Ceemet, the organisation representing Europe’s metal, engineering and technology industries, has published a new position paper titled ‘Industry needs subcontracting: let’s focus on implementation, not limitation’. The paper sends a straightforward message to EU policymakers: existing rules are enough, but they must be properly enforced.
A call to rethink the current debate
According to Ceemet, recent discussions in Brussels risk painting subcontracting as a general problem based on isolated cases of abuse in a few high-risk sectors. The paper warns that such a narrow view could harm the wider economy if it leads to new restrictions or blanket rules that do not match the reality of most businesses. Adopting this limited perspective “can become disastrous for our industry and economy”.
Existing rules are already extensive
The publication highlights that the EU already has a broad set of laws designed to protect workers, such as the Posting of Workers Directive and the Sanctions Directive. Ceemet argues that the issue is not a lack of legislation, but uneven implementation and a need for better inspections. The paper states that “having a set of directives is not enough” and stresses that proper enforcement should come before any new proposals.
Risks for competitiveness and SMEs
Ceemet also warns that restricting subcontracting chains would particularly harm small and medium-sized companies, which make up about 90 per cent of the businesses it represents. SMEs often provide niche expertise that larger firms rely on. Limiting their involvement could reduce competition, raise bureaucracy and slow down innovation in areas such as digital and green technologies. The paper notes that this could weaken Europe’s industrial strength at a time of global uncertainty.
Respecting national systems and business freedom
The paper underlines that Member States already have effective national systems in place to deal with risks in specific sectors. Examples include liability rules in Germany and France, and targeted enforcement methods in the Netherlands. Ceemet argues that these national approaches work well and should not be replaced by a one-size-fits-all EU system. It also points to the freedom to conduct a business and the free movement of services, which would be undermined by broad limits on subcontracting.
Rather than introducing new obligations, Ceemet encourages the EU to speed up the use of digital tools that make enforcement more efficient. Projects such as the EU Digital Identity Wallet and the ESSPASS initiative could help authorities carry out checks while making processes simpler for compliant companies.
Subcontracting is essential for the European industry, and responsible companies should not face more burdens because of problems confined to specific high-risk sectors. Consequently, Ceemet has three key messages:
- First, enforcement must come before new rules.
- Second, the number of subcontractors in a chain should not be limited.
- Third, there is no need for an additional EU-wide system of chain liability, as targeted national systems already exist and work well.