Public finance plays a critical role in shifting Europe’s economy towards quality jobs, decarbonisation, and circularity. To achieve this, public support for businesses must be dependent on a harmonised set of social and environmental conditions. These standards will ensure that public funds deliver real benefits for workers, communities, and the environment across all Member States.
In the statement below, European leaders are urged to establish a harmonised framework of social and environmental criteria that businesses must meet to receive public funding. Public finance plays a vital role in supporting Europe’s transition to a sustainable and resilient economy, fostering green manufacturing, supporting innovative start-ups, and creating quality jobs. However, without consistent standards, public funds risk being diverted towards subsidy-shopping and rent-seeking practices that undermine fair competition, increase regional disparities, and drive up the cost of industrial policy.
This call highlights the importance of EU-wide conditions that make sure public investments provide concrete benefits for people, workers, and the environment. By setting robust social and environmental standards, the EU can discourage the privatisation of profits at public expense and limit subsidy-shopping. A consistent framework will direct public funding to support a stronger, fairer economy that delivers tangible benefits for all. Member states should agree on a minimal set of pre-conditions that businesses must meet, in order to access public funding throughout the single market.
