How the EU is making rules simpler for business
Parliament is creating the conditions for stable and sustainable growth: by simplifying rules, boosting the single market, and supporting small businesses.
The EU is working to make its legislation more efficient and ease the administrative burden, especially for small and medium-sized enterprises (SMEs). This should help EU companies in a wide range of sectors to stay competitive, invest and create jobs.
A number of “omnibus” legislative packages are being considered by Parliament to boost defence, agriculture, investment capacity, the single market and the digital transition.
Parliament called for simpler EU rules after the European elections in 2024. Roberta Metsola, President of the European Parliament, told EU leaders on 1 October 2025 that the EU’s simplification initiative means more jobs, more stability and more security.
“The European Parliament is committed to making life better, fairer and easier for industry, for families, for farmers. At a time when too often the world feels like it is on fire, we want to make sure Europe remains the best and safest place to be.”
Parliament has reacted swiftly to proposals from the European Commission on making rules simpler. Here is a snapshot.
Exempting small importers from the EU’s carbon leakage instrument
To reduce the risk of companies shifting carbon-intensive activities outside of the EU, the EU adopted the EU’s carbon leakage instrument, the Carbon Border Adjustment Mechanism (CBAM), in 2023 for sectors including cement, iron, steel, aluminium, fertilisers and electricity. Under the instrument, a carbon levy should be charged on imports from countries with less ambitious carbon emission rules than the EU.
The rules were adapted in 2025 to reduce the administrative burden on small businesses and boost their competitiveness.
90% of importers will now be spared from EU carbon border rules. Climate goals are nonetheless maintained as 99% of CO2 emissions from iron, steel, aluminium and cement imports will still be covered by the rules.
On 10 September, Parliament adopted the simplification of CBAM.
Boosting investments
Parliament is working on simplifying the Invest EU programme, the EU’s main instrument for channelling public and private investment. This would bring an additional €50 billion in investments in key areas such as clean tech, digitalisation and sustainable infrastructure.
Once adopted, the simplified rules will inject fresh momentum into Europe’s economy and support small businesses and innovators across the EU. MEPs reached an agreement with EU governments on 23 September 2025. They are expected to confirm the agreement in November.
Less paperwork for farmers
The burden on farmers in terms of administration and paperwork has increased in recent years. According to the European Commission, simpler rules could lead to annual savings of up to €1.6 billion for farmers and more than €200 million for EU countries. There would be further flexibility and less administrative work for farmers who comply with EU agricultural rules.
Small farmers would get more support, along with a new one-off payment of €75,000 to develop their business. To speed up crisis support for farmers, Parliament proposes adding animal disease outbreaks to the list of events for which farmers would receive aid.
More time for battery producers to adapt their business
Batteries are a key component for strategic products such as electric cars and the EU has adopted rules to make them more sustainable. However, EU battery producers need more time to adapt their supply chains.
Parliament has adopted rules to postpone by two years - until August 2027 - the date when due diligence obligations kick in.
Defence
This change will facilitate and boost defence investments and conditions for the defence industry, and simplify security and defence procurement.
Parliament and EU governments are working on their positions ahead of negotiations on the legislation.
Simpler and more transparent EU rules on chemicals
These changes would streamline the safety assessments of chemicals across EU legislation by making data related to chemicals more accessible and available. A crucial new tool will be the creation of a common EU data platform which will increase access to key chemical safety information.
MEPs adopted the updated rules on 21 October agreed informally with EU governments. They also agreed to delay rules on classification, labelling and packaging of chemicals.
