Commission’s new supply chain regulation should refrain from prioritisation of production orders
The European Commission’s proposal for a Single Market Emergency Instrument seeks to better protect free movement of people, services, and goods in crisis situations. It will furthermore provide the Commission with supply chain surveillance and intervention powers.
CLEPA provided its contribution to the public consultation on the proposal and supports better protection of free movement, supply chain monitoring, and a role for government in building critical reserves of gas, energy, and raw materials. Nevertheless, governments lack the experience and capabilities to manage supply chains and well-intentioned interventions could exacerbate supply chain disruptions by distorting the functioning of the market. CLEPA furthermore questions the value add of mandatory information requests and is concerned that in practice, it will be difficult to protect trade secrets and confidential business information.
The Commission’s proposal is currently being analysed by Member States and has already received feedback from Ministers at Council level. Many are asking for good coordination of the Single Market Emergency Instrument with other EU crisis mechanisms. It has also been expressed by certain countries that the measure could clash with their own space to maneuver and respond at the national level in emergency cases.
In: CLEPA News, Growth & Competitiveness