ANTWERP, Belgium — European Commission President Ursula von der Leyen has emphasized that European leaders cannot solely blame bureaucratic obstacles in Brussels for the EU’s economic challenges. As she prepares for the upcoming European Council retreat at Alden Biesen in Belgium, her message is clear: national governments need to streamline their bureaucracies and abandon protectionist policies to enhance the EU’s competitiveness.
The urgency of addressing Europe’s declining industrial power in comparison to the U.S. and China is intensifying. However, a rift remains between EU institutions in Brussels and national capitals, including Berlin and Rome, regarding accountability for excessive regulation.
Europe’s regulatory hurdles
In anticipation of the Council meeting, von der Leyen delivered two speeches on Wednesday, countering a potential backlash from European leaders who might accuse Brussels of imposing overly burdensome regulations. She remarked,
“We must also look at the national level… the extra layers of national legislation that just make businesses’ lives harder and create new barriers in our single market.”
This statement highlights a persistent issue: excessive regulatory hurdles that hinder the effective functioning of the 27 EU member states as a unified commercial zone.
Specific grievances include national barriers that obstruct the establishment of a continent-wide capital market, the non-recognition of professional qualifications across EU member states, and labeling requirements that complicate product resale across borders. Von der Leyen cited a frustrating inconsistency in internal market regulations: a truck can carry 44 tonnes on Belgian roads, but only 40 tonnes on French roads, complicating cross-border trade.
“We proposed legislation to harmonize this. Almost two years later, it is still under discussion,”
she lamented.
Accountability and collaboration
Despite her efforts to reduce red tape, von der Leyen insists that other parties must also take responsibility. She has already introduced ten legislative packages aimed at simplifying regulations, which are part of a broader plan to save the EU an estimated €15 billion annually. Yet, during her speech at an industrial summit in Antwerp, she reiterated the dysfunction present among national capitals, stating,
“Shipping waste from one member state to another should be efficient, easy, and quick. But different national practices… make it extremely complex.”
She pointed out that certain member states only accept correspondence via fax, leading to protracted delays for businesses navigating regulatory approval.
Conversely, national leaders such as German Chancellor Friedrich Merz have shifted the narrative, attributing their countries’ sluggish economic growth to the regulatory framework established in Brussels. In a recent address, he stated,
“I know that these institutions in the European Union are not as fast as they should be… We are fighting against the machinery which is working and working, and producing and producing new regulations.”
His remarks reflect a broader sentiment among national capitals unwilling to accept their role in the regulatory quagmire.
One European diplomat, who requested anonymity, noted that the tendency of national policymakers to criticize Brussels is a common tactic, albeit one that ultimately impedes substantive progress. “National policymakers want to stick to their very national solutions that are, of course, undermining the internal market,” said Georg Zachmann, an economic policy expert. He described the situation as a power struggle, with EU institutions and member states striving to out-legislate each other.
As the situation continues to evolve, the European Commission’s frustration grows. Stéphane Séjourné, the EU’s industry commissioner, has emerged as a strong advocate for closer internal market integration, often encountering resistance from national governments. In a letter to member states, he emphasized the need for urgent actions to promote the Single Market and eliminate national barriers.
“Discussions on the single market have lasted long enough,”
he asserted. “The Commission has done its job identifying single market barriers, country by country, and sector by sector. But it is now for member states to take their responsibilities and actively remove those barriers.”
While there are calls for the Commission to utilize its powers more effectively, some believe it is hesitant to address politically sensitive national issues. As the EU approaches the Council meeting in Alden Biesen, the hope remains that a collaborative effort will emerge to tackle these pressing challenges and enhance the economic landscape of Europe.