Csaba Borboly: The challenge is to balance energy taxes so that the burden does not fall on vulnerable groups and so that the quality of life is not affected.
The role of local and regional authorities is key in implementing local policies
The participants, Csaba Borboly, Member of the European Committee of the Regions on behalf of the EPP and President of the Harghita County Council, Barna Tánczos, Ministry of Environment, Water and Forests, Sandor Bende, Member of the Romanian Parliament and Chair of the Committee on Industries and Services, Dr. László Csák, expert debated and exchanged their views on the directive on unit taxation and the establishment of the European Social Fund.
What are the social effects of rising energy and electricity prices on vulnerable communities and what is the role of local and regional authorities in implementing local policies?
The debate organized on 24th of February was very important because the Committee of the Regions brings the voice of Local and Regional Authorities to the European decision-making system, and the members of this committee are very attentive to the problems that citizens face in formulating proposals and opinions to be implemented. The draft report, which I am honoured to be able to present, aims to find solutions to ensure a fair transition in relation to environmental objectives that have a specific dimension, so that local authorities have an important role to play in implementing policies at local and regional. Regarding the unitary taxation of energy carriers, we can see that it is becoming an increasingly actual issue and here we have to make proposals because most of the price paid by the population consists of taxes and fees. If taxes fall, many people in Harghita County, if we refer to them, can benefit from this. We need a fair green pact, and the draft report seeks to address two issues: the European Social Fund and the reorganization of the energy carrier tax system to protect vulnerable citizens, to prevent the loss of investors and jobs. Fiscal facilities should be balanced and related to consumption and areas where there is energy poverty, “said Borboly Csaba.
The National Plans must take into account the regional differences and the European Social Fund must be combined with other funds for energy-efficient investments to reduce the map of energy poverty.
„We do not want households and small companies to support the consequences of the high rise of energy prices and I support the launch of a separate EU programme to compensate such challenges. This would be an essential support for Romania for the following years.” stressed Barna Tánczos, Ministry of Environment, Waters and Forests.
Investments must be related to the characteristics of the region and a specific action plan is needed to bring resources to those in need.
In this regard, Sándor Bende, Member of Parliament, Chair of the Committee on Industries and Services said that „it is important to take in consideration the climate and weather conditions of certain regions, so that the support programme to be more related to the local conditions and the necessities from energy and heating prices’ point of view. Therefore, certain percentage should be used in the calculation of support instruments.”
The conclusion of this debate and the most important message was that policy success can be achieved if the resources of EU member states, of regions and of population can be used in synergy, dr. László Csák said „energy poverty can be avoided and it is a current necessity in several, less developed areas. This may be avoided by launching a proper, problem oriented EU programme to support households and micro-companies in such challenges. The challenge is so high that it would mean approximately a 72 billion Euro support Europe-wide and the current CoR opinion is focuses on such solutions that we request the European Commission to take into account as a separate investment financial instrument.”
Towards a socially fair implementation of the Green Deal is the draft opinion of Csaba Borboly, President of Harghita County Council, which will be debated in the European Committee of the Regions in March this year. More information on the report can be read here: https://cor.borbolycsaba.ro/ro/?page_id=1089.
Miercurea Ciuc, 24th February 2022
