Poland calls for a "stop the clock" on packaging regulations burdening small companies

The problem affects small businesses that sell their products directly to customers in other EU countries and are required to register in the packaging system and establish a local representative. For a small company, this means additional formalities and costs. The EC itself admits that it may be up to 50,000. euro per company.

"Stop the clock"

Deputy Minister of Development Michał Baranowski said in Brussels that Poland has the support of about 15 countries. We propose stopping the application of this regulation, i.e. "stop the clock" - Barnowski appealed at the EU forum.

As an example, he gave a small company from Masuria that has been producing specialized boat sails for 30 years. To sell them in France, the company must register on the local market and establish a representative there. The costs are so high that the company decided to suspend sales for now and wait to see if the regulations are changed. If not - as Baranowski said - the company may be forced to withdraw from the EU market.

This is a very good example of how we should not create regulations that affect the single market, as well as our small and medium-sized enterprises, said Baranowski.

Rebellion against new responsibilities

It turns out that the case of the Polish company from Masuria is not an isolated one. In Brussels, there is even talk of a revolt by micro and small enterprises against the new obligations. A petition has been created with over 80,000 signatures, and small business owners are flooding MEPs with complaints. Protests can also be seen on social media.

It turns out that Brussels did not foresee the effects of the regulations on small EU companies.

MEP Dariusz Joński said in an interview with RMF FM that this is one of those absurdities that should be eliminated as soon as possible. We keep talking about the fact that these companies have to be competitive, so we cannot impose this on them. This is the time for maximum simplification and relieving companies from global competition, rather than forcing them to spend money on some representatives, he said.

Support from Germany and Belgium

At the EU forum, Poland was strongly supported by the representative of Germany. Berlin admits that some provisions of the packaging regulation are a big problem for small companies and proposes that the smallest companies, including those that place less than 10 tons of packaging on the market per year, be exempted from some of the obligations. Belgium also admitted that the new rules "impose disproportionate administrative and financial burdens on small businesses."

France, however, is more cautious. He agrees that such an obligation may be a problem for SMEs, but argues that the regulations themselves are necessary to control producers, especially those outside the country in question, and to enforce waste obligations.

The European Commission also admits that the problem exists. Already in December last year, it proposed suspending the obligation to appoint a representative in each Member State. The problem is that the Member States still cannot agree on a common position on this matter. The European Parliament is also pushing for a solution to the problem. For now, responsibility is being transferred, but there is no agreement that would allow the matter to move forward.