The Czech Republic and Slovakia have cited what they consider excessive regulation of the chemical industry. They argue it could have a negative impact on the European economy and harm small businesses in particular, on whom they argue the regulation places excessive administrative and financial burdens.
The Czech Republic and Slovakia expressed their concerns in a joint document, which they sent to the Council of Ministers. Both countries argue that smaller businesses need greater freedom when fulfilling the REACH directive (Registration, Evaluation and Authorization of Chemical Substances).
REACH impacts not only the chemical industry, but also the processing industry, the countries argued. Both countries also pointed out that the SMEs represent 96% of European chemical firms. According to the REACH directive, the chemical industry must prove that its products pose no threat to health or to the environment.
Czech Minister of Industry and Trade Martin Kuba has called on the European Commission to reassess the impact of the directive on small businesses. His initiative has been joined by Slovakia, Romania and Great Britain. Commissioner for Industry and Entrepreneurship Antonio Tajani has also evaluated it positively. According to Minister Kuba, the REACH directive aims to ensure a high level of protection of public health and the environment and to increase competitiveness and support for innovation. In combination with the declining European economy, it is becoming apparent that fulfilling the second priority is proving very difficult and that the position of the European chemical industry is weakening compared to developing chemical producers in places such as China, India and South America.
The directive is expected to undergo revision in 2012, and a lobbying fight is also expected. This initiative is one of the first efforts to tackle the problem. On one side, there will be industry representatives who warn that the directive threatens competition. They will be opposed by organizations that protect consumer health and the environment, which will call for stricter rules. However, no major changes to the directive can be expected.
