Overly complex processes and long waiting times for obtaining permits are acting as obstacles to EU inward investment, a new Business Europe report has shown. This report has been welcomed by the Confederation of Swedish Enterprise, which is now calling for a comprehensive review of EU permit processes. “The current system is inefficient and unpredictable”, says the Confederation’s environmental lawyer, Lina Hagström.
Some 83 percent of the companies surveyed for the report believe that the current EU permit processes are discouraging inward investment, which in turn is undermining the EU’s ability to compete on the global stage.
In a statement on the report, Fredrik Persson Chairman of Business Europe, said, “In today’s competitive world, the capability to move quickly is a strategic advantage. Prolonged, complex permit processes create a bottleneck, both for companies’ green and digital transformation and for the EU’s global competitiveness.”
According to Business Europe, China and the US are facing similar problems to the EU; however, in those countries there are measures in place - such as time restrictions – to prevent processes from taking too long. The report also highlights that there is considerable confusion over where the demarcation line between national and EU-wide rules lies.
The companies surveyed want to see a range of improvements, including time limits for various permits, better communication between companies and authorities and the ability to start projects more quickly. Business Europe is calling on the incoming European Commission to ensure – with the goal of improving European competitiveness - that permit processes are placed high on the agenda.
As a senior legal advisor in environmental law at Swedish Enterprise, Lina Hagström was involved in collecting material for the report, and was a member of a reference group for the survey. In her opinion, Sweden has taken an important first step in reviewing some of the national permitting processes, when launching an inquiry into the issue. Now, she believes, the issue needs to be dealt with throughout the EU - and it needs to be done quickly.
“The study shows that the permit system is of considerable strategic importance for the EU, if it is to be able to achieve the green transition competitively and address the challenges we face. The time it takes to obtain permits undermines a willingness to invest in Europe. Investors want to know that they will see a return on their investment, but unfortunately the current system is inefficient and unpredictable” according to Hagström.
Hagström and Swedish Enterprise welcome Business Europe’s report and its conclusions, but at the same time they also sounded a note of warning.
“What is important now is that the EU doesn’t pursue fast-track shortcuts for certain companies; a system-wide review and a holistic approach is needed. We need to have the same rules for all.”
A total of 240 companies in 21 European countries responded to the survey, entitled License to transform: SWOT analysis of industrial permitting in Europe. Of these, 35 percent were in the SME segment. The survey was conducted during May and June 2023.
CompetitivenessClimatePermit processes