Summer edition

2021-09-22

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22 September 2021

 

Greetings,  

 

Welcome back to the first edition of Swedish Business Policy Brief after the summer! In this issue, we provide our analysis regarding the EU Fit for 55 package and share our position on the upcoming Ecodesign Directive. We also express our concerns regarding the taxonomy extension linked to environmental objectives, as well as a social taxonomy. Furthermore, we urge the Commission to strike a better balance in the Corporate Sustainability Reporting Directive and provide our comments on the EU AI Act, as well as on the upcoming Data Act. We also turn attention to that the European Commission’s estimates of the administrative burden in its proposal on Foreign Subsidies are flawed. As always, please don’t hesitate to reach out to me, or any of my colleagues at the EU Office of the Confederation of Swedish Enterprise, with any questions or comments you may have.   

 

Best regards,  

Charlotte Andersdotter  
International Director 

In this issue, you can read our positions on:

‘Fit for 55’ – a welcome increase in ambition but a lack of focus on cost-effectiveness

‘Fit for 55’ is a crucial element in the journey towards an EU free of greenhouse gas emissions; and there are considerable opportunities for Swedish companies in the transition. However, we believe that it is vitally important to safeguard the fundamental principles of cost-effectiveness and competitiveness.

 

Swedish Enterprise’s response to the Platform’s report on the Taxonomy extension options linked to environmental objectives

While we fully recognise the potential value in differentiating between various environmental performance levels, we also believe it would be premature to further extend the Taxonomy at this stage.

A social taxonomy? No, thank you!

The taxonomy is meant to indicate what can be considered as sustainable investments. Its focus is on environmental factors, however the Platform on Sustainable Finance suggests that this approach could be expanded to social aspects. The Confederation of Swedish Enterprise warns that such a move could create an administrative nightmare, leading to less sustainable investment.  

A better balance is required in the Corporate Sustainability Reporting Directive

The European Commission’s proposal on sustainability reporting - the Corporate Sustainability Reporting Directive (CSRD) – is aimed at improving the flow of sustainability information within the business world. The Confederation of Swedish Enterprise believes that the proposed new requirements in the CSRD would be more proportionate and better balanced if they were more closely adapted to the size and circumstances of reporting entities.

Swedish Enterprise's position on the Ecodesign Directive: A well-functioning single market is the key to success

While the development of more sustainable products is already well under way, more needs to be done to advance this further. Therefore, it is important that product policy is developed at EU level. National policies and regulations for a circular economy run the risk of creating barriers to the EU single market and to circular flows between countries, hampering product development as a result. A well-functioning single market is a prerequisite for the success of the circular economy in the EU

The EU Data Act must not lead to undermining competitiveness of companies

Ahead of the announced EU Data Act, the European Commission has published an impact assessment. Swedish Enterprise would like to stress that the Data Act must not lead to the undermining of the competitiveness of companies and European industry. Also, both the relevant existing and planned international regulation and agreements on data access must be considered within the legislative work. This must also ensure that the protection of both databases and business secrets is fully respected.

Swedish Enterprise calls for far-reaching revision of EU AI Act

The use of Artificial Intelligence (AI) solutions is vital to ensuring the global competitiveness, security and the ability to provide citizens with quality customer experiences as well as relevant services. Unfortunately, it seems that the best intentions of the Commission’s proposals are likely to be lost in practice. The current version of the proposal poses a high degree of risk for investments and competitiveness and may jeopardise innovation and AI rollout in Europe. Therefore, the proposal needs significant revisions.

The European Commission’s estimates of the likely administrative burden in its proposal on Foreign Subsidies are flawed

The European Commission’s proposal on foreign subsidies is a welcome initiative, one that could contribute to levelling the playing field within the EU Single Market. However, some sections of the proposal are potentially problematic, as the conclusions drawn in the impact assessment conducted for the drafting of the proposals appear to be flawed. The true administrative burden and staff resources required will be many times higher than the projections used to draft the proposals.

The Confederation of Swedish Enterprise’s opinion of the European Commission’s proposal for revised guidelines for State Aid for Climate, Environmental Protection and Energy

The European Commission’s overall approach to broadening the application of the State Aid Guidelines is welcome. However, there are good reasons to stress the importance of the General Block Exemption Regulation (GBER) and to warn against excessive complexity. The ‘pursuit of perfection’ must not become the ‘enemy of the good’, and there is frequently a strong case for ensuring that bureaucratic processes are kept to a minimum.

The global tax map has been redrawn: G20 countries reach agreement on digital tax and global minimum tax

G20 countries have agreed to endorse the OECD’s outline plans for taxing the digital economy and imposing a minimum global corporate tax rate. A finalised plan is due to be presented in October; however, the proposals deviate dramatically from current international principles and there are many obstacles that need to be resolved before they can be applied. Despite the turmoil and uncertainty, one thing is certain; the international tax system is unlikely to become easier or simpler any time soon.

Swedish industry voices deep concerns over increased political intervention in the European economy

While supporting of a strategic approach to strengthening European industrial competitiveness, the Association of Swedish Engineering Industries (Teknikföretagen) retains strong reservations over some of the proposed policy measures in the European Commission’s updated industrial strategy. More specifically, Teknikföretagen is concerned by the intention to use targeted financial instruments to support domestic production capabilities, suggesting increasing political intervention in the European economy.

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The Swedish Business Policy Brief is published by the Confederation of Swedish Enterprise’s EU office in Brussels. The Brief is distributed monthly, and features information on the policy positions of Swedish Enterprise and its member organisations. It provides Swedish Enterprise’s perspective on those issues in which we believe you are interested.
 
Swedish Enterprise is Sweden's largest business confederation, representing 50 member organisations and 60,000 member companies with over 1.6 million employees.
 
If you are interested in receiving our brief or know someone who might be, please contact us at brussels@swedishenterprise.se 

 

Charlotte Andersdotter, International Director, Head of EU office
+32 (0) 472 50 46 75, charlotte.andersdotter@swedishenterprise.se 

Anders Rehnberg, Policy Advisor EU Affairs, Trade, SME, CSR and Brexit
+32 (0) 479 15 48 54, anders.rehnberg@swedishenterprise.se 

Gabriella Sebardt, Director Social Affairs
+32 (0) 473 64 02 37, gabriella.sebardt@swedishenterprise.se

Emelie Nordström, Policy Advisor EU Affairs, Single market, Industrial strategy, Climate,

Energy, Environment and Digital
+32 (0) 479 16 46 96, emelie.nordstrom@swedishenterprise.se 

EU Office | Rue du Luxembourg 3, 1000 Brussels | www.swedishenterprise.se 

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