18 December 2024

Accountancy Europe: 10 principles for policymakers to reduce administrative burdens for companies

A key and immediate priority of the second Von der Leyen Commission is to act on the simplification and administrative burden reduction agendas. For example, the ‘omnibus package’ is expected already for 26 February 2025.

It is indeed essential to identify effective measures and eliminate unnecessary requirements to help businesses and SMEs thrive whilst supporting the EU’s strategic objectives. At the same time, the ambitious policy objectives, including EU’s climate objectives that aim to preserve our planet and environment for future generations, should not be compromised.

The Commission and its civil servants, European Parliament and the Council together fulfil a crucial and legitimate role in enacting legislation that provides for citizens, businesses and the environment. But the EU’s law-making process can be understandably complex and multi-layered, which can sometimes lead to suboptimal legislative outcomes.

Accountancy Europe is therefore pleased to share below recommendations for policymakers to ensure that the expected reforms on simplification and administrative burden reduction are genuine and impactful for businesses.

Define clear scope and objectives for simplification

Simplification and reducing administrative burdens should not be limited to political or quantitative targets, such as a 25% reduction in burdens — especially when the measurement and definition of such targets remain unclear. We encourage the European Commission and co-legislators to clearly articulate their primary objectives for simplification.

Reducing administrative burdens on companies goes beyond cutting red tape and streamlining requirements. It will be equally important to address inconsistencies in how EU rules are transposed and interpreted. Public authorities and enforcement bodies should also have adequate resources, training, and technology to monitor and support the application of legislation. Moreover, clear and simple legislation should be predictable and consistent. And whilst certain well-intentioned measures such as guidance and guidelines aim to support companies in interpreting rules, an over-reliance and over-production of these may likewise lead to further uncertainty and complexity, especially when made available very close to compliance deadlines.

Focus on practical objectives over political considerations

For the burden reduction proposals specifically, the Commission should prioritise legislative integrity and consider withdrawing proposals if excessive complexity or significant deviations from the original intent of simplification are introduced in the legislative process. This ensures that initiatives aimed at reducing administrative burdens achieve their objectives. Practical, real-world needs and impact assessed solutions should take precedence over short-term political considerations that may lead to unnecessary complexity often requiring additional future revisions.

Make simplification an ongoing process...

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