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Corporate due diligence and corporate accountability

20-10-2020

This study analyses the potential European Added Value of a measure requiring companies to carry out due diligence on social, environmental and governance risks in their own operations and supply chain. There is evidence of human rights violations and environmental negative impacts related to business activities. This measure could increase firm compliance to international principles of responsible business conduct, increase access to remedy for victims, improve legal certainty and create a level ...

This study analyses the potential European Added Value of a measure requiring companies to carry out due diligence on social, environmental and governance risks in their own operations and supply chain. There is evidence of human rights violations and environmental negative impacts related to business activities. This measure could increase firm compliance to international principles of responsible business conduct, increase access to remedy for victims, improve legal certainty and create a level playing field for businesses. This study reviews possible sources of costs and benefits for companies and, based on original analysis, suggests that stronger environmental and social accountability practices could contribute to improving EU firms' performance. From a qualitative analysis, it suggests a potential significant impact in addressing risks of environmental damages and human rights violations in global value chains, thus supporting EU commitment to human rights and environmental protection.

An EU mechanism on democracy, the rule of law and fundamental rights

30-09-2020

This European Added Value Assessment assesses the potential added value of an EU pact on Democracy the Rule of law and Fundamental rights covering all Member States as proposed by the European Parliament, comparing it to the European Commission's approach in its annual rule of law report, which only covers the rule of law and further integration requiring Treaty change. It concludes that the pact proposed by the European Parliament would lead to significant benefits in terms of more effective monitoring ...

This European Added Value Assessment assesses the potential added value of an EU pact on Democracy the Rule of law and Fundamental rights covering all Member States as proposed by the European Parliament, comparing it to the European Commission's approach in its annual rule of law report, which only covers the rule of law and further integration requiring Treaty change. It concludes that the pact proposed by the European Parliament would lead to significant benefits in terms of more effective monitoring and enforcement of EU values. An approximation of its potential positive effects on the EU economy indicates annual gains of €413 billion corresponding to 3.3 % of EU GDP, far outweighing the costs of its development.

An EU legal framework to halt and reverse EU-driven global deforestation: European added value assessment

08-09-2020

Deforestation caused by agricultural activity is continuing at an alarming rate, threatening irreplaceable tropical forests that, among other things, are crucial for fighting climate change. The EU bears its share of responsibility for this environmental loss, as it is one of the major importers of several forest-risk commodities. To date, action has been taken at different levels to stop commodity-driven deforestation. Nevertheless, the impact on forest loss has been low as deforestation continues ...

Deforestation caused by agricultural activity is continuing at an alarming rate, threatening irreplaceable tropical forests that, among other things, are crucial for fighting climate change. The EU bears its share of responsibility for this environmental loss, as it is one of the major importers of several forest-risk commodities. To date, action has been taken at different levels to stop commodity-driven deforestation. Nevertheless, the impact on forest loss has been low as deforestation continues and new hot spots occur. There has been a recent commitment at EU level to propose new measures to minimise the risk of deforestation and forest degradation associated with products placed on the EU market. This European added value assessment (EAVA) accompanies the European Parliament's own-initiative legislative report calling on the European Commission to take legislative action on the matter. The EAVA looks at why EU action is needed and analyses four potential demand-side regulatory policy options at EU level. A quantitative analysis reveals that to varying extents, all options have the potential to reduce EU-driven deforestation and associated carbon emissions, while having a relatively small impact on the EU economy

Assessing the potential impact of an EU-India trade agreement

01-07-2020

The EU and India are major actors in the international arena and the discussions over a possible Free Trade Agreement has been ongoing for several years. This study analyses the potential effects of an FTA between EU and India in a "Cost of Non Europe" perspective. The results of a quantitative simulation of a potential FTA in goods and services indicate that welfare gains from increased trade for both sides may be between € 8 billion and € 8.5 billion (0.03 % increase with respect to the baseline ...

The EU and India are major actors in the international arena and the discussions over a possible Free Trade Agreement has been ongoing for several years. This study analyses the potential effects of an FTA between EU and India in a "Cost of Non Europe" perspective. The results of a quantitative simulation of a potential FTA in goods and services indicate that welfare gains from increased trade for both sides may be between € 8 billion and € 8.5 billion (0.03 % increase with respect to the baseline for the EU and about 0.3 % for India). Furthermore, a qualitative analysis suggests that potential gains may appear from a coordinated EU action in addressing possible side effects, distributive impacts and externalities (such as inequalities, labour market effects, poverty and development implications, environmental issues) and from increased coordination in the provision of global public goods. By considering these aspects, the Cost of Non-Europe in the field may be larger.

Coronavirus and the cost of non-Europe: An analysis of the economic benefits of common European action

11-05-2020

This EPRS paper focuses on the economic benefits of common action at European level and the risk involved if the current coronavirus crisis and its aftermath were to stall or reverse the process of European integration. It attempts to quantify the losses from: (i) any gradual dismantling of the EU project - where cautious estimates suggest that erosion of the EU single market alone would cost the European economy between 3.0 and 8.7 per cent of its collective GDP (this would be existing 'European ...

This EPRS paper focuses on the economic benefits of common action at European level and the risk involved if the current coronavirus crisis and its aftermath were to stall or reverse the process of European integration. It attempts to quantify the losses from: (i) any gradual dismantling of the EU project - where cautious estimates suggest that erosion of the EU single market alone would cost the European economy between 3.0 and 8.7 per cent of its collective GDP (this would be existing 'European added value' permanently lost); and (ii) a parallel failure to take advantage of the unexploited potential of collective public goods that have yet be achieved (this would be future GDP growth foregone). The latter 'cost of non-Europe' in 50 policy areas was identified by EPRS in 2019 as around 14 per cent of EU GDP by the end of a ten-year running-in period.