2019 started so promisingly. Reducing the EU’s administrative and regulatory burden would become one of the main priorities of the new European Commission, its President Ursula von der Leyen announced. ‘One in, one out’ would become the guiding principle. Every new burden for businesses and citizens arising from legislative proposals would be offset by removing a similar existing burden in the same area.
And it didn’t stop there. Earlier this year the Commission published a genuine Communication, explaining how it was going to shape this ‘one in, one out’ principle. Experts and stakeholders took part in a ‘Fit for Future platform’, with the aim of gathering ideas for simplification and modernization of EU regulation.
But in real life, it’s not enough just to present good intentions and form consultative bodies. Companies need to see real results in limiting restrictive rules. So far, progress has been slow.
Of course, businesses and citizens are well aware that new regulations and increased burdens are sometimes necessary for new objectives.
As a representative of SGP in the European Parliament, I too understand that this is sometimes necessary. For example, one could achieve biomass goals with felled and imported wood, but it is not really sustainable. So we need a regulation to curb that. And the fact that the European Commission is arguing to make flying more expensive is only justified.
Meanwhile, many companies are wondering how they can stay competitive in the global market. The climate fund of €144 billion against ‘energy poverty’ will not be of much use to the business community. The carbon border tax on some imported products may provide some protection, but there is still a long way to go before this mechanism can be introduced.
All in all, there is good reason to keep reminding the European Commission of its ‘one-in, one-out’ promise, in particular, because the current climate package hardly mentions that promise. The European Commission even tries to avoid reducing administrative burdens by stating that the ‘one-in, one-out’ principle does not apply to legislation in new areas. European Commission Vice President Maros Sefcovic also stated that the principle is flexible and that rules can possibly be deleted at a later date.
What is striking is that the Commission presents the additional costs incurred to the business community mainly as investments and not so much as increased burdens.
If the Commission wants to deal with the ‘one-in, one-out’ principle in this way, it will automatically become an empty promise.
It’s no surprise that the entire climate package raises many questions in the business community. Among my corporate contacts, I notice that there is certainly a willingness to contribute to the energy transition. However, in order to include the business community in this, a more realistic timetable will have to be provided by the Commission. A CO2 reduction target of 55% in 2030 is really too ambitious.
Moreover, what certainly would help, is if the European Commission delivers on its promises regarding the ‘one-in, one-out’ principle.