Following the Draghi Report of September 2024, improving competitiveness came sharply into focus in EU policy. In addition to a strong expansion of key investments, the report recommends cutting bureaucracy and reporting duties for companies. Branded as “simplification,” this goal has become a core element of Ursula von der Leyen’s second term, accompanied by heavy lobbying from business associations. The concrete targets include reducing administrative costs and reporting obligations by at least 25% for all companies (totaling about €37.5 billion in savings) and by 35% for small and medium-sized enterprises (SME) by 2030. In practice, however, much of this amounts to a deregulation agenda. At the informal EU summit in Copenhagen in early October, the Commission President made it clear: “Because when we look at simplification, we all agree we need simplification, we need deregulation. We need it on the European level. Actually, we also need it on the national level, where gold plating is concerned.” While the proposed 28th regime threatens to erode national law, deregulation at the EU level is being advanced primarily through the so-called omnibus packages.

Omnibus packages bypass democratic procedures

What defines the omnibus packages is their simultaneous modification of multiple EU legislative acts, often through “fast-track” legislation without the usual public consultations. In the Council, a separate formation was created outside the original areas of competence, while the European Parliament has resorted in some cases to urgent procedures. Since early 2025, the European Commission, acting on a request from the European Council, has presented six omnibus proposals to both the Council and the Parliament, with more in preparation.

Omnibus I to weaken sustainability reporting law temporarily halted

Omnibus I interferes with EU sustainability legislation, undermining the Corporate Sustainability Due Diligence Directive (CSDDD) and weakening enforcement of human rights obligations. It also plans to reduce corporate sustainability reporting requirements (CSRD), which would make achieving the EU’s climate goals harder due to less transparent data. Omnibus I in particular is accompanied by massive lobbying. While the Council declared the implementation of Omnibus I a top priority, the European Parliament remains undecided. In a close vote (318 to 309), MEPs opposed starting final trilogue negotiations based on the Legal Affairs Committee’s compromise. A new plenary vote is scheduled for November 13, with amendments expected — showing how controversial Omnibus I remains.

As MEP Evelyn Regner remarked, “The supply chain law was not adopted to drown companies in paperwork. It’s about preventing tragedies like the Rana Plaza textile factory collapse in Bangladesh from ever happening again.” Despite trade unions urging a rejection of the draft, EU leaders at the EU summit on 22 and 23 October were displeased by Parliament’s vote. German Chancellor Friedrich Merz even called it “unacceptable.” Parliament President Roberta Metsola’s statement that the parliament “will deliver” is also noteworthy.

More Omnibus Packages on the Horizon

Omnibus II on EU investments focuses on simplifying reporting obligations for recipients of EU investment support and expands public guarantees by €2.9 billion. This goes well beyond the goal of mere ‘simplification’. Through the InvestEU program, it aims to generate an additional €50 billion in public and private investment. Omnibus III addresses the Common Agricultural Policy, seeking to simplify environmental requirements, streamline satellite-based controls, reduce on-site inspections, simplify payment arrangements, and improve crisis financing for farmers.

Omnibus IV introduces a new enterprise category - the Small Mid Caps (SMC) - with fewer than 750 employees, turnover under €150 million, and a balance sheet below €129 million. Some regulatory exemptions for SME would be extended to SMC. Eight legislative acts are affected. The Chamber of Labour (AK), which participated in the consultation, opposes this extension of SME privileges to SMC, criticizing the lack of impact assessment and potential disadvantage to very small firms. The AK specifically rejects exemptions from GDPR requirements, arguing that eliminating the obligation to maintain processing records would severely undermine data protection and legal enforcement.

Omnibus V concerns defence policy, currently a top EU priority. It aims to facilitate defence investments, ease conditions for the defence industry, and simplify procurement. Public procurement law is also affected, with plans for a fast-track procedure for defence infrastructure projects. The possible mention of the Working Time Directive in this context has drawn strong criticism. Finally, Omnibus VI weakens rules on chemicals, packaging of hazardous substances (CLP), the cosmetics regulation, and fertilizers.

Current Developments and Outlook

In mid-October, Executive Vice-President Stéphane Séjourné presented the 2025 Annual Progress Report on Simplification, Implementation, and Enforcement. The Commission expects businesses to save €7 billion from packages I, II, IV, and VI alone. Implementation dialogues — including with the chemicals sector — and new “reality checks” involving the automotive and chemical industries have been launched. In these newly introduced formats, trade unions and civil society, however, are often excluded or underrepresented. Séjourné plans additional omnibus packages and implementation dialogues, especially in the construction sector, and aims to strengthen cooperation with the Parliament and Council.

At the European Council in October, EU leaders called for Omnibus I to be adopted by the end of 2025 and the remaining five in early 2026. The comprehensiveness of the agenda is further demonstrated by other planned omnibus packages covering digital policy, environment, food and feed safety, vehicles, energy products, taxation, and citizens’ affairs. Ursula von der Leyen has also announced that the Commission will reform its legislative principles in 2026 to further promote simplification. Under the upcoming Cypriot EU Presidency, simplification will again become a central political priority.

AK Rejects the Weakening of Social Standards

The AK is strongly critical of the omnibus initiatives. They risk undermining social and environmental standards, weakening worker and consumer rights, and public interests. The process itself raises democratic and legal concerns, as it could significantly dilute newly adopted EU laws. Finally, it remains doubtful whether such deregulation will truly deliver the promised boost to competitiveness.


Further information: 

European Commission: Simplification  
Council: Simplification of EU rules 
European Parliament: Sustainability reporting and due diligence: simpler rules for fewer companies 
Chamber of Labour Vienna: Wenn Schutzregeln fallen 
AK EUROPA: Sustainability Omnibus. Simplification of the Corporate Sustainability Due Diligence Directive or undermining human rights obligations? 
AK EUROPA: Company law: A common 28th regime at EU level carries the risk of undermining important protection standards 
AK EUROPA: Study on the EU Corporate Sustainability Due Diligence Directive: CSDDD as an opportunity to enforce human rights while strengthening the economy 
A&W-Blog: Omnibus: Wie die EU-Kommission Schutzvorschriften im Eiltempo loswerden will