Three of the EU's most influential governments are pressing for a new tool that would allow member states to halt European legislation they consider excessively costly for business. In a letter sent on Monday to European Council President António Costa, German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni and Belgian Prime Minister Bart De Wever proposed an "emergency brake" that would act as a last-resort safeguard against unnecessary bureaucratic burdens arising from new EU rules.
The initiative reflects a broader push by a group of 19 member states, informally known as the "Friends of Competitiveness," to sharpen Europe's industrial edge. The group, led by Berlin, Rome and Brussels, has been coordinating positions on how to reduce regulatory friction and accelerate investment in strategic sectors.
A brake with unclear contours
Details of how the emergency brake would work remain vague. According to diplomatic sources, its scope and procedures are still to be defined, and the matter is expected to feature at Thursday's summit of EU leaders in Brussels. The three leaders describe the mechanism as an additional layer of protection rather than a routine veto, though critics are likely to question whether it could paralyse decision-making or undermine the single market.
The letter also calls for faster planning and approval procedures for investments in decarbonisation, energy, artificial intelligence and defence. Under a proposed "priority rule," certain regulations in these areas would be temporarily suspended to speed up the development and deployment of new technologies. The idea is to prevent permitting bottlenecks from delaying projects that governments regard as strategically vital.
Cutting reporting burdens
Another central demand is a reduction in companies' reporting requirements. The three countries argue that too many firms, particularly smaller ones, are drowning in paperwork. They also want to reverse the burden of proof when assessing whether new reporting obligations are necessary, meaning that regulators would have to demonstrate why a requirement is needed rather than companies having to justify an exemption.
The push comes amid wider tensions over the EU's budget and regulatory direction. Germany has already been at the forefront of a net-payers' revolt over the EU budget, signalling that fiscal discipline and competitiveness are becoming intertwined in Berlin's European policy.
For Meloni, the initiative fits her government's long-standing complaint that EU rules stifle Italian industry. For De Wever, whose country hosts the EU institutions, the proposal offers a chance to shape the agenda from within the heart of the bloc. The three leaders are betting that a critical mass of member states will back a more flexible approach to regulation.
What to watch at the summit
Thursday's discussions will test whether the emergency brake can gain traction or whether it will be diluted into a softer commitment to better regulation. Smaller member states and those wary of a de facto veto may resist, while business groups are likely to welcome any move that promises less red tape.
The outcome will also signal how far the EU is willing to go in rebalancing its priorities between ambitious climate and digital goals and the immediate concerns of European companies facing global competition. If the "Friends of Competitiveness" succeed, the emergency brake could become a permanent feature of EU lawmaking. If not, it may end up as another declaration of intent.
