ETRMA welcomes European move to simplify regulations

Brussels – The European Tyre & Rubber Manufacturers’ Association (ETRMA) has welcomed a move by the European Commission to simplify regulations and cut bureaucracy in the region.

In a 29 Jan statement, ETRMA said the "Competitiveness Compass for the EU" – a new legislative policy introduced by the EC to strengthen economy and competitiveness of Europe – addresses several key policy recommendations by the tire industry.

Among other topics, the policy framework points to more effective regulation through simplification and coordination.

“The European tire industry has long advocated reducing bureaucratic rules and regulations which deter investment,” said ETRMA.

The Compass' focus on regulatory simplification, it added, is “particularly encouraging”, with commitments to cut reporting obligations by 25% for larger companies and by 35% for SMEs.

Furthermore, the tire association said proposals to introduce competitiveness checks for new legislation and to better assist companies in implementing EU regulations were “steps in the right direction.”

However, ETRMA stressed that correct enforcement was necessary for those regulations.

Previous ‘better regulation’ initiatives, ETRMA said, “did not curb the regulatory [problems] for the tire industry nor necessarily led to better policy-making.”

The Brussels-based organisation added that “innovation, decarbonisation and security” were the main elements of competitiveness.

Subsequently, it said, several announced initiatives such as circular economy act and advanced materials act could help support the tire industry.

Such initiatives, according to ETRMA, could help create “a supportive legislative framework” for circular business models, addressing the long-standing industry – and recyclers - demands.

Furthermore, the proposed “Apply AI” strategy, ETRMA added, will aid industrial innovation.

However, it reminded that access to in-vehicle data “must be secured through sector-specific regulations to provide legal certainty for the tire industry.”

On the high cost of energy in Europe and manufacturing costs for European tire makers, ETRMA said the ‘clean industrial deal’ and ‘affordable energy action plan’ were critical for enhancing competitiveness in the EU.

Moreover, the association called on the EC to recognise the tire sector as “a critical sector” in its revision of the 'public procurement directive' to introduce a European preference.

Pointing to the industry’s dependence on third countries for natural rubber supply, ETRMA said the renewed focus on critical raw materials should include “a dedicated rubber strategy”.

The strategy, it said, will ensure natural rubber's long-term recognition as “essential” to European industry resilience.

To drive competitiveness, ETRMA urged the EU to further tap the mobility industry.

“The crisis in the automotive sector is much deeper and broader than the current focus of the first ‘strategic dialogue meeting’ and the planned focus on fuels,” said ETRMA.

“A holistic view of the entire industry's long-term challenges is needed,” it added

ETRMA went on to add that the tire sector played a key role in vehicle performance and clean mobility, adding that the sector "could benefit from regulatory harmonisation."

“These role and needs must be reflected in the next steps of the dialogue and considered in the proposed ‘EU industrial action plan’ for automotive,” it added.

To conclude, ETRMA said the Competitive Compass had the potential to address many challenges faced by the European industrial base.

However, it said, the “true impact of these initiatives will depend on their specific implementation and the extent to which the EC listens to and collaborates with industry stakeholders.”

The EU Competitive Compass is a strategic framework introduced by the EC to enhance the European Union's global competitiveness.

The Compass outlines 29 measures to be implemented over the next two years, focusing on key areas such as artificial intelligence, biotechnology, and affordable clean energy.

The initiatives are designed to foster innovation, boost productivity, and decarbonise manufacturing processes.