Czech Senate Questions Subsidiarity of New Single Market and Customs Programme Proposal

The Czech Senate has formally questioned whether the European Commission's proposal for a new Single Market and Customs Programme (SMCP) for 2028-2034 complies with the principles of subsidiarity and proportionality, according to a cover note published by the EU Council on 1 June 2026. The proposed regulation would repeal five existing regulations from 2021 and establish a new financing framework for the internal market and customs union, directly impacting EU producers, customs authorities, and taxpayers.

Document Details

The cover note, issued by the General Secretariat of the Council, transmits the reasoned opinion from the Czech Senate. The opinion was adopted during the Czech parliamentary scrutiny process and targets the Commission's proposal for a regulation establishing the SMCP. The document type is a formal subsidiarity check, which is a mandatory procedure under Protocol No. 2 of the Treaties, allowing national parliaments to object if they believe an EU initiative oversteps its competences.

Subsidiarity and Proportionality Concerns

The Czech Senate argues that the proposed programme's scope and budget may not be justified under subsidiarity, as many aspects of customs and single market governance could be handled at national level. The opinion specifically questions whether the EU-level intervention is necessary and proportionate, given that the existing 2021 regulations are still being implemented. This reflects a broader tension between EU integration and national sovereignty, with the Czech Senate advocating for a more limited EU role.

Impact on Stakeholders - EU regulatory bodies: The Commission and Council may face delays or amendments if other national parliaments join the Czech objection, potentially triggering a 'yellow card' procedure. - National authorities of EU countries: Customs and market surveillance authorities could see reduced EU funding or altered mandates if the programme is scaled back. - EU producers: Businesses relying on harmonised customs procedures and single market rules may face uncertainty if the programme's renewal is delayed or its scope narrowed. - EU taxpayers: A smaller programme could reduce EU spending, but may also lead to fragmented national approaches, increasing compliance costs for cross-border trade.

Expected Institutional Follow-up

The Commission must now review the Czech Senate's reasoned opinion. If at least one-third of national parliaments submit similar objections, the Commission must formally review the proposal and decide whether to maintain, amend, or withdraw it. The European Parliament and Council will then consider the proposal in the ordinary legislative procedure, with the Czech opinion likely to influence negotiations on the programme's budget and scope.