2.1 Summary & Recommendations on EFP in Europe

  1. The debate on EFP at the European level and in the Member States must be re-launched, awareness raised and social partners encouraged.
  2. Businesses operating across borders, particularly SMEs should be offered help, especially in overcoming tax obstacles in specific EU/EEA countries.
  3. The introduction of EFP must be voluntary; it must be in addition to existing remuneration systems and not a substitute, independent of pension schemes while not impeding collective wage bargaining.
  4. EFP may bring desirable benefits such as:
    • a proportion of company profits distributed to employees locally, which in turn helps to increase regional purchasing power and can boost a company’s chances of success in a given region,
    • a good corporate governance and improvement in corporate management which helps to improve incomes through participation in a company’s success,
    • a motivating effect and thus a contribution to a greater sense of identification with the company, thus reducing staff turnover.
  5. Examples of best practice should continue to be publicised. Related activities should be supported by the EU budget through a dedicated budget heading.
  6. Information sources on the implications of EFP for businesses and employees as well as training and advisory services by impartial bodies, i.e. qualified NGOs, should be established.

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