When EU countries impose additional requirements on EU regulations, “they create barriers, raise costs and break up the single market” – said Valdis Dombrovskis, EU Commissioner for Economic Affairs. He presented the Commission's plans to simplify legislative guidelines, i.e. the rules for creating, checking and implementing EU rules.
After years of unstable energy prices and slow economic growth, companies and industry organizations are putting pressure on Brussels to reduce paperwork related to EU regulationscovering everything from industrial permits, through waste and pollution, to pesticides and new technologies. They say this burden makes it difficult to compete with less regulated rivals from the US and China.
“Gold-plating”, the main sin of the member states
EU leaders have repeatedly called on the Commission to further reduce regulations in key sectors as the bloc seeks to strengthen its competitiveness. However, the Commission emphasizes that Brussels is only part of the problem. As its representatives argue, EU countries themselves make the situation worse by adding further requirements to the regulationswhen they implement them at home – and then blame Brussels for the mess.
This phenomenon, known in EU jargon as “gold-plating”, has become the main target of the Commission's new approach to simplifying regulations, reducing administrative costs and making it easier for companies to grow. In its communication, the Commission used the phrase “gold-plating” as many as 20 times, arguing that this practice hinders the creation of common standards across the EU.
These actions are in line with the promise of Commission President Ursula von der Leyen, who announced reducing bureaucracy for companies by 25%. and bringing savings of EUR 37.7 billion (approx. PLN 160 billion) annually to the EU economy by 2029.
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The commission has announced it will carry out a “deep clean” of regulations over the next two years to identify outdated requirements and remove contradictions among thousands of EU regulations. It plans to focus on 12 “priority areas” such as the free movement of goods and services, financial services, health, housing, food safety and environmental protection.
Towards better deregulation
The EU has prided itself as a regulatory powerhouse for decades. It built its global position by creating regulations that reached deep into the economy – from agriculture and energy, through financial markets, consumer protection, to technology and the environment. This often forced companies even from outside Europe to adapt to EU standards.
However, this regulatory advantage became a political problem when economic growth began to stall and a companies complain that they are stifled by regulationswhich their foreign competitors do not have to comply with.
— The Commission must finally fulfill its promise to reduce bureaucracy, especially in the current global political situation, says Christian Democrat MEP Christian Doleschal from Germany. —Turning a blind eye is not an option.
Since the beginning of Ursula von der Leyen's second term as Commission President, the EU executive has presented itself 10 omnibus packages that aim to open up existing rules and remove anything deemed overly burdensome.
— We are determined to bring about change so that Europe and the Member States can create conditions in Europe and the Member States more quickly and more effectively in which companies can develop and build the necessary competitiveness on the global market — von der Leyen said during a meeting with leading conservative politicians in Berlin on Monday.
So far, EU policymakers have agreed to limit companies' environmental reporting obligations, make it easier for small farms to get EU support and delay the entry into force of new traceability and disclosure requirements.
The headquarters of the European Commission in Brussels. Illustrative photoruzanna / Shutterstock
Further collective packages are expected this year, including: in the area of energy and taxes. The Commission also wants to analyze the law-making process itself, including: by shortening impact assessment and public consultation periods.
Plans to expedite legislation have raised eyebrows anxiety of social organizations, trade unions, academia, entrepreneurs and citizenswho warn that this could increase the lack of transparency in the EU's decision-making process and weaken control over the economic, social and environmental impacts of new rules.
“Acceleration and efficiency must not come at the expense of democratic values, fundamental rights and evidence-based lawmaking,” wrote representatives of 50 non-governmental organizations in a letter to the Commission in February.
Last year, the EU Ombudsman criticized the Commission for violating the legislative process by pushing through deregulatory proposals too quickly. The Commission says it has listened to critics and will “assess the urgency of each situation and the possible negative consequences of delayed action.”
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
