Germany, Italy and France plead for a simplification shock in Europe

Germany, Italy and France plead for a simplification shock in Europe

2024-04-08 16:35:00

In May 2023, the sentence sparked heated controversy: in order to facilitate the digestion of the ecological standards of the “Green Deal”, this vast climate plan presented by the Brussels executive at the end of 2019, Emmanuel Macron had requested a “ regulatory break » for the industry of the Old Continent. Almost a year later and as the European elections approach, the subject is coming back to the forefront more than ever: faced with the American and Chinese powers, the Twenty-Seven must “ eliminate unnecessary administrative burdens », now argue the three largest economies of the EU, Germany, Italy and France. And ” simplify » the multitude of regulations imposed on local businesses, primarily SMEs.

This is, in fact, one of the main points to emerge from the third trilateral meeting organized since June, which took place this Monday in Meudon between Bruno Le Maire, French Minister of Economy and Finance, Robert Habeck, his German counterpart for the Economy and Climate Protection, and Adolfo Urso, Italian Minister of Business.

Agricultural anger: Brussels proposes its simplification shock

Appeal to the Commission

At the end of this meeting, they published a joint press release stating their desire to continue “ simplification and acceleration of EU administrative procedures “, including ” for granting permits and access to European funding programs and state aid “. And this, by inviting the Commission to “ implement an ambitious simplification program » eliminating the “ regulatory overlaps “. The idea would thus be to “ DELETE ” the rules ” obsolete or irrelevant » and throw “ reality tests » at European level in predetermined areas in order to “ to identify ” the ” unnecessary bureaucracy ».

Concretely, this would be, for example, “ reduce reporting obligations » for SMEs. Indeed, in March 2023, the President of the Commission, Ursula von der Leyen, announced a 25% reduction in reporting obligations for SMEs, in order to ease administrative requirements. But according to the three ministers, we should go “ well beyond » of this threshold.

Relieve SMEs

Furthermore, while the EU definition of SMEs stops at 250 employees, Bruno Le Maire proposed, alongside his German and Italian counterparts, a « increase in company size thresholds to allow our SMEs to be exempt from these obligations, from 250 to 500 employees ».

« This is a truly radical decision that can simplify the lives of our businesses. », he insisted. The tenant of Bercy wants to put in place an “omnibus directive” which “ would simplify all existing standards ».

Asked by The Tribune on the standards which might prove useless, the cabinet of Bruno Le Maire cites the example of reportinget « generally, everything relating to the obligations of declaration and transmission of information to the Commission by companies » of which it is possible « to lighten the load ».

« For example, we have just removed a duplicate which concerned the obligation for companies to transmit an ecological transition plan and which was both in CSRD (extra-financial reporting) and in CSDD (duty of vigilance) », Add those around him.

It remains to be seen where the cursor will be placed to determine whether a standard is useful or superfluous. One thing is certain: reconciling the imperatives of environmental transition and industrial productivity risks turning into a balancing act.

European preference?

On this question of competitiveness, Bruno Le Maire also insisted on Monday on the idea of ​​a “ European preference » in the award of public contracts, thus targeting Chinese products with downward prices.

“The trade deficit between China and Europe has multiplied by 3 in 10 years, going from 100 to 300 billion euros, we therefore need, in my opinion, to know whether we should not reserve public markets to products made in Europe, or having European content in calls for tender, of 40, 50 or 60%, or imposing the strictest quality standards or environmental standards on products in public markets”, – he says.

« The debate on European preference must be continued. Bruno Le Maire expressed the wish to see it generalized in a certain number of sectors, and that it be used as a common reference in the construction of texts ”, we add in his office, admitting that “ on the German side, enthusiasm is lower ».

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As a reminder, in March 2023 the European Commission issued a regulation called “ Net Zero Industry Act » (NZIA), intended to improve market access conditions for technologies critical to the energy transition in the EU (wind turbines, solar panels, nuclear, hydrogen, etc.) « due to the risk of relocation “. Adopted a few weeks ago, it already proposes to integrate European preference criteria for 20% of calls for tenders, before landing at 40% in 2030. For example, it will not be possible to apply for some of them if the components come more than 50% from regions outside Europe.

But Bruno Le Maire wishes to go further, by aiming “ sectors other than those of the NZIA, such as capital goods “, say those around him. However, Germany remains, traditionally, less favorable to this type of system, preferring free competition. In the joint press release published following the trilateral, there is still no question of “ European preference “, more of “ tackling structural competition problems in the global context “. If recent months have dealt a blow to neoliberal dogma, the taboo of local preference has not yet been completely lifted.

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