Is big business hijacking the EU’s campaign against red tape?

Good morning. A scoop to start: The UK’s hopes for a swift deal with Brussels on security and defence co-operation has been derailed by EU capitals led by Paris that want it to be just one part of a broader “reset” package, including thornier issues such as migration, trade, and fish.

Today, our climate correspondent reports on the growing backlash against the backlash against red tape, as Brussels prepares to unveil its new plan to make industrial legislation more competitive. And Laura has a tale of the former Belgian national footballer arrested for allegedly being associated with a drugs gang.

Lost without a compass

Businesses are hijacking Brussels’ campaign to cut red tape in order to drive their own deregulation agenda, according to liberal European parliament members, who have set out a plan for the EU to stick to its climate goals, write Alice Hancock and Paola Tamma.

Context: The European Commission will present a “competitiveness compass” today, which it hopes will guide the way to save the bloc’s industries and improve economic growth, amid concerns about the impact of US President Donald Trump’s pledge to deregulate.

Part of that effort will be about slashing reporting requirements for companies and streamlining sustainability rules, according to drafts. This comes in response to heavy lobbying efforts by companies and national governments.

This week, the biggest business groups in France, Germany and Italy joined the putsch in a joint letter seen by the FT, calling for the commission to adjust EU laws “to match the standards of our competitors where appropriate”, and go beyond its promise to cut back only on reporting obligations.

But Gerben-Jan Gerbrandy, vice-president of the liberal Renew group in the European parliament, said that businesses were using the opportunity presented by Trump’s deregulatory agenda to call for cuts in Europe “because a lot of them don’t like the environmental agenda”.

Gerbrandy said that the EU’s Green Deal climate policies were presented “as a new growth model, and all the arguments for having that new growth model still stand”.

A paper penned by Gerbrandy with fellow Renew lawmakers Pascal Canfin and Christophe Grudler, backed by the party, suggests ways to attract venture capital to the EU, lower energy costs and raise demand for green products.

Some of the ideas, such as a pan-European regime to ease bureaucracy for start-ups and new businesses, have already been mentioned by commission president Ursula von der Leyen in recent speeches.

But a key political divide concerns the bloc’s carbon border tax (CBAM), which will be implemented for the first time this year. While von der Leyen’s centre-right European People’s party wants to delay it, the liberal Renew thinks it should be kept and expanded — as it will have a positive effect on green regulation worldwide.

“You see that, for instance, China is adopting a lot of climate legislation because they do not want to pay via the CBAM system, so [by delaying] you’re destroying the positive external effects,” Gerbrandy said.

Chart du jour: Old and frail

Policymakers around the world are grappling with the same problem: no matter what incentives they offer, people are not having more babies. Instead of chucking money at the problem, more accessible childcare and other services could help, experts believe.

White lines

A football player who used to be on Belgium’s national team has been charged as part of an investigation into alleged cocaine trafficking, writes Laura Dubois.

Context: On Monday Belgian authorities detained 18 people in Antwerp and Brussels as part of an investigation into alleged smuggling of cocaine from South America into the port of Antwerp — Europe’s second-largest port and a notorious gateway for smuggling drugs into the continent.

Among those detained was Radja Nainggolan, a former player for Inter Milan and Belgium’s national team. He is currently playing as a midfielder for Lokeren-Temse in Belgium’s first division.

Nainggolan was questioned yesterday and charged with participation in a criminal organisation, after which the authorities released him under conditions, the prosecutor Julien Moinil said in a statement.

Omar Souidi, Nainggolan’s lawyer, told Belgian media that Naiggolan denied any involvement in cocaine trafficking. “He is a footballer, not a criminal,” Souidi was quoted in De Standaard.

Eleven other suspects were placed under arrest and charged with crimes including import, transport and sale of narcotics, as well as leading a criminal organisation, the prosecutor said.

Moinil added that the investigation continued, with one more suspect still wanted in Dubai.

What to watch today

1. European Commission presents competitiveness compass proposal.

2. EU Council president António Costa meets Nato secretary-general Mark Rutte.

3. King Abdullah of Jordan is in Brussels to sign a partnership agreement with the EU.

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