Growth needs green recovery, digitalisation

The Confederation of Finnish Industries (EK) and its counterparts in Nordic countries have observed that it is vital that the funds of the EU recovery instrument be allocated to investments that contribute to a green recovery and promote digitalisation.

EK and its counterparts in Sweden, Denmark, Iceland and Norway also underscored the necessity for securing sustainable growth and job creation that they need, said EK in a press release on Tuesday.

“The COVID-19 not only threatens the lives and health of our citizens but is also hitting businesses and jobs very hard. The economic downturn has been deep and the future remains highly uncertain, particularly for exporting companies. The recovery of the world economy is expected to take years. Proper future-oriented reforms and initiatives at national and EU levels can help accelerate the restarting of our economies and create a foundation for more competitive and sustainable Nordic economies,” read the press release.

Free movement of individuals and goods must be restored as soon as possible, of course taking into account of the status of the pandemic at regional and national levels.

It said restoring a well-functioning single market – the EU/EEA’s growth engine – is the key to future growth in the EU/EEA. The priorities should be to remove existing bottlenecks in the internal markets and to support free movement of goods, services, people, and capital.

At the European Council meeting in July, European leaders agreed on an ambitious recovery instrument for a next-generation EU.

“We call on Nordic EU governments and European institutions to ensure that the funds allocated are put to use for investments that contribute to a green recovery, one that mitigates climate change and promotes digitalisation. This is essential for securing a sustainable growth and creation of jobs that we need,” said the statement of Nordic business federations.

The statement also said that the funds distributed to EU member states must be accompanied by clear criteria and a proper monitoring mechanism, as well as demands for reforms that ensure that the funds are used in line with the recommendations of the European Semester.