EPP Urges Two-Year Pause on New EU Rules to Boost Competitiveness

EPP leaders retreat with Ursula von der Leyen

The European People’s Party (EPP) has urged the European Commission to extend its efforts to reduce bureaucratic hurdles for businesses. During a meeting in Berlin on 17–18 January, EPP leaders adopted a declaration advocating for enhanced measures to strengthen the EU's competitiveness, including a two-year moratorium on implementing several recently adopted rules.

The declaration welcomed the Commission’s upcoming ‘omnibus’ initiative, set to be unveiled in February, but argued for broader action. The EPP called for revisions to unimplemented legislation, including delegated and implementing acts, and reiterated the importance of enforcing the “one in, two out” principle for EU rules.

The EPP’s proposals focus on postponing the implementation of four key measures: the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the European taxonomy regulation, and the Carbon Border Adjustment Mechanism (CBAM). The group suggested that, during the proposed two-year delay, an omnibus regulation could refine the laws to:

  • Apply primarily to companies with over 1,000 employees.
  • Exclude small and medium-sized enterprises (SMEs) from indirect effects.
  • Address overlapping legislation to avoid double reporting.
  • Cut reporting obligations for large firms by at least 50%.

The EPP also expressed concern about European climate policies, warning they could undermine competitiveness if poorly executed. The automotive sector, in particular, was highlighted as needing relief measures to help manufacturers meet the 2025 CO2 emission targets amidst ongoing challenges.

With these demands, the EPP aims to balance regulatory goals with economic competitiveness, arguing for a pragmatic approach to EU policy implementation.