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The EU-wide “Omnibus packages” combine multiple changes, primarily focused on simplifying complex corporate sustainability reporting and finance rules, reducing administrative burdens and -in the last extent- boosting competitiveness. All the omnibuses are aimed, generally, at cutting red tape for executive entities and businesses, especially SMEs; hence, making regulations more practical and less costly, reflecting the so-called EU’s “simplification revolution” in the European integration process.
Background
The starting point in reducing regulatory burden started in November 2024, when the “New European Competitiveness Deal” in the form of the Budapest Declaration at the European Council. The main message we to “make the Union more competitive, productive, innovative and sustainable, building on economic, social and territorial cohesion, and ensuring convergence and a level playing field both within the Union and globally”. It was “imperatively noted” that the member states’ political economies have to “urgently close” the European innovation and productivity gap, both with the global competitors and within the EU-27.
As the Declaration specifically mentioned (para 4), “launching a simplification revolution” has been to ensure “a clear, simple and smart regulatory framework for businesses and drastically reducing administrative, regulatory and reporting burdens”.
According to the declaration’s opinion, both the EU and the member states “must adopt an enabling mindset based on trust, allowing business to flourish without excessive regulation” (italics mine, EE). The Commission has a primary objective “without delay”, include making concrete proposals on reducing reporting requirements by at least 25 % in the first half of 2025, and including red-tape and competitiveness impact assessments in Commission’s drafts.
Source: https://www.consilium.europa.eu/en/press/press-releases/2024/11/08/the-budapest-declaration/
Then, starts the “EU-Omnibus-Year-2025”: at the end of February 2025, the European Commission published the first Omnibus Simplification Package, which aimed to reduce and simplify the administrative burdens associated with ESG reporting. This “sectoral omnibus” refers to a term used to describe the process of combining several changes to multiple/ accommodate existing sustainability’s laws into a single package. If fact the “omnibuses’ process -at least theoretically- is not an unknown phenomenon in the EU civil law system; lawyers just did not call them omnibuses.
However, literally, the notion “omnibus” means “including everything”, i.e. so an omnibus package bundles several related and/or diverse legislative proposals (amendments and new rules) into a single, unified proposal for easier passage and implementation. So, the main omnibus’ purpose is to streamline governance, reduce complexity, and implement broad policy shifts efficiently.
Fist “Omnibus” packages, were aimed to consolidate legislative changes in several key areas, including sustainable finance reporting, due diligence, the EU Taxonomy, the carbon border adjustment mechanism (CBAM) and European investment programs. This unified approach aimed at significantly reducing the complexity of regulatory requirements, aiming to benefit companies of all sizes, particularly small and medium-sized enterprises (SMEs) and small mid-caps (SMCs). The initially proposals were aimed at streamlining several EU sustainability regulations, including the CSRD, EU Taxonomy, and CSDDD into a more cohesive and simplified framework.
More in: https://normative.io/insight/the-omnibus-simplification-package-explained/
In April 2025, the Council adopted the “stop-the-clock” mechanism and postponed by two years the entry into application of the CSRD requirements for large companies that have not yet started reporting, as well as listed SMEs; and by one year the transposition deadline and the first phase of the application (covering the largest companies) of the CSDDD.
Initial Omnibuses
The first two EU’s “Omnibus Simplification Packages” -Omnibus I and II- have been created as a response to the perceived excessive burden of new EU sustainability regulations (ESG) on businesses, hindering competitiveness; with the following key goals: to reduce reporting burdens, foster growth, simplify rules and unlock investment. These two omnibuses have had the following three key changes and components:
= Corporate Sustainability Reporting Directive (CSRD): Delays reporting deadlines for some companies and simplifies reporting standards, reducing the number of companies covered initially.
= Corporate Sustainability Due Diligence Directive (CSDDD): Postpones application dates and limits due diligence to direct suppliers unless risks are suspected, easing supply chain pressures.
EU Taxonomy: Simplifies disclosure requirements and aligns them better with CSRD/CSDDD.
Carbon Border Adjustment Mechanism (CBAM): Eases requirements for smaller importers (SMEs).
= New Standards: Introduces voluntary standards for smaller companies in value chains, acting as a shield against excessive requests.
Reference to : https://www.harneys.com/our-blogs/regulatory/omnibus-packages-i-and-ii-european-commission-simplifies-sustainability-rules-and-investments/
Omnibus-I package: starting point
The European Commission welcomed in December 2025 the political agreement reached between the European Parliament and EU member states on the Omnibus-I simplification package, as a significant step forward in relieving companies from administrative burden.
Amendments to the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) have been at the heart of this first Omnibus package. The changes aimed to simplify and harmonise sustainability reporting and due diligence practices among the EU member states, ensuring businesses benefit from fewer hurdles and greater consistency in compliance – without compromising the integrity and objectives of the existing directives.
Overall, the Omnibus-I simplification package reduces complexity and enhances efficiency; thus, changes include removing reporting and due diligence requirements for many companies, introducing more flexibility for companies that remain subject to the mandatory requirements, and protecting smaller companies from excessive information requests from larger companies, all designed to ease business operations while upholding the original policy objectives of the directives.
Since the end of 2024, the Commission has been working to reduce administrative burdens for companies – 25% overall and 35% for SMEs – which will unlock billions in investment capacity.
The proposed measures to reduce the scope of the CSRD – as well as the future changes to the ESRS that will streamline, simplify and reduce the reporting requirements for companies remaining in scope – will generate significant cost savings for companies. The changes to the CSDDD eliminate unnecessary complexities and ultimately reduce compliance burden while preserving the Directive’s goals to reduce adverse environmental and human rights impacts, including in global value chains of large companies active in the EU, and advance the sustainability transition of our economies.
The provisional agreement is a significant step forward in creating a more favorable business environment to help EU companies grow, innovate, and create quality jobs.
The Commission works to strengthen EU competitiveness while protecting economic, social, and environmental objectives. Simpler regulation and reducing regulatory burdens are instrumental to a more competitive and attractive Europe. During 2025, the Commission adopted several omnibus proposals and other simplification initiatives aiming to simplify rules across key sectors, including energy and energy product legislation, taxation, defence, competitiveness and innovation; by the beginning of 2026, there were already ten various sectoral omnibuses (!).
Companies required by CSRD to report for the financial year 2025 or 2026 will not have to start reporting until the financial years 2027 and 2028, respectively. Listed companies that were required to report for 2024 will continue to report until the second part of the Omnibus Package is adopted, after which listed companies with less than 1,000 employees will also be exempt from the reporting requirements.
More on omnibuses in: 1. https://www.integrin.dk/2026/01/07/contemporary-european-simplification-agenda-strategies-and-implementation/; 2. https://www.integrin.dk/2025/12/28/stronger-european-economic-sectors-through-simplification-regulations-packages/; 3. https://www.integrin.dk/2025/12/24/european-biotechnology-new-simplified-legislative-measures/; etc.
Simplification in the ESRS
In 2025, EFRAG has been requested by Commissioner Albuquerque for its technical advice to modify the delegated act on European Sustainability Reporting Standards (ESRS); EFRAG expected to deliver its technical advice to the European Commission in the beginning of December 2025. EFRAG is a private association established in 2001 with the encouragement of the European Commission to serve the public interest. EFRAG extended its mission in 2022 following the new role assigned to EFRAG in the CSRD, providing Technical Advice to the European Commission in the form of draft European Sustainability Reporting Standards and/or draft amendments to these standards. EFRAG’s member organisations are European Stakeholders Organisations, National Organisations and Civil Society Organisations.
More on EFRAG in: https://www.efrag.org/en/about-us#efragstrategy
The reporting standards (ESRS) need to be reduced due to existing overlap between several disclosure requirements and data points. The proposal includes reducing the number of data points and data requirements, clarifying unclear provisions in the reporting standards and improving consistency with other legislation. In addition, the proposal proposes to remove all sector-specific standards. In addition, the Commission proposes to postpone the implementation deadline for the Due Diligence Directive to July 2027 and remove the first wave for entry into force, so that the entry into force date for the new first group of covered companies with more than 3,000 employees and an annual turnover of more than € 900 million is July 2028.
The Commission expected the deferral proposal to be adopted in a fast-track process in 2025.
Source: https://www.efrag.org/en/projects/esrs-simplification
Example: Omnibus V package
The Omnibus V package (Defence Readiness Omnibus) is a key EU legislative effort aimed at boosting Europe’s defense industry and readiness by simplifying rules for procurement, investment and cross-border transfers, creating a faster regulatory framework, and facilitating SME participation to build a stronger, more competitive European defense industrial base. It introduces measures like fast-track permit approvals (even a 60-day limit) and easier access to funding, aiming to cut costs and unlock significant investment.
More in: https://www.consilium.europa.eu/en/press/press-releases/2025/11/26/defence-industry-council-agrees-position-on-simplification-package-to-boost-europe-s-defence-industry-and-readiness/
The package is a recent EU legislative proposal (presented by the European Commission in June 2025, following priorities from the White Paper for European Defence-Readiness 2030), designed to streamline regulations and boost Europe’s defense industry, making procurement easier, reducing bureaucracy, and facilitating investment to improve EU defence competitiveness and readiness for 2030. This “omnibus” bundles changes across several areas, simplifying permits, procurement, and funding for defense projects, while aiming to remove barriers for SMEs and accelerate capability development. The package includes a Commission Communication and a series of legislative and non-legislative proposals, covering both defence-specific and broader regulatory areas. It aims to remove bottlenecks in public procurement, permitting, reporting obligations, and cross-border cooperation.
Source: https://defence-industry-space.ec.europa.eu/eu-defence-industry/defence-readiness-omnibus_en#:~:text=A%20New%20Approach%20to%20Defence%20Preparedness%20The,procurement%2C%20permitting%2C%20reporting%20obligations%2C%20and%20cross%2Dborder%20cooperation.
Thus, T. L. Poulsen, the Danish Minister for Defence, noted (November 2025) that “the defence readiness omnibus is an important initiative to ramp up Europe’s defence readiness”. He adds that the member states need simpler regulation and better conditions for the European Defence Technological and Industrial Base. Hence, the “regulation made in peace time must not be a barrier for member states and industry in efforts to provide the necessary capabilities that today’s security environment calls for: we need more speed across the board – from defence procurement to the initiation of new defence projects, and this is what the omnibus delivers”.
Citation from: https://www.consilium.europa.eu/en/press/press-releases/2025/11/26/defence-industry-council-agrees-position-on-simplification-package-to-boost-europe-s-defence-industry-and-readiness/
Corporate assessment
The first Commission’s steps during 2025 in reducing the regulatory burden have been welcomed by the EU’s corporate community; the BusinessEurope even called these steps “the Omnibusbook”.
However, it noted as well that some practical measures shall be taken to provide the continental economy with the urgently necessary initiatives in implementing the EU-wide promised regulatory reduction of at least 25% for all companies and 35% for SMEs, as “a compass for the continued efforts”. Thus, BusinessEurope has revealed in a recent comprehensive position paper, so-called “Omnibusbook” on reducing regulatory burden for businesses (January 2026) almost 140 (!) “most pressing regulatory burdens across about ten policy areas, alongside concrete suggestions to address them”. This analytical report makes it a must-to-read for all decision-makers!
Source and citation from: https://www.businesseurope.eu/wp-content/uploads/2026/01/2026-01-22-BusinessEurope-Omnibook-to-reduce-regulatory-burden.pdf
Among key and pressing burdens, the BusinessEurope mentioned the following socio-economic and policy sectors: – green transition (with energy, climate, circular economy and environmental policy issues); – consumer policy, – sustainable finance and company law; – taxation, – financial services and reporting; – digital transition and economy; – international value chains and trade, employment and social policy. Among first three priorities are: digital transition (23%), “green growth” (15%), and financial services and reporting (with 13%).
The BusinessEurope report specifies the following types of “regulatory burdens”: administrative, excessive compliance/adjustment costs and burdens, as well as EU’s cross-border regulatory barriers. The list of EU’s legislative acts (regulations directives, communications and drafts) subject to the “regulatory reduction” includes about 140 (!) positions with a detailed burden description and suggested improvements/simplifications.
thanks for this