EU proposes cuts to corporate reporting to enhance competitiveness

The European Commission will propose new measures on Wednesday to reduce corporate sustainability reporting and supply chain rules. This aims to help European businesses compete better with companies in China and the U.S. The "Simplification Omnibus" seeks to cut reporting burdens by 25% in 2025, potentially saving companies 40 billion euros. It will limit strict reporting rules to larger firms, reducing the number of companies affected from over 50,000 to fewer than 7,000. The Commission's plans also include a Clean Industrial Deal to support energy-intensive industries and a new energy plan to lower costs. Critics warn that easing regulations may reduce incentives for companies to adopt greener practices.