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Europe Daily Bulletin No. 11502
SECTORAL POLICIES / (ae) competitiveness

Circular economy's potential for job creation and innovation if regulatory charges are avoided

Brussels, 01/03/2016 (Agence Europe) - Ensuring the EU's transition to an efficient economy by using resources with enormous benefits for companies, consumers, sustainable protection of the environment are some of the objectives in the action plan for the circular economy presented by the Commission in December and are indeed enticing (see EUROPE 11444). The European ministers in charge of competitiveness were keen to give them their support.

On Monday 29 February in Brussels, they gave their support during the first exchange of views to identify the priorities and challenges in this action plan that is supposed to get Europe on track for a sustainable economy based on resources efficiency.

Ministers are aware of the opportunities that the circular economy has for job creation and new markets but they also expressed a wish that the EU does not lose sight of the possible adaptation difficulties companies will have within this new environment, particularly SMEs, in the short term. To obtain the circular economy's full potential and remove the barriers to its development, it would therefore be sensible not to overwhelm these companies with a counter-productive bureaucratic burden, explained ministers.

At the end of the session he chaired, Henk Kamp, the Dutch Minister for Economic Affairs said, “Member states agreed that circular economy offers opportunities to create jobs and to develop new innovative markets which contribute to economic growth. Member states emphasized that unnecessary regulatory burdens should be avoided to stimulate new business models to emerge”.

All the ministers agreed that this new approach should be included in appropriate sectoral policies (particularly those involving chemicals, environmental protection, the internal market), whilst emphasising that this challenge was a considerable one. The majority of delegations highlighted the need to stimulate innovation and new business models, as well as the importance of raising awareness among consumers and producers about the circular economy.

Many delegations made robust appeals for a thoroughgoing impact study into the Circular Economy Package (action plan and revision of the “waste” directives) on competition in the business and industrial sectors. One of the ways of possible implementation included public procurement policy as an important instrument for encouraging the circular economy.

This exploratory debate at the Competitiveness Council and the debate that European Environment Ministers will have on Friday 4 March in Brussels, will also develop the conclusions that the Environment Council, which is heading this dossier, is expected to adopt on 20 June. (Original version in French by Aminata Niang)

Contents

SECTORAL POLICIES
EXTERNAL ACTION
ECONOMY - FINANCE - BUSINESS
SOCIAL AFFAIRS - EMPLOYMENT
COURT OF JUSTICE OF THE EU
INSTITUTIONAL
NEWS BRIEFS