SHERIDAN, WYOMING – July 8, 2024 – Prominent German trade associations representing the home improvement, construction, and gardening industries have issued a joint statement calling for a strategic shift in European Union (EU) policymaking to prioritize business competitiveness and alleviate regulatory burdens. The Handelsverband Heimwerken, Bauen und Garten e.V. (BHB), the Herstellerverband Haus & Garten e.V. (HHG), and the Industrieverband Garten e.V. (IVG) emphasize the need for a more business-friendly legislative agenda in the forthcoming term.
Regulatory Challenges Impede Growth and Innovation
The associations assert that the proliferation of recent EU regulations, including the digital product passport and packaging regulations, has imposed substantial compliance costs and administrative complexities on businesses. These regulatory obligations divert critical resources from research and development, hindering innovation and investment in a time of economic uncertainty marked by inflation, energy price volatility, geopolitical instability, and supply chain disruptions.
Unfair Competition from China Magnifies Concerns
Further exacerbating the challenges faced by European businesses is the escalating competition from China, where lower labor costs and less stringent environmental regulations create an uneven playing field. The proliferation of e-commerce platforms like Temu, which facilitate direct imports of Chinese goods, has amplified this issue, potentially exposing consumers to unsafe products and undermining sustainable business practices.
Balancing Sustainability with Economic Prosperity
While the associations express their support for the EU's Green Deal and its ambitious climate objectives, they underscore the importance of striking a balance between environmental sustainability and economic prosperity. They argue that an overly burdensome regulatory environment, particularly for small and medium-sized enterprises (SMEs),can impede innovation and hamper the transition to a climate-neutral economy.
A Call for Policy Reforms
To safeguard the economic vitality of the sectors they represent, which collectively employ nearly half a million individuals in Germany alone, the associations propose a series of policy reforms:
- Streamlined Regulatory Framework: Simplify and harmonize regulations to reduce administrative burdens on businesses.
- Strengthened Single Market: Foster a truly unified European market with consistent standards and fair competition.
- Investment in Innovation: Incentivize research and development to promote technological advancements and competitiveness.
- Addressing Unfair Trade Practices: Implement measures to counter unfair competition from countries with lower labor and environmental standards.
Industry Leaders Speak Out
"The upcoming legislative period must prioritize the restoration of European competitiveness," stated Anna Hackstein,Managing Director of the IVG. "By reducing regulatory burdens, businesses will have the necessary resources to invest in sustainable practices and drive economic growth."
Norbert Lindemann, Managing Director of the HHG, emphasized the need to address the challenges posed by Chinese imports: "The unchecked influx of goods through platforms like Temu not only threatens consumer safety but also undermines the efforts of European businesses to adhere to stringent quality and sustainability standards."
Dr. Peter Wüst, Managing Director of the BHB, highlighted the impact of the current economic climate on the construction and home improvement sectors: "The decline in construction projects has negatively affected our industry.We need policy initiatives that stimulate economic activity and support the growth of our sector."
About the Associations
- Handelsverband Heimwerken, Bauen und Garten (BHB): Represents leading retailers and industry partners in the home improvement, construction, and gardening sectors across Germany, Austria, and Switzerland.
- Herstellerverband Haus & Garten (HHG): Represents over 150 manufacturers of construction, gardening, and DIY products in Germany, Austria, and Switzerland.
- Industrieverband Garten (IVG): Represents over 150 manufacturers of consumer and capital goods in the green industry for both hobbyists and professionals.