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The Semester Alliance, a broad European coalition bringing together environmental, social and equality non-governmental organisations (NGOs) and trade unions, calls on the European Council and the European Parliament to ensure that the European Commission’s proposal for a European Fund for Strategic Investment (EFSI) focuses on achieving the Europe 2020 targets. For this to be attained, changes must be made to the proposal to ensure that the investments will have a particular focus on social and sustainable projects, while also being based on a transparent and democratic decision-making process.

The Semester Alliance welcomes the European Commission’s efforts to unlock additional investment for the real economy, yet strongly regrets that this is not being executed within the framework of the Europe 2020 Strategy; the latter visibly being considered of secondary importance in the eyes of the Commission. Without an emphasis on creating quality jobs and sustainable growth in view of achieving the Europe 2020 targets, the investment plan would fail in targeting projects able to deliver the kind of society and economy the European Union (EU) wants and needs; instead focusing on short-term gains.

The Alliance also notes that the potential of the Europe 2020 Strategy has been seriously undermined by a lack of clear political commitments to its goals and targets; including making the most of concepts such as social investment, greening the economy and equality between women and men. Aligning the EFSI to Europe 2020 targets would demonstrate the EU’s commitment towards achieving smart, sustainable and inclusive growth.

“The Commission’s proposal for the EFSI clearly misses out on the huge opportunity the European Union has in investing into social and environmental growth sectors. The European institutions should aim at unlocking the job creation and growth potential of these two sectors through the fund, which would be an important step towards achieving the Europe 2020 targets,” said Luk Zelderloo, member of the Semester Alliance and Secretary-General of the European Association of Service providers for Persons with Disabilities (EASPD).

Given that the European Commission primarily intends the EFSI to mobilise investment into “large infrastructure projects”, it is essential that the fund is earmarked to investing in projects contributing in particular to the Europe 2020 poverty and social targets (employment and education) and the 20-20-20 climate and energy targets. This includes that 20% of the fund be earmarked for projects related to social inclusion, which could include both modernising Europe’s social infrastructure and investment into the human capital of the social services sector (recruitment, improving working conditions, wage equality); consequently helping to unlock the huge job creation potential in the sector. A similar amount should be earmarked for supporting projects aiming towards a greener society; thus supporting the development of green growth in Europe.

The Semester Alliance is also disappointed about the little scope or encouragement given to public authorities to play a significant role in the investment plan. Public funding has an essential role to play to boost social and green investment throughout Europe and the investment plan should not be used as an excuse for public authorities to withdraw from their role in these areas.

Last but not least, in order to guarantee that the EFSI is used as a means to achieving the Europe 2020 targets and strategy, the European Council and the European Parliament must call on the Commission to ensure that the EFSI Investment Committee is both transparent and accountable in its project selection. Meaningful engagement and consultation with stakeholders and civil society will also be vital. The appointment of two independent specialists in social policies and energy and environmental policies is essential in order to guarantee the fund benefits society as a whole, through quality job creation and sustainable growth, and contribute towards achieving the 2020 targets; rather than short term gain for the construction sector and the European Commission.

“We must stop thinking in dichotomies and call on the European Council to ensure that any EFSI investment puts welfare, equality and sustainability at the core of an ambitious future-oriented EU policy that is close to its citizens,” noted Barbara Helfferich, Director of EAPN, member of the Semester Alliance.

European Semester Alliance recommendations

The Semester Alliance calls on the European Council and the European Parliament to support the following recommendations and modify the European Commission’s proposal accordingly:

• Re-aligning the EFSI to the Europe 2020 Strategy, with earmarking for specific 2020 targets.
• Ensuring that the EFSI focuses on delivering the EU’s commitments towards “social investment”, “more and better jobs”, “environmentally sustainable development” and “equality between women and men”.
• Greater coherence and transparency in the selection of investment projects, following the philosophy of the balanced EU2020 agenda.

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