Since August, small firms shipping packaged goods to other EU countries have had to hire a local representative in each one. Lawmakers now want to lift that duty until a permanent fix arrives. Most governments, however, fear it would open a loophole for free-riders.

Picture a small cosmetics brand that ships its creams to customers in Austria, Poland, and Italy. In each of those countries, it must pay a local agent just to register its packaging and settle recycling fees. On 20 October, MEPs voted to spare smaller EU firms that cost. The regulation on batteries and packaging passed by 616 votes to nine, with 39 abstentions. The directive covering textiles, footwear, electronics, and single-use plastics passed by 612 votes to eight, with 39 abstentions.

Both files belong to the eighth simplification package, known as Omnibus VIII. They target the duty to appoint an authorised representative under extended producer responsibility (EPR) schemes. EPR makes producers pay for the collection and recycling of their products once they become waste. The schemes differ from country to country, so a firm without a local branch needs a representative to deal with each one. The European Commission says companies may need one in up to 26 other member states.

Narrower than Brussels wanted

The Commission proposed in December 2025 to suspend the obligation for all EU-based producers until 1 January 2035. Parliament narrowed the plan to micro and small enterprises established in the EU. These are firms with fewer than 50 employees and an annual turnover or balance sheet under €10m. Large companies would still have to appoint a representative in every country where they sell without a local branch.

Producers from outside the EU would also still need a representative. Lawmakers say this keeps online sellers from third countries within reach of national authorities. All other obligations stay in place, including collection, recycling, financing, and reporting.

The suspension would end automatically once new EU-wide circular economy rules apply, or in 2035 at the latest. The Commission plans to present a Circular Economy Act this autumn. It should bring the patchwork of national EPR schemes closer together.

Ingeborg Ter Laak (EPP/NLD) steered both files through the Committee on the Environment, Climate and Food Safety. The committee backed her approach on 5 October by 74 votes to none, with four abstentions, on batteries and packaging. The second file passed by 72 to none, with five abstentions. Ms Ter Laak insists that firms will still pay for collection and recycling. “We can show that environmental responsibilities can go hand in hand with economic opportunities,” she said in a statement after the vote.

Governments dig in

The bigger hurdle lies in the Council. Negotiations on the final text can only start once member states adopt their own position. In June, they agreed their stance on four of the six omnibus files but dropped the two on authorised representatives. A large majority opposed them. France, Luxembourg, Spain, Austria, and Estonia warned of enforcement gaps and an edge for producers from outside the EU.

We can show that environmental responsibilities can go hand in hand with economic opportunities. — Ingeborg Ter Laak, EPP rapporteur

The door has not closed completely. The Irish presidency has since tabled a compromise on the batteries and packaging regulation, limited to small producers. Diplomats had it on their agenda on 13 October. Work on the directive covering textiles, electronics, and plastics remains on hold.

Industry welcomes the move but wants more. Retail lobby EuroCommerce called the committee vote a first step and urged a wider overhaul of EPR rules under the packaging regulation, which has applied since 12 August 2026. Producer responsibility organisations, grouped in EXPRA, backed the narrower scope. They warn that a blanket suspension would let some producers dodge their fees.