Brussels (Brussels Morning Newspaper) – The European Commission plans to cut more of the reporting regulations denounced by some firms and politicians as it ramps up measures to make European industries globally competitive, a draft document revealed, Reuters reported.
The EU Commission will issue an overarching strategy to increase the European Union‘s competitiveness, offering a counter-offer for businesses and investors lured by U.S. President Donald Trump‘s promises to roll back corporate rules in the U.S.
As reported by Reuters, based on an updated draft of the EU competitiveness plan, the coalition would undertake “a series of Simplification Omnibus packages” to cut back and streamline EU regulations. The document could still be adjusted before it is published later in the day.
The foremost of these packages will point out, “among others,” three EU sustainability regulations to facilitate the data these policies demand from businesses, the draft stated.
It will notably address the trickle-down effect to prevent smaller companies along the supply chains from being subjected in practice to excessive reporting requests that were never intended by the legislators,
it stated.
The three approaches being tackled first are the European Union’s sustainable finance reporting law, its due diligence regulations, and its “taxonomy” specifying which investments can be marked as climate-friendly. EU officials say the EU’s carbon border tariff is among the procedures Brussels is contemplating adding to next month’s simplification package.
Why is the European Commission reducing business regulations?
The European Union has been put on the hot seat by its member countries, forcing it to streamline the operations of business-related regulations. Pressure for the EU to streamline such regulations is going hand in hand with statements from former US President Donald Trump during the annual meet in Davos, who told the EU to ‘cut bureaucratic red tape.
The EU is thus working on a “simplification revolution” to ease administrative and regulatory burdens on businesses, especially small and medium-sized enterprises. According to the European Commission, more than 60% of EU companies consider regulation as an obstacle to investment. Many small and medium-sized enterprises point to regulatory compliance as their main challenge.
