Mandatory microchipping for pets: EU could save billions

The microchip identification and registration of animals is not only essential for the welfare of cats and dogs and the protection of public health, but could also save EU member states up to 25 billion euros per year.

As the European Commission's proposal on the welfare of dogs and cats and their traceability makes its way through Parliament, the mandatory identification and registration of all companion animals remains a crucial element of the legislation. The animal welfare issue also concerns the illegal pet trade.

Illegal pet trade causes billions in damages

Under the current amendment proposals, there is a risk that certain animals may be exempted from the obligation to microchip and register pets. Gaps in the legislation would allow the illegal pet trade to continue unabated, resulting in lost revenue for tax authorities and an ongoing burden on the public sector from caring for unwanted and abandoned animals.

Of the nearly 6 million dogs demanded each year in the EU, 79% come from unverified sources. At a conservatively estimated purchase price of 800 euros per puppy, dogs from unverified sources account for up to 3.8 billion euros in lost revenue and VAT annually. With 78 million cats in the EU and some pedigree cats fetching prices of up to 50’000 euros, cats are also an important component of this proposal.

Abandoned animals cost the public sector billions

Uncontrolled trade and uncontrolled breeding of dogs and cats lead to glaring costs for the management of feral populations. Feral and abandoned pets account for 30% of all dogs and cats worldwide, with the number of abandoned and homeless dogs and cats in Europe likely underestimated and exceeding 100 million animals. In Italy alone, housing abandoned dogs in shelters costs between 180 and 200 million euros in public funds.

The absence of EU-wide regulations could cost EU member states, municipalities and citizens up to 25 billion euros per year, equivalent to 0.15% of EU GDP. However, this money could be saved if the European Parliament acts responsibly in handling the current legislative proposal.

Currently, 24 EU member states require microchipping for dogs and 7 EU member states require it for cats, with more countries expected to follow in the coming years. An EU-wide system should be introduced to ensure the traceability of animals and to make information on ownership, health and diseases easily available across borders. More on animal rights.

Microchip costs are minimal

The average annual cost of keeping a pet can amount to 1’120 euros for cats and 1’305 euros for dogs. The one-time cost of microchipping amounts to approximately 40 euros per animal, representing only 3 to 3.5% of the annual cost of keeping a dog or cat. The introduction of mandatory microchipping is therefore highly practicable and helps to shift the costs of pet ownership from the demand side to the supply side.

By developing a robust and reliable identification and registration system across the EU, the costs of acquiring animals from unknown sources and managing unwanted animals will decrease over time, leading to more responsible breeding and ownership.