EU chemicals, other industries plea for more single market, solidarity to tackle crisis

LONDON (ICIS)–EU countries need to show solidarity to overcome the economic effects of the coronavirus pandemic and reinforce the single market to recover from the crisis, trade groups representing chemicals and other industries said on Wednesday.

The signatories, including EU chemicals trade group Cefic’s president Danielle Ferrari, who is also the CEO at Italy’s producer Versalis, asked EU leaders to show the 27-country union is more than “the sum of its members”.

EU heads of state and government are set to meet on 23 April to discuss measures to overcome the economic effects of the pandemic.

“Pushed by the urgency at hand, member states have rightfully taken the lead in recent weeks, but this unfortunately leads us to a scattered landscape of measures,” said the signatories.

“Recovering from the crisis, only European solutions can work, putting the Single Market as the central instrument. More than ever we need a strong Europe, where its governments, businesses and citizens show their solidarity.”

The letter to EU leaders was also signed by the CEO of Germany’s chemicals major BASF Martin Brudermuller, the CEO of Belgium’s Solvay Ilham Kadri, and the president for Europe at US chemicals major Dow Neil Carr.

Cefic and the three chemicals majors’ CEOs were among the 23 signatories of the letter, which included companies and trade groups in the aerospace, steel, automotive, telecommunications, and retail industries, among others.

PROTECTIONIST PULL
The business leaders said there is a “strong temptation” across EU countries to look inwards as measures to overcome the economic crisis caused by the pandemic are implemented.

More protectionism would be the wrong way forward, they said, and EU countries should show instead solidarity and “ensure all member states have market access” to funds needed for the economic recovery.

“It is vital to ensure transportation of essential goods and flow of services across our borders, such as medical, pharmaceutical, food and energy. The European Commission’s [the EU executive arm] initiatives on ‘Green Lanes’ and on the free movement of workers are highly welcomed to support the functioning of the Single Market,” said the signatories.

The Commission’s Green Lanes initiative, published in March, establishes border crossings within the EU that should open to all freight vehicles, whatever goods they are carrying, with the crossing not taking more than 15 minutes, including any checks and health screening.

“We urge you to do your utmost to ensure that it delivers on the ground without delay.”