German business makes recommendations on cutting EU red tape

German business called for a reduction in European Union regulations in presenting more than 50 proposals for cutting red tape in Brussels on Wednesday, reported dpa.

The proposals put forward by the Association of German Chambers of Industry and Commerce (DIHK) refer to EU laws that, in the view of German business, cost time or cause other formal difficulties.

According to the DIHK report, innovation is hindered and business competitiveness is reduced. Digitalization and sustainability are also impacted negatively, with lengthy approval procedures restricting modernization of infrastructure and buildings, the DIHK said.

In the view of the DIHK, the Green Claims Directive is among the "particularly onerous legal acts" being considered by Brussels to combat so-called "greenwashing" of products.

Another is a law to protect the world's rainforests, where the EU Deforestation Regulation has drawn cross-party and business opposition.

Regulations like these needed to be reworked urgently, as they impacted small and medium-sized enterprises as well, by contrast with their original intention, the DIHK said.

Future regulations should be checked better for their effects on business, it said.

The DIHK described an initiative from the European Commission to cut back existing reporting obligations by 25% as "an initial step in the right direction."

EU Commission Vice President Valdis Dombrovskis, who oversees the trade portfolio, has been specifically tasked with cutting red tape. Volker Treier, head of external trade at DIHK, said he hoped this meant a positive change in favour of business.