UPN, Alm.del - 2019-20 - Bilag 130: Hyrdebrev samt roadmap forud for Videokonference møde i Det Europæiske Råd 23. april 2020

Det Udenrigspolitiske Nævn 2019-20
UPN Alm.del Bilag 130
Offentligt

A ROADMAP FOR RECOVERY

Towards a more resilient, sustainable and fair Europe

Introduction

As a result of the Covid-19 pandemic, the EU is facing an unprecedented crisis with huge effects on

every aspect of our society. It must manage its response with determination, unity and solidarity. This

calls for imagination in harnessing all the resources of the Member States and of the EU. There is no

place for business as usual.

The Joint Statement of the Members of the European Council adopted on 26 March called for a

coordinated exit strategy, a comprehensive recovery plan and unprecedented investment and invited

both the President of the European Council and the President of the Commission, in consultation with

other institutions, especially the European Central Bank, to start work on a Roadmap to this end.

On the basis of this mandate, on 15 April the two Presidents presented, as a first step, a Joint European

Roadmap towards lifting Covid-19 containment measures. The document presented today addresses

the second part of the mandate, namely the need for a comprehensive recovery plan and

unprecedented investment that will help us relaunch and transform our economies. It has been drawn

up after consulting other institutions, social partners as well as Member States.

It is now time to chart the path towards a comprehensive recovery plan, with the ultimate objective

of building a more resilient, sustainable and fair Europe.

Principles

1. The shock of the pandemic is symmetric; it is important to avoid the recovery becoming

asymmetric. Not all have suffered in the same way, not all have the same leverages to use

and not all regions will be able to restart their economies

ui kly. The EU’s e ove y pla

ust

therefore be based on

solidarity, cohesion and convergence.

We must ensure a level playing

field for all. A functioning Single Market is beneficial to all EU citizens.

2. This roadmap focuses on what can be done at the EU level given what we currently know. The

pandemic is not over and we do not yet know exactly how it will affect us all. Our approach

to this recovery must therefore be

flexible and agile and will need to evolve over time.

3. The recovery must be

inclusive and co-owned

by all involved. It will be a team effort, from

EU institutions to Member States, regions, business, civil society, social partners and other

stakeholders, while respecting the principle of subsidiarity. The Union can strengthen the

actions taken by Member States.

4. The EU is based on a set of

values and rights

that are fundamental to the integrity of our

model and way of life. While crisis situations require exceptional measures, these values must

be upheld at all times. This and the full respect of the rule of law are not negotiable.

UPN, Alm.del - 2019-20 - Bilag 130: Hyrdebrev samt roadmap forud for Videokonference møde i Det Europæiske Råd 23. april 2020

Key areas for action

The economic impact of this crisis is and will be considerable. As a first line of defence, Member States

have undertaken a major fiscal effort to prevent companies from going out of business and to preserve

jobs. The flexibility created under the Stability and Growth Pact and the State aid regime as well as the

determined action of the ECB have created space for national action to prevent the collapse of the

economy and to protect businesses, jobs and livelihoods. This paves the way towards exiting the

constraints and a comprehensive recovery when the conditions are right.

At its meeting on 9 April the Eurogroup agreed on an important package of safety nets for citizens,

companies and sovereigns, and the European Council will give guidance for the further work on a

Recovery Fund and its link with the Multiannual Financial Framework (MFF).

In the medium to longer term, a successful recovery requires further collective and determined

action in the following four areas.

A fully functioning and revitalised Single Market

It is vital to restore and to further deepen the

Single Market

as a key component of our

prosperity

and

resilience.

Value and supply chains that have been disrupted must be re-established.

The

Green transition

and the

Digital transformation

will play a central and priority role in relaunching

and modernising our economy. Investing in clean and digital technologies and capacities, together with

a circular economy, will help create jobs and growth and allow Europe to make the most of the first-

mover advantage in the global race to recovery. It will also help make us more resilient and less

dependent by diversifying our key supply chains.

We must ensure the

strategic autonomy

of the EU through a dynamic industrial policy, support for

SMEs and start-ups, and an effective screening of foreign direct investment. The Covid-19 pandemic

has shown the pressing need to produce critical goods in Europe, to invest in strategic value chains

and to reduce over-dependency on third countries in these areas. There is a need to build more

resilient infrastructure to deal with unforeseen events, in particular in the health sector. Particular

attention will have to be paid to the socio-economic sectors and ecosystems that have suffered most

from the crisis and to strengthening future crisis management. To this end a thorough analysis of the

needs of the different ecosystems and most affected sectors would allow for a targeted response.

The financial sector will play an important role in ensuring access to finance. Completing the Banking

Union and the Capital Markets Union becomes all the more important. Innovative partnerships and

ways of unlocking finance, including through digital platforms, should be encouraged. Europe can also

support efforts to prevent insolvency of viable businesses across our Union.

UPN, Alm.del - 2019-20 - Bilag 130: Hyrdebrev samt roadmap forud for Videokonference møde i Det Europæiske Råd 23. april 2020

An Unprecedented Investment Effort

The European Union needs a Marshall-Plan type investment effort to fuel the recovery and modernise

the economy. This should be a coordinated effort drawing on public investment at European and

national levels and on mobilising private investment. It should be targeted on our commonly agreed

objectives and on where it is most needed.

This means investing massively in the Green and Digital transitions and the circular economy, alongside

other policies such as

cohesion

and the Common agricultural policy. The European Green deal will be

essential as an inclusive and sustainable growth strategy in this respect. The crisis has also shown the

potential of digital for the functioning of our economies. Investing in digital capacities, infrastructure

and technologies will therefore be a key element of the recovery effort.

The Coronavirus Response Investment Initiative and other such joint measures have helped in the

emergency situation, but much more must be done towards full recovery:



The future MFF will be a key instrument to support a lasting recovery and a fully

functioning and modernised Single Market. It will have to take into account the effects

of the crisis on regions and affected sectors, including by revamping key programmes

to maximise their contribution to repair and recovery and tapping market financing. It

should provide support to Member State recovery plans, as well as a framework for

sustai ed i vest e t i the EU’s st ategi o je tives.

The new MFF should be agreed

as soon as possible to avoid delays in essential investment and solutions should be

found to ensure resources can be directed to where they are needed as quickly as

possible.

The EIB group, as the largest public investment bank in the world, has a major

responsibility in the coming years to provide finance at favourable rates. It is crucial to

provide it with the tools, support and capital needed to fulfil this responsibility while

retaining its triple-A status.



The amount, the specific objectives, the timeframe and the nature of this investment effort should be

defined as part of a comprehensive recovery package with the EU budget at its heart. The Commission

will present proposals in this respect.

Acting globally

The pandemic being a global phenomenon, it is clear that the EU cannot act in isolation. The virus

knows no borders and strikes all nations, be they small or big, poor or rich, and regardless of political

affiliations. The EU as a global actor has a particular responsibility to help frame a global response

through multilateralism and a rules-based international order, with its partners in the UN, in the WTO,

in the G20 and in the G7. In this context, re-establishing trade flows and supply routes is of the utmost

importance. At the same time the EU must provide assistance to countries in need.

Particular attention should be devoted to the Union's immediate neighbourhood. A strong partnership

should be developed with Africa. The Union should help consolidate health defences in in the short

term and invest in infrastructure in the longer term. We invite other public and private actors to

alleviate debts.

UPN, Alm.del - 2019-20 - Bilag 130: Hyrdebrev samt roadmap forud for Videokonference møde i Det Europæiske Råd 23. april 2020

A functioning system of governance

A functioning system of governance is a key requisite for overcoming the crisis and ensuring recovery.

(1) The EU must be more resilient. It should draw lessons from the crisis. Institutions and Member

States must work together in the most effective manner and in full respect of the principle of

subsidiarity.

(2) The EU must be more efficient and more effective; this means becoming better at developing its

executive capacity and at managing crises in a coordinated fashion.

(3) The core principles and values on which the Union is based must remain at the centre of our

approach. Respect for the rule of law and human dignity is the best way to ensure a strong, robust and

inclusive recovery of our societies.

More generally, the Union will need to reflect on its own rules and ways of functioning in the light of

the experience gained during the crisis.

Conclusion

The magnitude of the crisis confronts the EU with an unprecedented challenge. There will be no easy

solutions. The framework presented here will, however, enable it to create a sense of determination

and confidence and to harness all the resources in a spirit of unity and solidarity. This roadmap will be

complemented by a more detailed Action Plan setting out the measures to be taken with the

appropriate timings.

In order for this strategy to succeed, we need to ensure buy-in from governments and parliaments,

from social partners and from citizens. We pledge to listen to their concerns, to consult widely and to

create the conditions for a permanent dialogue with all stakeholders.

The European Council will monitor progress on all the elements of the roadmap in close cooperation

with other EU institutions.

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