”We are not looking for recovery alone – we also want growth to increase”

The Confederation of Swedish Enterprise, along with with its sister organisations in the Nordic countries and those in Latvia and Lithuania, has previously proposed that the EU produce a dedicated scoreboard, in order to follow up on how the funds distributed to EU Member States from the sizeable recovery fund are being deployed.

The so-called ”Next Generation EU” fund consists of €390 billion in grants and a further €360 billion in loans. The reason behind this is to work to offset the risk that the money is being used incorrectly, inefficiently, inappropriately or even - in some cases - being wasted.

The European Commission has now been charged with developing such a scoreboard; this is estimated to be operational by December this year and subsequently updated twice-yearly.

The basis for the scoreboard consists of six pillars: 1) The Green Transition; 2) The Digital Transformation; 3) smart, sustainable growth for all; 4) social and territorial cohesion; 5) health and economic, social and institutional resilience; and 6) policies for the next generation.

– We in the Nordic-Baltic business community strongly welcome the European Commission’s decision to establish a scoreboard for the fund. It is of the utmost importance that the European business community be given a chance to re-emerge as quickly as possible. If the fund is deployed correctly, it can act as an important stimulus, says CEO Jan-Olof Jacke.

However, business organisations wish to emphasise the need for the Commission to set up a process for developing and disseminating best practices. This will help ensure that these significant EU funds are used in such a way that simultaneously improves the internal market and increases global competitiveness.

– We are not looking for recovery alone – we also want growth to increase. By using these funds in the most appropriate way - coupled with a watchful eye from the European Commission – there is a good chance that the crisis can actually be used to provide a much-needed modernisation of the EU economy.

The before mentioned organisations have therefore written a joint position paper, which calls upon the European Commission to follow three key steps in implementing the stimulus package. The common thread lies principally in accelerating the EU’s Digital and Green transitions; this in turn will lead to more jobs and increased sustainable growth.

These three steps are about ensuring that the criteria for the fund are interpreted correctly and do not contribute to distorting competition between countries and between private and public actors. The funds must not be used to bridge gaps in the state budget, but rather be focused on long-term investments capable of contributing to growth and a reinforced internal market. Where the funds are used for public purposes, they should provide the highest positive benefit for private investments.

– It is extremely important that the European Commission closely monitors that the funds are being used correctly. It might be tempting for each country to distribute allocated money in a way that addresses pressing needs and rapidly increases consumption nationally. However, these are common funds that are to be used for the common good – in other words, to strengthen the internal market and EU overall competitiveness, says Jan-Olof Jacke.

Furthermore, measurable objectives must be set, which - like the scoreboard itself - must also be transparent. Twice a year, the board shall be updated and the results shall be public so that everyone can take part in how the member countries meet the requirements.

– Emphasising transparency will not be sufficient. To ensure the legitimacy of the fund in the way that it distributes its money, full transparency will be essential. Both the general public and the media must have a full oversight of where these funds are being used.

To ensure that EU funds are invested wisely, careful and efficient implementation will be essential. Such an approach should be able to build successfully on the EU’s existing tender procedures. This way, EU-funded projects will genuinely add value to the economy.

Above all, it is important that the new scoreboard goes beyond simply monitoring reforms and spending on climate, digital and R&D. Jan-Olof Jacke believes that the scoreboard must also evaluate the impact of the reforms and investments as well as how the labour markets develops in terms of resources, skills and improved matching

– If our proposals are adopted, this scoreboard will be able to make a positive contribution to the EU’s long-term growth, global competitiveness and ultimately to jobs. The proper conditions for business must be at the core of the strategy for this ambitious plan and therefore the demands from we in the Nordic countries – along with our Latvian and Lithuanian colleagues - are understandably high, says Jan-Olof Jacke.