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The leaders of Germany, Italy and Belgium have called for a mechanism to halt new EU legislation deemed excessively burdensome for businesses, as part of a broader push to strengthen the bloc’s economic competitiveness.
German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni and Belgian Prime Minister Bart De Wever have proposed an “emergency brake” in a letter sent on Monday to European Council President António Costa, seen by Euronews.
The proposed mechanism would act as “a last resort and additional safeguard” against unnecessary bureaucratic costs stemming from new EU laws. Its modalities and scope remain unclear with the issue expected to be discussed at Thursday’s EU leaders’ summit in Brussels, according to diplomatic sources.
The letter builds on the work of an informal group of 19 EU countries seeking a coordinated response to the challenges facing European industry and ways to strengthen its competitiveness. The group, led by Germany, Italy and Belgium, is known as the “Friends of Competitiveness.”
The three leaders also called for faster planning and approval procedures for investments in key sectors, including decarbonisation, energy, artificial intelligence and defence.
Under a proposed system dubbed the “priority rule”, certain regulations in these areas should be temporarily suspended to accelerate the development and deployment of new technologies.
Cutting companies’ reporting requirements is another key priority outlined in the letter, as the three countries seek to reduce red tape across the EU.
Germany, Italy and Belgium also called for a reversal of the burden of proof when assessing whether reporting requirements are necessary.
Under their proposal, the need for any reporting obligation would have to be justified, rather than assumed, potentially reducing the administrative burden on businesses, particularly small and medium-sized enterprises (SMEs).