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Small chemicals firms struggling with regulation

The EU regulation to improve the safety of chemicals is placing significant financial burden on small companies, with little perceived value, says a report to the European Parliament.

The study, conducted by the Centre for European Policy Studies in Brussels, says that the costs of the EU Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals (Reach) are likely to be 50 per cent more than originally estimated. This is disproportionately affecting small and medium sized-enterprises, over large companies, it adds.

The report, commissioned by the Parliament’s industry and research committee, warns the impact of Reach on SMEs could lead to significant changes in the market structure of the chemicals industry.

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