Processors urge EU countries to reject budget targeting unrecycled packaging

European Plastics Convertors (EuPC) has urged European member states to reject a budget proposal by the European Commission which introduces national contributions based on unrecycled plastics packaging for the multiannual financial framework 2021–27. 
 
Among others, the organization claims the legislation will discriminate against plastics, disrupt free market choices and favor other materials for packaging applications with potential negative environmental consequences.
 
Without consultation with main industry stakeholders, said EuPC in an Oct. 7 statement, the proposal could lead to “rather opposite economic and environmental results, negatively affecting the whole plastics industry in the European Union.”
 
According to the proposal, the contribution can be paid by EU member states into the common budget, but each state will be free to decide how and where to collect the due amount.
 
The process, claimed EuPC, "will create significant fragmentation in Europe, almost certainly disrupting the single market with some countries potentially taxing production or consumption of plastics packaging, without working on the key issues."
 
In addition, EuPC pointed out that such a contribution would not be exclusively linked to any expenditures or investment in existing national plastics waste management systems.
 
“The EU Commission is making a huge mistake. In five years from now, we would be able to assess the damages of such short-sighted populistic measures,” Alexandre Dangis, EuPC managing director said.
 
According to Dangis, individual businesses will be heavily affected by the new taxation, “and it would mean the end of the EU single market.”
 
“The financial hole of 7 billion euros ($7.7 billion) left by the Brexit cannot be paid by the plastics packaging industry alone to secure the funding of the overall EU budget,” Dangis said, calling for a restructuring of the EU expenses or an increase in the contributions to the EU budget via the GDP performances of the countries as alternatives.
 
Dangis expressed his dismay at EU policymakers failing to efficiently use “the tools available” to address the problem.
 
“In the following years, the EU institutions are forcing our companies in Europe to pay ... fees and taxes and to invest in circularity, without concerns about the imports. … These additional taxes will accelerate the way to a recession in Europe. A good start in 2020 for the new Commission,” he concluded.