordia’s EU Agenda for 2019-2024

Work towards the objective of climate neutrality (net-zero greenhouse gas emissions), while ensuring our competitiveness and security of energy supply. Reaching climate neutrality by around mid-century requires to:

coordinate more strategically the use of the different EU funding instruments to support public and private investments in the development and deployment of breakthrough technologies to lower emissions; initiate a strategic mapping process linking future industry low-carbon energy needs to infrastructure development through a bottom-up approach; ensure that major trading partners also live up to their responsibilities and consider additional global safeguards to keep industrial production in Europe and prevent carbon and investment leakage; better integrate Europe’s energy markets to make Europe’s energy prices more competitive.

Ensure smooth implementation of the Single Market: ensure clear guidance on how to implement the posting of workers directive and regulation on social security coordination and urgently clarify that member states are not allowed to require A1 forms for short business trips as these cannot be considered as postings of workers; request the exclusion of road transport from the posting of workers Directive, as the professional drivers are highly mobile workers, not posted workers; request the same treatment for road transport companies as for merchant navy undertakings, which are excluded from the Posting of Workers Directive as regards their seagoing personnel; continue market liberalization towards a Single European Transport Area & ensure fair treatment of Eastern road transport companies within the Mobility Package 1, which in the current form would lead to en economical and social segregation in the EU. reject the most abusive provisions of the Mobility Package 1: mandatory return of vehicles, cooling off periods, bans on weekly rest in the cabin, posting application to road transport introduce an European cost of reference for road transport, similarly to the transport cost calculated by CNR in France (www.cnr.fr), in order to guarantee a balanced and fair Mobility Package for both Western and Eastern road hauliers; support the enlargement to include Romania and Bulgaria; harmonize the hotel classification across the EU to enable more transparency and security for the guests EU institutions need to address national protectionism and discrimination effectively to ensure interests of consumers are equally served in EU and national policy decisions; aim for full harmonisation of EU law where possible and appropriate to prevent unnecessary fragmentation of the single market and evaluate if national technical rules are still fit for purpose, future proof and proportionate to improve the free movement of goods and services.

The implementation of the European Pillar of Social Rights should include: improving the functioning and performance of labour markets, making them dynamic and adaptable and providing flexibility and security; tackling skills shortages and mismatches by ensuring the workforce has a relevant skills set, including through an improved connection between companies’ needs to innovate and education and training systems learning outcomes. The EU should have a strategic approach to tackling labour shortages and skills mismatches across Europe, by better supporting national reforms that get more people into work; strengthening social dialogue as a tool for management of change;

17 EU Affairs | Highlights 2019 Concordia’s EU Agenda for 2019-2024

embracing the potential of the future of work including digitalisation to deliver benefits for companies, citizens and workers; encourages access to a wide range of employment forms and no longer assumes that more prescriptive EU employment legislation will better protect workers; modernisation of the EU occupational safety and health legislation and policy to promote prevention culture at the workplace, where both employers and workers understand and implement their respective obligations.

The new MFF 2021-2027 should respond to future trends, challenges on competitiveness and social affairs as highlighted above, having in mind that the beneficiaries should be those (single entities or in partnership) who could spend the money most effectively – the focus on public authorities beneficiaries seems not to have worked on the labour market in Romania.

Safeguard liberal democratic values and ensure member states respect the rule of law. Law serves as a confidence-building bridge by creating reliable common rules that member states and European citizens can trust. And when there are breaches on the rule of law, citizens who trust the EU will turn towards it expecting to provide solutions to it.

EU Affairs | Highlights 2019 18 Business priorities for 2019-2024

BusinessEurope launched priorities for 2019-2024 BusinessEurope and all its members, including Concordia, propose an agenda for the European Union in 2019-2024. Prosperity, people and planet as the three pillars for a successful Union should be a source of inspiration for future political decisions. http://euyourbusiness.eu/

PROSPERITY

1 SINGLE MARKET: The EU should complete the Single Market, which is the basis of European prosperity. This requires further strengthening and developing intra-EU trade and investment within a barrier-free Single Market.

2 INTERNATIONAL TRADE: The EU should defend rules-based trade, fight protectionism and create a level playing field by supporting a reformed multilateral trading system while maintaining an ambitious bilateral international trade and investment agenda.

3 INDUSTRIAL STRATEGY: The EU should put in place a more pro-active and strategic approach that will allow European manufacturing and services value chains to compete with global economic powers such as the United States or China and increase growth and employment across Europe.

4 COMPETITION POLICY: The EU should pursue a strong EU competition policy that guarantees sound competition between companies of all sizes on our Single Market and benefits consumers, whilst ensuring that EU companies can better compete at global level.

5 DIGITAL ECONOMY: The EU should accelerate the cybersecure digitalisation of the European economy, seizing the opportunities it creates for society, and ensuring that the EU does not miss the ongoing digital revolution. We view the €9.2 billion for the Digital Europe programme in the next Multiannual Financial Framework (MFF) as the low watermark.

6 RESEARCH AND INNOVATION: The EU should support and facilitate research, development and innovation throughout the EU and the European Economic Area to regain our world leadership in technology and bring more innovative products and services to the market. The EU should allocate at least €120 billion to the Horizon Europe programme to take European research, development and innovation to the next level and should ensure adequate intellectual property (IP) protection.

7 MULTIANNUAL FINANCIAL FRAMEWORK (MFF) AND EU BUDGET: The EU should ensure that the post-2020 European budget concentrates on boosting sustained growth, investment and job creation, as well as supporting Member States in implementing necessary reforms. To ensure seamless functioning of the sectoral programmes, in particular research and innovation, the next MFF must be urgently adopted.

8 ECONOMIC AND MONETARY UNION (EMU): The EU should further strengthen the EMU and trust in the euro to provide a stable environment to investors. Reforming and enhancing economic governance in the EU through a deepening of the EMU is crucial to ensuring long-run stability and growth and the international role of the euro.

9 TAXATION: The EU should act at the European level in a way which respects international taxation principles and Member States’ competences regarding taxation, and promote tax systems which support long-term investment and entrepreneurship.

10 BETTER REGULATION: The EU should continue working on better regulation, giving more attention to the PROSPERimpactITY of cumulative EU legislation on our competitiveness and our attractiveness as a place to invest as well as continuously evaluating existing regulation. The EU should reduce the regulatory burden on companies and keep associated business costs to a minimum. Moreover, EU legislation should be innovation-friendly and future-proof.

19 EU Affairs | Highlights 2019 Business priorities for 2019-2024

PEOPLE

1 ECONOMIC CONVERGENCE AND SOCIAL COHESION: The EU should foster gradual economic and social convergence among all Member States, supporting those lagging behind, by encouraging them to continue reforming their labour markets and social systems and to channel structural funds into productive investment. Social policy should be combined with solid economic and cohesion policies as part of an EU strategy for increasing employment, productivity, growth and competitiveness for the benefit of all Europeans. Only an economic Europe can foster a social Europe.

2 SKILLS: The EU should help addressing the labour market mismatches that increasingly act as a break on economic growth, even in countries with high unemployment. This means supporting Member States in their efforts to ensure that education and training systems deliver learning outcomes which are better tailored to labour market and companies’ needs, particularly regarding science, technology, engineering and mathematical skills.

3 LABOUR MOBILITY: The EU should take proactive action to eliminate remaining restrictions and combat new administrative burdens hindering the free movement of workers, to fully realise the growth and job potential of free movement of services in the Single Market and to promote intra-EU mobility.

4 SOCIAL PROTECTION: The EU should encourage Member States to maintain high levels of social protection in a way which is financially sustainable now and for future generations. Member States should ensure that welfare benefits accompany people in labour market transitions in an active way.

5 EMPLOYMENT: The EU should support the Member States in their efforts to ensure that the labour market regulatory framework is clear and simple and provide the right balance of flexibility and security for companies and workers. Both need to have easy access to different forms of employment and a variety of work contracts that respond to their changing needs.

6 SOCIAL INCLUSION AND EQUALITY: The EU should support Member States in their fight against poverty and inequality within the EU by pursuing policies that optimise growth and employment.

7 PENSIONS AND DEMOGRAPHIC AGEING: The EU should support Member States’ efforts to mitigate negative impacts of population ageing. Reforms must encourage people to stay in the workforce longer to combine work and retirement, make pension systems sustainable, strengthen the link between contributions and benefits and removing incentives for early retirement.

8 DIVERSITY: The EU should remain at the forefront of the promotion of diversity on labour markets, by ensuring proper implementation of the highly developed anti-discrimination and equal opportunities legal frameworks that have been established over the years and supporting efforts to address the non-legal obstacles that women, young,P disabled, ethnic minoritiesE or older workers faceO on labour markets. PLE 9 MIGRATION: The EU should build a coordinated European solution to better manage migration and move away from ad hoc crisis management solutions for refugees and asylum seekers. Instead, an agreement on a new common european asylum system needs to be found to pave the way for returning to a normal functioning of free movement in the Schengen area. At the same time, the EU should pursue a positive agenda to attract talented people from third countries that are equipped with skills needed on European labour markets.

10 SOCIAL DIALOGUE: The EU should facilitate and when needed modernise the social dialogue, respecting the autonomy of the social partners, which is a key feature of the European social model and an essential tool to manage labour market changes and find balanced solutions to Europe’s economic and social challenges and the changes in the world of work.

EU Affairs | Highlights 2019 20 Business priorities for 2019-2024

PLANET

1 ENERGY AND CLIMATE POLICIES: The EU should work towards the objective of climate neutrality (net-zero greenhouse gas emissions), while ensuring our competitiveness and security of energy supply. Reaching climate neutrality by around mid-century, as the IPCC Special Report and the European Commission’s 2050 climate strategy consider is necessary to limit average global temperature increases to 1.5°C, will fully depend on meeting a set of crucial framework conditions and related actions on both European and global level.

2 DIFFERENT ENERGY AND CLIMATE STARTING POINTS: The EU should recognise different conditions and starting points for EU Member States and boost European coordination for cost-effective policy implementation.

3 INNOVATIVE TECHNOLOGIES TO REDUCE GREENHOUSE GAS (GHG) EMISSIONS: The EU should develop and deploy innovative technologies to support decarbonisation of value chains in Europe in a cost-effective way, unleashing investment through a comprehensive industrial strategy.

4 AFFORDABLE LOW-CARBON ENERGY: The EU should ensure large-scale availability of affordable low-carbon energy, designing an integrated value chain approach for energy supply.

5 PUBLIC ACCEPTANCE OF THE ENERGY TRANSITION: The EU should foster adaptation of consumer behaviour and public acceptance for the low-carbon energy transition, engaging actively with citizens to gain societal acceptance.

6 CONVERGENCE OF GLOBAL CLIMATE AMBITIONS: The EU should ensure that its major trading partners also commit themselves to ambitions comparable with Europe’s as soon as possible and consider additional safeguards to keep industrial production in Europe.

7 ZERO- AND LOW-EMISSION MOBILITY: The EU should ensure that the emerging value chains and breakthrough technologies of zero- and low-emission mobility (ZLEM) are supported and can rapidly be deployed on a large scale in Europe, and ensure the stability of the energy and climate policy framework to attract the billions of euros of investments needed to bring about this transition.

8 GREEN FINANCE: The EU should mobilise public and private investments towards all activities that contribute to and enable the transition to a low-carbon economy, building on transparent and reliable frameworks for investors and a common understanding of environmentally sustainable investments.

PLANE9 TRADE AND SUSTAINABLE DEVELOPMENT CHAPTERS INT EU FREE-TRADE AGREEMENTS (FTAs): The EU should continue its efforts on how to better encourage and promote the implementation of sustainability provisions in FTAs. BusinessEurope stands behind the better enforcement of environmental and social norms for the development of third countries and for the competitiveness of European companies through a level playing field.

10 CIRCULAR ECONOMY: The EU should put more emphasis on removing inconsistencies, filling the gaps and aligning different parts in the existing policy framework to create a real market for secondary raw materials and circular products in order to maximise the value of materials, facilitate the transition to circular business models and achieve a circular economy.

21 EU Affairs | Highlights 2019 The European Green Deal

In early December, the European Commission launched the first of the promised first 100 days priorities: the European Green Deal.

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EU Affairs | Highlights 2019 22 Member of: