The European Commission’s Work Programme for 2025: a path towards simplification

A key pillar of these efforts is the introduction of three Simplification Omnibus packages, set to be released in the first half of 2025. The first Omnibus, expected in the weeks to come, will focus on streamlining sustainability reporting, sustainability due diligence and taxonomy. The second package, planned for adoption in the weeks to come, intends to address investment simplification, while the final proposal, scheduled for the second quarter of 2025, will focus on mid-caps and the removal of paper requirements for SMEs. Additionally, the new Work Programme also sets out a review of the Sustainable Finance Disclosure Regulation (SFDR), with an impact assessment expected for the end of the year.

Beyond simplification, the Commission’s Work Programme also sets the direction for the development of the Savings and Investments Union (SIU), a comprehensive framework to boost competitiveness and foster a deeper integration of EU capital markets. Following the Communication on the SIU currently expected mid-March, the project will start with the release of its first proposal—a review of the European Securitisation Framework—scheduled for Q2. The initiative intends to respond to the objective of unlocking new financing opportunities for the European economy, ultimately boosting the competitiveness of Europe’s financial markets.

In the digital area, the 2025 work programme includes an AI Continent Action Plan and a Quantum Strategy accompanied by a Quantum Act. The former should announce proposals to develop and leverage artificial intelligence via a.o. so-called AI Factories as well as an Apply AI Strategy. Another potentially interesting initiative is the announced launch of a European Business Wallet, meant to simplify business transactions through digitalisation.

On the tax front is to be noted the evaluation of the Anti-Tax Avoidance Directive commonly known as ATAD scheduled in Q4. 

A number of proposals figure on the list of withdrawals including the credit servicers directive, the regulation on sovereign bond-backed securities and a codification of the DAC for which the Commission will come forward with a new proposal including recent changes in the text. The Commission could have withdrawn the FTT proposal that where the negotiations do not seem to have made any significant in years. The Financial Data Access (FIDA) regulation would also have been a good candidate. 

With the first Omnibus package set for release in the weeks to come, the EU’s vision for a more agile and simplified regulatory landscape for the financial services sector will finally begin to take shape.