"€400 million in savings"
Last week, the European Commission presented its 4th Simplification Omnibus Package, which it pitched as a major step toward reducing bureaucracy for EU businesses. At first glance, the package sounds promising, with streamlined rules, increased digital processes, and a new category for small mid-caps (SMCs) to bridge the regulatory gap between small and medium-sized enterprises (SMEs) and large corporations. The Commission aims to save businesses €400 million annually. But here’s the real question: Is this true simplification, or just selective relief in an increasingly complex landscape?
Yes, recognizing SMCs is long overdue. Tailored GDPR exemptions, lighter sustainability due diligence, and digital-first compliance mechanisms could offer welcome relief, especially to growth-stage companies struggling with regulatory overload.
But at the same time:
- Why are we still adjusting frameworks in silos rather than thinking systemically?
- Will national authorities implement these changes consistently, or will they create 27 new versions of simplification?
- And can these targeted exemptions offset the growing trend of regulatory density, particularly in ESG, digital, and reporting areas?
Many companies, especially those in finance, are facing parallel rulebooks, fragmented obligations, and an increasing demand for compliance infrastructure. Simplification means more than just eliminating checklists when it comes to designing policy with entrepreneurs in mind.
So yes, this package is a step in the right direction. But is it big enough and fast enough to make Europe competitive again?