MEPs maintain momentum for implementation of Draghi report

MEPs on Tuesday adopted a host of proposals they consider essential to make Europe globally competitive and provide it with the resources to reach this goal.

The text, adopted by the Economic and Monetary affairs committee, follows up on the Draghi report and seeks to maintain pressure towards reaching the objectives of that report. The text warns that if no further actions are taken, Europe will continue lagging behind, and risk becoming irrelevant, particularly within the current context of geopolitical instability. It also says that there is an intrinsic link between the rule of law, and sustainable and competitive economic growth.

Mobilising private investment and easing access to finance

Specifically, MEPs call for concrete measures to make financing more available and affordable, especially for SMEs and innovative ventures. To do this they want, among other things, larger venture capital and growth funds, financed in part through transforming personal savings into investments. This should be coupled with an EU strategy for financial literacy, MEPs say.

The adopted text also calls for the rapid completation of the banking union, the capital markets union and the savings and investments union. MEPs also want a pan‑EU equity listing and trading environment to encourage start-ups to remain in Europe, and also call for a reform of corporate taxation.

Complementing private investment with public investment

MEPs also make the case that joint borrowing through the issuance of EU bonds presents a viable option to ensure that the EU has sufficient resources to respond to acute Union-wide crises and ask the Commission to advance the discussions on addressing the significant investment gaps in the EU and to present concrete proposals for financing solutions.

Quote of the rapporteur

After the vote the rapporteur, Aurore Lalucq (S&D, FR) said:

"This report sets a clear path to ensuring the EU’s economic and financial autonomy through the Savings and Investment Union. Mobilizing savings and private capital will be key in the coming years to achieve the investment goals we have set, but public investment will also be essential, as Mario Draghi highlighted in his report last September.

"Proposals such as reinforced supervision, including direct supervision where it adds value, is a prerequisite to seriously advancing the Savings and Investment Union. Initiatives to boost retail participation in European long term investments, such as savings accounts and labels promoting EU-based investments, will also be necessary to redirect our savings toward European sustainable growth.

"Faced with the instability caused by Donald Trump, the EU must become a safe space for investment and long-term projects, grounded in trust, stability, and respect for the rule of law."

Next steps

The text was adopted with 33 votes in favour, 8 against and 11 abstentions. It will now be tabled for a plenary vote.