Eighteen European Union (EU) member states Friday backed a call for Brussels by Britain's Chancellor George Osborne and Business Secretary Sajid Javid to cut red tape.

They have asked for a new target to reduce burdens on business as a way of "unleashing potential for all businesses across the EU area".

The two senior British politicians say the move demonstrates a clear commitment from across Europe to Britain's competitiveness agenda.

Osborne and Javid, alongside finance ministers and business secretaries of the other EU member states have written to European Commission Vice President Frans Timmermans. The 19 signatories to the letter represent over three-quarters of the EU population and account for over 80 percent of the EU's GDP.

They want the Commission to adopt clear targets for reducing the overall burden of EU regulation on business, stating in their joint letter, writing: "Our regulatory system needs to be fit for the 21st century. This means better and simpler regulation. Unnecessary burdens in EU legislation must be removed."

The letter reinforces Prime Minister David Cameron's call earlier this month for such a target in a letter to European Council President Donald Tusk on Britain's renegotiation. Separately, in a speech, Cameron has urged the EU to go further in adding to Europe's competitiveness, rather than detracting from it.

The new Osborne letter welcomes the more strategic approach taken by the commission towards cutting business red tape, demonstrated by the recently-published 2016 Work Program's focus on competitiveness.

Osborne's letter stated: "We must build on the momentum for change in our regulatory culture and ensure that progress is never rolled back. It must nourish entrepreneurship and innovation, and provide for the future prosperity of all our citizens."

Javid's Department for Business says the European Commission has already introduced an administrative burden reduction target, showing that such mechanisms are workable and effective. The introduction of business burden reduction targets would be a major step forward in the EU's approach to regulation.

The letter has been signed by Austria, Bulgaria, the Czech Republic, Croatia, Cyprus, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Lithuania, Malta, the Slovak Republic, Slovenia, Spain and Sweden.

A spokesman at Osborne's Treasury Office said: "The adoption of a target to reduce business burdens would be the most recent UK-driven step towards greater EU competitiveness, adding to recent successes including the commitment to abolish roaming charges as of June 2017 and legislative proposals under the new Commission having fallen by 80 percent, with more regulations set to be repealed this year than in the whole of the previous Commission."

The letter comes ahead a meeting on Monday when EU Business Ministers will discuss their call with Vice President Timmermans during the Competitiveness Council in Brussels.

Go to Forum >>0 Comment(s)