The European Parliament and the EU Council made progress with difficulty on the social aspects of the Just Transition Fund at an interinstitutional meeting (‘trilogue’) on Monday 9 November.
Broadly speaking, Parliament would like to extend the scope of the Fund to social issues, whereas the EU Council (with the support of the European Commission) believes that investment in ‘social infrastructure’ should be very circumscribed and directly linked to the Fund’s objectives, recalling that its budget will be limited to EUR 17.5 billion. This is a far cry from Parliament’s position, which wanted an envelope of nearly EUR 60 billion (see EUROPE 12562/20).
In general, the EU Council reportedly recalled that the issue of job creation will be integrated into national transition plans. The EU Council’s concern is that the Fund, which was initially intended to accompany and accelerate the green transition, may be diverted from its initial structural objective to meet other, cyclical objectives.
Thus, the German EU Council Presidency was reportedly flexible on introducing the reference to “jobs creation” in Article 4, which concerns scope, but only for childcare, care for elderly persons, and training facilities. However, it would still like to consult with experts before moving forward on this issue. On the other hand, the EU Council considers that it would be difficult to finance measures to combat unemployment through this Fund, given that Parliament wants to include the term ‘income support’.
In addition, Parliament would like the Fund to be able to finance large companies located primarily in the transitional and least-developed regions, whereas the EU Council would prefer all categories of regions be eligible. Here the Commission is expected to come back quickly with a proposal, we are told.
At the request of the Greens/EFA group, Parliament would like to strengthen the gender equality dimension and other environmental objectives, but the EU Council is reportedly concerned that adding additional objectives would make the Fund too binding and restrictive. The Just Transition Fund is an integral part of the ‘European Green Deal’ and is entirely oriented towards the green transition, unlike the other structural and investment funds, the EU Council reportedly recalled.
There was also reportedly no agreement on the question of ‘undertakings in difficulty’. The EU Council and the European Commission want to ensure strict alignment with EU State aid rules, while Parliament would like to add the companies affected by the energy transition process.
The debate on investment in natural gas infrastructure introduced by the European Parliament was left aside until the next trilogue, scheduled for 24 or 25 November. A third trilogue is reportedly scheduled for 8 or 9 December. (Original version in French by Pascal Hansens)