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having regard to Petition No 0699/2021,

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having regard to Article 3(3) and Articles 4 and 5 of the Treaty on European Union,

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having regard to Articles 24, 153, 173 and 227 of the Treaty on the Functioning of the European Union,

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having regard to Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market (1),

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having regard to Regulation (EU) 2021/690 of the European Parliament and of the Council of 28 April 2021 establishing a programme for the internal market, competitiveness of enterprises, including small and medium-sized enterprises, the area of plants, animals, food and feed, and European statistics (Single Market Programme) and repealing Regulations (EU) No 99/2013, (EU) No 1287/2013, (EU) No 254/2014 and (EU) No 652/2014 (2),

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having regard to Regulation (EU) No 1287/2013 of the European Parliament and of the Council of 11 December 2013 establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (COSME) (2014-2020) and repealing Decision No 1639/2006/EC (3),

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having regard to the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (notified under document number C(2003) 1422) (4),

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having regard to the communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions entitled ‘Think Small First’ — A ‘Small Business Act’ for Europe (COM(2008)0394),

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having regard to its resolution of 17 April 2020 on EU coordinated action to combat the COVID-19 pandemic and its consequences (5),

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having regard to its resolution of 17 February 2022 on tackling non-tariff and non-tax barriers in the single market (6),

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having regard to the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled ‘Europe’s moment: repair and Prepare for the Next Generation’ (COM(2020)0456),

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having regard to the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled ‘An SME Strategy for a sustainable and digital Europe’ (COM(2020)0103),

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having regard to the communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled ‘A European retail sector fit for the 21st century’ (COM(2018)0219),

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having regard to the study of July 2020 by the European Commission Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs entitled ‘Territorial supply constraints in the EU retail sector’,

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having regard to Rule 227(2) of its Rules of Procedure,

A.

whereas the Committee on Petitions has received petition No 0699/2021 proposing the creation of a European Capital of Local Trade and Retail;

B.

whereas the petitioner’s suggestions could serve as an inspiration for the selection procedure for the European Capital of Local Trade and Retail;

C.

whereas retail is a very important ecosystem in the EU economy, accounting for 11,5 % of EU value added and directly employing more than 29 million people; whereas its performance is key for household budgets and suppliers, as consumers spent on average 30 % of their budget on shopping;

D.

whereas small and medium-sized enterprises (SMEs), including family-run business, are the backbone of Europe’s economy; whereas they account for 99 % of all businesses in the EU and employ around 100 million people (7);

E.

whereas retail SMEs are crucial for urban and rural local communities, form part of the social fabric and contribute directly to maintaining town and city centres as vibrant areas where services to cover citizens’ needs are provided a short distance from their home; whereas retail SMEs also help tackle rural depopulation; whereas retail SMEs contribute directly to the prosperity, inclusiveness and wellbeing of citizens, to local cultural life and the heritage of EU towns and cities, as well as providing a significant number of employment opportunities in those communities, which in turn leads to better experiences for consumers;

F.

whereas, on the other hand, a lack of local commerce contributes to the social, economic and physical degradation of urban centres and districts and even leading to a vicious circle of deteriorating safety; whereas the lack of retail services is recognised as one of the reasons for depopulation of rural areas;

G.

whereas local commerce makes it possible to offer more personalised and direct service to consumers;

H.

whereas the retail ecosystem has been seriously affected by the COVID-19 crisis; whereas SMEs have been affected by an unprecedented shock to the world economy, when shops were either closed or bound by stringent precautionary measures; whereas. secondly, the sector has faced the pressures due to the current crisis, including the conflict in Ukraine and rising energy costs; whereas the viability of many SMEs, often family-run microenterprises, is endangered and jobs are at risk;

I.

whereas it is often very difficult for SMEs to maintain a competitive position against a backdrop of globalisation of the entire retail value chain led by large companies; whereas collateral consequences include standardisation of the commercial offer and of the urban landscape, emptying of urban centres, increased of ecological footprints and the impact on working conditions; whereas strengthening local trade could help address these consequences;

J.

whereas with the rapid development of e-commerce, the retail sector is currently undergoing a dramatic transformation, while multi-channel retail, combining offline and online sales, brings both new opportunities and challenges for the sector;

K.

whereas euro area inflation is continuing to soar; whereas energy and fuel prices continue to rise at a rate considerably exceeding average inflation, remain highly volatile and are one of the main reasons for SME closures; whereas these factors make retail sector SMEs and microenterprises particularly vulnerable;

L.

whereas small traders are often affected by large sales platforms that offer lower prices because they have shifted their production costs to third countries;

M.

whereas in order to ensure an equal and fair retail trade across the European Union, it is essential to install high-capacity digital networks to all regions of the EU; whereas according to the European Court of Auditors there are still serious shortcomings in the deployment of these networks in the EU, which can deepen the digital divide and jeopardise the sustainability of local shops located in sparsely populated areas compared to those located in big cities;

N.

whereas the Commission communication entitled ‘A European retail sector fit for the 21st century’ aims to strengthen the competitiveness of the retail sector;

O.

whereas the Revitalise Retail initiative presented by the Commission supports digitalisation and modernisation of retail SMEs; whereas supporting small retailers’ capacity to adapt to these changes is one of the most important steps for EU policy makers;

P.

whereas the Commission has welcomed the petitioners’ proposal to create a European Capital of Local Trade and Retail and will consider the options for addressing the specific issues raised therein: whereas, given the priority of ensuring that the Commission’s support programmes have an impact, the Commission will, in particular, consider the importance of moving beyond awareness-raising, and contribute directly to solving challenges faced by retail SMEs and generating positive impact for them;

Q.

whereas the proposal could reinforce the ongoing work in cities in the framework of industry and SME policy, in particular the Intelligent Cities Challenge, which brings together an active community of 136 cities from 21 countries to leverage cutting-edge technologies and to drive a green and digital transformation and social resilience;

R.

whereas the building of a robust retail community can be very useful for those looking to modernise and improve their competitive position;

S.

whereas complying with administrative formalities affects SMEs more than bigger companies due to their limited financial and human resources;

T.

whereas the task of regulating the retail sector lies primarily with Member States. whereas any assessment of the barriers faced by the retail sector should be based, among other things, on the experiences and perceptions of businesses, workers and consumers; whereas Member States should ensure that existing regulations do not disproportionally affect SMEs and microenterprises and hinder their activities;

U.

whereas retail is a sector that makes a significant fiscal contribution that helps to pay for public spending on public services for all citizens;

V.

whereas the objective of this proposal is to promote local retail and contribute to collective awareness of its economic and social importance;

W.

whereas local trade is often sourced from regional or national suppliers, thereby helping to reduce the carbon footprint of their products; whereas production within the Union’s borders guarantees quality standards and working conditions;

X.

whereas support for retail SMEs and local trade in the EU is crucial for boosting the EU’s economy and making supply chains shorter, more agile and safer;

Y.

whereas promoting local trade contributes to the green transition in the trade sector for short-circuit products; whereas it is necessary to raise public awareness of the importance of local and proximity trade in order to contribute to the fight against climate change;

Z.

whereas it is necessary to promote and preserve the products and services from European Union towns, cities and regions in order to strengthen their heritage and the European single market; whereas if it follows up on the proposal in the petition, the Commission would be able to better track and define protected geographical indications in order to promote our products in the internal market and globally, and to preserve them from spurious competition;

AA.

whereas most EU policies and legislation are implemented at local and regional level and today cover almost all political, economic and social domains;

AB.

whereas, according to Eurostat data, retail trade in the EU decreased by 1,3 % in August 2022 compared to the same period in 2021 (8);

AC.

whereas the Commission already manages programmes supporting the creation and sustainability of jobs and local economic activities, which could and should support this proposal such as the European Innovation Council, the Executive Agency for Small and Medium-Sized Enterprises (EASME) and the Erasmus+ programmes;

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