Heads of State and Government push for further deregulation.

Shifting into a higher gear!

On 23 October, the European Council decided to accelerate its efforts to simplify legislation. According to the conclusions, there is an urgent need to "advance an ambitious and horizontally-driven simplification and better regulation agenda at all levels [...] and in all areas in order to ensure Europes competitiveness. The administrative, regulatory, and reporting burdens on businesses and public administrations must be drastically reduced without delay.

Put buses into service

The proposed omnibus laws are to be adopted swiftly. However, the first part of the Omnibus Package I has already been met with resistance in the European Parliament. The report on the omnibus proposal concerning sustainability reporting and due diligence obligations, adopted in the Committee on Legal Affairs (JURI) on 13 October, was rejected by a narrow majority in the European Parliament’s plenary on 22 October — for the time being. On 13 November, a revised mandate for opening interinstitutional negotiations will be tabled.

The Council and Parliament are also working on other components of the sustainability omnibus, as well as on procedures to create a new “intermediate category” for smaller mid-sized enterprises (Small Mid Caps) and simplification packages in the areas of agriculture, defence readiness, and chemical products. Yet, as the struggle over the first part of Package I demonstrates, the omnibus proposals are being viewed quite critically by Members of the European Parliament.

Further initiatives required

According to the European Council, additional legislative measures are needed to advance the deregulation agenda. Areas under consideration include the automotive industry, military mobility, financial services, transport, environment, and food safety, as well as a review of the REACH Regulation. The Council also reaffirmed the importance of maintaining a strong pharmaceutical sector in Europe.

Stress tests for the EU acquis

The European Commission is to identify further potential for simplification and competitiveness, for example within the framework of the report on the overall situation of the banking system in the internal market, scheduled for 2026. Proposals are also needed to streamline and accelerate planning and authorisation procedures in the Member States, according to the European Council. The withdrawal of certain legislative proposals already on the table should likewise be considered. Efforts to simplify delegated and implementing acts must also be intensified.

This refers to the committee procedure (comitology), through which the European Commission coordinates legislative implementing measures — often of a technical nature — with the Member States. Critics claim there is a growing tendency to adopt an increasing number of matters via this route, thereby excluding the active participation of the European Parliament. However, EUR-Lex statistics do not clearly confirm this trend.