The European Commission has adopted a package of proposals to simplify EU rules, boost competitiveness, and unlock additional investment capacity. The announcement is a major step towards creating a favourable business environment, supporting EU businesses - and in particular  small and medium-sized enterprises (SMEs) - to grow, innovate, and create quality jobs.

The proposals are estimated to bring total savings in annual administrative costs of around €6.3 billion and to mobilise additional public and private investment capacity of €50 billion to support policy priorities. President of the European Commission, Ursula von der Leyen, outlined that "EU companies will benefit from streamlined rules on sustainable finance reporting, sustainability due diligence and taxonomy. This will make life easier for our businesses while ensuring we stay firmly on course toward our decarbonisation goals."

The announcement will:

• Make sustainability reporting more accessible and efficient
• Simplify due diligence to support responsible business practices
• Simplify the carbon border adjustment mechanism (CBAM) for a fairer trade
• Simplify and optimise the use of several investments including InvestEU, EFSI, and legacy financial instruments. 
   

The legislative proposals will now be submitted to the European Parliament and the Council for their consideration and adoption.

Find out more about how the changes could benefit your business here.