BusinessEurope Headlines No. 2018-26

Supporting efforts for an EU-MERCOSUR deal

On 9 July, BusinessEurope’s President Pierre Gattaz wrote to European Commission President Jean-Claude Juncker that European companies are becoming increasingly concerned that we may miss the opportunity to conclude the negotiations for what would be a breakthrough trade agreement with the South American trade bloc MERCOSUR. Only a few weeks are left before the national election campaigns in Brazil will start and catalyse attention and political capital. In these unpredictable times in international trade, the MERCOSUR market would provide European companies with increased opportunities in a region so far relatively closed to foreign access. An EU-MERCOSUR agreement would help diversify the EU’s trade and investment flows and continue building strong ties with countries that share our goals of rules-based, fair and open trade. “Should the opportunity not be seized now, it may not present itself again for the foreseeable future, much to the regret of European businesses of all sizes”, President Gattaz concluded.

Contact: Eleonora Catella

Photo copyright: © Christophe Guibbaud

Facts & Figures

Supporting the prompt ratification of the EU-Japan Economic Partnership Agreement

“We welcome the upcoming signature of the EU-Japan Economic Partnership Agreement (EPA), which will make it easier for European companies to sell their goods and services to Japan and make European products more competitive in a market of 127 million consumers”, said Luisa Santos, Director for International Relations at BusinessEurope, at an International Trade Committee hearing in the European Parliament in Brussels on the EU-Japan EPA on 9 July. Alongside Akira Shimizu, Chair of Sub-Committee Europe at Keidanren, the Japan Business Federation, Santos explained how the EU-Japan EPA will create promising opportunities for businesses, especially small and medium-sized enterprises, through the elimination of non-tariff barriers, the liberalisation of services and the opening up of public procurement markets. “The expected benefits for businesses are important, but we need to make sure that we widely communicate on opportunities created by the agreement to both citizens and companies of all sizes, so that they make the most out of it. The sector to sector dialogue promoted by BusinessEurope and Keidanren needs to be pursued in the future to foster regulatory cooperation and maintain the gains of the agreement”, Santos concluded.

Contact: Maurice Fermont

EU should reduce costs of cross-border payments in euro

BusinessEurope Director General Markus J. Beyrer wrote to the European Parliament and Member States to support the reduction of costs for cross-border payments in euros across the EU. The free flow of capital is a fundamental pillar of the Single Market. It must be maintained and enhanced where possible to ensure the efficient functioning of capital markets in the EU. A prerequisite for achieving this is to ensure that cross-border transactions in euros can be completed efficiently and for a low-cost across all Member States to strengthen intra-EU trade.

Contact: Erik Berggren

Single-use plastics: new impact assessment is needed

With regards to the European Commission proposal on the impact of certain plastics to the environment, "BusinessEurope calls on the European Parliament and Council to conduct a new, more thorough impact assessment", said BusinessEurope Director General Markus J. Beyrer in a letter addressing the European Parliament's Committee on Environment, Public Health and Food Safety (ENVI) Rapporteur Frédérique Ries and the Austrian Presidency. "We understand the need to prevent plastics and all other waste from reaching our oceans and minimise plastic litter to our environment, however the Commission proposal raises some serious questions on proportionality and fairness that we need to see addressed", he added. For more information, please see the letter to the Rapporteur here.

Contact: Leon de Graaf

Discussing the Definitive VAT-Regime with European Commission

Following the European Commission's recent proposal for detailed technical measures for the operation of the definitive VAT system, BusinessEurope's VAT Group were pleased to welcome Werner Blockmans and Antonio Victoria Sanchez - officials from the Commission's Directorate-General for Taxation and Customs Unions (DG TAXUD) - at its meeting on 5 July. The Commission officials outlined the proposal and discussed its features in detail with the VAT-group. While the group supports the European Commission’s commitment to a single VAT-area, the group stressed that the proposed charging VAT on cross-border trade between businesses will significantly increase compliance costs as businesses will have to be continuously informed about the wide range of different VAT-rates in the different Member States.

Contact: Pieter Baert

The EU should not make changes to the framework for public reporting by companies

Current EU reporting requirements are appropriate overall, and a fundamental review and revision of these rules are not necessary, BusinessEurope argues in its response to the Fitness Check on the EU Framework for Public Reporting by Companies. Any amendments to the rules should be driven by the need to improve the situation for reporting entities. It is of vital importance that the European reporting framework does not impede competitiveness and growth in a global perspective.