Simplification and ‘less is more’

The European Commission's new simplification agenda, introduced in early 2025, aims to reduce regulatory burdens and enhance competitiveness across the EU. This initiative is particularly significant for consumer finance, as it seeks to streamline financial regulations, making them more accessible and efficient for both businesses and consumers.

Key Elements of the Simplification Agenda:

1. Omnibus Simplification Packages: The Commission has proposed a first Omnibus legislative package to simplify rules on sustainability reporting, due diligence, and investment programs. These measures focus on reducing administrative burdens, especially for small and medium-sized enterprises (SMEs), by limiting complex reporting requirements to larger companies. The expectation is that there will be approximately 13 of such packages, focusing on different types of legislation.
2. Reduction in Reporting Obligations: A significant aspect of the agenda is the proposed 25% reduction in administrative burdens for businesses, with a 35% reduction targeted for SMEs. This is expected to save approximately €6.3 billion annually in administrative costs.
3. Enhanced Investment Opportunities: By simplifying investment programs like InvestEU, the Commission aims to unlock an additional €50 billion in public and private investments. This is intended to support policy priorities and stimulate economic growth.
4. Fourth Omnibus Proposal: The Commission proposes a new Small Mid-Caps category (under 750 employees, with financial thresholds) and extends GDPR record-keeping exemptions to them.

In turn, the simplification process is designed to act as one of the supporting pillars of the Competitiveness Compass, which (no pun intended), should point Europe in the right direction regarding its ability to compete effectively with the rest of the world.

In parallel, EBIC (of which Eurofinas is a member) issued its ‘less is more’ report, Addresses the complexity and volume of financial regulation at the European level, which has created a dense, bureaucratic, and often unstable regulatory environment. More specifically the report includes proposals focused on stabilizing and simplifying the regulatory framework, strengthening consultation and transparency at Levels 2 and 3, reviewing the governance of the ESAs, and enhancing political and judicial control of Level 2 and 3 acts. As such, it emphasizes the need for a more balanced distribution of regulatory power and greater transparency in the rule-making process. Eurofinas will continue to engage directly with Commission services on this issue, as well as in conjunction with its fellow EBIC members.