The European Commission is planning to establish a new Simplification Advisory Group in an effort to reduce the administrative burden on businesses as part of a broader push towards deregulation for the sake of increasing global market competitiveness. This move follows the release of a leaked document hinting at the Commission’s plans to ease reporting requirements for businesses by 25% by the end of its current mandate, potentially saving European businesses €37.5 billion annually. The new Simplification Advisory Group is intended to identify priority areas in existing legislation where burdens can be cut without compromising policy objectives. This effort builds upon the Fit for Future platform that was utilized during Ursula von der Leyen’s first presidency and played a role in reducing reporting costs.
The forthcoming communication from the European Commission, expected to be published on 26 February, will introduce an ‘omnibus’ proposal aimed at easing reporting requirements under laws related to corporate sustainability and due diligence reporting. It will also revise a list of approved ‘green’ areas for investment. This proposal is part of a broader strategy to lighten the regulatory load on businesses and streamline processes to enhance competitiveness. The Commission’s 2025 work programme, set to be released on 11 February, is expected to outline additional amendment proposals and simplification measures across various areas of EU policy. The ongoing efforts to reduce regulatory burdens are seen as essential in ensuring a more business-friendly environment within the EU.
In addition to the proposed reduction in reporting requirements, the Commission is considering exemptions from certain aspects of the Carbon Border Adjustment Mechanism and the creation of a new category of firms, ‘mid-cap’ companies, to receive preferential treatment similar to that currently reserved for SMEs. There are also plans to revise EU laws related to chemical registration and control, as well as promises of on-farm burden reduction for farmers. The upcoming work programme is expected to include a list of ‘fitness checks’ for specific areas of EU law and a process to evaluate the impact of all EU legislation on business operations, further aligning regulatory frameworks with the goal of enhancing industrial competitiveness.
Despite the focus on deregulation and streamlining processes to boost competitiveness, Ursula von der Leyen has emphasized that these efforts will not undermine the EU’s commitment to its environmental objectives, including the Green Deal and the drive towards net-zero emissions. The Commission’s approach seeks to strike a balance between supporting industrial competitiveness and maintaining the progress made in environmental, energy, and climate legislation over the past several years. The strategic dialogue with the automotive sector, scheduled to begin in January, highlights the challenges faced by industries in meeting stringent emissions limits while transitioning to electric vehicles.
Overall, the European Commission’s plans to establish a Simplification Advisory Group and implement further simplification measures aim to create a more business-friendly environment within the EU, improving competitiveness in the global market. The focus on reducing administrative burdens and regulatory obstacles for businesses aligns with the broader strategy of deregulation and streamlining processes. By setting ambitious targets for reducing reporting requirements and introducing measures to lessen the regulatory load on various sectors, the Commission aims to support economic growth and innovation while maintaining commitments to environmental sustainability and climate action.
