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EU Competitive Compass depends on specific implementation, says ETRMA

The European Tyre and Rubber Manufacturers’ Association (ETRMA) considers the European Commission’s ‘Competitiveness Compass’ for the EU an important step toward strengthening Europe’s industrial base.

However, the Association says its success will depend on clear implementation and enforcement measures, regulatory consistency, and meaningful industry engagement.

“The European tyre and rubber industry plays a vital role in driving Europe’s mobility, but it cannot thrive without the right policy framework,” said Adam McCarthy, ETRMA secretary general.

“The Competitive Compass aligns with key priorities outlined in our Manifesto and policy recommendations, but strong implementation is needed to ensure we remain globally competitive, especially given high energy costs and supply chain challenges,” he added.

The ETRMA says it sees opportunities in initiatives like the Circular Economy Act and Advanced Materials Act to scale up circular business models, and further development of the data economy.

The Association also calls for the Public Procurement Directive revision to recognise tyres as a critical sector and a dedicated Rubber Strategy within the EU’s critical raw materials approach.

The Compass addresses several key areas highlighted in ETRMA’s Manifesto and key policy recommendations, as it lists below:

More effective regulation through simplification and coordination

The European tyre industry has long advocated reducing bureaucratic rules and regulations which deter investment. The Compass’ focus on regulatory simplification is particularly encouraging, with commitments to cut reporting obligations by 25 per cent for larger companies and by 35 per cent for SMEs.

Proposals to introduce competitiveness checks for new legislation and to better assist companies in implementing EU regulations are steps in the right direction, but correct enforcement is also paramount.

However, previous Better Regulation initiatives did not curb the regulatory for the tyre industry burden nor necessarily lead to better policy-making.

Innovation, Decarbonisation and Security: Key Pillars for Competitiveness

Several announced initiatives promise to support the tyre industry:

  • The tyre industry has heavily invested in boosting its circularity. The Circular Economy Act and potentially the Advanced Materials Act could help create a supportive legislative framework for circular business models, addressing long-standing industry – and recyclers – demands.
  • The Apply AI strategy will aid industrial innovation. Nevertheless, access to in-vehicle data must be secured through sector-specific regulations to provide legal certainty for the tyre industry and aftermarket to increase consumer-centric solutions within the digital transition.
  • High energy costs make it challenging for European manufacturers to compete with tyres produced outside of the EU. The Clean Industrial Deal and Affordable Energy Action Plan will be critical tests of the Commission’s competitiveness ambitions.
  • The revision of the Public Procurement Directive to introduce a European preference needs to recognise the tyre industry as a critical sector.
  • The tyre industry ultimately depends on third countries for the natural rubber supply. The renewed focus on critical raw materials should include a dedicated Rubber Strategy, ensuring natural rubber’s long-term recognition as essential to European industry resilience.