GROWTH IN THE EU : PRIORITIES FOR THE NEXT 5 YEARS

Incoming policy-makers need to take measures to streamline the EU including working within a ‘regulatory budget’, setting a cap on business regulation costs in Europe. Businesses need certainty and stability to secure sustainable economic growth in Europe, delivering rising living standards for all. Too much new regulation introduced too fast can overwhelm businesses, and affect their productivity levels, profits and ability to innovate. A ‘regulatory budget’ to cap the cost of new regulation. would mean no further regulation could be introduced once the maximum cost to business has been reached, .

Among  other measures to improve the EU there should be a pan-EU debate on the competences of the EU, slimmer Commission structure, more transparency in government with a full open government model and more open participation in policy making, and a better impact assessment process.

Here below are 35 recommendations on ways to build a more competitive European economy with more broad-based growth and sustainable job creation. These recommendations are from the ICAEW Europe (Institute of Chartered Accountants in England and Wales) Over 142,000 Chartered Accountants around the world, with offices in the UK, Beijing, Brussels, Dubai, Hong Kong, Kuala Lumpur and Singapore.

1. Launch a comprehensive, forward-looking pan-EU debate on the appropriate competences of the EU. This should be based on a proper evaluation of the cumulative impact of EU laws across different policy areas and accompanied by clearer criteria to assess compliance of proposed legislation with the principles of subsidiarity and proportionality.
2. Slim-down the European Commission structure by creating clusters of Commissioners focused on key priority areas, accompanied by a consolidation of directorate generals.
3. Move to a full open government model increasing transparency by releasing raw data, sharing economic models and publishing trilogue papers as well as improving open participation and collaboration in policy-making.
4. Use ‘regulatory budgets’ to set out the maximum costs of new regulation that can be introduced in determined policy areas over sets periods of time, where necessary ensuring that the imposition of new regulatory costs is offset by identifiable reduction in existing ones.
5. Fix the impact assessment process by establishing a fully independent Impact Assessment Board, allowing stakeholders to comment on drafts, embedding review by the co-legislators before detailed legislative scrutiny and undertaking regular cost-benefit analyses of substantive amendments.
6. Facilitate a fair system for the development and implementation of primary and secondary legislation that recognises the reality of differing banking union membership in the EU.
7. Ensure that the activities of the European Supervisory Authorities (EBA, ESMA and EIOPA) deliver supervisory consistency, based on a shared and transparent approach to implementation and application of the single rule book, while guarding against potential mission creep and embedding a ‘better regulation’ approach to consultations with interested parties.
8.  Conclude the Transatlantic Trade and Investment Partnership TTIP) agreement with the US, introducing workable and robust mutual recognition and compliance programmes, and establishing procedures to coordinate rule-making
9. Back European companies in their efforts to gain further access to the global market, promoting a more coordinated and targeted range of support services for different sized businesses.
10. Ensure that there is a single EU voice pressing for an ambitious post-2015 UN sustainable development framework, encouraging economic activity that delivers rising living standards for all while decreasing environmental impacts and natural resource use.
11. Play a leading role in the global debate on the appropriateness of moving towards more ‘integrated thinking’ for mainstream corporate reporting based on the usefulness of such an approach to investors and thereby also encouraging further improvements in reporting by Europe’s major companies.
12. Take a more consistent global approach to financial services issues, including structural reform of banks, to prevent the emergence of fragmented regimes which hinder free and competitive capital markets.
13. Ensure that EU companies continue to benefit from the use of a single set of high-quality global accounting standards, avoiding the risk of a more fragmented approach which could increase the cost of capital for EU companies and damage the EU’s overall global competitiveness.
14. Define  a set of common EU principles to frame the development of alternative finance, including crowdfunding, into viable and sustainable sources of capital for micro-businesses, SMEs, and innovative companies that may have few other options.
15. Encourage employee ownership schemes, providing general guidance on basic principles and best practice to guide companies, employees, social partners and national authorities
16. Incentivise world-class innovation clusters in the EU, facilitating the commercialisation of innovation, ensuring consistency across different policy initiatives and appropriate financing through EU and member state budgets
17. Coordinate and promote the development and adoption of voluntary cyber-security standards to strengthen resilience while facilitating information-sharing on cyber-risks, at both technical and strategic level, to develop an evidence base to aid decision-making by competent authorities and businesses
18. Help ensure that cyber-security issues are addressed by businesses, sharing best practice and raising awareness, including through corporate governance frameworks and corporate finance guidance.
19. Support the EU in becoming a global leader of transparent public finance management, using properly collected, accruals-based financial information to inform sustainable decision-making at all levels of government.
20. Promote a cost-effective EU-wide approach to improving public sector accounting and financial reporting, leading in the longer term to all member states using high-quality international accounting standards, while focusing immediate action on helping member states that have not yet made the transition from cash accounting to a base line accruals accounting system.
21. Encourage member states to establish and/or enhance strong public financial management within governments, including the establishment of a Chief Financial Officer role to take overall responsibility for financial leadership and driving financial discipline across government.
22. Support the EU and its member states to keep improving financial management of the EU budget, optimising the allocation and control of financial resources to enhance value for money for EU citizens.
23. Adopt a more structured approach to infrastructure planning and investment across the EU, taking account of growth goals, environmental limits as well as country-specific needs and priorities, based on sound strategic, economic, commercial and financial transactions.
24. Complete the single market in services, ensuring existing rules are properly implemented and enforced to enhance openness and mobility across the EU.
25. Ensure appropriate implementation of recent changes regarding recognition of professional qualifications and complete the mutual evaluation exercise on the proportionality and public interest dimension of entry requirements to the professions to achieve greater mobility across the EU.
26. Establish a coherent policy framework to address STEM (science, technology, engineering and mathematics) shortages, encouraging the practical application of classroom theory to be embedded as early as possible in schools.
27. Strengthen access to high quality apprenticeships and work-based learning, promoting partnerships between schools, universities, public authorities, professional bodies and businesses, including via the European Alliance for Apprenticeships.
28. Encourage universities to work in partnership with professional bodies and businesses to run practical commercial awareness and other workready sessions for students. This will facilitate their transition into employment, based on a better understanding of the skills and competences that EU businesses are looking for in young people.
29. Build on initiative such as the EU Grand Coalition for Digital Jobs to raise the digital skills of EU citizens and encourage better matching with the needs of innovative employers.
30. Further foster lifelong learning across the EU, encouraging peer learning between member states to identify potential incentives, such as tax reliefs for training.
31. Reconsider the changes to the VAT system to encourage the growth of the single market and to address any emerging practical difficulties with the introduction of destination-based VAT levy on charges to consumers for telecoms, broadcasting and e-services.
32. Further work at the EU level to simplify VAT rules, encouraging the use of local VAT registration to cover sales in other member states and examining the scope of further simplification of existing exemptions and reduced rates within a broadly neutral fiscal framework.
33. Work to ensure that the various information requirements being placed on businesses are proportionate and coordinated, including those deriving from the EU Savings Directive, the US-related FATCA and the OECD’s Common Reporting Standards.
34. Coordinate with the OECD to facilitate the provision of better quality information about multinationals’ international tax planning so that tax administrations can better evaluate the risk posed by a particular business to their tax collection.
35. Ensure that the EU, OECD and other stakeholders come a to a shared and better understanding of the economic drivers of the digital economy, so that any future taxation changes do not stifle growth.