New Report on How the EU strangles innovation: Thirty years of precaution

MCC Brussels Calls for the Rejection of the Precautionary Principle to Spur Innovation in Europe

MCC Brussels has released a new report titled "How the EU Strangles Innovation," urging European policymakers to abandon the precautionary principle, a key regulatory concept that has defined European Union governance for over 30 years. The report argues that the principle, originally intended to safeguard against unforeseen risks, has become a barrier to innovation, economic growth, and social progress across Europe.

 READ THE FULL REPORT HERE

The precautionary principle, which was incorporated into the 1992 Treaty on European Union, asserts that precautionary measures should be taken even when potential risks are uncertain or minimal. This principle, once seen as a safeguard against environmental and health risks, has gradually expanded its reach, influencing a wide array of EU policies, including those related to agriculture, transport, public security, and financial services.

While the application of caution in policymaking is reasonable, MCC Brussels contends that the precautionary principle has been applied too broadly, stifling innovation and economic growth. "The idea that no effort is too great to ward off even the smallest risk has led to overregulation, limiting Europe's ability to take the calculated risks necessary for growth and development," said report author Professor Bill Durodie, a visiting fellow at  MCC Brussels.

The report highlights how the precautionary principle has entrenched itself within the EU’s technocratic institutions, empowering unelected experts and bureaucrats to manage risks without proper political oversight. "Europe’s governance model, rooted in managerialism and expert-led decision-making, has allowed the precautionary principle to dominate the policymaking landscape. It provides legitimacy to an expert class tasked with managing risks, often at the expense of innovation and progress," the report states.

MCC Brussels underscores the negative impact of the precautionary principle on key sectors such as agriculture, where it has placed additional strains on a sector already under pressure. More broadly, the principle's influence has spread across various policy areas, creating an overly cautious regulatory environment that hinders Europe's competitiveness on the global stage.

The report calls for a fundamental shift in EU policymaking, urging the complete abandonment of the precautionary principle. "This is not a matter of improving the balance between precaution and action," said Professor Durodie . "The precautionary principle as an outlook must be jettisoned entirely to allow Europe to regain its spirit of innovation, dynamism, and positive risk-taking."

MCC Brussels believes that rejecting the precautionary principle is essential for Europe’s economic, cultural, and political renewal. "Innovation and risk-taking are the drivers of progress. By freeing Europe from the constraints of excessive caution, we can unlock new opportunities for growth and ensure a better future for all Europeans."