The key facts

  • The leaders of Germany, Italy and Belgium proposed an 'emergency brake' for new EU laws that are burdensome for businesses
  • They also proposed a 'priority rule' with the suspension of rules in key sectors and a reduction in corporate reporting requirements
  • The mechanism is described as a 'last resort'; its details and scope remain unclear, with discussion scheduled at the EU summit on Thursday

Letter to the European Council President

German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni and Belgian Prime Minister Bart De Wever on Monday sent a letter to European Council President António Costa proposing the introduction of an 'emergency brake' — a mechanism allowing the halting of new EU laws that would be deemed excessively burdensome for businesses. The document was seen by Euronews. The initiative is explained by the need to boost the European Union's economic competitiveness.

A last resort without clear details

The proposed mechanism is described in the letter as a 'last resort and an additional safeguard' against excessive bureaucratic costs arising after the adoption of new European laws. At the same time, its modalities and scope of application remain unclear. According to diplomatic sources, the issue is set to be discussed on Thursday at the EU leaders' summit in Brussels.

'Friends of competitiveness'

The letter builds on the work of an informal group of 19 EU countries known as the 'Friends of Competitiveness', led by Germany, Italy and Belgium. The group is seeking a coordinated response to the challenges facing European industry and ways to strengthen its competitiveness.

'Priority rule' and reduced reporting

The authors of the appeal also call for accelerating planning and permitting procedures for investments in key sectors — decarbonisation, energy, artificial intelligence and defence. A system called the 'priority rule' has been proposed, under which the effect of certain rules in these areas could be temporarily suspended in order to speed up the development and deployment of new technologies. Another priority is reducing companies' reporting requirements. The leaders of the three countries also propose reversing the burden of proof: the necessity of any reporting obligation would have to be justified rather than presumed, which, according to the authors' intention, would reduce the administrative burden on businesses, primarily on small and medium-sized enterprises.