EU Customer Policy – How Signa could succeed as an SME

In recent years, under the guise of de-bureaucratization, companies have been given carte blanche to ‘damage the economy, the welfare state and the environment’, the Chamber of Labor criticizes. For example, real estate juggler René Benko’s board was able to pose as a small and medium-sized enterprise (SME) with simplified reporting requirements and mislead about balance sheets.

Research by AK shows that there is a focus on economic interests
The Chamber of Labor has had an investigation carried out into this, which is available to the “Krone”. The main result: the original problem that EU regulations were not understandable enough was reduced to such an extent that business interests took precedence over all other interests. AK expert Frank Ey: “Under the slogan of ‘de-bureaucratization’, standards for employees, consumers and society can be sacrificed in favor of companies. To implement this agenda, a structure was created that is highly questionable in terms of democratic policy.”

One-in-one-out principle as a lawn mower
For example, when it comes to reducing corporate reporting requirements and responsibilities, priority is given to SMEs – although the definition of SME has become increasingly broad; 99.8 percent of all companies now fall under this category. Large companies such as Signa Holding also continued as SMEs with correspondingly simplified reporting requirements. “Another example is the one-in-one-out principle, whereby for every new regulation an old regulation must be abolished. “You can safely call this the lawn mower principle,” says Ey.

Fewer reporting requirements for animal diseases planned
Important regulations with high added value for employees, consumers and society could therefore be scrapped. Green Deal measures can be replaced by other environmental protection measures. Laws relevant to labor law or consumer protection may also be sacrificed. For example, in a report on administrative costs, the Commission describes protecting workers against asbestos as a burden, without taking into account health costs. And a suggestion that sounds particularly absurd after the corona pandemic: fewer reporting obligations in cases of animal diseases.

Own SME representative
The actors in this agenda setting are active in various expert committees. A separate SME representative has recently been appointed, who reports directly to the President of the Commission and can also participate in the meetings of the Regulatory Scrutiny Board (RSB). This happens practically before the legislative process; the European Commission only publishes draft laws after they have been approved by the RSB. Representatives of all other social groups and interests, such as trade unions or NGOs, have access to EU law only much later. The RSB is not even legitimized in terms of democratic policy and was created unilaterally by the Commission.