Draghi’s Vision of EU’s Competitiveness: A call to invest in circularity but low regard for the transformative potential of social actors
The former European Central Bank President Mario Draghi has presented his vision for Europe which is expected to influence the European Commission’s plans to boost a competitive economy while advancing prosperous green and digital transitions. In the long-anticipated The Future of European Competitiveness report Draghi puts forward key recommendations for inclusive economic growth in the face of increasing geopolitical challenges.
On the positive side, the report suggests: simplifying funding for green projects by ensuring similar requirements across EU funding streams; ensuring state aid rules account for small and medium enterprises; avoiding large administrative burdens in green public procurement; and prioritising quality over price when awarding contracts. If taken on board, these are encouraging elements to create enabling frameworks not only for reuse and repair operators in the social economy but for all small and medium enterprises in Europe.
© European Union, 2024
The report also urgently calls for measures to bridge serious investment gaps in the EU. As Europe’s largest network of social enterprises active in reuse, repair and recycling, we fully agree with Draghi that a lack of circular infrastructure investments in preparation for reuse, separate collection, and sorting is a major issue. Echoing the recent “Much More than a Single Market” report findings, Draghi calls for more harmonised waste rules to advance a green transition and reinforce a local economy.
Regrettably, however, the competitiveness report is “business as usual” in a key area of concern for our network. Namely, Draghi seems to largely conflate circular economy with recycling. This comes at the expense of environmentally, socially and economically more beneficial activities like reuse and repair. These are rightfully placed higher in the waste hierarchy and carry a higher potential for local job creation, skill development, and minimising the EU’s external dependencies.
Draghi’s vision of competitiveness is also blurry regarding the role of social inclusion. The report regretfully lacks consideration of social enterprises and other social economy actors despite their models for resilient and sustainable development.
Overall, RREUSE welcomes the report’s recognition that social, environmental, and economic policies should not contradict each other. On behalf of over 1,100 social enterprises involved in the circular economy, we express our hope for the next EU Commission to seize the opportunity presented with a new mandate to link social and circular policies to foster an inclusive, environmentally friendly and resilient economy.
For questions, please contact Simone Schirru, RREUSE Policy Officer in Social and Economic Policies, si************@rr****.org