Keep it simple! A path to greater efficiency

Every day, millions of people across the European Union spend more time filling out forms and navigating through a jungle of red tape than doing what they are passionate about. Regulatory overload remains the biggest obstacle for businesses. From public servants to entrepreneurs, from engineers to farmers, administrative burden is slowing us down, costing time, money, and innovation. From now on, let’s keep it simple.

While some reporting obligations remain important for achieving key EU goals, such as ensuring a safe environment or fighting climate change, we have to cut unnecessary red tape. Europe is falling behind in the global race. It is our entrepreneurs and labour force that will propel us forward to global competitiveness. Let’s give them the space and time they need to innovate.

Small and medium-sized businesses (SMEs) account for 99.8% of all active companies in Europe, contributing to nearly 52% of total economic output. They are a vital source on innovation. SMEs create jobs that support families and communities right across the EU. We are glad that the European Commission has answered on our call with a plan to simplify administrative processes in the Union.

‘We live in challenging times -the EU must urgently boost its competitiveness.’

The Commission’s ‘Omnibus’-proposals of anti-administrative measures have an extremely important role to play. First, they represent a far-reaching simplification in the fields of sustainable finance reporting, sustainability due diligence and taxonomy. Second, they aim to simplify investments within the EU while also removing paper work obligations from larger companies. The overall goal is to reduce administrative burdens by at least 25% overall, and at least 35% for SMEs.

‘It’s ambitious, doable and necessary.’

But don’t be mistaken. Reducing unnecessary administrative burden does not mean sacrificing important oversight or accountability. We remain committed to our climate, social and environmental targets, but where it has become too bureaucratic, we need to drastically simplify. The Omnibus proposals also show that the EU is now ready to constantly evolve legislation. The EU needs to remain ready to listen, to answer and react to industry and business concerns. It is time to rethink outdated processes and adopt smarter, tech-driven solutions that reduce inefficiency. Simplification is not the end goal here - economic growth is.

We believe that this reforming agenda is a critical step toward a more productive EU. By lightening the load, we are freeing up time, energy, and resources. In these increasingly uncertain times, we need to prioritise, equip and support our business community for the challenges ahead.