Brussels seeks new emergency powers amid supply crisis

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this Pandemic of the covid-19 It has revealed that the European domestic market is not perfect. The unilateral measures adopted by Member States at the start of the health crisis and the lack of transparency hindered the free movement of vital supplies such as respirators or masks when they were most needed, complicating the European response and exacerbating the situation. To avoid repeating a similar experience European Commission made a new offer this monday Single Market Emergency Vehicle this allows it to react “quickly and collectively”. The initiative, which now needs to be negotiated and agreed between the Council and the European Parliament, gives the Community Management new powers, including the possibility to force companies to expand or reorient their production.

The mechanism establishes three stages of action: emergency mode, surveillance mode Y emergency mode. In the first phase, the aim will be to create a coordination and communication network to prepare contingency plans and improve preparedness. The second phase, the surveillance mode, will be activated if a threat to the single market is detected. In this case, Brussels and Member States will have to closely monitor the supply chains of strategic goods and services. They will also have to establish strategic reserves. In the event of a crisis with a wide impact on the single market, Member States will be able to move to the third stage and – by qualified majority – activate the emergency mode.

Unlike what happened at the start of the pandemic, Member States will not be able to limit the free movement of goods, services or people in the single market; this is a possibility that must be limited to what is absolutely necessary. The European Commission will be able to make recommendations to governments. ensuring the availability of crisis-related assets, facilitating expansion or reorientation of production facilities or speeding up the issuance of permits and certificates. It may also advise governments to specifically allocate strategic reserves created during the surveillance phase.

open single market

“During Covid, we saw how many companies in the fragrance or beverage industry reoriented their production to produce hydroalcoholic gels. In exceptional cases, the Commission may request information from companies about their production, speed up the placing on the market of necessary products, or invite companies to prioritize orders for certain goods that will be needed during the crisis. margrethe vestager, about the proposed arrangement. Companies can refuse, but they will have to explain “serious reasons” justifies their refusal.

“Every time we face a new crisis, we will be able to ensure that our single market will remain open and that goods vital to protecting European citizens will continue to be available,” said Vestager. Thierry Breton, to explain the benefits of the new mechanism and the importance of ensuring a flexible European single market. It will “provide a structural response to protect the free movement of goods, people and services in difficult times” and “will ensure better coordination with Member States, help prevent and limit the impact of a possible crisis in our industry and economy” and make Europe owned by our global partners and we will equip it with non-existent vehicles,” added the Frenchman.

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