Bid to mend packaging split

Date: 13/03/1997

WITH the moment of truth approaching for packaging waste legislation in a number of EU countries, the European Commission remains divided over which comes first - the environment or the single market.

Senior advisers to the 20 Commissioners are meeting today (13 March) to decide whether to follow up a threat made 15 months ago to take legal action against the 1991 German packaging law. They are also due to agree what action should be taken over the Danish ban on the sale of soft drinks and beer in cans.

But infighting between different Commission departments makes any decision far from certain.

Germany's controversial packaging rules first came under threat in December 1995, when Internal Market Commissioner Mario Monti wrote to Environment Minister Angela Merkel warning that the rules appeared to constitute an illegal barrier to trade within the single market.

The main concern was that the requirement for 72&percent; of drinks to be sold in reusable packaging discriminated against imports from other member states. Since then, the Directorate-General for the environment (DGXI) has been pressing for the complaint to be dropped, on the grounds that the EU's packaging directive allows for reuse if it is environmentally justified and not in conflict with the goals of the single market.

But others, including DGXV (single market) and DGIII (industry), have supported the view of much of EU industry that the German system interferes with trade and free competition.

“If it does not take decisive action, the Commission will be doing the opposite of what it claims it is trying to do in the framework of the single market action plan,” claimed John Robinson of Robinson, Linton Associates.

Opponents of the German system will also be watching closely to see what action the Commission takes next Monday (17 March), when both it and the member states have to submit opinions on a planned redraft of the German law.

Insiders believe the Commission may step back from starting legal proceedings and opt instead to stress its continuing work on the original complaint. But single marketeers are more hopeful that action will finally be taken against the Danish 'can ban', with Copenhagen being forced to lift its prohibition by the autumn.

The scale of the interests involved is illustrated by recent statistics suggesting that EU trade in goods amounts to around 850 billion ecu annually, of which 63&percent; are packaged.