Key facts
- The European Commission blames EU member states and MEPs for slowing its deregulation efforts.
- Officials state that co-legislators are rolling back simplification proposals, hindering competitiveness goals.
- The Commission aims to reduce red tape by 25% by 2029, projecting €37.7 billion in annual savings for the EU economy.
- Key areas of contention include proposed rollbacks on chemical, digital, environmental, and pesticide regulations.
- A recent deal on cosmetic chemicals tightened rules, contrary to the Commission's desire for industry exemptions.
The European Commission has voiced significant frustration over the perceived obstruction of its deregulation agenda by EU member states and Members of the European Parliament (MEPs). Officials argue that national capitals and lawmakers are frequently rolling back or significantly reducing the ambition of proposed simplification measures, thereby impeding the Commission's goal to reduce regulatory burdens on businesses and enhance Europe's industrial competitiveness.
Simplification Commissioner Valdis Dombrovskis highlighted instances where substantial Commission proposals for simplification are being diluted by co-legislators, which he stated would prevent the achievement of simplification targets. Similarly, Justice Commissioner Michael McGrath expressed concern that the ambition for simplification is often diminished during negotiation processes. The Commission has set a target to cut red tape by 25 percent, aiming to save the EU economy €37.7 billion annually in administrative costs by 2029. To date, ten 'omnibus' simplification bills have been introduced, covering areas from defense and industrial permitting to agriculture and car safety, with three more anticipated by the end of the year, estimated to save businesses €15 billion.
However, progress is reportedly slower than anticipated, with Dombrovskis noting a substantial decrease in the level of ambition for simplification. Negotiations concerning proposed rollbacks of laws on chemicals, digital, environmental, and pesticide regulations have been particularly challenging. Disagreements persist between EU decision-makers on how to balance the need for deregulation to foster competitiveness with the imperative to maintain environmental safeguards, pollution limits, and data protection standards. Despite pressure from national leaders to finalize these proposals by year-end, the Commission faced a setback when negotiators agreed to tighten rules on carcinogenic chemicals in cosmetics, rejecting the Commission's push for industry exemptions.