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European Commission takes one step forward cutting red tape, five steps back with new social burdens

3 October 2013

European Commission takes one step forward cutting red tape, five steps back with new social burdens

Today’s renewed European Commission drive to reduce red tape is welcome but any positive effects will be negated by a simultaneous announcement that aims to make the Euro zone more socially convergent, says Martin Callanan MEP.

Today’s renewed European Commission drive to reduce red tape is welcome but any positive effects will be negated by a simultaneous announcement that aims to make the Euro zone more socially convergent, Martin Callanan MEP, leader of the European Conservatives and Reformists Group, said today.

The Commission has published measures that will ramp up its commitment to cut administrative burdens. The proposals follow several parliamentary reports drafted by ECR MEP Sajjad Karim aimed at cutting red tape – especially for small businesses.

However, simultaneously, the commission has brought forward plans to create a stronger ‘social dimension’ in the Euro zone, which Mr Callanan believes will bring about detrimental unintended consequences for the Euro zone’s youth unemployment crisis.

Mr Callanan said:

“Cutting red tape is the right thing to do for Europe’s economy. Replacing it with more job-destroying employment legislation is exactly the wrong thing to do.

“Unfortunately, for every regulation on widgets that the commission repeals, it brings forward a new one-size-fits-all pet project which has good intentions but detrimental unintended consequences.”

Sajjad Karim MEP, ECR legal affairs spokesman and author of a raft of proposals from the European Parliament aimed at cutting administrative burdens, said:

“We have already managed to exempt the smallest businesses from a multitude of red tape. Now our challenge is to significantly reduce the overall burden on all businesses and entrepreneurs. EU regulation should be minimal, effective and focused on creating the right conditions for a vibrant marketplace. Beyond that, regulations risk stifling businesses, growth and jobs, and they should be stripped back.

“The commission is acting on the work that we have been leading in the European Parliament and we will continue to demand more ambition in its deregulation agenda.”

Derk Jan Eppink MEP, European Conservatives and Reformists Group economics spokesman said:

“A more socially convergent Euro zone would mean a drive to the bottom, taking the whole Euro zone down to the level of the most inflexible labour markets.

“Young unemployed people require the flexibility in their labour markets to enable them to get a foot on the ladder. The commission has got the wrong focus.”

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