On 3rd October, Paolo GENTILONI, from Italy, Commissioner-designate for Economy, is heard by the Committee on Economic and Monetary Affairs (ECON) in association with the Committees on Budgets (BUDG) and on Employment and Social Affairs (EMPL) of the European Parliament in Brussels to test his general competences, European commitment and specific expertise related to his portfolio. On this occasion, Paolo GENTILONI has the opportunity to make an opening statement. The following transcription is the result of an automatic process. Check Against delivery.

Brussels

Committee on Employment and Social Affairs

Committee on Economic and Monetary Affairs

Committee on Budgets

hearing

GENTILONI, Paolo (IT, EC)

hearing of Commissioners

2019 Commissioners' hearings (T)

hearing of Paolo GENTILONI 2019 (T)

Hearing of Paolo GENTILONI, Commissioner-designate, Economy: Opening statement by Paolo GENTILONI

SOUNDBITE (Italian) Paolo GENTILONI, Commissioner-designate, Economy: Thank you Madam Chairman, Members of the European Parliament. Well it's a great honour for me to be here with you this morning. I have almost 20 years of parliamentary experience as a member of Parliament, as the chairman of a committee, Minister, Prime Minister and during that time I have learnt something fundamental: it's important to hold dialogue and debate with elected representatives and also to answer their questions. Today's hearing is the most opportunity that I have to do that and I know that if I'm confirmed as commissioner many opportunities will follow.

SOUNDBITE (Italian) Paolo GENTILONI, Commissioner-designate, Economy: Let me try and sum up the approach that I intend to take. And the way I would do that would be by saying ambition and sharing, I want to see an ambitious and shared program. During recent years we have overcome the financial crisis and returned to economic growth. But nevertheless there have been many challenges and there are many challenges that remain in front of us: Brexit with the unknowns that still surround it, the fact that many of our citizens have lost faith and are even hostile vis-à-vis the European Union geopolitical uncertainty, questions related to the speed of technological changes, the fact that identity fears are emerging.

SOUNDBITE (Italian) Paolo GENTILONI, Commissioner-designate, Economy: Yes there are various challenges. They're of a different intensity depending on which country you're in. But in any case everywhere you see the fact that there is a problem when you look at economic growth and try and look at sustainability in social terms. Europeans need responses. Let's think of young people born during this millennium. We don't want to disappoint them on climate change. They're concerned. I know that we all want to prevent their being a generation that has fewer opportunities than their parents did for the first time since the creation of the European Union. My generation has had a great deal from the European Union and I was able to recall that in Rome my city, when we had a meeting with the heads of state and government and presidents of European Union institutions to celebrate the sixtieth anniversary of the Treaty of Rome, our European social model, individual rights, peace, the end of divisions in Europe.

SOUNDBITE (Italian) Paolo GENTILONI, Commissioner-designate, Economy: Today on the 3rd of October we recall a decisive stage in that the reunification of Germany. We have obtained extraordinary results and I think that shows us how ambitious our program needs to be to achieve more things. We cannot stop when the world around us is in movement. These are the words of Jean Monnet one of the founders of the European Union and they're more topical now than ever. This is an enormous responsibility and I'm certain that the Commission and Parliament will work to achieve those ambitions together.

SOUNDBITE (Italian) Paolo GENTILONI, Commissioner-designate, Economy: If confirmed, I look forward to humbly living up to this responsibility. I have always had a commitment to Europe in my political work that has always guided my work as a member of the Italian government. So I am particularly enthusiastic about this challenge as an Italian and as a European.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: In her political guidelines the president elect stressed her vision for a Europe leading the transition to the healthy planet and a new digital world. Europe can only lead by first bringing people together and upgrading our unique social market economy. This vision will be my guiding principle. I will work closely with executive vice president designate Valdis Dombrovskis and with the other members of the college to respond to the legitimate demands of Europeans: prosperity, stability and protection. My roadmap as commissioner for economy will be based on the priorities identified in the president's underlying mission letter.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: I have been committed to the environmental cause since thirty five years ago. Today we all feel the sense of urgency to act to protect our climate. This will require initiatives on many fronts. Sustainable inclusive growth is the number one priority. I will favour close partnership with member states through regular and intense dialogue with governments, social partners and citizens as part of the economic surveillance. I'll work to integrate the Sustainable Development Goals in the European semester without losing focus and impact.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: Sustainable inclusive growth also means social sustainability. Growing inequalities are affecting our European social model and should be addressed with strength and urgency. Reduce the gender gap will be a priority for inclusive growth. One of the key actions will be the delivery of the European unemployment insurance scheme. I know that this house has been calling for such a scheme for a long time. Politically it will not be easy but together we can deliver a scheme that will offer protection for citizens during difficult times in their lives.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: I will oversee the application of the Stability and Growth Pact to ensure sustainable public finances. I will make use of flexibilities with the rules when they are needed to deliver an appropriate fiscal stance, enable fiscal policy to play a stabilizing role and promote much needed investment. In implementing our rules I will focus on public debt reduction. As someone who cares deeply about the potentially destabilizing impact of high debt in bad times. I will also deal with an adequate use of fiscal space to face to face the risk of a slowdown in our economy.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: Of course the Stability and Growth Pact is not perfect. I will use the opportunity served by the review of the six and two packs to reflect on the right way forward based on evidence from the past and taking into account the contribution from the European Fiscal Board. And you will sure have a say on this. I will launch invest EU and the sustainable European Europe investment plan as a matter of priority. The transformation of our economy strongly needs investments. Investments to deliver energy transition, green our economy and meet our carbon targets, investments on research innovation and digitization, investments in sustainable infrastructures, social investment.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: Action is also needed to reinforce our single currency. Completing Economic and Monetary Union is a priority for the president elect and is one for me too. I would like to pay tribute to this house and this committee in particular for your ambitions in this area. A breakthrough will underpin stability, foster confidence and resilience in the euro area economies, strengthen the international role of the euro which is a geopolitical priority for us.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: Honourable Members of Parliament 74 percent of citizens agree that the EU should do more to fight against tax fraud. I am determined to work towards a fair and effective taxation in the EU. My first priority will be to make sure that taxation fully contributes to the European Green Deal. For my part I will work for a new environment taxation framework to steer the behaviour of users, consumers and producers towards a climate neutral economy. I will assess a range of measures including updating the Energy Tax Directive to align it with environmental objectives and working on a carbon border tax at EU level, compatible with your rules. In so doing I will be vigilant that this framework is just and socially balanced and I also want to assess the use of the pastoral clauses and other legal instruments in the treaties that are low tax proposal to be adopted with qualified majority votes and by co-decision.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: My second objective is the European contribution to the reform the international corporate tax system to make it fit for the 21st century. It is clear to everyone that the current system is out of date. The transition to a digital economy has led to a growing disconnection between where value is created and where tax is paid. Moreover tax competition distorts business decisions and leads to tax policies aimed at short term revenue collection. Discussions on modernizing international corporate taxation are now underway in the G20 supported by the OECD. By the end of next year we will need to take stock of the international discussions. If no consensus emerges I am tasked to lead efforts for a fair European digital tax and for a common corporate tax base.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: My third priority is to keep fighting against tax fraud and evasion which erodes EU citizens trust in taxation systems. I want to benefit tax payer who play according the rules and focus punitive action on those that do not. Finally I am also proud to be the commissioner in charge of the Customs Union, a core element for the European project which safeguards a single market. Many take the Customs Union for granted but tensions are growing around the globe on trade, security, changing business model and the rise of e-commerce reinforce the need for a strong customs union. I will strive to bring the customs union to the next level of effectiveness.

SOUNDBITE (English) Paolo GENTILONI, Commissioner-designate, Economy: Not only my plans but all the priorities indicated by the president elect will require a solid base of reliable statistics. I attach great importance to defending the professional independence of Eurostat and the national authorities. I will make sure that Eurostat remains the trustworthy point of reference for statistics and data on Europe.

SOUNDBITE (Italian) Paolo GENTILONI, Commissioner-designate, Economy: Madam Chair, Members, I've only recalled a few of the main objectives which I intend to deal with during my mandate if confirmed. In order to achieve them in many cases we will need an extraordinary level of political commitment and on my side I will make every effort to promote shared solutions. I know and respect the variety of opinions that exist between political families between member states and between different European geographical areas but it is in everyone's interest to prevent these differences feeding prejudices and crystallize to the point where they prevent our path forward in a fast changing world. That would be a tragic error.

SOUNDBITE (Italian) Paolo GENTILONI, Commissioner-designate, Economy: I have a reasonably long political experience and I am therefore aware that the point is to achieve solutions we need to come up with compromises and promote the collegiate work of the commission. Above all we need to cultivate trust among all those involved. You will be my point of reference. There are consolidated dialogue procedures in place. I will be referring consulting with the ECON committee in the European Parliament prior to any important decisions taken on the European Semester and I'll be working with you on the new priorities established by President elect von der Leyen. Relations with the European Parliament for me are not only a way of respecting the entire institutional rules of the European Union, it is a political choice during a time in which defending representative liberal democracy across the world is very topical. Thank you and I wait your questions.