N-VA calls for a coordinated European approach to tackle rogue entrepreneurs

Today, the European Parliament is voting on the so-called Danielsson report, which proposes measures to crack down on rogue contractors and subcontractors across the European Union. For N-VA, the report goes too far. However, the delegation fully supports the call for stronger enforcement and cross-border recognition of professional bans.

Tackling social dumping

N-VA has long been committed to fighting social dumping and unfair competition within the single market. Such practices erode trust in European cooperation among both citizens and businesses: workers are exploited, honest companies are pushed aside, and ultimately consumers foot the bill.

Kris Van Dijck stated: “Our European single market is built on mutual trust. The free movement of people and services can only function properly if we take each other seriously—not just in setting the rules, but in enforcing them as well.”

At present, Member States are not required to recognise professional bans imposed in another Member State. As a result, fraudulent entrepreneurs can simply relocate and continue their activities elsewhere.

Fraudsters slipping through the cracks

Kris Van Dijck added: “Right now, we’re mopping the floor while the tap is still running. Someone banned from practising in one Member State can simply start over in another. That’s unfair to honest entrepreneurs and puts consumers at risk. Bad actors must be effectively removed from the marketplace.”

Consultations with Belgian courts also show that domestic enforcement is undermined by the lack of mutual recognition at European level. A director who has been banned from practising in Belgium can quietly resume activities in the country as a director of a foreign company. If the country of origin fails to record the Belgian ban in its business registers or attach any consequences to it, detection becomes significantly more difficult.

“Better cross-border enforcement of professional bans is essential to ensure a level playing field within the single market. It also has a strong deterrent effect: anyone who knows that sanctions apply across Europe will think twice. That, too, is how we build a socially just Europe,” Kris Van Dijck concluded.