Omnibus I: Revision of the Supply Chain Directive

With the so-called Omnibus Packages, the EU Commission aims to consolidate and simplify various areas of regulation in order to reduce the administrative burden on companies by at least 25%. As part of the Omnibus I Package, the Commission has presented, among other things, proposals to simplify the Supply Chain Directive [Corporate Sustainability Due Diligence Directive (CSDDD)].

The cep criticises that many of the proposed changes will hardly bring any real relief. "The Commission is focusing on clarifications and exceptions – but these create too much new uncertainty," explains Matthias Kullas, cep economist, who co-authored the cepAdhoc on the Supply Chain Directive with Anja Hoffmann. Although selective relief is planned – for example, in terms of review intervals or by limiting the required involvement of stakeholders – in other areas, bureaucracy is simply being shifted from small and medium-sized enterprises to larger companies. All in all, the bureaucratic burden remains high. "Particularly problematic is the large number of undefined legal terms, which will cause massive legal uncertainty," warns Anja Hoffmann, lawyer at cep. In her view, unclear reverse exemptions will weaken the effect of the planned relief for companies.

The Council and the European Parliament should carefully examine the Commission's proposals for negative side effects. Without a clearer reduction in bureaucracy, European companies would continue to face competitive disadvantages.