As the Conservative Legal Affairs Spokesperson, Sajjad has this week called upon both the European Union and its Member States to work together to reduce the excessive bureaucracy caused by the so-called ‘gold-plating’ of EU legislation by national governments.
‘Gold-plating’ is when national governments add extra regulations and further obligations to European Union directives when implementing them into national law, resulting in businesses – particularly SMEs - occurring millions of pounds of additional costs every year.
Sajjad has now called upon Member States, such as the UK, to provide justification as to why they have gone beyond the base requirements of an EU directive. He believes this will help to put an end to future governments blaming the EU for over-burdening businesses.
As the European Parliament rapporteur on ‘Smart Regulation’ and monitoring the application of EU law, Sajjad made a presentation in Brussels along with other legal experts to European Parliament’s Legal Affairs Committee. In his presentation, he explained how the ‘gold-plating’ of EU-legislation by national governments can go far beyond the requirements of the original European law and lead to excessive additional bureaucratic burdens on businesses.
Although Sajjad’s speech welcomed the European Commission’s ‘Smart Regulation’ agenda, which aims to deliver new and more effective ways of legislating across the EU, he focused on how it was vital to reduce burdensome legislation that restricted European business from being at the forefront of innovation in an increasingly competitive global marketplace.
During his presentation, Sajjad said:
“Gold-plating remains a millstone round the neck of businesses in many Member States. EU regulation should deliver more, for less, and in a more effective manner.
“EU legislation is often criticised for being poorly thought out, badly drafted, unworkable, inconsistent and bureaucratic. At present there are countless rules, regulations and restrictions in European - but also national - legislation that place unnecessary burdens on businesses which could be simplified or indeed repealed.
“When it costs €593 to set up a business in Brazil, €641 in India and €644 in the US, why does it cost on average €2,285 to do so in Europe? In times of highly mobile capital, fast paced innovation and ever quickening production cycles, the economic cost of holding up business with such bureaucracy is immeasurably high. It is therefore essential that the European Union - and the Member States - take action to deliver better and more effective regulation.
“It is for this reason that I have proposed in the report that Member States be required to provide reasoned opinions as to why they have gone beyond the base requirements of a directive. It is only through increased cooperation in harmonising the approach to implementation that we can benefit fully from the advantages of the single market.
“I hope that these efforts to stop the gold-plating of EU legislation will prevent future national governments from blaming the EU for the often excessive and over-burdening bureaucracy placed on our businesses”