Will the EU's plan to reduce red tape for businesses negatively impact workers?

Brussels is proposing a formula for improving European competitiveness: simplifying and reducing the administrative burden on companies.

According to a working plan by the European Commission, the first areas that will be impacted include important pieces of legislation such as sustainability due diligence, which ensures companies address human rights and the environmental impact of their actions.

Another affected area is taxonomy, which defines the criteria for economic activities to be aligned with a net zero trajectory.

"There is much at stake. Without simpler and more cost-effective rules, Europe will keep losing economic weight. We must be clear simplification and enhancing Europe's competitiveness are not an end in itself," explained Valdis Dombrovskis, Commissioner for implementing and simplifying EU law.

"What we are pursuing is to set the right conditions, to have more innovation, more business, higher growth and better jobs in Europe. This is important not only to maintain our well-being and social mode but also our ability to succeed in green and digital transitions," he added.

The European Construction Industry Federation (FIEC) welcomed the initiative, but also submitted a position paper with its own perspective on promoting competitiveness while ensuring the EU is ahead in corporate sustainability as well.

The position paper warned that the current framework does not make it attractive for small and medium-sized enterprises to finance their sustainable activities. They instead advocate a significant reduction and simplification of the standards required, before the Commission presents its final proposal at the end of February.

"When it comes to the specific reporting obligations, it is of immense importance to