Commission proposes to cut red tape and simplify business environment

The European Commission has adopted new proposals that will cut red tape and simplify EU rules for citizens and business. In the recent Competitiveness Compass, the Commission set out its vision to make the EU’s economy more prosperous and competitive, building on the recommendations of the Draghi report. To regain competitiveness and unleash growth, the EU needs to foster a favourable business environment and ensure that companies can thrive.

The first two so-called Omnibus packages of simplification measures aim to achieve this. The measures will focus the sustainability reporting obligations on the largest companies which are more likely to have the biggest impacts on people and the environment, and make sure they do not burden smaller companies.

This first package covers steps to:

• Make sustainability reporting more accessible and efficient  
• Simplify due diligence to support responsible business practices  
• Strengthen the carbon border adjustment mechanism for a fairer trade  
• Unlock opportunities in European investment programmes 

The proposals will now be submitted to the European Parliament and the Council for their consideration and adoption.

In its work programme for 2025, the Commission announced a series of measures to address overlapping, unnecessary or disproportionate rules that create barriers for EU companies. Collectively, with these measures, the Commission wants to reduce administrative burdens by 25%, and by 35% for small and medium-sized businesses, by the end of its mandate in 2029.

More information European Commission.