Key takeaways
As a key enabling measure, the European Commission reiterates its commitment to cut "red tape" across the economy, with the aim of reducing regulatory and administrative burdens imposed by legislation by at least 25% for all companies, and at least 35% for SMEs, potentially saving around EUR 37.5 billion in recurring costs.
In the area of sustainability reporting, the European Commission is confirming that on 26 February 2025,a "Simplification Omnibus package" is going to be presented, which will simplify the obligations under "sustainable finance reporting, sustainability due diligence and taxonomy regulations". Unlike earlier communications on the topic, the Compass no longer explicitly refers to the three flagship legislative acts, namely CSRD, EU Taxonomy and CSDDD. Whether this means that other acts (such as SFDR) may also form part of the proposals, is unclear at this point. Part of the package to be released on 26 February 2025 will also be a proposal for a new definition of small mid-caps to tailor regulatory simplification for companies larger than SMEs but smaller than large companies.
Baker McKenzie will publish an assessment of the full extent of the simplification measures when the Simplification Omnibus is published on 26 February 2025. For more information, please contact our team of experts.
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Bidi Badcock-Scruton, Trainee, has contributed to this legal update.
