The time required to obtain licenses is a barrier to investment in Europe
Most companies believe that the time required to obtain licenses is a barrier to investment in Europe and accelerating this process should be an EU priority. This was stated by the business group BusinessEurope, Reuters reports .
In a survey carried out among 240 companies, 83% considered the complexity and length of the licensing process an obstacle to investing in Europe.
According to BusinessEurope President Fredrik Persson, the majority of the organization's members believe that the European investment climate is worse than in the US and Asia. The three main problems include energy costs, excessive regulation and lengthy licensing procedures.
He noted that international competition has increased. The United States and Asia are adopting a more flexible approach to licensing, with the possibility of speeding up or setting fixed deadlines, as this encourages investment.
The lobby group believes that the next European Commission in 2024-2029 should address the issue of authorization procedures to increase Europe's competitiveness.
Data published by BusinessEurope showed that 47% of companies spent one to three years obtaining licenses and for 16% this period was even longer. Many required numerous approvals to operate, for example an LNG terminal in Germany required around 20 licenses per year.
The President of BusinessEurope explained that companies do not want European authorities to lower the bar, it is about speed.
According to the law, which will come into force this year, the EU will establish short deadlines for issuing licenses for the production of clean technologies, with a single national authority responsible for the process. Persson noted that this is a good first step, but that this time-bound approach should be applied to all parts of the value chain, such as steel produced for wind turbines.
BusinessEurope is an influential association in the EU that lobbies for business interests in the region. Includes national business federations from 36 countries. The study was carried out in 21 countries and the industries represented in it include chemicals and metals. Among the problems faced by companies are the response time of government agencies, the complexity of EU or national legislation and the lack of coordination between different authorities.
As Compraço previously reported, Assofermet believes that the CBAM regulatory framework and safeguard measures on steel imports harm the daily operations of Italian and European steel companies. Problems with the completion of CBAM reports, the expected economic impact from 2026 and European safeguard measures in place since 2018 are a concern for many members of the association.
