After MEPs overwhelmingly voted in favour, the European Parliament has adopted its position on exempting SMEs from the requirement to appoint authorized representatives in every EU end market until 2035.
Under the Packaging and Packaging Waste Regulation, packaging producers are currently required to appoint an authorized representative in every Member State where their products are sold. These representatives are tasked with ensuring the business complies with Extended Producer Responsibility requirements in every end market.
These requirements have proven to be controversial. Last month, MEP Regina Doherty wrote to EU Commissioner Jessika Roswall warning that measures intended to prioritize European businesses actually make it harder for SMEs to access the market.
The German Federal Ministry for the Environment went on to present an amendment proposal at a preparatory meeting for the Environmental Omnibus, suggesting that traders putting less than ten tons of packaging into circulation per year should be exempt from authorized representative requirements.
SMEunited, an association representing crafts and SMEs in Europe, has also argued that policymakers must suspend the requirement for SMEs to appoint representatives in every Member State, provide short-term assistance to provide relief, and take a consistent ‘advice first, sanction later’ approach.
Additionally, MEPs held a debate on the Packaging and Packaging Waste Regulation’s implications for small businesses operating across EU borders. Most criticised the current legal framework for its bureaucracy, but solutions ranged from scrapping the Regulation altogether to introducing exemptions via the upcoming Circular Economy Act.
The European Commission has already proposed that the authorized representative obligation be postponed in certain sectors – a move hoped to reduce barriers within the EU Single Market.
Now another vote has been held ahead of trialogue negotiations that will revisit multiple EU laws. The position on packaging waste and waste batteries was supported by 616 MEPs and opposed by 9; 39 MEPs abstained.
Meanwhile, the position on single-use plastic waste, electronic appliances, textiles and footwear was supported by 612 MEPs and opposed by 8. Again, 39 MEPs abstained.
As a result, MEPs are backing a more targeted suspension that would apply to EU-based small and micro-enterprises with fewer than 50 employees and an annual turnover of balance sheet of under €10 million.
The exemption would apply until 2035, or until a comprehensive Circular Economy Act is adopted. This suspension would not apply to or affect other Extended Producer Responsibility obligations – for example, waste prevention or fees.
Once the European Council has adopted its position, negotiations on the final form of the laws can begin.
In order to reduce administrative burden on companies within the EU Single Market, MEPs seek to improve information exchange between Member States. They also aim to introduce interoperable systems and common reporting requirements for businesses.
“For European companies to be able to grow and sell, unnecessary administrative burdens should be reduced without compromising our environmental ambitions,” said rapporteur Ingeborg ter Laak (EPP, NL).
“It is clear that companies should take responsibility for the waste they produce, and that products need to be collected and recycled properly.
“We should reach these goals without creating unnecessary obstacles for the businesses we want to see succeed in Europe. We can show that environmental responsibilities can go hand in hand with economic opportunities.”
The two laws voted are part of the EU’s Environmental Omnibus package. The Commission is expected to propose a comprehensive Circular Economy Act later in 2026.
In a proposed transaction, Silgan Holdings, Trivium Packaging and American Industrial Partners plan to form two differentiated packaging platforms, including
