Commissioner Valdis Dombrovskis

Good afternoon.

Lets start with the big picture.

The world is rapidly changing.

We see shifts in the geopolitical landscape.

This week, a strategic partner voted against a UN resolution against Russia.

This is a call to action.

The freedoms and values we hold are not guaranteed in this complex world.

For the EU, this depends on maintaining and developing our economic base through adaptation, innovation, and competition. We need to build a more competitive Europe.

Today, my colleagues presented the Clean Industrial Deal and an action plan to reduce energy costs.

Reducing bureaucracy is crucial for a more competitive Europe.

We must compete in a dangerous world without limitations.

The last five years saw intense regulatory activity.

Our commitment to the green transition remains, but it has caused a significant regulatory burden.

The complexity of rules limits our economic potential.

Regulation is seen by 60% of EU companies as an investment barrier. 55% of SMEs see regulatory obstacles as their biggest challenge.

They are Europes economic engine. We speak and act today for them.

We remain committed to a greener and fairer society.

Simplification must ensure that EU rules promote, not hinder, goals.

Less bureaucracy means more innovation and investment.

It creates new jobs for European workers.

It offers citizens the opportunity to live and work anywhere in Europe.

Todays proposals support responsible investing and doing business globally.

The alternative is retreating and losing ground to competitors without shared values.

Thats why we have a committed simplification agenda.

Let me outline todays proposals.

Companies emphasize the need for certainty.

Today, we propose a “stop-the-clock” to delay the application of the Corporate Sustainability Reporting Directive (CSRD) for companies not yet reporting.

We also propose to delay the application of corporate sustainability due diligence (CSDDD).

This avoids unnecessary costs for companies later exempted from reporting.

We will propose to co-legislators to fast-track this adoption.

Regarding sustainability reporting:

First, we free 80% of companies under CSRD from heavy reporting requirements.

We limit the information larger companies can request from smaller ones.

We review European Sustainability Reporting Standards to simplify them.

We remove the mandate for sector-specific standards.

We provide clarity that there will be no future increase in audit costs.

On due diligence, we extend maximum harmonization.

Recognizing that companies sometimes need to look beyond direct partners for harmful activities.

We extend intervals for effectiveness evaluation of measures.

We move to a more proportionate penalty regime.

We move away from EU-wide civil liability conditions.

In Taxonomy, we propose that only very large companies report annually.

This exempts over 80% of companies from mandatory Taxonomy reporting.

We simplify the functioning of investment instruments like InvestEU and EFSI.

This reduces administrative burdens and increases investment capacity.

The first two omnibus packages mark a strong start to our simplification agenda.

Expected annual savings are 6.3 billion euros.

Our next proposals will target small mid-caps and farmers.

Our future depends on taking action now. Thank you.

 

Commissioner Maria Luísa Albuquerque

Good morning,

We started this simplification exercise with two objectives:

• Alleviate unnecessary burdens
• Stay in line with our Green Deal objectives.

We must achieve these goals for competitiveness. They are not incompatible.

Simplicity and coherence are essential for simplification.

Proportionality is key in simplification.

Urgency is also essential for competitiveness.

We simplify sustainable finance rules like CSRD and Taxonomy.

The “stop the clock” provides simplicity and certainty.

CSRD changes deliver substantial simplification:

• 80% of companies are exempt from CSRD; some report voluntarily.
• Voluntary reporting with a simplified standard.
• CSRD aligns more with CSDDD.
• Non-reporting companies are protected from excessive information requests.
• Removing the reasonable assurance requirement prevents future costs.
• Sector-specific standards will no longer be developed.
• Taxonomy reporting becomes voluntary for companies with turnover below 450 million euros.

The package includes reassessment of European Sustainability Reporting Standards.

We publish a four-week consultation on adjustments to the Taxonomy Disclosure delegated act.

Thank you.