EU environment policy under pressure

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By Brian Johnson
- 19th July 2005

The future of a raft of environmental policies will hinge on a struggle between ‘old capitalists’ and ‘new capitalists’ as Brussels chiefs meet to judge the competitiveness of introducing further EU eco-legislation.

Wednesday’s meeting of the EU executive has been described as a titanic clash between commissioners backing a more business friendly, competitiveness first approach, and Greek environment chief, Stavros Dimas’ more long term views.

Six thematic strategies, covering areas such as the marine environment, waste prevention and pesticides, are on the agenda – a seventh strategy on combating air pollution was dramatically pulled earlier this month on the insistence of Commission President José Manual Barroso.

The meeting was called by Barroso as part of his Lisbon strategy review to reassess the costs and benefits of all EU legislation in the pipeline.

Barroso has demanded that new legislation should not hamper business competitiveness, or adversely impact on his jobs and growth priority for Europe.

If the environmental package is pulled, eco-groups warn that it will send out a signal that the EU is backtracking on its global environmental leadership role.

Environmental groups and commission staff within DG environment fear that the Portuguese chief has been too easily swayed by the arguments from the EU’s powerful business lobby and by a number of EU member states struggling with high unemployment and sluggish growth.

And the political fall out from the French and Dutch constitution rejections may also be causing Brussels to reign in any tricky legislation.

Opposition to Brussels' controversial services directive boosted French opposition to the constitution.

But commission sources suggest that Dimas will secure a crucial victory for his proposals.

The Greek commissioner has peppered his recent speeches and proposals on environmental policy with references to the long term advantages of eco-laws, applying cost benefit analyses and pushing the idea of a “first mover advantage” for European business in eco-technology.

Discussing the package of measures recently, Dimas said that “in all these scenarios the benefits are four times more than the costs.”

A commission source told this website that the debate will centre around those commissioners who have a short term view of competitiveness, the so called ‘old capitalists’, and those with more longer term positions, the ‘new capitalists’.

Writing in today’s Financial Times, a number of UK environmental groups urged Barroso to continue to show “real leadership” on the environment.

“Economic reform is important, but must not compromise sustainable development, or environmental protection, on both of which the EU has shown real leadership, at home and abroad,” argue the environmental groups.

“We…trust that the commissioners’ decision will reflect the European Council’s view that economic growth must take place within a framework of sustainable development, not separately from it.”

Dimas is also expected to remind his fellow commissioners that his package of proposals was requested by Europe’s leaders to be ready by July 2005.

And the pressure is mounting on Barroso to endorse the package, albeit with a caveat to tone down the ambitions of some of the strategies.

The Commission President regularly maintains that Europe is a world leader on the environment, and with media attention focussing on the debate, Barroso may find it politically expedient to give the package the green light.

Concerns over the environment topped a recent Eurobarometer survey of EU citizens

“I think there will be a general endorsement of the strategies,” said a commission source.

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