Omnibus Unpacked: The Latest on the EU’s Simplification Agenda

The European Commission's Simplification Agenda has emerged as a driving force of the second von der Leyen Commission (2024-2029). These efforts have taken the form of several legislative proposals, known as the Omnibus packages, which impact virtually all policy areas and industries.

Taking stock from the previous report, Omnibus Overhaul: The EU's Simplification Agenda Unpacked, FiscalNote EU Issue Tracker analysed and provided a state of play of the Commission’s key initiatives to simplify EU policies. 

Key takeaways

• Three major Omnibus packages are almost or fully completed: Omnibus I on Sustainability and Simplification of the CBAM, Omnibus II which increased the EU guarantee and simplified reporting for investments, and Omnibus III which granted flexibility on environmental rules and streamlined support for small farms. 
   
• Legislative work is ongoing across a wide range of critical policy areas, including: Digital Policy and AI, Defence, Environmental and Chemical policy, among others
   
• Further proposals are expected in 2026 concerning Energy-efficient Product Legislation, a Citizens’ Omnibus package, and Taxation. 
   

Omnibus I - Sustainability and Simplification of the CBAM

The first Omnibus aimed to reduce reporting burdens for businesses by at least 25%, and to lower compliance costs. It includes three legislative proposals, and one regulatory measure.

The first piece of legislation, Directive (EU) 2025/794, delays the requirement for certain large undertakings to begin reporting under EU legislation on corporate sustainability reporting and due diligence requirements to either July 2028 or July 2029.

Regarding the Carbon Border Adjustment Mechanism (CBAM), the second legislative text sets a ‘de minimis exemption’, implements new rules regarding paying for carbon credits in third countries, and simplifies the calculation of embedded emissions.

The regulatory measure under this package amends several other measures which supplement the Taxonomy Regulation. The text introduces a 10% materiality threshold before assets need to be Taxonomy-aligned, and simpler reporting templates.

The last proposal also amends EU rules on corporate sustainability reporting and due diligence. The agreed text greatly reduces the number of companies that need to report, sets voluntary sustainability reporting standards for small firms, and requires less stringent investigations into principal adverse impacts (PAIs).

The first three texts have already entered into force. The remaining  proposal on corporate sustainability reporting and due diligence will require the formal approval of the Council before the text is published in the EU Official Journal.
 

Omnibus II - InvestEU

The Omnibus II package which entered into force on 24 December 2025 addressed the investment gap, particularly in green energy, digitalisation, defence, housing, and infrastructure, and administrative burdens and reporting requirements that have slowed the implementation of projects.

Key changes included an increase of €2.9 billion in the EU guarantee and simplification of reporting requirements, especially for SMEs and projects under €300,000.

The new Regulation strengthened support for clean energy and climate transition, defence and security supply chains, and affordable and social housing. It also introduced a new InvestEU financial instrument, allowing Member States to contribute funds more flexibly, including in non-euro currencies.
 

Omnibus III - CAP

The third omnibus which aimed to simplify the Common Agricultural Policy (CAP) by providing flexibility on environmental requirements, reducing bureaucracy, streamlining support for small and medium-sized farms, boosting competitiveness, and enhancing access to financial tools was completed in 2025.

The Commission presented the proposal in May 2025 to respond to the recurring protests decrying the challenging conditions facing farmers that took place throughout the EU. The proposal was adopted quickly, as both the European Parliament and the Council prioritised simplifying EU rules to reduce burdens on farmers and the agricultural sector.

The final text that was negotiated by the co-legislators focused on the following issues:

• Modification of environmental rules to allow arable land classified as arable by 1 January 2026 to keep its status even if it has not been ploughed up, tilled, or reseeded, and eases good agricultural and environmental condition (GAEC) rules for organic farms.
• Adjustment of inspection requirements by only subjecting farmers to one on-site inspection per year and removing the annual performance clearance procedure that verified whether Member States’ CAP spending matched the performance results they had reported.
• Supporting small farms by setting the ceilings for annual aid to up to €3,000 and establishing a new one-off payment for business development of up to €75,000.
• The Commission projected that the Regulation could provide savings of up to €1.6 billion annually for farmers and more than €210 million for national administrations.

Omnibus IV - Digitalisation and Small and Mid Caps (SMCs)

On 21 May 2025, the Commission presented a fourth Omnibus package designed to enhance growth and competitiveness in the Single Market, while maintaining robust consumer and environmental protections. The package focuses on cutting red tape, simplifying EU rules, supporting SMEs and small mid-caps, advancing digitalisation, and strengthening trust and compliance across the market.

The Commission proposed two pieces of legislation to extend selected SME benefits to small mid-cap companies (SMCs). These measures aim to:

• ease GDPR record-keeping obligations,
• simplify requirements related to F-gases,
• improve access to trade defence instruments, and
• adjust the application of certain SME-related provisions

Both proposals are currently under examination in the European Parliament. With the Council having already adopted its negotiating mandates, trilogue negotiations are expected to follow once the Parliament finalises its position.

Other legislative proposals under the Omnibus package seek to modernise product legislation by enabling digital compliance and introducing common specifications, including where harmonised standards are unavailable. These files are progressing through the Parliament, with trilogues anticipated in March or April 2026.

The deadline for economic operators to comply with due diligence obligations relating to verification, governance, risk management and information disclosure has been deferred to August 2027. In addition, the Commission is expected to issue supplementary guidance by July 2026.
 

Omnibus V - Defence Readiness

The Defence Omnibus package sets out a comprehensive framework to support EU Member States and the European defence industry in scaling military capabilities and infrastructure to meet the requirements of high-intensity conflict preparedness and deterrence. 

The legislative proposals are currently subject to interinstitutional negotiations, with the first trilogues held on 26 January 2026. While the timetable for subsequent rounds has yet to be confirmed, agreement across all files is anticipated in the coming weeks, potentially by the end of the first quarter of 2026.

Centred on European sovereignty, peace and resilience, the initiative signals a strategic shift towards strengthening defence capabilities by 2030, notably by advancing joint procurement and higher thresholds to accelerate cross-border acquisitions, introducing a fast-track permitting regime with 60-day authorisation deadlines and mandatory Single Points of Contact in each Member State, and streamlining defence-related investment procedures under the European Defence Fund, including enhanced participation by Ukrainian entities.

In parallel, the “Mini Defence Omnibus” (Regulation (EU) 2025/2653), in force since 23 December 2025, amends EU financial programmes to accelerate defence investments and support Readiness 2030 and the ReArm Europe plan by extending eligibility to defence-related products and technologies.
 

Omnibus VI - Simplification for chemicals legislation

The sixth Omnibus package aims to simplify rules for the classification, packaging, and labelling of chemical products, as well as those concerning cosmetics and fertilisers. This package also included a text that postponed the application of certain new rules introduced by the recent revision of Classification, Labelling and Packaging (CLP) Regulation to 2028.

A central point of discussion in the sixth Omnibus is the planned exemption for certain substances classified as carcinogenic, mutagenic, or toxic for reproduction (known as “CMR substances”) used in cosmetics under the Cosmetic Products Regulation.

While the Council has already established its negotiating position, proposing notably the removal of this exemption, the European Parliament is still defining its position on the file. Other key issues highlighted in recent debates in the Parliament include labelling requirements, readability, and compliance with the CLP Regulation.

Consequently, the upcoming legislative negotiations between the two institutions are expected to heavily focus on the proposed exemption for certain CMR substances in cosmetic products, where questions remain regarding whether this exemption will be changed or removed.
 

Omnibus VII - Digital Simplification Package

The seventh Omnibus package on Digital, presented on 19 November 2025, comprises two legislative proposals: a Regulation on the “Digital Omnibus” (or “Data Omnibus”) and a Regulation establishing a “Digital Omnibus on AI.”

The Digital Omnibus aims to simplify the EU’s digital legislative framework by streamlining cybersecurity reporting, fostering a more innovation-friendly privacy regime while safeguarding fundamental rights under the GDPR, modernising cookie rules to enhance users’ online experience, and improving access to data. 

In relation to cybersecurity, the proposal introduces a single reporting entry point enabling companies to comply with incident-notification obligations under multiple frameworks, including the NIS2 Directive, the GDPR, and DORA.

Enhanced access to data would be pursued through the consolidation of EU data legislation under the Data Act, targeted exemptions for SMEs and SMCs, new compliance guidance through model contractual terms, and improved access to high-quality datasets for European AI developers.

The European Parliament and Council have both started their internal processes to define their respective position on the file. 

As regards the proposal for a Digital Omnibus on AI, the proposed measure sets out targeted amendments to the AI Act among others to ensure the EU’s AI framework is clear, proportionate and innovation-friendly:

• Revises the timetable for high-risk AI requirements, allowing a maximum of 15 months before application to ensure companies have access to necessary compliance tools.
• Strengthens the AI Office and centralises oversight of general-purpose AI systems.
• Expands opportunities for regulatory sandboxes and real-world testing.
• Complements AI Act measures by integrating high-risk AI requirements into aviation safety rules for sectoral coherence.

Work on the file is progressing swiftly, with the aim of reaching an interinstitutional agreement by May 2026, in line with the AI Act’s approaching deadlines.

In the European Parliament, legislative work highlighted the need to postpone the application of the AI Act to ensure that standards, guidelines, and compliance frameworks are fully prepared. It also emphasises targeted measures on AI literacy, bias mitigation, oversight, cybersecurity, and sandboxes, aiming to strike a careful balance between ambition, legal certainty, and practical readiness.

Council discussions are advancing in parallel. The Cyprus Presidency has proposed a compromise text establishing a fixed timeline for high-risk AI obligations, removing early application, and introducing a simplified registration procedure for borderline high-risk systems. It also seeks to refine the AI Office’s powers, set cooperation and enforcement procedures, and impose binding AI literacy requirements for providers and deployers, while tightening conditions for processing sensitive data.

Based on the Parliament and Council positions, interinstitutional negotiations are then expected between late March and early April.

Omnibus VIII - Environment

The Environmental Omnibus was presented on 10 December 2025, and consisted of six legislative proposals.

1. A proposal for a Regulation that would simplify and accelerate procedures for environmental assessments linked to permit-granting through the establishment of single points of contact, digitalisation of processes, and fast-tracking assessment timelines. Additionally, it would introduce a toolbox of accelerating measures for strategic sectors and for projects supporting decarbonisation and resource efficiency.
2. A proposal for a Regulation simplifying certain requirements and reducing administrative burdens in the Batteries and Waste Batteries Regulation by clarifying labelling requirements for batteries containing substances of very high concern, and ensuring LMT battery packs are removable and replaceable from a module level. It would also amend the Industrial Emissions Portal Regulation by exempting livestock and aquaculture operators from some reporting requirements, which would be fulfilled by Member States instead.
3. A proposal for a Directive reducing the administrative burden regarding four Directives on waste and industrial emissions. It would repeal the SCIP database for substances of concern, harmonise EPR reporting under the Waste Framework Directive, and ensure a single environmental management system (EMS) for installations under the same operator for the Industrial Emissions Directive.
4. A proposal for a Regulation suspending until 1 January 2035 the application of the rules on the appointment of an authorised representative for extended producer responsibility for several battery-related Regulations.
5. A proposal for a Directive pausing the application of the rules on the appointment of authorised representatives for extended producer responsibility (EPR) for the Waste Framework Directive, the Waste Electrical and Electronic Equipment Directive, and the Single Use Plastics Directive.
6. A proposal for a Directive amending the INSPIRE Directive eliminating technical data requirements,ensuring obligations are harmonised with the current legislative framework, while limiting double reporting requirements and ensuring spatial data is integrated into an open data portal.

Debates in the European Parliament highlighted the lack of an impact assessment, potential consequences on citizens' health, the impact on already compliant companies, and the need for further simplification of deforestation and water rules. In parallel, Council experts have begun examining the Commission’s proposals.
 

Omnibus IX - Automotive

Presented on 16 December 2025 as a legislative package, the Automotive Omnibus proposals aims to improve the coherence and consistency between regulatory requirements to save businesses and national administrations approximately €706 million per year.

Specifically, the Omnibus consists of a proposed Regulation and Directive The former would exempt certain vehicles from rules regarding driving times and speed limitation devices. Similarly, the latter would exempt N2 category electric vehicles with a maximum mass between 3.5 and 4.25 tonnes from the requirement to be equipped with a speed limitation device.

The proposal for a Regulation Regulation would most notably limit ‘small electric vehicles’ to a maximum defined length of 4.2 metres. Directly stemming from Commission President Ursula von der Leyen’s 2025 State of the Union, the initiative seeks to enhance the uptake of small affordable electric cars in the EU.

Since the presentation of the Automotive Omnibus, technical work has begun within the Council, and the European Parliament will  also start working on this file in the near future. At present, the adoption of the Omnibus proposals is tentatively expected to take place by early 2027.

Omnibus X - Food and Feed Safety Requirements

To further its objective of simplifying and clarifying regulatory requirements for plant protection products, biocidal products, feed additives, food hygiene, and official controls, the Commission presented the tenth omnibus package on food and feed safety on 16 December 2025.

The initiative consists of (i) a proposal for a Regulation as regards the simplification and strengthening of food and feed safety requirements, (ii) a proposal for a Directive as regards the simplification and strengthening of food and feed safety requirements, and (iii) a proposal for a Regulation as regards the extension of certain data protection periods for biocidal products. 

The package aims to streamline the EU’s food and feed safety framework by speeding up market access for bio-pesticides and fermentation products, making pesticide and biocide renewal procedures more efficient, allowing unlimited authorisations for certain feed additives, allowing aerial spraying of pesticides under specific conditions, and updating bovine spongiform encephalopathy surveillance and risk mitigation requirements.

The Council has begun examining the proposals in the package in January, while work in the European Parliament is expected to pick up pace in the coming weeks once the Rapporteurs are selected.
 

Expected Omnibus - Energy-efficient Product Legislation 

The Energy-efficient product legislation Omnibus, currently scheduled for presentation in the second quarter of 2026, will aim to overhaul the EU frameworks for energy labelling and the labelling of tyres.

In February 2026, the Commission provided an initial glimpse at the areas targeted by the upcoming simplification.

On energy labelling, changes are expected to focus on simplifying obligations related to printed energy labels and product information sheets, among others. The Commission aims to better integrate digital solutions, particularly for online sales, while maintaining consumer access to reliable energy performance information.

Modifications of rules concerning the labelling of tyres will primarily seek to streamline adaptation of labels to technological developments, set clearer online display requirements, and establish measures to address low compliance rates. The proposal would also seek to clarify responsibilities among manufacturers, retailers and intermediaries to support more effective market surveillance without weakening existing consumer protections. 

Expected Omnibus - Citizens

The Commission confirmed its intention to present Citizens’ Omnibus in the fourth quarter of 2026. However, the scope of the measure is yet to be defined, as the Commission did not share any insights into the content of the file as of yet. Nevertheless, it is expected that this Omnibus will focus on social issues or the labour market.

Expected Omnibus - Taxation

The Commission announced its intention to present a new omnibus on taxation by mid 2026, which would focus on streamlining and clarifying the five corporate tax Directives. Based on feedback from studies and stakeholders, the corporate tax Directives have led to a fragmented EU landscape due to differing transposition of norms.

Some policy options proposed by the Commission would include eliminating outdated and overlapping tax rules, simplifying and clarifying elements of the existing tax legislation, or improving the application of tax rules. However, more specific amendments will only be known once the Commission presents this omnibus proposal. 

Conclusion

2026 will be a key year for the EU’s simplification agenda and omnibuses. EU policymakers will work on legislative proposals in key areas such digital, environmental, defence, transport and energy policy.

FiscalNote’s EU policy intelligence platform, EU Issue Tracker (EUIT), offers a comprehensive database of all key Omnibus proposals, from the earliest signs of potential legislative action to hotly debated and adopted measures.

Our comprehensive platform combines cutting-edge technology with analysis from our expert team in Brussels, who summarize each dossier, explain the latest developments, highlight how proposals amend existing regulations, and provide analysis on committees, stakeholders, and future timelines.