Since 2001, ongoing terrorist attacks have highlighted the need to integrate security in the Commission's transport policy. In response to the request of the EU Heads of State, the European Commission issued a communication and proposed a regulation on enhancing supply-chain security to the Council and Parliament in February 2006.

Jacques Barrot, Commission Vice-President responsible for transport said: "The new rules will make the European Union the first trading bloc in the world to add a full security dimension to all forms of freight transport. These rules will help to prevent terrorist attacks in the EU."

The proposal aims to increase the level of security along the supply chain without impeding the free flow of trade; to establish minimum European standards that operators may abide by in exchange for receiving a "secure operator" status from national authorities, and to avoid unnecessary administrative procedures and burdens at European and national levels.

Specific minimum requirements are set for operators involved in the four groups of activities: preparation of goods for shipment and shipment from the production site; transport of goods; warehousing, storage and inland terminal operations.

The Commission estimates that the voluntary scheme could attract more than 900,000 companies, covering 75% of all freight flows - mainly due to the participation of larger firms.

Indeed, estimates show that only 1% of micro-enterprises and 4% of small companies are likely to enter into the scheme, against respectively 13% and 57% of medium and large-sized companies.

Based on an evaluation of the benefits of the scheme and the terrorist threat, the Commission plans to decide whether a second phase would be necessary, making the introduction of common security measures in companies mandatory. This decision would be taken in 2011.

According to the European Small Business Alliance, although the scheme is voluntary, it would put smaller companies, which cannot afford to fulfill the conditions required to obtain a secure operator status at a disadvantage. By "obliging member states to create a "quality label" for security… the proposal could cost SMEs across all sectors €55 billion without any clear benefits", says Tina Sommer, President of the ESBA.

The scheme would force businesses to undergo costly audits, and additional costs could make it impossible for new businesses to start up. The plan would "create a heavy-handed and bureaucratic system that will put many people out of work without actually increasing security… it goes against the EU's own commitment to better regulation as set out in the Lisbon Agenda".

Bertil Dahlin, President of the International Road Transport Union (IRU) Goods Transport Liaison Committee, also believes the proposal will have little added value, saying: "Hauliers are faced with a plethora of rules and regulations on security and they are completely lost in the jungle of requirements. There are too many international bodies dealing with the same subject. It seems that the present proposal for a draft EU Regulation will do little more than only add to the confusion."

The Commission on the other hand believes that the proposal would encourage "secure operators" to distinguish themselves positively from non-secure competitors, by better responding to growing demands for transport security and saving "valuable time" through a fast-track treatment at ports and terminals and because they will face less red tape. It stresses that "the scheme is voluntary and was prepared through intensive stakeholder consultations".