An European Union flag flies in the wind. Sebastian Gollnow/dpa
The European Commission pledges to make an “unprecedented effort” to cut red tape in the European Union in a draft of its economic policy programme to be presented on Wednesday.
Fewer, simpler rules are intended to accelerate competitiveness in the bloc and ultimately boost innovation, lower energy prices and reduce global economic dependencies, according to the draft seen by dpa.
To relieve businesses and attract new investments, the commission plans to reduce the administrative burden and simplify reporting obligations for firms by 35% and for small and medium-sized companies by 25%.
This is to include reporting on sustainable finance and due diligence obligations.
“Without an urgent shift in gear and approach, the EU’s future as an economic powerhouse, an investment destination and a manufacturing centre is at stake,” the draft policy programme for the coming years read.
The EU’s economy has been growing at a slower place for two decades compared to other major economies, the commission said, leading to a productivity gap with the United States and China “winning the race for leadership in certain green technologies.”
The commission wants to focus on innovation in technology, such as artificial intelligence (AI), advanced materials, biotechnologies, clean energy, robotics and space.
The EU is sticking to its goal of becoming climate-neutral by 2050 despite the global economic pressure, the draft read, but “the transition to a decarbonized economy must be competitiveness-friendly and technology neutral.”
The commission also plans to further harmonize labour law and tax policies across the EU’s 27 member states and substantially increase investment in research.