EU Commission sets an important signal for competitiveness
The EU falls behind other economic areas such as the US and China in terms of its economic competitiveness, not at least due to a significant reporting burden. The Omnibus Simplification Package presented by the European Commission, today, intends to relief this burden for EU businesses. It is part of a wider initiative to reduce reporting requirements by at least 25 %, which was announced by Commission President von der Leyen in late January.
Jörg Asmussen, Chief Executive Officer of the German Insurance Association (GDV), comments: „European businesses compete internationally. Relief from the regulatory overburden is needed to strengthen innovation and economic performance. Therefore, it is very positive that the EU Commission is proposing to consistently reduce the reporting burden. The Council and the European Parliament should follow suit to create a sustainability reporting regime that provides real added value for all stakeholders and promotes a sustainable economy.”
Insurers welcome that small and medium-sized enterprises (SMEs) should be exempted from the reporting obligations of the Corporate Sustainability Reporting Directive (CSRD) and that sector-specific sustainability reporting standards should be dropped. Asmussen explains: „SMEs are overwhelmed to their existence by the requirement to write comprehensive sustainability reports . And it is indispensable to evaluate existing requirements first, before creating new standards.”
The Commission also announced that the number of data points that must be reported will be reduced significantly. This would be a major step towards more efficient reporting. Asmussen says: „This is a very important signal. The Commission now has to deliver specific proposals to this end swiftly to provide relief for those insurers that already report in practice.
CSDDD: abandoning of review clause is welcome
The adjustments to the European Supply Chain Directive (CSDDD) are, in the GDV’s view, a step in the right direction. Particularly positive is the decision to forgo the planned revision in 2026, which was intended to examine additional due diligence obligations for financial services undertakings. This reduces bureaucratic burdens and increases legal certainty. Another sensible decision is to abandon an EU-wide liability law, as it would have existed alongside 27 very different national regulations and unnecessarily complicate the legal framework.
About the Omnibus Package
The proposed Omnibus Directive streamlining certain corporate sustainability reporting and due diligence requirements is the first part of a series of legislative initiatives aimed at strengthening the competitiveness and resilience of the European economy. The legislative package will now be discussed by the European Parliament and Council.