| Author (Person) | Carstens, Karen |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.9, No.30, 18.9.03, p23 |
| Publication Date | 18/09/2003 |
| Content Type | News |
|
Date:18/09/03 By Karen Carstens THE Federation of German Industries (BDI) has warned that the EU's controversial new chemicals policy could cost Germany 1.7 million jobs. "Major elements of the proposal have never been tested in practice. We ask the Commission to conduct pilot projects on the workability of the proposal and to build further decisions on a full impact assessment," Ludolf von Wartenberg, BDI general director, said on Tuesday (16 September) in Brussels. Von Wartenberg presented a BDI-commissioned study conducted by management consultancy Arthur D. Little, which concluded that the European Commission's proposed legislation on the registration, evaluation and authorization of chemicals (widely known by its acronym, "REACH") was "unworkable". A similar study, also conducted by Arthur D. Little, was denounced earlier this year by the German government and a group of leading German economists as flawed in its approach. Von Wartenberg, however, cited an internet consultation this summer on REACH that yielded some 6,400 results, including 600 from German firms and associations, which virtually all attacked the proposal as overly bureaucratic. France, in a newly posted submission, demanded a reduction in the number of substances covered, a "rationalization" of testing requirements through greater use of more decentralized decision-making to avoid unnecessary duplication, and changes to the plan's deadlines so that these "don't affect the potential for innovation and the penetration of new markets". Paris said the draft proposals put forward by DG Environment and DG Enterprise were "unbalanced" and "presented a threat to the competitiveness of the chemical and downstream industries not totally justified by the expected health and environmental benefits". The European Chemicals Industry Council (Cefic), meanwhile, has also warned that mandatory data sharing requirements under REACH would be in conflict with intellectual property rights. A May 2002 business impact study conducted by the Commission estimated that the maximum cost to business of implementing REACH would be 7 billion euro, or 0.1% of the chemical industry's annual turnover during an initial 11-year phase-in period. But in May this year the EU executive conceded that costs could increase by another €26 billion. Cefic is worried 80% of REACH costs could fall on SMEs, which represent only 20% of chemicals manufacturers. "Many companies will be forced to relocate outside Europe," said von Wartenberg. A final proposal is expected at the end of October. The Federation of German Industries (BDI) has warned that the European Union's new chemicals policy - REACH - could cost 1.7 million jobs in Germany. |
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| Subject Categories | Business and Industry |
| Countries / Regions | Germany |
