The European Commission has unveiled a new set of proposals designed to reduce administrative burdens and streamline business regulations across the EU. These proposals, part of the Commission’s broader Competitiveness Compass, are aimed at revitalizing the EU economy, making it more competitive, and fostering conditions for growth, as outlined in the recommendations of the Draghi report.
In an effort to restore competitiveness and spur economic growth, the EU seeks to create a more favorable business environment where companies—particularly larger ones—can thrive. To achieve this, the Commission has introduced two Omnibus packages containing key simplification measures that target regulatory burdens and focus on sustainability.
The first of these packages is designed to refocus sustainability reporting obligations, ensuring that the largest corporations—those with the greatest environmental and societal impact—are the primary recipients of such requirements. The aim is to prevent smaller businesses from being unduly burdened by these regulations.
The measures outlined in the initial package include:
- Making sustainability reporting more accessible and efficient
- Streamlining due diligence processes to encourage responsible business practices
- Strengthening the carbon border adjustment mechanism to promote fairer trade practices
- Expanding opportunities within European investment programs
These proposals are now set to be reviewed by both the European Parliament and the Council before being finalized.
Looking ahead, the Commission’s work program for 2025 also addresses the need to eliminate redundant, excessive, or disproportionate regulations that hinder the growth of EU companies. The Commission’s overarching goal is to reduce administrative burdens by 25%, and by 35% for small and medium-sized enterprises (SMEs), by the end of its term in 2029.
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