Three major actions for a sustainable and competitive future for Europe – Euractiv

As the dust settles from the recent European Parliament elections and newcomers enter the European Parliament, a critical opportunity arises to shape the strategic agenda that drives Europe forward. Professional bodies such as the Association of Chartered Certified Accountants (ACCA) have a key role to play in working with the newly elected Members of the European Parliament (MEPs) to lead Europe towards a green, digital and skills-based future.

Josefina Movillo is Policy Manager at ACCA.

Through our internationally recognised qualifications, thought leadership and a global network of over 250,000 members in 180 countries (including over 60,000 in the European Union (EU)), we support a diverse community of accounting and finance professionals who play an increasingly important role in society. ACCA stands ready to provide insights and advice to shape the future of Europe and the world.

We offer practical advice to help new MEPs set the EU’s future policy priorities. Our call to action is structured around three overarching themes which, if managed well, can support a sustainable future for all and strengthen Europe’s global competitiveness: Sustainability, Artificial Intelligence (AI) and talent.

#1 Sustainability: An appropriate EU regulatory framework for a just transition

The new regulations introduced by the European Green Deal and related policies have brought serious compliance and cost burden issues, especially for small and medium-sized enterprises. Against the backdrop of escalating geopolitical tensions and rising inflation, these challenges are more urgent than ever.

A truly successful green transition requires EU regulation that is modest and focused on what is necessary. This includes a future voluntary EU reporting standard for non-listed small and medium-sized enterprises (VSMEs) and ensuring greater coordination among EU Member States in implementing and enforcing EU legislation such as the CSRD. Such an approach will reduce fragmentation and lower the costs of operating in the single market.

Furthermore, EU sustainability standards such as CSRD need to be aligned with those of the International Sustainability Standards Board (ISSB) to promote interoperability between EU regulations and global standards. This is key to a successful green transition.

Furthermore, the increasingly complex regulatory environment also requires skilled professionals to implement it. Accounting and finance professionals are at the forefront of corporate sustainability transformation. From reporting on ESG considerations to ensuring their sustainability reporting, they help companies understand and comply with new regulations. Therefore, more EU-specific funding is needed to improve and expand the skills of the industry to support regulatory changes and overcome governance and risk culture challenges and transform business thinking.

Call to action for MEPs:

• Limit any new sustainability legislation to what is necessary, proportionate and fit for purpose to reduce the regulatory burden on SMEs.
• Ensure consistency in the implementation of EU legislation by Member States, including CSRD, and alignment between EU and global standards.
• Creation of a dedicated EU funding pool to support SMEs and financial professionals in acquiring the skills and knowledge needed to meet CSRD regulatory requirements.

#2 Artificial Intelligence: Promote the ethical and responsible use of AI in a safe and transparent environment

Innovation and technological advances offer unique opportunities to meet future challenges. At ACCA, we believe that, if equipped with the relevant skills and understanding, AI can improve the productivity of accounting professionals, allowing them to focus on higher value activities. For SMEs in particular, this will enable finance professionals to act as strategic advisors.

However, AI and other technological advances also present significant risks, particularly in relation to issues concerning the accounting profession, such as privacy and confidentiality. Therefore, a human-centric approach, such as that adopted in the EU AI Directive, is essential to a ‘people-centric’ digital transformation.

The further development and use of AI systems must be done ethically and responsibly in an environment of transparency.

Call to action for MEPs:

• Develop an appropriate regulatory approach to AI that strikes a balance between protecting society from harms and providing Member States with space to innovate and remain globally competitive.
• Encourage sharing of best practices and experiences related to AI adoption, including effective mitigation of ethical risks and unintended consequences.
• Promote the development of trusted methods for third-party certification and assurance of AI systems based on formal standards.

#3 Talent: Supporting the development of future careers

Europe faces significant talent and skills shortages, particularly in the accounting industry. In our Global Risks Survey, European respondents ranked “talent shortages, skills gaps and employee retention” as their top risk priorities.

This shortage affects the industry’s ability to help businesses, including SMEs, report and comply with changing and increasingly complex EU rules, and maintain transparency and trust in capital markets.

Developing inclusive, diverse and technological talent and skills is essential for effective green and digital transformation.

Attracting and retaining talent, ensuring cross-border recognition of qualifications, and embedding financial literacy in secondary and higher education are key steps to help the financial sector and SMEs prepare for transformation.

The EU should continue to work beyond the European Year of Skills and the joint EU/OECD-INFE Framework on Financial Capabilities for Children and Youth.

Call to action for MEPs:

• Support skills development for green and digital transformation and enhance continuing professional development (CPD) for existing professionals.
• Minimise the administrative burden imposed by EU Member States on the cross-border recognition of educational and professional qualifications.
• Improving financial literacy from an early stage in the education system.

in conclusion

By addressing these three priorities, the newly elected MEPs can help ensure a sustainable and competitive future for Europe. ACCA is committed to supporting this process through its extensive network, thought leadership and commitment to upskilling finance professionals. Together we can lead Europe towards a greener, more digital and more skilled future.