Germany, Italy and Belgium demand EU veto power over new regulations

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EU capitals must be able to intervene to stop new legislation from Brussels if they say it’s too burdensome for governments and businesses, the leaders of Germany, Italy and Belgium wrote on Monday.

In a letter addressed to European Council President António Costa and seen by POLITICO, the three leaders said the bloc needs an “emergency brake” mechanism to help boost its flagging economic competitiveness.

German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni and Belgian Prime Minister Bart de Wever also called to “significantly accelerate planning and approval procedures,” suspend “certain regulatory areas for a specified period” under a new “priority rule.”

“We call for further ambitious simplification packages to decisively advance the cutting of red tape in the European Union,” they wrote, adding that the Commission must ease the burden “first and foremost” on small and medium-sized businesses.

“More broadly,” the letter reads, “our common objective should be to prevent unnecessary regulatory burdens and related costs from causing permanent losses of European industrial capacity and further weakening investment and competitiveness.”

Coming days before an EU leaders’ meeting, the call echoes demands first stated in March after a summit focused on European competitiveness, and it comes amid worsening signs for the bloc’s industrial sector.

Leaders will debate the EU’s long-term budget, energy prices, and support for Ukraine when they gather in Brussels on Thursday for a two-day European Council summit.