Why Companies Are Relocating to the United States: High Administrative Burdens and Energy Costs in Europe

Companies are relocating to the United States as they face high administrative burdens and energy costs in Europe. So said Stefano Mallia, President of the Employers’ Group of the European Economic and Social Committee (EESC), in an interview with EURACTIV Czech Republic.

The relocation of companies mainly concerns sectors that depend on high energy consumption, according to Mr. Mallia. “I can say that this is a real and present danger”he said, adding that the EU must put the competitiveness agenda at the forefront of its policy-making.

“Competitiveness must be at the heart of EU thinking and we believe that in the new Commission to come, there should be a European Commissioner responsible for the competitiveness of our economy, which is not the case for the moment “Mr. Mallia told EURACTIV Czech Republic.

The EESC Employers’ Group urged the EU to introduce a “competitiveness control”. Such scrutiny would require that the consequences of proposed legislation on the business environment are analyzed during EU decision-making processes.

“Our proposal was initially rejected by the European Commission, but a few months ago, when opening the debate on competitiveness, Commission President Ursula von der Leyen said that she would put it implemented »said Mr. Mallia.

“We still don’t know how [cette mesure] will work, because the answers we receive are still quite vague”he added.

Mallia also objected to the EU’s net zero industry regulation proposed by the European Commission in response to the Cut Inflation Act (Inflation Reduction Act, IRA) of the United States. According to him, this regulation focuses only on green technologies, an approach which the Employers’ group does not support.

“What about other industries that need to transition today? We cannot afford to decide which sectors will perish. We need to provide them with funds if they are able and willing to make the transition”said Mr Mallia, stressing that the EU must have a competitiveness agenda focused on all industries, which is not the case at present.