Photo by Brett Jordan on Unsplash
Some MEPs say the EU’s new Omnibus business simplification initiative is a crucial step and will push for its success with full force. This follows the European Commission tabling its first so-called Omnibus law package.
The scheme aims to simplify obligations such as due diligence and sustainability reporting at EU level.
This, it is hoped, will contribute to reducing administrative burdens in Europe by at least 25%, with a 35% reduction target for SMEs which are the backbone of the EU economy.
Reaction to the move from MEPs has been swift, with the EPP group saying Europe urgently needs to foster growth and create more jobs for long-term prosperity for future generations.
“Cutting unnecessary red tape and simplifying rules is essential for growth, jobs, and future prosperity,” said EPP deputy Tomas Tobé who is EPP Group Spokesman for the Omnibus simplification package.
“Now, we take a crucial step to revive our economy and unleash its potential,” Tobé noted. Small and medium sized enterprises (SMEs), the backbone of Europe’s economy, need more time to innovate and grow, rather than being tied up with bureaucracy.”
The EPP Group says the aim must be to cut regulatory complexity without compromising on oversight and accountability. Some reporting obligations remain essential for EU goals like environmental safety and climate action, but unnecessary red tape must go, it says.
“We must listen to businesses, which provide vital employment. To build a competitive Europe, we must free companies from unnecessary paperwork so they can focus on innovation and growth,” adds Dolors Montserrat, EPP Group Vice-President for Economy and Environment.
“Measuring and recording CO2 emissions per product, for example, under the Carbon Border Adjustment Mechanism (CBAM), is too burdensome for most SMEs. We support CBAM, but want it to be simpler and fairer, with sensible exemptions,” explained Montserrat.
Elsewhere, Greens/EFA MEP Anna Cavazzini, Chair of the Internal Market Committee (IMCO), also commented on the proposal.
She said, “It is an illusion to think that dismantling sustainability laws will solve the structural problems of the economy.”
“The problems that European industry is experiencing are due to the current China shock, to a lack of innovation, to high energy prices brought by the war of aggression against Ukraine, and to insufficient investment.”
She went on, “They are certainly not due to the EU due diligence law, which is not even in force yet. We must of course make European laws as unbureaucratic as possible. However, the leaked reform of the EU due diligence law goes far beyond that and simply guts it. How can consumers then still be sure that their clothing or coffee is free from exploitation?”
“The Commission President’s party-political zigzagging undermines predictability and confidence in the consistency of the European legislative processes. Many companies are dismayed by this attack on their planning ability.”
