The Simplification Omnibus and the Rule of Law: Undermining Corporate Sustainability in the EU and Beyond?
The European Union has historically been a pioneer in sustainability regulation, leading the way with groundbreaking initiatives like the Corporate Sustainability Due Diligence Directive (CSDDD), the Corporate Sustainability Reporting Directive (CSRD), and the EU Taxonomy. These measures aim to promote responsible corporate conduct setting a precedent for other nations. However, this leadership is now under threat. [...]
This blog post will address the central question: Does the Simplification Omnibus process undermine the rule of law in the EU by weakening legal certainty, democratic legitimacy, and corporate accountability? What are the implications for EU candidate countries? [...]
Conclusion
The Simplification Omnibus weakens EU sustainability governance and raises serious rule of law concerns. By prioritizing short-term competitiveness gains over long-term sustainability objectives, the EU risks undermining its credibility, harming the environment both within and beyond its borders, and compromising human rights – particularly for non-EU citizens who rely on these laws to hold EU companies accountable.
Just as Governor Miller claimed nearly 200 years ago, “Slavery is not a national evil; on the contrary, it is a national benefit,” we now hear similar arguments in the European Parliament, suggesting that competitiveness and economic growth should take precedence over the protection of human rights and the environment.
I argue that these changes weaken EU sustainability governance, contradict the EU’s commitment to sustainability, human rights, and global corporate accountability, and raise serious rule of law concerns. Beyond its borders, the Simplification Omnibus also poses challenges, especially for EU candidate countries, which are working to align their laws and policies with those of the EU. Greater legal safeguards, parliamentary scrutiny, and civil society engagement are essential to prevent further regulatory backsliding. The EU must reaffirm its commitment to the rule of law and ensure that sustainability policies are developed in a transparent, inclusive, and accountable manner.