On the proposal for a regulation of the European Parliament and of the Council on establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783, and amending Regulations (EU) 2021/696, (EU) 2023/588, (EU) [EDIP]
EMPL-AD-785132
Committee on Employment and Social Affairs · Rapporteur: Grégory Allione
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The Committee on Employment and Social Affairs proposes amendments to the proposed regulation establishing the European Competitiveness Fund, including its defence research and innovation programme.¶¶ The amendments add social and employment conditions throughout: competitiveness must complement the European Pillar of Social Rights, and funding must support quality jobs, skills development and a just transition.¶¶¶ They require at least 7% of each policy window's dedicated financial envelope to go to skills development and workforce adaptation linked to the supported strategic sectors.¶¶ They add social enterprises, social infrastructure including housing, and less developed regions as beneficiaries, and require work programmes to include a dedicated skills part.¶¶¶ They also add temporary resilience measures for major economic shocks or geopolitical disruptions that threaten strategic industrial capacity or value chains.¶¶
Committee position. The Committee on Employment and Social Affairs proposes amendments to the lead committee to add social, employment and skills conditions throughout the proposed regulation, including a 7% skills allocation, support for social enterprises and social infrastructure, and just transition measures.¶¶
Key points
- Adds that strengthening competitiveness must complement the Union's social acquis and the European Pillar of Social Rights, with high social standards and no one left behind.¶
- Adds skills development of the workforce, a just transition supporting quality employment, and workforce transformation to the regulation's aims.¶¶
- Adds that the Fund should reduce competitiveness disparities between member states and regions by supporting quality jobs, skills and industrial capabilities, including capacity-building and simplified access to funding.¶
- Adds that industrial transformation should be territorially anchored to maintain productive capacity, prevent abrupt deindustrialisation and support quality employment and regional cohesion.¶
- Requires work programmes to include a dedicated part on skills development coherent with the Union of Skills, and adds a preference for products manufactured in the EU or EFTA States where necessary.¶¶¶
- Extends the ECF InvestEU Instrument to quality employment, a just transition, social infrastructure including housing, microfinance, social enterprise finance and education and training.¶
- Adds that the Fund may support temporary resilience measures in response to major economic shocks or geopolitical disruptions threatening strategic industrial capacity or value chains.¶¶
- Adds that at least 7% of each policy window's dedicated financial envelope shall be allocated to skills development and workforce adaptation linked to the supported strategic sectors.¶¶
- Adds a definition of 'quality employment' covering stable employment, adequate wages, decent working conditions, skills development and the right to negotiate collective agreements.¶
- Adds a definition of 'social enterprise' and includes social enterprises among the beneficiaries of the Fund's SME and scale-up support.¶¶¶
- Requires the ECF InvestEU Instrument to support housing and social investments using funds from the EU Facility under the National and Regional Partnership Plans regulation.¶¶
- Requires the Commission to publish the assessment methodology for the Competitiveness Seal and allows award conditions to include contributing to skills development.¶¶
Who is affected
- Workers and jobseekers in strategic sectors, who would gain access to upskilling, reskilling and just transition measures.¶¶¶
- Small and medium-sized enterprises, start-ups, scale-ups and social enterprises, which would get easier access to finance and advisory services.¶¶¶
- Less developed regions and cohesion countries, which would receive support to reduce competitiveness disparities and build skills.¶¶
- Social partners, education and training providers, and regional and local authorities, which would be involved in the ECF Strategic Stakeholder Board and consultations.¶¶¶
- Companies receiving ECF funding, which would face participation, performance and transfer restrictions and possible recovery of funds.¶¶¶
Figures and deadlines
- 7% of each policy window's dedicated financial envelope for skills development and workforce adaptation.¶¶
- At least 7% of the indicative amounts distributed pursuant to points (b), (c), (d) and (e) for skills development.
- Transfer restrictions apply during or within 5 calendar years after the end of an action.¶
- Members of the ECF Strategic Stakeholders Board serve a term limited to four years, renewable once.¶