It was a competitiveness-centred week: responsible ministers met on Monday, 28 September, leading European companies signalled they are ready to invest more in Europe, and the European Parliament failed to agree on the first of six simplifications “omnibus” packages proposed by the European Commission.
During the Council meeting
On Monday (29 September), ministers discussed the simplification packages with industry commissioner Stéphane Séjourné. Governments of the 27 member states agreed that administrative burdens needed to be reduced, and that the omnibus packages are a good place to start. However, they emphasised that new legislative proposals could still impose significant costs on businesses and that the right balance has yet to be found. In particular, the “better regulation” principles – including impact assessments, evaluations, and stakeholder consultations – should be applied more diligently.
Government representatives also debated the European Competitiveness Fund, the Commission’s proposed €409-billion portion of the 2028–2034 EU budget. The ECF would bundle existing expense lines, reduce bureaucracy and accelerate the payout of EU funds to applicants in important sectors from pharma to clean energy. While governments broadly back the fund, it is uncertain what will remain once negotiations wrap up in the summer of 2027. EUobserver reports a clear east–west divide on how to spend the funds, with western states favouring market-based competition while eastern states push for geographical balance in distribution. At the same time, there is the common north–south split on how much to spend, with northern countries advocating budget restraint and southern countries calling for more expansive public investments.
During the Copenhagen Competitiveness Summit
On Tuesday (30 September), leaders of 28 major European companies called on EU leaders “to execute ambitious reforms that foster innovation, investments, technological infrastructure, a clean and just transition, and security.” In return, they committed to invest around 50 per cent more in Europe by 2030. If other large enterprises follow, that could help close the €800 billion annual investment gap identified by Mario Draghi in his competitiveness report last year.
Concretely, the “Copenhagen Pledge” sets out five priorities from CEOs of companies such as Airbus, Siemens, and ASML. First, they call for the Commission’s regulatory burden reduction targets to be met as soon as possible, alongside broader efforts to lower barriers within the European market. Second, they urge incentives for private investment through the proposed European Competitiveness Fund under the new multiannual EU budget, coupled with increased public investment and the creation of a functioning Savings and Investment Union to allow capital to move freely across the EU. Third, they want to accelerate industrial greening and electrification under the Clean Industrial Deal, providing a foundation for affordable energy for industry. Fourth, they call for strengthening the EU’s defence industrial base and shortening delivery times by removing cross-border barriers and deepening cooperation. Finally, they stress the need to invest in and protect technological progress in areas such as AI, quantum computing, digital infrastructure, and connectivity.
During the European Parliament’s political negotiations
In Parliament, meanwhile, it became clear that even the pledge’s first step is contentious: on Tuesday, political groups failed to agree on a common position on the first simplification package. The package covers long-debated reductions in sustainable finance reporting (CSRD) and sustainability due diligence (CSDDD), as well as proposed changes to the EU green taxonomy, the carbon border adjustment mechanism, and European investment programmes. The Christian-democratic EPP, the liberal Renew, and the socialist S&D groups disagreed over how many companies should be exempted from bureaucratic reporting requirements, with the EPP pushing for broader exemptions than those initially proposed by the Commission.
It may set the tone for negotiations on the five other omnibus packages already on the table, with another five expected later this year under the Danish Council rotating presidency. Separately, a working group in the Commission’s internal market department adopted an outline on Tuesday for the next package, which will target bureaucracy relief for the automotive industry.
