PES FEN: Progressives call for stronger EU economic sovereignty, investment capacity and fair taxation

The Party of European Socialists (PES) Financial and Economic Network (FEN) met in Brussels, bringing together policymakers, Members of the European and national Parliament, academics and experts to discuss key priorities for Europe's economic future, including the Digital Euro, industrial policy, investment capacity and fair taxation in the digital economy.

Maria João Rodrigues, Chair of the PES Financial and Economic Network, said:

"Europe must assert its strategic autonomy, build a competitive, decarbonised industrial base and secure the investment needed for a fair green transition and a stronger digital capacity. European digital sovereignty must also be reinforced by advancing a Digital Euro. These efforts must be accompanied by fair taxation fit for a modern economy, ensuring that multinational and digital companies pay taxes where value is created. Progressives are ready to lead with concrete and credible solutions."

Participants underlined that the Digital Euro represents a decisive step for Europe's monetary sovereignty and must now be delivered without delay and at scale. Participants welcomed the continued efforts by PES ECOFIN ministers and S&D Group to advance the file. Building on contributions by the Chair of the ECON Committee, Aurore Lalucq, and S&D negotiator for the digital euro, Nikos Papandreou, there was clear consensus that the Digital Euro must guarantee privacy by design, ensure universal access, and reinforce Europe's resilience and strategic autonomy, particularly to reduce the role of non-European payment systems. Progressive will continue to fight disinformation on cash use and privacy around this fundamental initiative.

Nikos Papandreou, MEP, S&D negotiator on the Digital Euro; Mohammed Chahim, MEP, S&D VP for the Green Deal for Industry, Energy and Climate and Financing the Just Transition

On industrial policy, participants also discussed the Industrial Accelerator Act, as a key response to deindustrialisation, global trade disruptions and rising energy costs with S&D VP for Green Deal for Industry, Energy and Climate and Financing the Just Transition Mohammed Chahim and Estelle Göger, Deputy Head of the Cabinet of European Commission Executive Vice-President for Prosperity and Industrial Strategy, Stéphane Séjourné. The Act was welcomed as a long-awaited step forward, notably through strengthened industrial capacity, measures to secure critical raw materials in strategic sectors and streamlined permitting. Emphasis was placed on the introduction of "Made in Europe" and low-carbon criteria, reflecting longstanding priorities of the progressive family. At the same time, participants called for a strong social and regional dimension to ensure quality jobs.

With the gradual phase-out of NextGenerationEU and an investment gap estimated at over €800 billion annually, participants also highlighted the need for a permanent European investment capacity. This was discussed with Antonio Misiani, Senator and responsible for economic policy in the National Executive of the Partito Democratico (PD, Italy), and Professor Massimo Amato, where their proposal for a European Funding Agency was presented as a valuable contribution to the ongoing debate on financing common European priorities, strengthening Europe's strategic autonomy, and supporting green, social and security objectives, while preventing fragmentation.

Finally, participants addressed the evolving international tax landscape with MEP Evelyn Regner. While recent developments have affected the effectiveness of Pillar Two on a 15% global minimum effective tax rate on multinational enterprises, the continued deadlock on Pillar One on the reallocation of taxing rights to market jurisdictions was identified as a concern. Participants stressed that large multinational and digital corporations must pay their fair share where value is created, and called for renewed consideration on European digital taxation, both to ensure fairness and as a source of revenue, helping finance common European ambitions with new own resources.

Online participants in the PES Financial and Economic Network