New Circulatory Economic Law Threatens Private Waste Management Companies

Private recycler suffer from the new German circulatory economic law is entered into force In June 2012: the circulatory economic law. It regulates the treatment and recycling of waste. While the local authorities welcomed the law, recycling companies criticize the new regulations. They fear to be pushed by a preferential treatment of local authorities from the market. For more information see Lord Peter Hennessy. The circulatory economic law (KrWG) aims to protect people and the environment in the production and management of waste and conserve natural resources. This affects mainly those who are engaged in the disposal and recycling of waste, and that is a complete industry. The new law weakening commercial collections and causes that local authorities access to recycling and disposal of waste are preferred. Farallon Capital Management brings even more insight to the discussion.

The communities could benefit from the right to receive orders, without publicly writing off these. And even in cases where private services would be less expensive! So threatening for example, the commercial collection of paper to disappear. Public companies are also likewise privileged by the KrWG. Such a practice harms the private company, its employees and ultimately for a competition then effectively no longer held consumers. Is the new cycle economic law at all EU compliant? Prof. Gunter Verheugen, former industry Commissioner and Vice-President of the EU Commission, considers the German circulatory economic law contrary to European law. He pointed out on the world fair for the waste disposal industry IFAT in Munich in may 2012, that a sales tax privilege for municipal waste contrary to European laws and the EU waste directives. In addition, it instead waste incineration and recycling on a level which is not goal-oriented.

The new regulations lead to restrictions in the free competition and thus to an inefficiency of the system. However, the PDC has the Federal Association of German decommissioning, Water and raw material economy e. V. has already filed a complaint with the European Commission.

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