4 November 2024—Ahead of the informal EU leaders’ meeting about the EU’s competitiveness on 8 November and the hearing of the Executive Vice-President-designate for Prosperity and Industrial Strategy, Stéphane Séjourné, ten climate, environment, social justice organisations and trade union federations demand mainstreaming a minimum set of social and environmental conditions through all tools used to support companies with public funds.
Establishing EU-wide minimum social and environmental conditions wherever public funds support companies is essential to avoid rent-seeking and subsidy shopping by companies operating in several member states. Clear criteria will ensure that public investments support a just transition and benefit workers, consumers and the environment. Social and environmental conditions will also enhance the EU’s global competitiveness by supporting the best-in-class companies—those genuinely aiming to achieve carbon neutrality, resource efficiency and respect for social and labour standards.
Ludovic Voet, Confederal Secretary of the European Trade Union Confederation (ETUC), said:
“For trade unions, it is unthinkable that public finances, hit hard by budget cuts that are not offset by tax revenues, should be used to distribute public aid and subsidies, in whatever form, to companies that fail to meet minimum standards in terms of labour law, training, commitment to social dialogue or respect for collective agreements. We propose that companies benefiting from public funds should be penalised for relocating their activities to countries with lower social and fiscal standards. There can be no double standards when it comes to transparency in the use of public money.”
Isabelle Brachet, Fiscal Reform Policy Coordinator at Climate Action Network Europe, said:
“Our governments must stop handing out public money to companies without anything in return. Accessing public funds must go with the responsibility to generate positive outcomes for the climate, the environment, workers and society at large. Uniform minimum social and environmental conditions applying to public procurement, state aid, national subsidies, EU grants, loans and de-risking tools must be at the core of the Clean Industrial Deal to preserve cohesion and build the economy of tomorrow.”
Sebastian Mang, Senior Policy Officer at the New Economics Foundation, said:
“When large corporations shop around for the highest bidder among EU member states, they drive up the costs of industrial policy, erode fair competition and drive regional economic divergence. Establishing a harmonised set of social and environmental conditions for public funding will not only help create a level playing field across the EU but will also ensure that public investments are driving meaningful change towards a stronger economy and more resilient communities, workers, and environment—not just boosting corporate profits”
Read the joint statement by CEE Bankwatch Network, Climate Action Network (CAN) Europe, Counter Balance, Trade Union Confederation (ETUC), The European Federation of Public Service Unions (EPSU), Finance Watch, New Economics Foundation, Reuse and Recycling European Union Social Enterprises (RREUSE), Social Platform and Transport and Environment (T&E) here.
For more information and media requests, please contact Jani Savolainen, jani.savolainen@caneurope.org.
