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After the year-round “strategic dialogues” with the member states and stakeholders, the Commission announced main focal points in the process of “simpler legislation” and regulations in socio-economic development. Below is the account of major legislative simplifications in political economies (as well as in corporate entities) reflected in the EU-wide drafted simplification strategy towards competitiveness, suitability and climate mitigation.
Background
Simple and clear rules are vital to the European economy and corporate sectors: they are key for having favorable business environment allowing companies to grow and create new quality jobs, while attracting investment. Less administrative burden helps save time and money and improves the quality of life; thus, the EU-wide “simplification objectives” include, e.g. cutting reporting obligations by at least 25% for all businesses (with an expected saving of €37.5 billion) and by at least 35% for small and medium-sized enterprises (SMEs) by 2030.
The Commission has already delivered some vital measures: e.g. there are already adopted 10 Omnibus packages and other simplification measures across multiple socio-economic sectors. According to Commission estimates, these simplification package will save businesses, industries, farmers and national authorities approximately €14.3 billion in annual administrative costs. At the same time, these measures will stimulate companies to scale up, grow, innovate, invest and become more competitive.
The Commission will support the strategy’s active participants in Europe; at the same time, it sends the world a message that the EU “means business” when maintaining high standards in terms of consumers’ protection.
General references to: https://ec.europa.eu/commission/presscorner/api/files/attachment/882130/Factsheet%20-%20Progress%20on%20simplification.pdf
EU simplification package for 11 sectors
= Simplifying in the field of sustainability is aimed to reduce the complexity of EU requirements for businesses while still enabling them to access sustainable financing for their clean transition. It will allow for €4.5 billion of savings. In addition, the simplification of the Carbon Border Adjustment Mechanism removes obligations for approximately 90% of importers, most of which are SMEs, unlocking additional €1.2 billion in administrative cost savings. So total savings in annual administrative costs would be around €6.3 billion and additional public and private investment capacity of €50 billion to support policy priorities. Specifically, the main changes will take place in the area of sustainability reporting (CSRD and EU Taxonomy). Parliament and the Council reached a political agreement in early December 2025, with the Parliament’s final endorsement in Plenary on 16 December 2025.
More in: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_614
= Reducing administrative burdens in investment and increasing the efficiency of the EU guarantee – expected to mobilise around €50 billion in additional public and private investment. It will trigger €350 million savings, of which €324 million one-off administrative cost savings. The package was approved on 16 December 2025, as the Commission emphasises the importance of investing in key technologies and sectors in order to drive European growth and competitiveness. Thus, in June 2024, InvestEU plan estimated to have mobilised investments of € 280 billion, of which € 201 billion (close to 70 %) stemming from the private sector; InvestEU plays a key role in addressing financial barriers and driving the investments needed for competitiveness, research and innovation, decarbonisation, environmental and social sustainability. Close to 45 % of the volume of operations signed under InvestEU are supporting the climate objective.
On simplifying reporting requirements, in the proposal for a regulation (2025): https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52025PC0084&qid=1764338183263
= Simplifying the Common Agricultural Policy (CAP) in order to support farmers and agro-competitiveness. This direction sets measures simplifying controls, conditionality and reporting by reducing the administrative load on farmers and administrations and streamlining crisis and
flexibility mechanisms. Estimates point to €1.8 billion in savings for farmers with an additional €210 million for administrations. It also makes access to funding faster and easier, especially for smaller farmers. A political agreement was reached in November 2025, with the Parliament’s endorsement in Plenary on 16 December 2025.
The Commission is proposing targeted solutions through a set of the following concrete legislative changes based on operational experience and extensive feedback from the member states: – simplified payment scheme for small farmers; – simplified environmental requirements and control (it aims to better accommodate diverse farming practices and local conditions, while reducing overlap with existing national rules); – strengthened crisis management and simpler procedures for national administrations (the farmers in the EU that are affected by natural disasters and/or animal diseases will be better supported due to new crisis payments available under CAP Strategic Plans and more flexible and accessible risk management tools); – enhanced competitiveness and digitalisation direction (small farmers will find it easier to get financial support through a new simple funding option offering up to €50,000 as a lump-sum to help improve the competitiveness of their farms).
Reference to the Commission press release at: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1205
= Simplifying the Single Market, thereby boosting incentives for SMEs to scale up; it also further improves, simplifies and digitalises executive processes, enabling 38,000 companies (so-called small mid-cups SMCs), across the EU to grow without facing sudden increases in compliance obligations. The SMCs are companies with fewer than 750 employees, and either up to €150 million in turnover or up to €129 million in total assets; they will access for the first time certain existing SMEs benefits, such as specific derogations under the General Data Protection Regulation and/or simplified rules, such as prospectus rules making listing of SMCs on the stock market simpler and less costly.
The legislation in this direction is expected to bring around €380 million in administrative cost savings; the Council agreed its positions in September 2025.
More in: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1277
Additionally on simplification’s omnibuses in: https://single-market-economy.ec.europa.eu/single-market/simplification_en
= Simplifying procedures in the defence industry are including a fast-track regime that could cut waiting times for permits from several years to just 60 days, to enable the EU member states to respond to threats. It aims to enable faster, easier defence investments and procurement, improve market conditions for the defence industry across the EU states, and adapt the regulatory framework (originally designed for peacetime) to current geopolitical realities. It is estimated to bring direct annual cost savings of €1.2 billion, of which €710 million administrative cost savings.
Reference to: https://defence-industry-space.ec.europa.eu/eu-defence-industry/defence-readiness-omnibus_en
= Simplifying requirements and procedures for chemical products to streamline labelling rules for hazardous chemicals, clarify cosmetics regulations and ease registration for fertilising products. In July 2025, the European Commission presented an Action Plan for the Chemicals Industry to strengthen the competitiveness and modernisation of the EU chemical sector. The Action Plan addresses key challenges, namely high energy costs, unfair global competition, and weak demand, while promoting investment in innovation and sustainability. The Action Plan is accompanied by a simplification omnibus on chemicals – the sixth that the Commission has presented in this mandate so far – to further streamline and simplify key EU chemicals legislation, alongside a proposal to strengthen the governance and financial sustainability of the European Chemicals Agency.
Besides, the Commission adopted the sixth simplification omnibus to reduce compliance costs and administrative burden for the chemical industry while ensuring strong protection of human health and the environment. This includes simplifying hazardous chemical labelling rules, clarifying EU cosmetics regulations, and easing registration for EU fertilising products by aligning information requirements with standard REACH rules for chemicals. These measures are expected to save at least €363 million annually for the industry.
The general aim of simplification in this sector is to reduce administrative burden while maintaining safety and environmental protection; it will result in estimated at least €290 million in annual cost savings; the Council agreed simplification positions at the end of 2025.
More in: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1755
= Simplifying the rules on artificial intelligence, cybersecurity and data, with innovation-friendly artificial intelligence and privacy rules, streamlined cybersecurity reporting and simpler data requirements, reducing administrative costs, streamlined cybersecurity reporting and simpler data requirements, reducing administrative costs for €1.2 billion per year.
Regulation 2024/1689 adopted in June 2024, laid down harmonised rules on artificial intelligence (so-called AI Act), which entered into force on 1 August 2024, and established a single market for trustworthy and human-centric AI in the EU member states. Its purpose was to promote innovation and the uptake of AI while ensuring a high level of protection for health, safety, fundamental rights and the rule of law.
The present legislation process – in co-legislation with the European Parliament and the Council – aims to make digital legislation more agile and easier to implement, without compromising on data protection.
More in the proposal for a regulation (made in 2025) on harmonised rules on artificial intelligence (Digital Omnibus on AI), in:
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52025PC0836&qid=1764338834897
= Simplifying the rules on medical devices to make it easier for companies – most of which are SMEs – to bring their products to market and benefiting patients. The proposed measures
are expected to bring overall cost savings of €3.3 billion per year, including €2.4 billion in administrative savings.
The legislative proposals for the Biotech Act and simplification of the Medical Devices and In vitro Diagnostics Regulations are now submitted to the European Parliament and the Council for adoption.
Reference to these acts’ implantation in: https://www.integrin.dk/2025/12/19/european-health-policy-combating-cardiovascular-diseases/
More on “New measures to make EU health sector more innovative, competitive and resilient”. (December 2025), in: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_3077
= Simplifying environmental legislation to streamline reporting and procedures on industrial emissions, circular economy, environmental assessments and geospatial data, which is estimated to bring approximately €1 billion in cost savings, of which €890 million administrative cost savings per year. The changes will contribute to reducing the administrative burden for businesses, while keeping the EU’s ambitious objectives to protect the environment and human health. It will accelerate and streamline permitting processes for all projects, in particular in strategic sectors, such as strategic digital projects, critical raw materials projects and affordable housing, facilitating the transition to a clean and digital economy in the EU. Simplifying regulations and reducing administrative burdens is indeed essential to meet these environmental objectives and strengthen the EU’s competitiveness.
More on “Promoting sustainable growth with simpler and smarter environmental legislation” and other key elements of the proposals in: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_2997/ . (December 2025)
= Simplifying technical requirements and testing procedures in the automotive industry, aiming to improve legal clarity for manufacturers. It is expected to save approximately €50.8 million per year in administrative cost savings for industry. The legislative package maintains a strong market signal for zero-emission vehicles (ZEV) while giving the industry more flexibility to achieve CO2 targets, and supports vehicles and batteries made in the EU.
The corporate vehicles initiative will support the uptake of zero- and low-emission vehicles. The automotive omnibus enhances competitiveness by saving costs; it expected to provide about €706 million savings per year, cutting red tape, while providing greater investment certainty. With €1.8 billion funding, the Battery Booster will accelerate the development of a fully EU-made battery value chain: as part of the “booster”, €1.5 billion will support European battery cell producers through interest-free loans.
More in the “Commission takes action for clean and competitive automotive sector” (December 2025), in: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_3051
= Simplifying the rules for food and feed under the “Vision for Agriculture and Food” (VAF) strategy to reduce administrative burdens and costs for EU producers while maintaining very high safety and sustainability standards. The Food and Feed Safety package is also a key deliverable in the VAF presented by the Commission in February 2025, and directly responds to its promise of helping farmers and food and feed businesses be more competitive and resilient.
The new cross-cutting food and feed safety package will simplify rules and procedures across the EU’s applicable legislation, from plant protection products and biocidal products, to feed, official controls and animal health and welfare.
The simplifications proposed could save over €1 billion in administrative and compliance costs, including over €428 million annually for EU businesses (€227 million for SMEs), as well as €661 million annually for national and EU administrations. This includes annual administrative savings amounting to €939 million for both businesses and national administrations and €150 million in compliance costs for business.
More on Commission press release “Simpler food and feed safety rules while upholding high health standards and boosting competitiveness of EU producers”, in:
https://ec.europa.eu/commission/presscorner/detail/en/ip_25_3081 /December 2025.
Note. Along with the automotive omnibus and simplifying aspects of the medical devices’ proposal, the EU is closer to the goal of €37.5 billion in administrative savings, with about €14.3 billion already accumulated, as well as €12 billion through omnibus proposals and €2.4 billion through the medical device simplification package.