REACH places a disproportionate administrative and financial burden, especially on small and medium businesses. Therefore, the Czech Republic and Slovakia called on the European Commission to conduct a detailed assessment of whether REACH, an EU regulation on chemical substances, has met one of its main objectives, which was to increase the competitiveness of the European industry in its planned review of the regulation in 2012.
The regulation, which came into effect in 2007, arose at a time when the European economy was in a much more favourable position than today. Accoring to the Czech Ministry, REACH places a disproportionate administrative and financial burden, especially on small and medium businesses; in fact, one so great that it actually jeopardises the existence of many companies. That is why it will be asking the European Commission to assess the benefits of this legislation in detail and to particularly focus on its economic impact on the European economy.
According to a study by the European Chemical Industry Council (CEFIC), the European chemical industry`s global market share fell from 34 % to 29 % in this sector from 1998 to 2008. At the same time, some 275,000 people lost their jobs in the chemical industry throughout the European Union in 1999 to 2009.
The Ministry thinks that the objective of REACH is to ensure a high level of protection for human health and the environment, while increasing competitiveness and supporting innovation. However, in combination with the weakening European economy, the fulfilment of the second priority is proving very difficult and weakens the European chemical industry in relation to developing producers, especially in China, India and South America.
The Czech Republic presented its initiative for a review of REACH at the ministerial meeting in Stockholm on 14 November 2011. Slovakia, Romania and Great Britain joined the initiative and it was also recognised by the Vice President of the European Commission and Commissioner for Industry and Entrepreneurship, Antonio Tajani. The aim is also to draw attention to other areas of planned EU regulation such as biocides, which can have an impact on the competitiveness of both Czech and European industry.
The Czech Ministry wants the European Union to question whether its regulative measures have not negatively affected the position of European companies on the global market. A review of REACH will be launched in 2012 and the European Commission has promised to take the Czech Republic`s views into account. Any amendments of the regulation will be based on the results of this review.
