Omnibus Overhaul: The EU's Simplification Agenda Unpacked

Set against a general global push towards deregulation, the European Commission's Simplification Agenda has emerged as a driving force of the second von der Leyen Commission (2024-2029). Rooted in the Draghi Report, this aims to streamline EU legislation to boost competitiveness and reduce administrative burdens on EU companies whilst upholding standards, maintaining values, and driving innovation.

This has so far taken the form of several proposals for Omnibus packages. Within the context of EU legislation, an Omnibus package is a measure or set of measures amending a variety of legislative fields towards the goal mentioned above. Six such packages have been presented by the Commission to date, covering the sustainability, investment, agricultural, business, defence, and chemical sectors. More are awaited to cover the remaining policy fields, with packages covering the digital, environmental, and energy sectors expected in the coming weeks.

FiscalNote EU Issue Tracker analysed the Omnibuses announced, as well as those expected to follow soon, identifying the upcoming regulatory changes transversally shaping virtually all industries.

Explore the Commission’s key initiatives to simplify EU policies and the upcoming packages. Learn what’s been achieved so far and what’s next.

Table of Contents

• Omnibus I
• Omnibus II
• Omnibus III
• Omnibus IV
• Omnibus V
• Omnibus VI
• Expected Omnibus VII - Digital
• Expected Omnibus VIII - Environment
• Expected Omnibus IX - Automotive
• Expected Omnibus X - Energy
• Conclusion

Omnibus I

In line with its simplification agenda, on 26 February 2025, the Commission unveiled two packages of measures – Omnibuses I and II – aimed at streamlining EU legislation, boosting competitiveness, and unlocking new investment potential.

Both packages are designed to cut red tape for businesses, particularly SMEs and small mid-caps, while focusing regulatory efforts on larger companies with the greatest environmental impact, and maintaining access to sustainable finance for the green transition.

In this context, the first Omnibus package brings together reforms across several related areas, notably sustainable finance reporting and due diligence to the EU Taxonomy, the carbon border adjustment mechanism, and European investment programmes. Specifically, it includes (i) proposed amendments to the Taxonomy Delegated Regulations, (ii) revisits the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), and (iii) the proposal for a Regulation regarding simplification and strengthening of the carbon border adjustment mechanism (CBAM).

Whilst the legislative process has been concluded regarding amendments to the Taxonomy Delegated Regulations and simplification and strengthening of CBAM, the review of CSRD and CSDDD is ongoing and remains controversial. 

Some of the key goals behind the proposal were to narrow the scope of the Directives so they only apply to companies above 1000 employees, and an optional taxonomy is created for companies with a revenue below 450 million euro under the CSRD; whereas, as part of the reviewed CSDDD, companies do not seek information from direct business partners with fewer than 5000 employees, and implement more measures before the termination of business relationships due to potential or adverse impacts.

The Council of the EU has adopted its mandate for negotiations on the proposal, setting its position to allow trilogue negotiations to start.

On CSRD, the Council would amend the scope to apply to companies with more than 1000 employees and a net revenue of at least 450 million euros, and the optional taxonomy reporting proposed by the Commission would be deleted. 

Regarding CSDDD, the Council would also amend the scope of the Directive to apply only to companies with more than 5000 employees and a turnover above 1.5 billion euros. On the assessment of actual and potential adverse impacts, the Parliament would adopt a risk-based approach rather than an entity-based approach. 

By contrast, whilst the lead Committee adopted its Report setting out the Committee’s position for interinstitutional negotiations, the mandate for negotiations with the Council was rejected by the Plenary. Consequently, MEPs will now need to vote in Plenary on whether to adopt an amended version of the Report, scheduled for 13 November 2025. 

If the text is adopted, the Parliament's position will be set, and trilogue negotiations could begin immediately. Subject to the finalisation of the Parliament’s work, the Institutions aim to conclude the procedure on this proposal before the end of 2025.

Omnibus II

Contextually, the Commission presented the Second Omnibus Package, focused on streamlining EU funding programmes. 

The proposal introduces amendments to instruments such as InvestEU, the EFSI, and other legacy financial tools to boost the EU’s investment capacity by reinvesting returns from previous projects and optimising remaining funds. Furthermore, the measure also seeks to make it easier for Member States to channel support to their own businesses and attract private investment, while reducing administrative burdens for implementing partners, financial intermediaries, and SMEs.

Key elements of the interinstitutional agreement reached on this file include: (i) increasing the size of the EU guarantee by 2.9 billion euro, (ii) facilitating the combined use of InvestEU funds with existing capacity available under three legacy programmes, notably the European Fund for Strategic Investment (EFSI), the Connecting Europe Facility (CEF) debt instrument, and the ‘InnovFin debt facility,’ (iii) amending the definition of ‘SME’ to include a 50 million euro turnover cap, and (iv) reducing the number of indicators that implementing partners need to report for small operations, and reducing the overall scope and frequency of reporting obligations for implementing partners. 

Omnibus III

On 14 May 2025, spurred by the wave of farmers’ protests that swept through Brussels and across Europe, the Commission put forward a set of targeted amendments in the third Omnibus to simplify and modernise EU agricultural legislation, by cutting red tape, eliminating unnecessary overlap, and bringing EU rules closer to the everyday realities of farming.

The package focused on the following aspects of the 2021-2027 Common Agricultural Policy (CAP) framework, in particular:

(i) Promotion of fairer distribution of support, specifically through doubling of the annual lump-sum payment limit for small farmers from €1,250 to €2,500. This is designed to foster a more balanced aid provision and boost the economic sustainability of rural regions, while reducing the administrative burden on farmers and authorities. Farmers benefiting from this scheme will also be exempt from certain environmental regulations, but will still qualify for payments that encourage environmentally friendly farming methods.

(ii) Adjustment of environmental rules to better reflect diverse farming conditions and to prevent overlap with existing national measures, in particular certified organic farms and those protecting peatlands and wetlands under GAEC 2. 

(iii) Simplification of crisis management, giving national administrations faster and clearer procedures to support farmers hit by natural disasters and animal diseases. Additionally, competitiveness and digitalisation will be enhanced thanks to new funding options and the deployment of interoperable digital systems. 

The legislative process is progressing quickly on these files, with an aim of adoption of the new rules by the end of the year. 

Furthermore, the Commission is expected to come forward in the coming months with a complementary Omnibus on Plant Protection Products, which would streamline legislation on plant protection products by addressing the declining availability of efficient plant protection products and accelerating market access for biopesticides. 

Omnibus IV

On 21 May 2025, the Commission presented a fourth Omnibus package to make the Single Market more open and competitive, without compromising on consumer or environmental protection, by cutting compliance costs, clarifying and streamlining EU rules, strengthening opportunities for SMEs and small mid-caps, and fostering greater trust and compliance between businesses and consumers.

In particular, the package put forward measures on:

(i) Supporting small mid-caps: The proposals for a Regulation and a Directive aim to allow certain measures available to small and medium-sized enterprises (SMEs) to also be available for small mid-caps (SMCs). Notably, they (i) address record keeping obligations under the GDPR, (ii) simplify access to trade defence for SMEs, (iii) simplify F-gases, and (iv) change the application of certain other measures with regard to SMEs.

(ii) Digitalising product legislation and establishing common specifications:  In order to amend a number of Regulations and Directives concerning digitisation and common specifications across a number of fields, the Commission presented proposals for both a Regulation and a Directive. These are expected to apply even in cases where harmonised standards are not available, thereby offering greater legal certainty, reducing costs and enhancing competitiveness. Another important aim is to allow businesses to fulfil regulatory obligations digitally, rather than relying on paper-based procedures.

(iii) Postponement of battery due diligence requirements: the deadline for economic operators to comply with due diligence requirements regarding verification, management, risk management, and information disclosure was extended to August 2027. Furthermore, the Commission will publish complementary guidelines by July 2026. 

Omnibus V

Further to its objective of strengthening the EU Defence Industry and delivering on the actions and goals outlined in the White Paper for European Defence - Readiness 2030, on 17 June 2025, the Commission unveiled a fifth omnibus package on Defence setting out a comprehensive suite of measures designed to assist EU Member States and defence industry in scaling up military capabilities and infrastructure to a level commensurate with the demands of high-intensity conflict preparedness and deterrence.

The initiative - which includes: (i) a proposal for a Directive as regards the simplification of intraEU transfers of defence-related products and the simplification of security and defence procurement, (ii) a proposal for a Regulation on the acceleration of permit-granting for defence readiness projects, (iii) a proposal for a Regulation on defence readiness and facilitating defence investments and conditions for defence industry, and (iv) a Communication aiming to reduce regulatory complexity, encourage greater investment, and provide industry with increased predictability, whilst also improving access to EU funding mechanisms.

Therefore, placing European sovereignty, peace, and resilience at the heart of future security policy, and ensuring the continent is better prepared to shield its citizens from both conflict and broader global risks, the initiative underscores the urgent need to cultivate a strategic mindset, build military resilience, and significantly bolster capabilities by 2030, proposing the following key reforms:

(i) Facilitated Defence Procurement: The proposed Directive on the simplification of intra-EU transfers of defence-related products and the simplification of security and defence procurement will promote joint procurement among Member States and propose higher contract thresholds, aiming to expedite the cross-border movement and acquisition of defence products within the Union. In particular, the proposed Directive, aiming to address the pressing issue of defence investment gaps by aligning the regulatory framework to the efforts needed in the field, would simplify measures to remove barriers, speed up defence procurement, transfer defence-related products within the EU, and improve European defence readiness and industry.

(ii) Accelerated Permitting for Defence Projects: Through the proposed Regulation on the acceleration of permit-granting for defence readiness projects, a fast-track authorisation regime will be introduced, reducing permitting procedures, which currently span several years, to a maximum of 60 days. Additionally, each Member State will be expected to establish a Single Point of Contact to support and guide the defence industry through national administrative processes.

(iii) Streamlined Defence-related Investments Procedures: The proposed Regulation on defence readiness and facilitating defence investments and conditions for the defence industry is expected to reduce the administrative burden on EDF applicants and participants significantly. This would improve the overall efficiency of the programme, and the Omnibus facilitates the enhanced involvement of Ukrainian entities within EDF-supported projects. 

Furthermore, on the same day, the Commission presented a complementary “Mini Defence Omnibus”, a proposal for a Regulation amending several budget-related measures to introduce changes to the EU’s financial programmes and facilitate faster investments in Europe's defence technological and industrial base (EDTIB). The measure would also support the defence Readiness 2030 and help implement the ReArm Europe plan. The text broadened the scope of programmes to include defence-related investments, especially in products and technology.  

Omnibus VI

Often considered a key strategic field, the Chemicals’ legislative framework is also undergoing a simplification process. In this context, in July 2025, the Commission put forward the first part of the sixth Omnibus package, including a (i) proposal to simplify certain rules for chemical products and (ii) a “stop-the-clock” measure.

The first proposal mainly aims to change Union rules on the classification, labelling and packaging of chemicals, on cosmetics and fertilisers, as well as to update these provisions to include mentions of digitalisation.

In particular, the proposed changes would include simplified requirements for small packaging and labelling formatting and significant changes to advertisement rules, focusing especially on the new rules brought by the revision of the EU’s rules on the classification, labelling and packaging of chemicals, which entered into force in December 2024. 

Furthermore, the Commission proposed amendments to the rules governing cosmetic products, particularly by easing provisions relating to substances classified as carcinogenic, mutagenic, or toxic for reproduction (CMR substances). Under the revised approach, the presence of certain CMR substances would no longer automatically trigger a restriction; instead, the Commission would be required to seek an opinion from its internal Scientific Committee.

Concerning the rules on fertilisers, the Commission proposed to remove the extended substance registration obligations, thereby ensuring that only the standard requirements laid down under the EU’s principal chemicals legislation, REACH, would apply, while also being empowered to establish, through Delegated Acts, the criteria and methodology necessary for the assessment of micro-organisms.

The “stop-the-clock” proposal, which gained the support of the co-legislators, would pause the application of the changes brought by the revision of the EU’s rules on the classification, labelling and packaging of chemicals. 

Aside from these proposals, the Commission is also expected to present a revision of the REACH Regulation, the EU’s main chemical legislation, as part of the Commission’s simplification efforts. However, the timeline of this revision is unclear, as the Commission is facing internal hurdles.  

Expected Omnibus VII - Digital

Arguably one of the most closely watched regulatory developments of the year, the forthcoming  Digital Omnibus - scheduled for 19 November - marks a significant step towards the consolidation of the European Union’s digital regulatory architecture. As indicated by recent disclosures, the initiative is expected to set out a coherent and comprehensive strategy designed to address a wide array of regulatory inconsistencies and operational frictions that have increasingly challenged both compliance efforts and market integration. The package is anticipated to encompass targeted measures relating to: (i) the so-called data acquis, including the Data Governance Act, the Free Flow of Non-Personal Data Regulation, and the Open Data Directive; (ii) the rules governing cookies and other tracking technologies as established under the ePrivacy Directive; (iii) cybersecurity-related incident and breach reporting obligations; (iv) the practical application and cross-cutting interpretation of obligations stemming from the AI Act; and (v) various elements concerning electronic identification and trust services, particularly within the framework of the evolving European Digital Identity ecosystem. By addressing these interlinked areas through a unified legislative lens, the Commission appears poised to reduce fragmentation, enhance legal clarity, and ultimately enable a more integrated and innovation-conducive digital single market.

Within the domain of data legislation, the primary obstacle confronting businesses arises not merely from the fragmented and outdated nature of the current regulatory framework, but from the cumulative effect of its inconsistencies, which, by failing to accommodate the operational realities of small and mid-cap enterprises, impose disproportionate compliance burdens. Although certain legislative instruments contain provisions ostensibly aimed at supporting SMEs, the continued application of the full acquis to firms with limited legal and technical capacity has created a regulatory landscape in which obligations frequently exceed available resources. By addressing this legislative “cliff edge” and introducing greater clarity – particularly in relation to data-sharing protocols and the deployment of tracking technologies – it becomes possible not only to reduce interpretative ambiguity and mitigate the phenomenon of consent fatigue, but also to foster an environment in which data accessibility and responsible innovation can be more readily pursued.

In the cybersecurity space, the proliferation of reporting requirements - stemming from multiple EU-level instruments and their often inconsistent national transpositions - has resulted in a regulatory architecture that, while well-intentioned in its pursuit of high security standards, has imposed a substantial administrative burden on organisations striving to maintain compliance across jurisdictions. Given the extent to which stakeholders have expressed concern over the duplicative nature of incident and breach reporting obligations, there is a growing consensus that a more rationalised and streamlined approach is urgently required. The ongoing review of the Cybersecurity Act, which includes consideration of risk management requirements, represents a critical juncture at which meaningful simplification may be introduced without compromising the overarching objective of maintaining a robust security posture.

As regards the implementation of the AI Act, the forthcoming phase is expected to focus not only on the enforcement of newly adopted provisions but also on establishing a coherent interpretative framework that provides legal certainty to enterprises operating in a rapidly evolving technological landscape. Through sustained engagement with both Member States and industry stakeholders, the initiative aims to ensure that small and mid-cap firms - often at the forefront of AI innovation, yet disproportionately affected by regulatory complexity - are equipped with the tools and guidance necessary to navigate their obligations effectively. At the same time, alignment with adjacent legislative instruments will be critical in order to prevent regulatory overlap and to support a unified approach to digital governance across the internal market.

Finally, within the broader scope of the Digital Omnibus, there exists a significant opportunity to achieve reductions in compliance costs - particularly for businesses engaged in cross-border digital activity - without eroding regulatory standards. By enhancing legal clarity for key actors within the European Digital Identity Framework, and by aligning forthcoming instruments such as the European Business Wallet with existing legislative infrastructures, the initiative stands to create a more streamlined, interoperable, and business-friendly digital environment, one in which regulatory certainty and innovation are mutually reinforcing rather than mutually exclusive.

Expected Omnibus VIII - Environment

The Commission is expected to present an Omnibus on Environment on 3 December. While precise information on the expected content is still awaited, it is likely that the initiative will focus on reducing administrative burdens in circularity, industrial emissions, and waste, and will address permitting challenges related to environmental assessments, as well as decarbonisation projects. In particular, it is expected that the Omnibus will cover provisions under the Packaging and Packaging Waste Directive and the Industrial Emissions Directive.

Nonetheless, feedback gathered from stakeholders revealed that, while businesses called on the Commission to provide realistic goals, timelines, and one-stop-shop systems for its policies, as well as to promote harmonisation and digitalisation, NGOs and EU citizens expressed great concern about the prioritisation of simplification over environmental protection. 

Expected Omnibus IX - Automotive

Shortly after the presentation of the package on environment, the Commission is scheduled to present an Automotive Omnibus on 10 December to improve the coherence and consistency of the current automotive regulatory framework, without making any horizontal legislation changes.

Specifically, the Omnibus would exempt electric vans between 3.5 and 4.25 tonnes from existing obligations on tachographs and speed limitation devices to improve their competitiveness vis-à-vis diesel alternatives, as well as explicitly stating the possibility for national exemptions on the installation of smart tachographs in large motorhomes.

In addition, the Automotive Omnibus will focus on reducing testing burdens and costs imposed by the Euro 7 Regulation on light and heavy-duty vehicles, aiming to avoid unjustified additional testing for manufacturers by making requirements more consistent with existing procedures. Similarly, the Commission has identified potential duplication of testing on noise emissions between EU and UN standards as a potential issue to be addressed by the proposal.

Moreover, increased flexibility for moped, motorcycle, and quadricycle manufacturers is envisaged regarding end-of-series requirements. In this context, an alternative calculation method would be introduced, allowing the application of the exemption to a nearly unlimited number of vehicles in stock, provided a valid Certificate of Conformity was issued at least three months before the entry into application of the new type-approval requirements.

Incorporating a supportive legislative framework for the expected initiative on small affordable electric vehicles, the Automotive Omnibus will address the concerns of vehicle manufacturing stakeholders in the context of the double green and digital transitions. Its adoption at the end of the year will take strong regulatory action for the competitiveness of the European automotive industry.

Expected Omnibus X - Energy

As part of the effort to establish a genuine Energy Union by improving its governance, removing existing bottlenecks, cutting red tape for cross-border energy projects, and boosting electrification, the Commission is planning a simplification package to reduce administrative barriers in the energy sector for the second quarter of 2026.

The expected Energy Omnibus would introduce an enabling framework to secure the EU's competitiveness and sustainability, accelerate permitting processes, facilitate the deployment of energy projects, and advance the EU’s ‘green transition’. 

In particular, the Commission emphasised that the upcoming package would focus mainly on energy product legislation, without altering or undermining existing policy objectives embedded in EU environmental and energy legislation. Furthermore, the initiative would address current permitting challenges, particularly those associated with environmental assessments, to expedite procedures for renewable energy projects, thereby focusing on the implementation of the Renewable Energy Directive and its amendment.

Conclusion

The end of 2025 and 2026 will be a key period for the EU’s digital, environmental, automotive, and energy sectors. A now permanent feature of the European regulatory environment, the recently announced Taxation and Citizens Omnibuses also notably illustrate the initiatives’ expanding scope.

Therefore, with no abatement of the need to simplify EU legislation, Omnibus packages are expected to continue to characterise the work undertaken by the second Von der Leyen Commission moving forward.

FiscalNote’s EU policy intelligence platform, EU Issue Tracker (EUIT), offers a comprehensive database of all key EU Omnibus packages, 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 summarise each dossier, explain the latest developments, highlight how proposals amend existing regulations, and provide analysis on committees, stakeholders, and future timelines. 

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