Jury still out on Commission’s controversial REACH plan

Author (Person)
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Series Details Vol.9, No.38, 13.11.03, p17
Publication Date 13/11/2003
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By Karen Carstens

Date: 13/11/03

MINISTERS are still not satisfied with the European Commission's chemicals package, which continues to cause rancour on all sides of the debate.

The proposed REACH system - to register, evaluate and authorize thousands of chemicals - was discussed in Brussels on Monday (10 November) by industry and science ministers at the Competitiveness Council and, while they welcomed the Commission's last-minute watering-down of the plan, the ministers said there was still room for further streamlining and criticized the EU executive's own impact assessment.

This estimates the costs to industry for implementing REACH at €5.2 billion over 11 years. But one minister said there was little data on potential benefits.

The Competitiveness Council will ultimately decide the member states' collective position on the package, although input is also expected from environment ministers who fear being marginalized in the decision-making process and who are more likely to take a greener stance.

The European Parliament has similar divisions, as contributions to this newspaper from two German MEPs reveal (see Page 20). A first reading is expected before next June's Parliamentary elections, with Italian Socialist MEP Guido Sacconi as rapporteur.

But, until then, the focus will remain on the member states. During Monday's exchange, ministers from the big three chemical-producing states - Germany, the UK and France - kept a relatively low profile, given the strong message sent by their leaders to Commission President Romano Prodi in September about the damage that over-regulation could cause to the competitiveness of the sector.

However, Spain declared that REACH is "too complex and too costly for industry" and could threaten jobs, while Denmark and Sweden gave neutral reactions.

Current EU presidency holder Italy, meanwhile, said it wanted "significant changes", including provisions to ensure domestic producers are not disadvantaged by rules on imports and stricter business confidentiality rules.

Ireland and the Netherlands will take over the EU presidency for the first and second half of 2004, respectively, making their views on REACH critical.

Dutch Economy Minister Laurens Brinkhorst said the final package must not affect trade relations with Japan and the US, adding that the administrative burden could be a "major problem". Irish Industry Minister Mary Harney, meanwhile, said the Commission's economic impact assessment was "not robust enough", adding that its claims to have reduced 80% of costs through changes to the proposals "remain very unsubstantiated".

The assessment "downplays the impact on competitiveness in third-country markets" and there was "little data to support benefits", she added.

Insiders say similar comments were made by almost all ministers, albeit in somewhat milder tones.

REACH is arguably the most significant piece of EU environmental legislation for business in decades. In addition to the Union's estimated 34,000 chemical firms, it will affect "downstream users', including swathes of the manufacturing industry.

REACH, moreover, has given rise to concerns in the US, China and many other countries that the EU is developing a culture of "green protectionism".

The legislation has also emerged at a difficult time for environmental policy in Europe, characterized by a shift to the right in many countries that has coincided with a dip in fortunes for Green politics.

Green parties, moreover, are poorly represented in most of the central and eastern European countries due to join the EU next May, which seems bound to have a knock-on effect in the Parliament.

The resurgence in political demands for action to boost competitiveness and employment look set to prevail for some time to come.

REACH, however, is also a health issue. Environment Commissioner Margot Wallström has highlighted the dangers of toxic substances accumulating in the bodies of penguins, polar bears and humans, not to mention having her own blood tested for chemicals last week by the World Wide Fund for Nature (WWF).

Fears of chemical contamination in breast milk and the effects on unborn babies and young children cannot easily be discounted as "scaremongering".

Recent studies show that children's intelligence may be declining in some EU countries and this has been linked by some researchers to exposure to chemicals in the womb. Causality is difficult to prove - and, hence, easily ignored by industry.

But the approach taken by Wallström undoubtedly resonates with the wider public and policymakers know that, to succeed, REACH must strike a balance between keeping industry competitive and not endangering health.

European Union Industry and Science Ministers considered the European Commission's controversial chemicals package at the Competitiveness Council on 10 November 2003. Ministers concluded that the proposals could be further streamlined. There are fears that over-regulation could damage the competitiveness of the chemicals sector.

Related Links
http://ec.europa.eu/comm/enterprise/reach/index_en.htm http://ec.europa.eu/comm/enterprise/reach/index_en.htm
http://ec.europa.eu/environment/chemicals/index.htm http://ec.europa.eu/environment/chemicals/index.htm
http://consilium.europa.eu/ueDocs/cms_Data/docs/pressdata/en/intm/77861.pdf http://consilium.europa.eu/ueDocs/cms_Data/docs/pressdata/en/intm/77861.pdf

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