Less administrative work in the EU

The Enterprise Europe Network informs:
26.02.2025

The EU Commission has presented a comprehensive package to simplify EU regulations, which is intended to reduce the burden on companies in particular. The aim is to reduce the administrative burden and facilitate access to financial instruments.

The EU Commission has set itself the clear goal of reducing administrative burdens by at least 25 percent by the end of this term of office and by at least 35 percent for SMEs.

The proposals will reduce the burden on SMEs in particular. At the same time, the rules should focus more on large companies that have a greater impact on the climate and environment.

Administrative relief:
- The Commission estimates that the simplifications will save annual administrative costs of around 6.3 billion euros.
- In addition, 50 billion euros in public and private investment capacities are to be mobilized.
Sustainability reporting:
- Reporting obligations will be concentrated on the largest companies in order to reduce the burden on SMEs.
- Reporting obligations will be postponed by two years for some companies.
- Taxonomy reporting will be simplified and limited to material aspects.
Due diligence:
- Sustainability due diligence requirements will be simplified to avoid unnecessary complexity and costs.
- The review of business partners will be extended to a 5-year cycle.
Carbon Border Adjustment Mechanism (CBAM):
- Small importers, especially SMEs, will be exempted from CBAM obligations.
- Simplification of the regulations for the remaining companies.
Investment promotion:
- The use of EU investment programs such as InvestEU will be simplified.