Following weeks of speculation, the European Commission has confirmed that it is implementing a ‘Competitiveness Compass’, which aims to address “a persistent gap in productivity growth” between Europe and other major economies.
A key flagship action within the Competitiveness Compass will be the Simplification Omnibus Packages - an “unprecedented simplification effort” that will reshape the landscape for sustainability reporting.
The series of Simplification Omnibus Packages will result in significant changes to the reporting obligations of businesses that operate or have a presence in the European Union, with up to 31,000 companies expected to see substantial impacts.
The Commission has set targets to reduce the reporting obligations by at least 25% for all companies and at least 35% for SME’s and confirmed that it will introduce the first series of ‘Simplification Omnibus Packages’ on the 26th of February 2025 which could reduce reporting requirements and update size thresholds.
As of now, it is unclear how this legislation will be structured, and this is a continuously evolving area which is subject to change.
We have now published an iGAAP in Focus communication which you can now read on IASplus.