European Commission Wants More Space and Fewer Rules for Businesses

The compass unveiled on Wednesday builds upon the recommendations from last year's report by former EU Commissioner Draghi. The Commission acknowledges that Europe has fallen behind in the past twenty years, and that productivity is growing faster in the US and China. Commission President Ursula von der Leyen said the EU should primarily focus on the ‘clean industry’ and ‘innovation’. Brussels will also specifically concentrate on artificial intelligence (AI).

Last week, at the economic forum in Davos, Von der Leyen had already emphasized that the EU countries and European industry—if they act together—can stand much stronger against foreign competition.

Although the EU will adhere to previously established international targets for less air pollution, a cleaner environment, and a healthier climate, as Von der Leyen stated, a large number of environmental and climate laws will be relaxed or simplified. More exceptions will also be made for small and medium-sized enterprises. 

Critics say this pro-business approach initiates the rollback and dismantling of the Green Deal and the Climate Laws. In February, the Commission will propose measures to reduce EU directives concerning sustainability reporting (CSRD), the supply chain (CSDDD), and the taxonomy by at least 25 percent. 

The European People's Party (EPP), the largest group in the European Parliament, recently called for a two-year postponement and a halving of those two directives. The new (French) Industry Commissioner Stephane Séjourne may even want to abolish the entire chain liability. “Continual postponements and unclear implementation benefit neither the economy nor political credibility,” Séjourne said to Handelsblatt on Wednesday. It cannot be that companies remain in uncertainty.

The newly announced course for business relief shows many similarities to earlier Brussels commitments to reduce administration and bureaucracy in European agricultural policy, especially regarding environmental and climate laws. This was the EU’s response to farmers’ protests in many EU countries. In two weeks, the new Agriculture Commissioner Christophe Hansen will present that new CAP policy.