New EU law tackling supply chain shocks enters into force

New EU law tackling supply chain shocks enters into force
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A new European Union law designed to organise how the bloc responds to crises affecting cross-border trade and movement has entered into application.

The Internal Market Emergency and Resilience Act, known as IMERA, sets out a framework for crisis preparedness, coordination with EU member states and businesses, and “targeted and proportionate” action to protect the free movement of goods, services and people across the Single Market, the European Commission stated on Friday.

Under the new rules, the EU will operate a three-tier system depending on the severity of disruption.

In “contingency mode” — the default setting — the Commission and member states will monitor the Single Market’s resilience using early warnings, simulations and preparedness exercises.

If a crisis emerges, the Council may switch the system into “vigilance mode”, allowing closer monitoring of supply chains for goods and services considered critical.

Emergency mode and the first board meeting

In cases of severe disruption, “emergency mode” can be triggered, enabling measures including coordinated procurement, requests for information from companies, and limits on national steps that could fragment the Single Market — including export bans within the EU — according to the Commission.

The first formal IMERA Board meeting is scheduled for 4 June and will bring together member states to discuss issues including supply chain implications linked to the evolving situation in the Middle East.


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