Supermarkets should have the opportunity to purchase products abroad if prices are lower there. Currently, there are strict rules in place, but the European Commission wants to change this. Additionally, restrictive rules for businesses should be reduced.
Brussels presented a package of measures on Wednesday to strengthen the internal market. Currently, there are still many obstacles for companies that want to do business in another EU member state. Many entrepreneurs are annoyed by this.
One of the restrictions is that supermarkets are not allowed to purchase their products in other EU countries, even if they are cheaper there. This sometimes makes groceries more expensive than necessary.
“We see parties using market power to keep prices artificially high,” Euro Commissioner Wopke Hoekstra told NU.nl. “These artificial price differences are not in the interest of the consumer.”
Earlier this year, voices were raised in the Dutch Parliament to make foreign purchases possible. For example, former MP Pieter Omtzigt cited the example of a jar of applesauce that was much cheaper in Belgium than in the Netherlands. Yet supermarkets are not allowed to buy that jar in Belgium.
Brussels also believes this should change. However, Hoekstra indicates that some steps still need to be taken before the rules are actually adjusted.
Diplomas Are Not Always Recognized in Other Countries
Other adjustments that Brussels has in store include harmonizing rules for labels on products and making it easier for companies to establish themselves in another country. There should also be better rules for things like diplomas.
In this regard, Hoekstra points out that there are almost six thousand professions, of which only seven are recognized in the same way in all member states. For example, physiotherapists who have completed all the necessary training in the Netherlands must still be re-trained if they want to work abroad.
Such restrictions make it difficult for companies to take the step to another European country. The fear is that they may therefore leave or decide to do expansions outside the EU.
Fear That Eu Cannot Compete with China and the US
The European Commission (EC), which took office in December, has set itself the goal of reducing red tape for companies. For example, EC President Ursula von der Leyen has promised that there will be 25 percent fewer rules in a few years. That is why sustainable rules have already been weakened and relaxations have been introduced for farming companies.
The steps come after a critical report on the European economy by Mario Draghi, former President of the European Central Bank. He stated that Europe is losing the economic battle with China and the United States.
Strengthening the economy, including by cutting through the jungle of rules, is one of the ways to do something about this. That is why the EU wants to fight what it calls the ‘terrible ten’: ten rules that Brussels thinks are most in the way of companies.
In addition to the aforementioned rules, these include strict regulations for companies that offer services and a lack of common European standards.
All of this should contribute to Europe’s competitiveness, says Euro Commissioner Hoekstra. “Many sectors are already doing well. But if you look at the growth figures in Europe in recent years, that can and should be better.”