Mon. Sep 16th, 2024

Brussels, 29 September 2022

Main results

Single market emergency instrument (SMEI)

Ministers shared their views on the recently presented Single Market Emergency Instrument (SMEI), which the European Commission tabled on 19 September 2022. The proposed SMEI creates a tool for coordinating and ensuring the free flow of goods, services and persons in times of crisis.

The single market is a major asset of the European Union and an important priority for our presidency. Recent crises have shown the need to ensure an open and accessible single market at any time and the importance of the free movement of goods and persons. The EU will work together to avoid any disruptions of the single market. Ministers’ reactions will help us to navigate further discussions during the Czech Presidency.

Jozef Síkela, Czech minister for industry and trade

Ministers broadly welcomed the eagerly awaited SMEI and all agreed that the free movement of goods, services and persons should be guaranteed at all times – especially in times of crises.

During their interventions, ministers emphasised that the SMEI has to be proportionate and called for an adequate governance structure – striking the right balance between the role of member states and the role of the European Commission. Ministers broadly agreed that SMEI has to be consistent with existing crisis instruments and with instruments currently under discussion. Several ministers called for clear definitions of terms such as ‘crisis’ and for clear criteria for the activation of the SMEI. Some ministers stressed the need for transparency in the newly proposed tool and for limited administrative burden for companies.

Ecodesign for sustainable products regulation

Ministers also discussed the proposal for an ecodesign for sustainable products regulation (ESPR), which was presented by the European Commission last spring.

The proposal aims to make sure that physical goods on the EU market (except for food, feed and medicines) are produced in a more environmentally-friendlycircular and energy-efficient way. The ESPR introduces a ‘digital product passport’ and the possibility of labelling for products, for instance as regards their reparability. This will improve consumers’ knowledge of the environmental impact of their purchases and the product-specific value chains.

The regulation also aims to ensure better functioning of the single market by establishing a common set of rules to avoid regulatory fragmentation. On this note, ministers provided guidance for further negotiations on the proposal. Ministers highlighted that the ESPR can set the norm for sustainable products in the European Union and emphasized how it can help consumers and businesses in the green and digital transitions. Most member states welcomed the proposed ‘digital product passport’, and the ecodesign requirements behind it. Ministers broadly agreed that this ‘digital product passport’ can help to ensure the free movement of sustainable products that are fit for a circular economy within the single market.

Some member states shared concerns regarding the extensive use of delegated acts in the proposal and the challenges that national market surveillance authorities might face in enforcing the new requirements. Several member states expressed the need to avoid additional administrative burden for EU companies, especially SMEs.

Other topics on the agenda

Over an informal lunch, ministers discussed the resilience of the single market in the context of the Russian aggression against Ukraine. Ministers exchanged views on the lessons learned from recent crises and on the measures they deem appropriate to facilitate the reintegration of the Ukrainian economy into the EU’s value chains. Ministers also discussed the impact of the energy crisis on the internal market.

Under any other business, ministers were informed by the German delegation about an initiative to establish a ‘European Platform for Transformation Technologies’. This platform would help to strengthen the EU’s technical sovereignty for the transformation. It would support the development of industrial value chains in key transformation technologies such as wind power, solar power, heat pumps and power grids.

The French and German delegations informed ministers about a joint non-paper on securing critical raw material supply. The paper is intended as input for the Commission’s preparation of a regulatory initiative on critical raw materials. Several member states welcomed the non-paper and expressed the wish for circular economy and recycling concepts to be taken into account in the initiative.

The Council also adopted without discussion the items included in the lists of non-legislative ‘A’ items.

Source – EU Council

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