Coalition of European business groups urges support for the Omnibus I Simplification Package

By
BrusselsReport.eu
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The Union of Entrepreneurs and Employers (ZPP) and the European Enterprise Alliance (EEA) have brought together a coalition of 21 European business organisations calling on EU policymakers to support the Omnibus I Simplification Package, which will be voted on by the European Parliament on 13 November 2025. The initiative represents a united appeal to align Europe’s sustainability ambitions with economic competitiveness amid growing industrial and investment challenges.

According to the coalition, the European Commission’s so-called “unprecedented simplification effort” is a timely and necessary step to ease the regulatory and administrative burdens that are increasingly weighing on European businesses. The group stresses that simplification should not be seen as a weakening of environmental ambition, but as a practical adjustment to make sustainability goals both achievable and economically viable.

The organisations highlight the increasingly difficult economic context facing European industry. In 2023, industrial gas and electricity prices in the EU were 345% and 158% higher than in the United States, respectively, according to Bruegel. Meanwhile, China continues to heavily subsidise energy for strategic sectors. Foreign direct investment (FDI) into the EU has fallen by 31 percentage points compared with 2017, even as the US and China have recorded increases. Labour productivity growth in Europe remains sluggish at around 0.5% annually—barely one-third of the rate in the United States.

These structural weaknesses, the signatories warn, are compounded by growing administrative obligations under sustainability legislation. Many companies operating across multiple jurisdictions now require dedicated teams to manage compliance with the Corporate Sustainability Reporting Directive (CSRD). This growing “reporting bureaucracy” is expanding faster than the sustainability transformation it is intended to support.

The burden is also spreading down the value chain, as large firms within the scope of the CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD) increasingly require their suppliers to provide extensive ESG data. This effectively imposes compliance duties on many small and medium-sized enterprises (SMEs) that are formally out of scope. Given that SMEs account for 99% of European businesses and two-thirds of private-sector employment, the coalition warns that such indirect regulatory pressure risks undermining Europe’s economic backbone.

The signatories argue that the Omnibus I package presents a crucial opportunity to rebalance sustainability and competitiveness by simplifying and rationalising reporting requirements while maintaining environmental integrity. The coalition calls for reforms guided by three key principles:

  • Proportionality: Regulatory requirements should reflect company size and scale of impact, avoiding one-size-fits-all obligations that disproportionately affect smaller firms.

  • Cost-effectiveness: Sustainability budgets should prioritise emissions reduction and innovation rather than excessive paperwork.

  • Administrative simplification: Red tape across the Single Market must be reduced to eliminate unnecessary complexity and duplication.

According to the coalition, meaningful simplification would allow businesses to focus on transformation rather than administration—redirecting resources towards innovation, decarbonisation, and competitiveness. Without such reform, Europe risks eroding its industrial base and falling further behind global competitors.

The message to policymakers is clear: Europe needs sustainability reporting that enables growth, not one that accelerates industrial decline. A competitive Europe is a sustainable Europe, and the upcoming vote on the Omnibus I package will be decisive in determining whether European companies can lead the green transition or continue to lose ground to less regulated global rivals.

This joint call to action, coordinated by the Union of Entrepreneurs and Employers (ZPP) and the European Enterprise Alliance (EEA), is endorsed by 21 signatory organisations.

The full statement is available at: https://zpp.net.pl/en/call-for-action-on-the-omnibus-i-simplification-package/

List of Signatory Organisations

  • AFEOSZ-COOP Federation

  • BeePartner a.s.

  • Bulgarian Industrial Capital Association

  • Business Centre Club

  • Croatian Chamber of Trades and Crafts

  • CTP – Confederação do Turismo de Portugal

  • Czech Chamber of Commerce

  • Estonian Chamber of Commerce and Industry

  • European Entrepreneurs CEA-PME

  • European Enterprise Alliance

  • Europäische Wirtschaftssenat e. V. (EWS)

  • European Association for Chemical Distributors (Fecc)

  • Federation of Employers’ Associations of the Slovak Republic (AZZZ SR)

  • Federation of Finnish Enterprises

  • Greek Tourism Confederation (SETE)

  • Latvian Chamber of Commerce and Industry

  • Malta Employers’ Association

  • National Builders’ Merchants Associations and Manufacturers

  • PIMEC

  • Taxpayer Association of Europe (TAE)

  • Związek Przedsiębiorców i Pracodawców / Union of Entrepreneurs and Employers

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