EU Commission to Initiate First Tender by Late February

EU Commission to Initiate First Tender by Late February

Feb 26, Brussels: Europe's Fight Against Red Tape

Get ready, Brussels! The European Commission is gearing up for a showdown, aiming to demonstrate its commitment to cutting through the red tape. Insiders spill the beans about an imminent Omnibus package presentation, set for February 26.

By Detlef Fechtner

Lobbyists are positively overwhelmed as they amble about Brussels, rushing to appease European Commission bigwigs ahead of Christmas. Among these esteemed figures is Commissioner Valdis Dombrovskis—the man responsible for trimming the bureaucratic fat. Reportedly, the Commission has been working overtime to whittle down an ambitious Omnibus package aimed at shedding reporting obligations, particularly in the realm of non-financial reporting, otherwise known as sustainability reporting.

Will it be a piece of (legislative) paper or mere propaganda?

Rumors are rife that our sources have yet to see any summary papers, with several aspects still hotly debated. There's a palpable sense of uncertainty about whether a barrage of legislative proposals or a mere communication will grace the European Commission landscape on the 26th. The mystery deepens as multiple directorates-general, including financial market regulation (FISMA), justice and consumers (JUST), and internal market and industry (GROW), have reportedly poured resources into preparing this package.

The Core Goals

According to rumblings emanating from EU institutions, streamlining the reporting frequencies and scopes for companies is a key priority for the Omnibus package. To this end, adjustments to three EU regulatory frameworks are being mooted: the Taxonomy Regulation, the Sustainability Reporting Directive (CSRD), and the EU Supply Chain Act (CSDDD).

Dynamic Impact Assessment

Whispers from Brussels suggest the possibility of introducing a dynamic impact assessment, setting it in motion not just at the time of the initial legislative draft, but also through the legislative process as proposals evolve. The development of such a dynamic evaluation aims to mitigate the burdensome increase in reporting duties spurred by amendment proposals in the Council or Parliament.

Transition periods aplenty?

The grapevine chirps that the Commission may propose extended transition phases until the implementation of specific reporting requirements, milking the 26th for all it's worth.

Divergent Opinions

While there's a broad consensus that reducing the reporting load is essential, consensus tends to fracture when it comes to the proposed Omnibus package. Some national delegations remain skeptical about February's ability to deliver groundbreaking changes, advocating instead for a more methodical, phased approach, including a reporting roadmap. Legal eagles have expressed concerns over predictability if changes are made to the three aforementioned legal texts without synchronizing them with the EU Disclosure Regulation or the EU Deforestation Regulation. Fears also loom that given the multitude of committees in the European Parliament (ECON, ITRE, JURI, BUDG) and ministries (Finance, Justice) involved, the European Commission's ambition may be all bark and no bite in the ordinary legislative procedure.

The Heat is on, Von der Leyen!

European Commission President Ursula von der Leyen finds herself under pressure to deliver. After all, she augmented the "Mission Letter" to EU Commissioners in summer 2024 with the following mandate: "Contribute to reducing reporting obligations by at least 25% — and for small and medium-sized enterprises by at least 35%."

Insights:

• 2025 Update: The Omnibus package unveiled in 2025 presents notable amendments to the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), including a "stop-the-clock" mechanism aimed at aligning these directives better.
• The package proposes changes to the Carbon Border Adjustment Mechanism Regulation and simplifications to the EU Taxonomy reporting, with reporting becoming voluntary for companies with less than €450 million in yearly revenue.
• Impact: The Omnibus package aims to boost the competitiveness of EU companies by reducing bureaucratic hurdles and enhancing investment prospects.
• SMEs: The proposed changes should benefit small and medium-sized enterprises by reducing the complexity of EU Taxonomy reporting, although taxonomy reporting is already relatively high among SMEs.
• Streamlining: The Omnibus package's purposes encompass streamlining EU sustainability legislation to make it easier for companies to comply with regulations while maintaining or increasing their sustainability performance.

1. Commissioner Valdis Dombrovskis, responsible for trimming bureaucratic fat, is working to whittle down an ambitious Omnibus package aimed at shedding reporting obligations, particularly in non-financial reporting.
2. The Core Goals of the Omnibus package include streamlining the reporting frequencies and scopes for companies, with adjustments proposed to three EU regulatory frameworks: the Taxonomy Regulation, the Sustainability Reporting Directive (CSRD), and the EU Supply Chain Act (CSDDD).
3. The European Commission, in its efforts to reduce reporting obligations, may propose extended transition phases until the implementation of specific reporting requirements.
4. Legal eagles have expressed concerns over predictability if changes are made to the three aforementioned legal texts without synchronizing them with the EU Disclosure Regulation or the EU Deforestation Regulation.

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