Omnibus Package: The Start of a Simplification Revolution?
On Tuesday, 4 February, SME Europe in cooperation with Eurochambres, organized an event on “Omnibus Package: The Start of a Simplification Revolution?” at the European Parliament in Brussels.
The discussion, hosted by Jörgen WARBORN MEP, President of SME Europe and Member of INTA, ITRE and JURI Committees, featured distinguished experts including, Michael WIMMER, Director of Strategy, Better Regulation & Corporate Governance at the European Commission, Michael SAXL, Senior Policy Advisor at Federal Economic Chamber of Austria, Antonija Božič CERAR, Eurochambres Sustainability Committee Chair and Head of Department for Environment, Climate and Energy at the Chamber of Commerce and Industry of Slovenia, and Ben BUTTERS, CEO of Eurochambres. The discussion was moderated by Horst HEITZ, Secretary General of SME Europe.
Jörgen WARBORN MEP, in his welcome speech, stressed the pressing need to reduce regulatory burdens to drive business growth in Europe. While acknowledging the European Commission’s commitment to the “one in, one out” policy, he argued that it merely preserves the status quo and advocated for a more ambitious “one in, two out” approach. Mr. Warborn highlighted the importance of impact assessments to properly evaluate business costs and criticized the slow implementation of regulatory reforms. As a further step, he suggested compensating businesses for mandatory reporting, arguing it would discourage unnecessary bureaucracy. He welcomed the Omnibus Package but pointed out that its scope remains limited, covering only a fraction of sectors and policies. Concluding, he stressed that Europe must push for broader reforms to enhance competitiveness, citing global examples such as the U.S.’s more aggressive regulatory cuts.
In his keynote speech, Michael WIMMER emphasized the pressing importance of competition as a shared priority across European institutions. He highlighted structural challenges to Europe’s competitiveness, including “geopolitical instability, unfair competition, high energy costs, labour shortages, and limited capital access”. He stressed the need for a coordinated effort to address these vulnerabilities, as other global players continue to advance. Mr. Wimmer underscored the European Commission’s commitment to simplification and regulatory relief, building on the Draghi Report’s momentum. He announced that the Commission’s competitiveness initiative aims to boost investment and streamline regulations. He confirmed that the 25% reduction target for administrative burdens extends beyond reporting requirements, covering broader regulatory costs. To simplify rules and improve efficiency, he outlined efforts such as regulatory reviews, fitness checks, and engagement with private sector to ensure practical implementation. He also noted plans to improve SME access to EU funding by reducing complexity and enhancing transparency. Regarding the Omnibus Package, he stressed that simplification must be a continuous process, not a one-off measure. He called for institutional collaboration between the European Parliament, European Commission, and European Council to ensure meaningful regulatory relief. He concluded by emphasizing that businesses will only benefit if efforts focus on addressing the most pressing burdens and if all institutions work together to deliver real impact.
Michael SAXL, representing the Austrian Federal Economic Chamber, noted that while businesses support the EU’s environmental and social goals, the fragmented and complex regulatory landscape creates serious implementation difficulties, particularly for SMEs. He stressed that the Omnibus Package should be seen as a first step, not the final solution. He warned against unrealistic expectations, emphasizing the need to streamline overlapping regulations, improve data requirements, and enhance IT infrastructure to ensure practical compliance. He also called for better coordination among regulators, noting that many legislative measures seem disconnected. He highlighted the urgent need for regulatory clarity, as businesses require stability to plan investments and compliance strategies. To support SMEs, he advocated for one-stop-shop solutions, improved reporting interfaces, and practical support measures such as help desks and guidance resources. Mr. Saxl warned that EU regulatory complexity affects global trade and competitiveness, making it difficult for foreign partners, especially in Asia and Latin America, to navigate compliance. He cautioned that excessive regulatory demands risk being seen as protectionist measures, complicating trade negotiations. In conclusion, he expressed hope that the Omnibus Package would lead to meaningful regulatory simplification and improve Europe’s competitiveness both internally and globally.
Antonija Božič CERAR highlighted the growing regulatory burden on businesses, questioning whether the prescriptive nature of current sustainability legislation stifles innovation. While the EU Green Deal was intended to drive a green transition, companies now face an overwhelming wave of complex legislative requirements, often described as a “regulatory tsunami”. She welcomed the Draghi Report, which confirmed what many businesses have long reported — excessive regulatory and administrative burdens. She emphasized that the Omnibus Package is an opportunity to introduce better regulation, ensuring that reporting requirements are clear, relevant, and not excessive. She urged policymakers to streamline sustainability reporting, cautioning that collecting data for its own sake is costly and inefficient. She highlighted EFRAG voluntary SME reporting standard as a potential solution, provided larger institutions accept these reports. She also proposed introducing a value chain cap for small companies with minimal impact and transitional measures for businesses that have recently scaled up. Concluding, she stressed that the green transition must move from paperwork to real-world implementation. Resources are not infinite, and ensuring sustainability means making regulations practical, efficient, and results driven.
Paul RÜBIG pointed out that SMEs struggle to keep up with the sheer volume of regulations, with approximately 14,000 legislative acts introduced in the past five years. He questioned how businesses could effectively manage such complexity and called for a new, more efficient approach to regulation. He also criticized the rising costs of compliance, warning that consumers ultimately bear the burden of excessive administrative requirements. He referred to this phenomenon as “green inflation,” where attempts to centralize and regulate everything drive up costs without necessarily improving outcomes. Instead, he advocated for a free and competitive economy, where entrepreneurs have the opportunity to innovate and thrive without excessive restrictions. Concluding, he called for better communication and a positive European regulatory approach, ensuring that the EU remains competitive and beneficial for businesses and consumers alike.
In his concluding remarks, Ben BUTTERS emphasized the growing concern over regulatory burdens, noting the strong turnout at the event as a sign of the issue’s urgency both within and beyond the EU policy circles. While business leaders may not be staging public protests, he highlighted their increasing frustration and engagement in regulatory discussions, as demonstrated by their participation in upcoming reality checks with the European Commission. He welcomed the Commission’s recognition of these challenges but stressed the need for substantial progress in reducing administrative and compliance burdens. He rejected the notion that simplification undermines policy objectives, arguing instead that balanced, proportionate legislation is essential for achieving goals like the Green Deal and ESG standards in a way that supports businesses rather than constraining them. Mr. Butters also called for a more strategic approach to regulatory management, urging policymakers to address the stockpile of existing administrative burdens while carefully controlling the flow of new regulations. He noted that businesses often struggle to engage early in legislative processes, as the impact of new laws becomes clear only years later. Chambers of commerce, he argued, must help bridge this gap, but legislators also need to be mindful of cumulative regulatory burdens. He urged all co legislators to work together, avoid political gridlock, and ensure that simplification efforts lead to real, tangible relief for businesses.
