European Commission adopts bill to cut red tape, simplify business rules

ISTANBUL

The European Commission has adopted an omnibus bill to ease strict environmental, sustainability, and investment rules for companies, which will be presented to the European Parliament for approval, according to a statement issued on Wednesday.

The bill includes legislative proposals to simplify EU legislation while boosting competitiveness and investment capacity.

"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 favorable business environment and ensure that companies can thrive," it said.

The omnibus is an important step in creating a more favorable business environment that will help EU companies grow, innovate, and create jobs, according to the statement.

The package proposal's simplifications will benefit businesses of all sizes across the EU.

According to estimates, if the proposals are approved and implemented as proposed, they will save approximately €6.3 billion ($6.6 billion) in annual administrative expenses while also raising an additional €50 billion in public and private investment capacity to support policy priorities.

The package will shield Small and medium-sized enterprises (SMEs) from excessive requests for sustainability information that they may receive from financial institutions like banks or from larger corporations' value chains, which are covered by the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

"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," it added.