ACCA EU 2024-2029: Three calls to action for a sustainable and competitive Future for Europe [Promoted content]

As the dust settles after the recent European parliamentary elections, and new profiles enter the European Parliament, a key opportunity arises to set a strategic agenda that propels Europe forward. Professional bodies such as the Association of Chartered Certified Accountants (ACCA) have a pivotal role in collaborating with newly elected Members of the European Parliament (MEPs) to lead Europe towards a green, digital and skilled future.

Josefina Movillo is the Policy Manager at ACCA.

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

We offer practical recommendations to help incoming MEPs shape the EU’s future policy priorities. Our calls to action, are centred around three all-encompassing topics that, if managed correctly, can support a sustainable future for all and enhance Europe’s global competitiveness: Sustainability, Artificial Intelligence (AI) and Talent.

#1 Sustainability: An appropriate EU regulatory framework for an equitable transition

New legislation introduced by the European Green Deal and related policies has created significant compliance and cost burden issues, particularly for small and medium enterprises (SMEs). Amid escalating geopolitical tensions and rising inflation, these challenges are more pressing than ever.

A truly successful green transition requires that EU regulation is proportionate and focused on what is essential. This includes the future EU voluntary reporting standard for non-listed SMEs (VSME) and ensuring greater coordination between EU member states on the implementation and enforcement of EU legislation like the CSRD. This approach will reduce fragmentation and lower the costs of operating in the single market.

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

Furthermore, the increasingly complex regulatory landscape also requires skilled professionals to implement it. Accountancy and finance professionals are at the forefront of businesses’ sustainable transition. From reporting on their ESG considerations to assuring their sustainability reports, they help businesses understand and comply with new regulation. Thus, greater dedicated EU funding is needed to upskill and expand the profession to support regulatory changes, as well as overcoming governance and risk culture challenges to shift business mindsets.

Calls to action for MEPs:

• Reduce the regulatory burden on SMEs by limiting any new sustainability legislation to what is necessary, proportional, and fit for purpose.
• Ensure member state implementation of EU regulation is consistent, including CSRD and alignment between EU and global standards.
• Create a dedicated EU funding pool to support SMEs and finance professionals in acquiring the necessary skills and knowledge to meet CSRD regulatory requirements.

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

Innovation and technological advances provide unique opportunities to embrace the challenges of the future. At ACCA, we believe that equipped with the relevant skills and understanding, AI can improve the productivity of accountancy professionals, allowing them to focus on higher value activities. Particularly for SMEs, this would allow finance professionals to act as strategic advisors.

However, AI and other technological advances also carry significant risks, particularly regarding issues related to the accountancy profession such as privacy and confidentiality. As such, a human-centred focus like the one adopted in the EU AI Act is crucial for a “putting people first” approach to digital transition.

Further development and use of AI systems must be made in an ethical and responsible manner, within a transparent environment.

Calls to action for MEPs:

• Develop a proportionate approach to AI regulation that balances protection from societal harms with providing space for member states to innovate and remain globally competitive.
• Encourage the sharing of best practices and experiences related to AI adoption, including effective mitigation of ethical risks and unintended consequences.
• Promote the development of trusted approaches to third-party certification, and assurance of AI systems based on formal standards.

#3 Talent: Support the development of the profession for the future

Europe faces a significant talent and skills shortage, particularly in the accountancy profession. In our Global Risks survey, European respondents ranked “talent scarcity, skills gaps and employee retention” as their highest risk priority.

This shortage affects the profession’s ability to help businesses (including SMEs) report and comply with evolving and increasingly complex EU rules and maintain transparency and trust in capital markets.

The development of an inclusive, diverse and technical blend of talent and skills is crucial for an effective green and digital transition.

Attracting and retaining talent, ensuring cross-border recognition of qualifications, and embedding financial literacy at both secondary and third level education are key steps to help prepare the profession and SMEs for the transition.

The EU should continue to develop its work beyond the European Year of Skills and joint EU/OECD-INFE financial competence framework for children and youth.

Calls to action for MEPs:

• Support skills development for the green and digital transitions and enhance continuing professional development (CPD) for current professionals.
• Minimise administrative burdens imposed by EU member states around cross-border recognition of education and professional qualifications.
• Improve financial literacy from an early stage in the education system.

Conclusion

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