Omnibus initiative: An attempt to reduce corporate reporting obligations

Following its meeting on 8 November 2024, the European Council agreed on the “Budapest Declaration on the New European Competitiveness Deal". Among other things, it defined the goal of significantly reducing reporting requirements for companies.

EU companies are currently struggling with increasingly complex reporting obligations. In addition to the sustainability reporting (CSRD), regulations such as the EU Taxonomy Regulation (Taxonomy Regulation) or the EU Supply Chain Directive (CSDDD) impose additional reporting obligations. This complex regulatory framework for companies was also discussed at the conference in Budapest.

The result was a declaration of intent by the European Council, which outlines the strengthening of the competitiveness of the European economy in 12 points. Point 4 of this declaration stipulates, among other things, that the European Commission (EC) must " making concrete proposals on reducing reporting requirements by at least 25 % in the first half of 2025". The aim is to drastically reduce administrative, regulatory and reporting burdens, in particular for SMEs. This is intended to decrease the bureaucratic workload caused, for example, by overlapping reporting obligations from different legal provisions.

In a press conference the EC-President Ursula von der Leyen expressed the need for an "omnibus regulation" to consolidate the three existing reporting obligations from the CSRD, CSDDD and the Taxonomy Regulation into one legal act. According to Ursula von der Leyen, the content of the reporting obligations themselves will not change.

Even if the "Budapest Declaration" only documents general political direction and priorities of the European Union and is therefore not legally binding, it represents an important impetus for future EU legislation. It is therefore to be expected that the EC will submit a proposal for the consolidation of reporting obligations in the near future.

Please note: This blog is for general information purposes only and in no way constitutes legal advice from Binder Grösswang Rechtsanwälte GmbH. The blog cannot replace individual legal advice. Binder Grösswang Rechtsanwälte GmbH accepts no liability of any kind for the content and accuracy of the blog.