Executive Vice-President Valdis Dombrovskis

Speech at the EUROCHAMBRES reception

Brussels, 21 January 2020n

Dear President Christoph Leitl,

Mister Arnaldo Abruzzini,

Dear Vice-President of the European Parliament Othmar Karas,

Ladies and gentlemen

Thank you for inviting me to your reception this evening. I am happy to see so many familiar faces as we start the New Year.

Maybe you, as I do, sense that 2020 will mark a definite change of gear.

There will be many uncertainties to manage - geopolitical, economic, social and environmental. They bring a series of new challenges right to our doorstep.

Climate change, digitalisation and new technologies, ageing populations – to name just a few.

For the new European Commission, the next five years will be about managing these issues effectively and fairly.

I believe that we have the determination, talent and ideas to tackle these challenges head-on and to do the best for all Europeans: for people and business.

I say that because I also see these times of major change as opportunities.

As Commission Executive Vice-President, my aim over the next five years is for Europe to maintain its path towards sustainable and inclusive economic growth.

We plan to:

- strengthen Europe's economic sovereignty at this time of global uncertainty;

- use EU economic and industrial policies to support the green and digital transformations;

- accompany these changes with effective social policies to build a more inclusive society.

The Commission has already hit the ground running.

Last month, we proposed a Green Deal for Europe to become a climate-neutral economy by 2050.

Sustainability will be the green thread that runs through all policy areas.

We are backing up that ambition financially: a comprehensive plan that we proposed last week will give us real financing clout — €1 trillion over a decade — to fund sustainable projects across the EU.

Parts of the European Investment Bank will also become our Climate Bank.

By 2025, at least half its financing will be dedicated to climate action projects – double what it is today.

The green transition is not only about reducing emissions, but also about using better our resources.

This is why the circular economy needs to be at the forefront of our work - as your own report indicates.

And, as you say, this will require a high level of investment.

However, in the long run, the benefits - both economic and environmental - are clear.

As I indicated, green is not the only major transformation underway.

New technologies bring massive potential to the financial sector. So technical innovation and digitalisation of financial services will be a priority.

We will present a European strategy to make the most of FinTech, removing more regulatory barriers between countries.

Crowdfunding and instant payments are good examples.

It is all good – but nobody should underestimate the socio-economic impact of the green and digital transformations.

They must be fair and inclusive leaving nobody behind.

Last week, we presented our view for building a strong social Europe for just transitions.

It sets out how our social policies in the widest sense – including employment, education, health - will help us to tackle these challenges and make the most of the opportunities.

The Just Transition Mechanism will support those most affected by the green transformation. It will provide targeted support to mobilise at least €100 billion between 2021 and 2027 to alleviate the socio-economic impact of the transition.

As we undergo the green and digital transitions, and cope with an ageing population, the Commission wants to keep people as its core focus and make sure that the economy works for them.

Lastly, as time is short - the broader EU economy.

I cannot see Europe playing a successful key role on the world financial scene without further deepening the Economic and Monetary Union. This remains a top priority.

The EMU project has advanced a good deal in the last five years. But we need more reform, so that the EU can project its economic weight and affirm its economic sovereignty.

With the Capital Markets Union, we have to push further, including on the access to finance for SMEs. I can ensure I will continue to support SMEs in my current capacity. We need push further Capital Markets Union, but also for the the Banking Union too, which we should complete as quickly as possible.

We need both projects to strengthen our financial system, on which Europe’s economic sovereignty relies.

Ladies and gentlemen

There is so much more I could say about the work that we have to do.

To me, one thing is clear: no individual EU country can tackle these challenges alone. The European Union is stronger when we work together, especially in this fast-changing world.

Thank you and I wish you a pleasant evening.