EU simplifies rules for companies

The EU Commission has announced the omnibus bill proposal called " Simplification Omnibus", which was prepared to simplify the Union's legislation and increase competitiveness and investment capacity.

The statement said the omnibus bill was an important step in establishing a more conducive business environment to help EU companies grow, innovate and create jobs.

The statement, which pointed out that the EU Commission set a simplification target of reducing administrative burdens by at least 25 percent and at least 35 percent for SMEs by the end of its term, said, " The Omnibus package covers a comprehensive simplification in the areas of sustainable finance reporting, sustainability due diligence, EU investment classification, the Carbon Adjustment Mechanism at the Border (CBAM) and European investment programs."

The proposals will reduce the complexity of EU rules, particularly for small and medium-sized companies , focus the regulatory framework on the largest companies likely to have a greater impact on the climate and environment, and provide companies with access to sustainable financing for the clean transition, the statement said.

It was stated that if the proposals are implemented, approximately 6.3 billion euros will be saved in annual administrative costs, and that an additional 50 billion euros of public and private investment capacity is envisaged to be mobilized to support policy priorities.

The statement noted that approximately 80 percent of companies will be excluded from the scope of sustainability reporting, that it will be applied to those with more than 1,000 employees, that this will not be a burden on small companies, and that it will be postponed for 2 years for companies already within the scope.

It was stated in the statement that the EU investment classification regulation was also limited to the largest companies, and the templates that need to be filled in were reduced by 70 percent.

The statement noted that CBAM would also be simplified and small-scale importers and companies would be exempted from CBAM obligations.

It was stated in the statement that a new CBAM total annual threshold of 50 tons per importer will be introduced, and that CBAM obligations will be eliminated for 90 percent of importers.

The statement stated that the rules will be simplified for companies within the scope of CBAM, and that declaration, calculation and reporting will be facilitated. The approval of the European Parliament (EP) and member states is required for the regulation package to enter into force.