The European Union has caused regulatory uncertainty with constant changes in environmental legislation and the suspension and postponement of directives.
According to Politico, businesses are disoriented and do not know what to expect from the EU as a partner and legislator.
In particular, the European Commission has postponed the EU Regulation on the prevention of deforestation (EUDR) for the second time. Its provisions required companies to prove that no trees had been cut down to manufacture their products.
The publication cites the position of Leticia Yanki, a cocoa farmer from Ghana. The country was ready to implement the new rules, and the postponement undermined the seriousness of European policies. Instead, the EU constantly changed its plans, backed down, adjusted deadlines, and added new exceptions.
The regulatory chaos outrages everyone — small businesses, importers from remote countries, and international corporations. Nestlé Vice President Bart Vandewater noted that when the board of directors heard about the new changes in European legislation, they asked him, "What next? Will you come up with something new next week? Should we implement the changes or wait?"
Between two fires
The EU insists that it has opted for systematic deregulation of environmental requirements in response to numerous appeals from businesses. For them, excessive paperwork and strict legislative restrictions could lead to a loss of competitiveness compared to companies from the US or China.
The European Commission has also presented 10 simplification packages ("omnibus") that will ease regulations in the environmental, agricultural, and other sectors.
However, the simplification procedure itself causes no less turbulence than the introduction of new laws. Businesses cannot plan their activities in advance and adapt to legislative regulations that may change, be postponed, or even canceled at any time.
Companies that have already prepared for the implementation of postponed laws argue that the EU may lose its main factor of business attractiveness. The point is that it was considered a stable regulatory center with policies that encouraged businesses to undergo sustainable transformation.
“Unfortunately, the European Union has lost some trust in boardrooms by making simplifications that may be undermining predictability,” added Vandewatere from Nestlé.
EcoPolitic previously reported that the environmental community is outraged by the deregulation of EU environmental legislation. This is considered a step back from progress and a threat to nature.
