The COVID-19 pandemic has been a shock to the economy, causing serious disruptions within the global supply chain. In Europe, the economy is expected to shrink by more than 7% in 2020. As a consequence, many companies face severe financial challenges in terms of cash flow and liquidity and many workers have seen their livelihood put at risk.
On 21 July, after lengthy discussions, the 27 EU leaders approved the recovery package – Next Generation EU. Alongside the recovery package, EU leaders also agreed on a EUR 1,074 billion long-term EU budget for 2021-2027.
amfori warmly welcomes the EU approach to tackling the impacts of the COVID-19 pandemic, where the objectives previously set under the Green Deal will serve as a framework to calibrate recovery responses and direct financial support towards competitive sustainability. This means that the entire recovery package will need to be in alignment with achieving net-zero emissions by 2050. Accordingly, 30% of the total expenditure from the Multiannual Financial Framework (MFF) and Next Generation EU will be used for climate-related projects.
This deal still needs to be formally approved by the European Parliament. But if it goes through, it will be the opportunity for Europe to demonstrate that economic and sustainability priorities are not mutually exclusive.
amfori Advocacy Work
Within the context of these discussions, amfori published a position paper highlighting its recommendations for the implementation of a recovery plan that is sustainable, inclusive and enhances the EU’s resilience to future shocks and crises. We believe that public investment in the EU recovery should be used in a sustainable manner so that they not only pull companies out of the crisis but also push them towards a more sustainable future.
As the impact of the COVID-19 pandemic is not fully understood yet, engaging with business stakeholders will support a pragmatic implementation of the recovery package approach that takes into account the reality of global supply chains.
The European Commission in cooperation with the Enterprise Europe Network has recently launched a short SME questionnaire focusing on supply chain disruptions in Europe due to Covid-19.
We would like to encourage amfori members to complete it as the purpose of this exercise is to gather timely information that will help the European Commission to calibrate its policies for recovery.
The amfori Advocacy team will continue to closely monitor the implementation modalities of the future recovery package.
If you want to know more about amfori’s advocacy work, contact firstname.lastname@example.org Policy and Government Affairs Manager.