Address by Enrico Letta - Presentation of the report Much More Than a Market
On Monday at 18:30 circa, former Italian PM Enrico LETTA will present his Report Much More Than a Market.
This document provides an extensive review of the European Single Market and proposes a forward-looking vision to adapt it to the evolving global context. Originally conceived in the 1980s during a period when Europe and the world were simpler and less integrated, the Single Market has proven to be a cornerstone of European integration, promoting free movement of goods, services, people, and capital. However, the world has since grown "larger" and more complex, necessitating a modernized framework to maintain the EU's competitiveness in a shifting geopolitical and economic landscape.
The document highlights the need for strategic reforms in key sectors like finance, energy, and electronic communications, previously excluded from full market integration. These areas, now critical to global competition, require a shift toward a European scale for growth and innovation. The author calls for updating regulations, improving infrastructure like high-speed rail, and reinforcing the importance of a level playing field for both large and small companies. Additionally, private capital mobilization and innovative approaches to state aid and public investment are presented as vital to the EU's green and digital transition.
A key proposal is the introduction of a "fifth freedom" focused on research, innovation, and education, essential for driving advancements in R&D, data utilization, and technology sectors like AI and quantum computing. The report also stresses the importance of promoting a fair, green, and digital economy, aiming to ensure that all regions and citizens benefit equally from the Single Market.
Further, the enlargement of the EU is framed as both a challenge and an opportunity, emphasizing the importance of upholding the rule of law and human rights in candidate countries. The author advocates for a Security and Defence Market to reduce dependence on external suppliers, particularly in light of the war in Ukraine.
In summary, the report calls for a robust, strategic, and inclusive Single Market that can lead Europe through its next phase of integration and growth while addressing global challenges such as sustainability, security, and economic resilience.
A debate will follow the presentation on how Empowering the Single Market to deliver a sustainable future and prosperity for all EU citizens.
Proposal for a REGULATION on Implementation of the Single European Sky (recast)
Monday at 20:00 The Report will be voted on Tuesday at 12:00.
Debate on the Recommendation for second reading on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council on the implementation of the Single European Sky (recast).
The Single European Sky (SES) initiative aims to improve the overall efficiency of the way in which European airspace is organised and managed through a reform of the industry providing air navigation services (ANS).
The amended proposal for a Regulation of the European Parliament and of the Council on the implementation of the Single European Sky [COM(2020) 579] is aimed at updating, in light of experience, and recasting the current legislation regarding the Single European Sky. While the original objectives and principles of the proposal adopted by the Commission in 2013 [COM(2013) 410] remain the same, the amended proposal specifically focuses on accelerating the adaptation of the air navigation services in light of those principles and objectives.
One important element of the amendments proposed in this context consists in establishing a permanent Performance Review Body (PRB) function, to be exercised by the European Union Aviation Safety Agency (hereafter referred to as “the Agency”). The arrangements necessary for these purposes require that several amendments be made to Regulation (EU) 2018/1139, with a view to ensuring that the PRB functions are carried out with the necessary independence and expertise and with the required resources. Those amendments are set out in the present proposal.
The European Parliament and the Council approuve the Commission' proposal and have requested that the European Commission propose the creation of a new administrative support budget line under the Connecting Europe Facility (CEF).
This budget line would be financed from available CEF appropriations, as outlined in the Commission's Legislative Financial Statement. It is intended to cover costs related to the Secretariat of the Performance Review Board, the Performance Review Board itself, and the National Supervisory Authorities Cooperation Board. These costs include contractual agents, technical assistance, expert costs, data provision contracts, external studies, and additional consultancy services. Establishment plan posts will be funded from the administrative budget line under Heading 7, in accordance with the current Multiannual Financial Framework Regulation.
The request emphasizes that this financing under CEF should not affect funds already allocated in the current CEF Transport Work Programme. Furthermore, this financing arrangement should not create a precedent for other board secretariats or influence future decisions related to the next Multiannual Financial Framework.
Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine
Tuesday at 9:00 The Report will be voted on Tuesday at 12:00.
With this Proposal for Regulation of the Commission, the European Union reaffirms its unwavering support for Ukraine, emphasizing that Ukraine's future lies within the EU.
The EU continues to back Ukraine's independence, sovereignty, and territorial integrity amidst Russia's ongoing aggression. This proposal outlines the establishment of a new mechanism to mobilize funds to meet Ukraine's urgent financial needs, including exceptional Macro-Financial Assistance (MFA). The escalating war has significantly increased Ukraine's financial requirements, surpassing IMF projections, with additional funding from the EU and international community deemed necessary.
The EU has already provided over €118 billion in support for Ukraine, and further financial aid is justified by the Commission to maintain essential state functions, stabilize the economy, and rebuild critical infrastructure. The proposal also introduces a Ukraine Loan Cooperation Mechanism, which will enable the repayment of loans from G7 partners, funded by revenues generated from immobilized Russian assets in the EU. This proposal complements the EU’s existing support, including military, humanitarian, and reconstruction assistance, and is aligned with Ukraine’s reform agenda for European integration.
Additionally, the exceptional MFA loan will be backed by the EU budget, providing further financial stability for Ukraine as it addresses the war’s immediate challenges and advances its path toward European membership.
Discharge 2022: EU general budget – European Council and Council
Vote on Tuesday at 12:00
The Committee on Budgetary Control of the European Parliament recommends to refuses to grant the Secretary-General of the Council discharge in respect of the implementation of the budget of the European Council and of the Council for the financial year 2022.
General budget of the European Union for the financial year 2025 – all sections
Tuesday at 13:00 The Report will be voted on Wednesday at 12:00.
Section III – European Commission
Approximately €141.3 billion in commitment appropriations and €141.2 billion in payment appropriations
The European Parliament's emphasizes the need for a robust, flexible, and investment-oriented EU budget to address current geopolitical, economic, social, and environmental challenges. The budget prioritizes measures that improve people's lives, strengthen EU competitiveness, and promote sustainability, particularly in light of Russia’s aggression against Ukraine, inflation, and ongoing crises such as climate change. Key areas of focus include public health, housing, security, and cohesion across Member States.
The Parliament calls for additional resources to address the consequences of the Ukraine war, inflation's long-term effects, and the ongoing needs of vulnerable communities.
It stresses the importance of solidarity within the EU and support for strategic investments in research,innovation, transport, digital transformation, and defense. The Parliament also highlights the importance of supporting small businesses, education, and sustainable development.
The budget also considers the revision of the Multiannual Financial Framework (MFF) and calls for increased transparency and adherence to commitments made in the MFF revision. Specific reinforcements are proposed for programs such as Horizon Europe,Erasmus+, CEF, EU4Health, LIFE, and the Asylum and Migration Fund, among others. The Parliament seeks to balance necessary debt repayments under the NextGenerationEU with continued investment in critical EU programs.
Overall, the budget stresses the need for cooperation, innovation, and adaptability to meet the pressing challenges of 2025 and beyond, while ensuring that the EU budget remains responsive to both immediate crises and long-term strategic goals.
Section I – European Parliament
The European Parliament maintains its 2025 budget at €2.5 billion, incorporating budget-neutral adjustments based on updated information. It reiterates key priorities, including strengthening its legislative functions, citizen engagement, cybersecurity, IT development, and promoting a green and accessible Parliament. The Parliament also calls for establishing a Single Seat, enhancing visitor engagement through Europa Experiences in all Member States, and renovating buildings to align with Green Deal goals.
Additionally, it emphasizes the need for fact-based communication to counter disinformation, support for multilingualism, and improved logistical capacities, such as increasing train services between Brussels and Strasbourg. Parliament also considers allowing Members to use their General Expenditure Allowance (GEA) for staffing costs related to missions, enhancing efficiency without budgetary impact.
Other Sections (Sections IV-X)
The EP is deeply concerned regarding the budget for EU institutions under Heading 7 of the Multiannual Financial Framework (MFF) for 2021-2027.
EP underlines that :
Budget Constraints: The current budget constraints for Heading 7 are the result of cuts imposed by the Council, which rejected the European Commission’s proposal to increase the ceiling for this heading in the MFF revision. This has led to a forecasted negative margin for 2025, necessitating the use of special instruments.
Institutional Budgets: The Commission has applied a horizontal reduction in budget estimates for institutions, aiming to keep staffing levels stable and limit non-salary expenditures to a 2% increase, despite inflation and new tasks assigned to the institutions. This has negatively impacted the institutions' work and staffing conditions.
Recruitment Challenges: Rising housing costs in Luxembourg have made it difficult for institutions based there to recruit staff, highlighting the need for temporary housing allowances, which the Council has moved to cut.
Staffing Needs: Institutions must have sufficient staff to fulfill their mandates. While institutions have tried to redeploy staff and improve efficiency, further staff reinforcements are necessary, particularly in areas such as cyber-security.
Restoring Appropriations: The proposal calls for restoring or increasing appropriations for several institutions, including the Court of Justice, European Court of Auditors, European Ombudsman, and European External Action Service, especially in areas like building security and cyber-security.
However, in line with the gentlemen’s agreement, the Parliament does not modify the Council’s reading concerning the Council and European Council budgets.
Guidelines for the employment policies of the Member States
Thursday at 15:00 The amendments and the Report will be voted on Wednesday at 12:00.
The amendments proposed to the Commission's proposal by the European Parliament (EP) for the employment guidelines and related policies reflect a strong emphasis on social inclusion, labor rights, and economic resilience. Key areas of change in these amendments revolve around:
Strengthening Democratic Participation: The EP reiterates its desire to be more involved in setting employment guidelines on an equal footing with the Council, emphasizing democratic decision-making processes. This reflects a broader effort to ensure that the Parliament has a stronger role in shaping employment policy alongside the Council, ensuring more balanced representation of citizens' interests in critical economic areas (Amendment 1).
Quality Employment and Working Conditions: Across several amendments, there is a clear push for improving working conditions, promoting fair wages, decent work, and fostering democracy at the workplace. The EP seeks to ensure that reforms emphasize inclusiveness, resilience, and long-term social progress, including a focus on vulnerable groups, like NEETs (Not in Education, Employment, or Training) and persons with disabilities. This aligns with broader EU goals of ensuring fair transitions in both green and digital sectors (Amendments 2, 3, 6, 14).
Social Dialogue and Collective Bargaining: The Parliament seeks to enhance social dialogue and collective bargaining, pushing for higher coverage and recognition of workers' rights in wage-setting mechanisms. This is particularly relevant in addressing challenges in the workplace brought by the digital economy, including platform work and artificial intelligence. There is a consistent emphasis on preventing precarious working conditions, bogus contracts, and ensuring transparency in algorithmic management (Amendments 16, 23, 29).
Inclusive Economic and Social Transitions: Many amendments focus on making sure that transitions to a green and digital economy do not leave any social group behind. The Parliament proposes boosting sustainable investments, particularly in regions most affected by the transitions, and ensuring that those who lose jobs in declining sectors are given adequate support for re-skilling and reintegration into the labor market (Amendments 13, 14, 20).
Education, Skills, and Life-long Learning: The EP advocates for education systems that better equip students with digital, green, and transversal skills, while also promoting the right to paid educational leave for workers to facilitate life-long learning. Additionally, the Parliament emphasizes the need for early interventions to prevent early school leaving, particularly focusing on disadvantaged groups (Amendments 18, 19, 6).
Support for Vulnerable Groups: A strong focus on vulnerable groups, such as persons with disabilities, marginalized Roma communities, and workers over 50 emerges throughout the amendments. The Parliament is concerned with ensuring that all social groups can fully participate in the economy, advocating for measures that ensure access to affordable housing, social protection, and adequate minimum income for all (Amendments 12, 22, 33).
Gender Equality: Multiple amendments highlight the need to reduce the gender employment and pension gaps, ensuring gender equality in wages, social protection, and leadership roles in decision-making processes. The EP stresses the importance of removing gender stereotypes, tackling in-work poverty, and guaranteeing equal treatment in all areas of employment (Amendments 5, 22, 35).
Social Protection and Fair Transitions: The Parliament proposes a series of measures to modernize social protection systems, ensuring that transitions to new economic models are socially just. This includes provisions to mitigate the effects of the green and digital transitions, particularly on low-income households and those most affected by energy poverty. The EP highlights the importance of adequate unemployment benefits, affordable healthcare, and long-term care services (Amendments 25, 34).
Youth and NEETs: Special attention is given to addressing youth unemployment, particularly through reinforcing the Youth Guarantee and improving school-to-work transitions. The EP highlights the importance of quality apprenticeships, traineeships, and supporting the reintegration of NEETs into education and the labor market (Amendment 21).
Worker Mobility and Fair Conditions: While promoting worker mobility within the EU, the Parliament insists on ensuring fair working conditions for mobile workers, preventing brain drain, and supporting those who engage in cross-border work. This includes simplifying procedures for recognizing qualifications and improving social security transfer rights across borders (Amendment 26).
The EP’s proposed amendments place a significant focus on ensuring that labor markets across the EU are inclusive, resilient, and prepared to face the green and digital transitions while safeguarding social protection systems. The emphasis on quality employment, social justice, education reform, and collective bargaining illustrates the Parliament's commitment to achieving upward social convergence and protecting the most vulnerable in society.