A smart and fair economy
In his introductory speech, Mr Dombrovskis pledged to improve the coherence, social fairness, and cohesion at the core of Europe’s economic model.
The new economic governance rules are fit for purpose, Mr Dombrovskis said, adding that he will make sure that they are enforced “in a credible and even-handed way”. Mr Dombrovskis stressed that the EU must stand united at international economic fora due to today’s “more fragmented world”, and that the euro should become a bigger force on the world stage.
MEPs asked about Mr Dombrovskis’s plans to ensure the full enforcement and implementation of economic governance rules, taking into account social and cohesion concerns. Others warned that the EU governance framework would condemn countries to never-ending austerity since the fiscal receipts side of budgetary stability was not modified.
There were questions on commitments for prescribing the phase-out of fossil fuel subsidies, improving the democratic accountability of the European Semester (the EU’s economic coordination mechanism), the impact assessment for the digital euro, and specific programmes for Eastern member states suffering the brunt of Russia’s attack on Ukraine.
Investment – a concern on many minds
MEPs raised concerns about the likelihood of an investment gap, notably at the end of the Recovery and Resilience Facility, and asked about funding EU investment through common Union debt. They also asked for a specific instrument for building the defence Union and questioned whether a roll-over of the NextGeneration EU debt may be possible.
Simplification and implementation
Mr Dombrovskis said that the EU needs “simpler rules that are easier to implement,” assuring MEPs that policy objectives would not be compromised. To cut red tape for companies, he plans to use digital technology such as the digital wallet and e-identity.
To reduce reporting obligations for companies by at least 25% (35% for SMEs), the Commissioner-designate said all existing rules would be stress-tested and their impact on competitiveness and SMEs properly assessed.
Sustainability reporting being a key concern, he said the EU needs to avoid large companies transferring their duties to SMEs, adding that the EU has tools, such as the SMEs support programme, to address compliance costs.
Mr Dombrovskis said implementation issues will be discussed in the new Implementation Dialogues with affected businesses and committed to using infringement procedures when member states do not implement agreed rules. He will renew the Interinstitutional agreement on better law making to improve the impact and costs assessment of legislation, not just of proposals.
You can watch the video recording of the full hearing here.
Press point
At the end of the hearing, Chair of the Committee on Economic and Monetary Affairs (ECON) Aurore Lalucq (S&D, FR) and Chair of the Committee on Legal Affairs (JURI) Ilhan Kyuchyuk (Renew, BG) held a press point outside the meeting room. Watch their statements. The Commissioner-designate also addressed the press.
Next steps
The chairs and political group coordinators of the two committees will meet without delay to assess the performance and qualification of the Commissioner-designate.
Based on the committees’ recommendations, the Conference of Presidents (EP President Metsola and political group chairs) is set to conduct the final evaluation and declare the hearings closed on 21 November. Once the Conference of Presidents declares all hearings closed, the evaluation letters will be published.
The election by MEPs of the full college of Commissioners (by a majority of the votes cast, by roll-call) is currently scheduled to take place during the 25-28 November plenary session in Strasbourg.
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