EU supply chain emergency powers proposed, fear trade

Date:

Share post:

[ad_1]

On September 3, 2007, wind turbines were seen at a wind farm 23 km (14 mi) off the coast of Ijmiden, the Netherlands. REUTERS/Michael Koren

Sign up now for unlimited access to Reuters.com

BRUSSELS, Sept 19, 2009 (Reuters) – Europe-based companies could be prioritized for key products and stockpiles under draft EU rules giving Brussels emergency powers to deal with supply chain crises.

The single market emergency instrument proposed by the EU executive on Monday is a response to disruptions caused by the COVID-19 pandemic and Russia’s invasion of Ukraine.

The proposal, which echoes similar measures taken by the United States and Japan, is expected to face strong pressure from businesses and some EU countries, who fear the European Commission is overreaching.

Sign up now for unlimited access to Reuters.com

Commission Vice President Margrethe Vestager told a news briefing: “We need new tools that will allow us to act quickly and collectively in any crisis.”

Vesteger tried to allay concerns that the bills would force companies to break commercial agreements, saying they would not invalidate third-country legal agreements, unlike under European contract law.

Lobby group BusinessEurope set out its concerns in a paper published ahead of the EU announcement.

“Mandatory ex ante market monitoring, which intervenes in some cases for something that may or may not change beyond our control, fails to meet the principles of proportionality and necessity,” the group said.

“It is similar to some measures that can be taken to address the problem,” BusinessEurope said.

The draft law empowers the Commission to order EU countries to organize their supply chains and increase the availability of problem-related goods as soon as possible, including expanding or renovating existing production capacities or establishing new ones and placing the problem-related goods on the market.

Companies may be forced to prioritize certain critical items according to the law, critics may violate contractual obligations and expose corporate secrets.

Businesses that provide false or misleading information face fines of up to 300,000 euros ($299,220). Those who do not comply with the prioritization order for key products may face penalty fees of up to 1.5% of the average daily.

($1 = 1.0026 euros)

Sign up now for unlimited access to Reuters.com

Reporting by Foo Yun Chee; Edited by Philip Blenkinsop and Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.

[ad_2]

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Related articles

Imroz Salam Lokhande A Rising Star in Modeling and Acting

Imroz Salam Lokhande: A Rising Star in Modeling and Acting Name: Imroz Salam Lokhande Nickname: Roz Profession: Actor, Model Height: 5.5 inches Weight: 51 kg (112.43 lbs) Figure Measurements: 36/30/36 Eye...

Ragini Kasturi A Versatile Force in Indian Music 28345

Ragini Kasturi: A Versatile Force in Indian Music In the dynamic landscape of Indian music, few artists can make...

Divya Tyagi Makes Her Playback Singing Debut in “A Morning In Kashmir -8426

Divya Tyagi Makes Her Playback Singing Debut in "A Morning In Kashmir Renowned for her soulful devotional songs and...

New Soundboard Review: Pricing is Not Always the Only Criteria

I actually first read this as alkalizing meaning effecting pH level, and I was like, OK I guess...