Abstract.Business interest associations in the European chemical industry have traditionally been well organized and enjoyed a harmonious relationship with governments of various complexions. This very favourable balance for the industry has been disturbed by the salience of the environmental issue. This has led to a certain deregulation, or breakdown of existing regulatory mechanisms. Increasing concentration on the European Community level as the locus of environmental policymaking has led to a dual response on the part of business interest associations, reflecting an older contrast between national styles of government/business relations. The British chemical industry has preferred the national route, is much more hostile to environmental regulation than its German counterpart, and often finds itself isolated, depending on the Department of Trade and Industry to ensure that its viewpoint is articulated by the British Government in EC negotiations. The German industry still clings to self‐regulation, but, given the high level of environmental consciousness in the Federal Republic, has developed a reluctant preference for action at the European level. This has been manifested both in the Europeanisation of its links with the German Economics Ministry and in its support for the European Council of Chemical Manufacturers Associations; the latter is well placed to exert influence on both the EC Commission and the European Parliamen