MEDPOL: SGIs’ ability to fulfil their missions, invest and anticipate the impacts of climate change at risk, says SGI Europe

On Monday 7 November 2022, Valeria Ronzitti, SGI Europe General Secretary, addressed the Macro-Economic Dialogue at Political Level (MEDPOL). Bringing together, amongst others, Paschal Donohoe, Eurogroup President, Valdis Dombrovskis, European Commission Executive Vice-President, Zbyněk Stanjura, Czech Minister of Finance, Luis de Guindos, ECB Vice-President, and social partners, the meeting focused on the impacts and consequences stemming from high energy prices.

On this occasion, Valeria Ronzitti, SGI Europe General Secretary, commented:

“Enterprises providing services of general interest are facing extreme pressures, threatening their ability to fulfil their missions, invest, and anticipate the impacts of climate change. Rising energy and commodity prices, labour shortages, and the increasing difficulty for many to pay their bills: all point to a growing risk of insolvency and service interruption. Support to end-consumers is urgently needed. This support must however be temporary to contain fiscal costs and maintain price signals to foster energy savings.”

“The temporary crisis framework for state aid remains a key safety net: it will now be crucial for Member States to not focus only on “usual suspects” of energy-intensive industries, but to also target SGIs facing bankruptcy. We also call for accelerating the roll-out of the Recovery and Resilience Facility. Finally, the revision of the EU economic governance must ensure that fiscal rules become simpler and better balanced to foster investments whilst allowing more autonomy at the national level.”

“Collective bargaining and timely and balanced wage negotiations are also part of the solution. Wage increases must respond to the needs of employers and workers in a context of high inflation, bearing in mind the uncertain and highly deteriorated situation of enterprises.“

“With its ambitions to boost low-carbon energy systems and lowering energy consumption, the EU Green Deal is the central element to guarantee the EU’s long-term resilience and security of energy supply, and remains the only viable long-term plan for the EU.”