European Union countries will blunt plans to slash the burden of red tape on business at national level despite frequent accusations that Brussels is too bureaucratic, diplomats said on Thursday, according to Reuters. EU Industry Commissioner Guenter Verheugen wants states to cut the cost of EU rules by a quarter within five years to free up 150 billion euros for investment, equal to 1.5 percent of the bloc's annual economic activity. Industry ministers aim to reach agreement on the plan next Monday in time for EU leaders to endorse it at a summit in March as part of wider efforts to improve competitiveness. Some states remain unconvinced. "We are sceptical. It's just a figure to please public opinion to show Europe is advancing," an EU diplomat said. But diplomats expected ministers to agree to the EU-wide target as studies from states such as Britain, the Netherlands, the Czech Republic and Denmark have shown it was feasible. Verheugen has also asked each country to cut red tape costs at national level by a quarter but this is set to be rejected. "It's a question of subsidiarity," the diplomat said, referring to the principle that matters are handled at the lowest appropriate level.
