This new tool may force companies operating on the territory of EU Member States to prioritise the production of key/strategic products and their stocking. The aim is to improve the response to emergency situations and complement other crisis management measures such as the EU Civil Protection Mechanism.
Not complying with these regulations could mean financial penalties for companies of up to 1.5% of average daily turnover.
The draft law will now be discussed by the European Parliament and the Council of the European Union. When the regulation is adopted, it will enter into force on the twentieth day following their publication in the Official Journal of the European Union. Depending on the pace of the legislative process, the regulations could take effect soon.
The draft regulation empowers the Commission to impose directions on EU Member States to restructure their supply chains, but also to increase the supply of crisis goods by expanding or repurposing existing capacities, creating new ones and marketing crisis goods. It is about goods and services of strategic importance but the definition in the draft regulation is so general that it can actually cover all categories of goods and services.
The European Commission aims to:
- Create a crisis management structure for the Single Market;
- Propose new steps to counter threats to the Single Market;
- Permit using measures of last resort in emergency situations.
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