European Commission Unveils 2025 Work Programme with Focus on Deregulation and Competitiveness

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The European Commission has outlined its 2025 work programme, emphasizing simplification of EU regulations, reducing corporate bureaucracy, and strengthening economic resilience. The initiative comes amid growing calls to ease regulatory burdens on businesses, particularly small and medium-sized enterprises (SMEs), and follows major reports highlighting the EU’s lagging competitiveness.

The Commission aims to cut corporate reporting obligations by 25% across all businesses and by 35% for SMEs, potentially saving companies €37.5 billion. The plan includes 11 legislative proposals to streamline regulations, with a focus on environmental rules, sustainable finance reporting, and simplifying permit-granting procedures under the proposed Industrial Decarbonisation Accelerator Act.

Boosting Business and Security Amid Deregulation Push
The programme’s priorities are influenced by reports from former European Central Bank (ECB) President Mario Draghi and former Italian Prime Minister Enrico Letta, which both highlighted the urgent need for a more competitive EU single market. Security and defence will also feature prominently, with the long-awaited White Paper on European Defence expected in March.

The Commission announced a series of “reality checks”, where businesses and stakeholders will provide feedback on regulatory hurdles to help refine EU laws.

Irish officials welcomed the focus on simplifying corporate regulations, particularly concerning the European Green Deal, which some argue has created onerous reporting burdens for SMEs.

Criticism from Environmental Groups
The move towards deregulation has sparked backlash from environmental organisations.

Greenpeace EU campaigner Ariadna Rodrigo accused the Commission of prioritizing corporate interests over environmental and social protections, stating:

“This Commission plan only helps Europe’s shareholders to be competitive, at the expense of prosperity, green jobs, and a healthy environment for ordinary people.”

Despite these criticisms, the Commission insists that environmental sustainability remains a core focus, with initiatives like the Clean Industrial Deal, the successor to the European Green Deal, set to help industries remain competitive while meeting net zero targets.

Housing Left Out of the Legislative Agenda
One notable omission from the 2025 work programme is housing, which disappointed several policymakers, including Fine Gael MEP Regina O’Doherty. She expressed frustration over the lack of a clear Affordable Housing Action Plan, despite earlier indications that housing would feature prominently.

“We’re not looking for EU funding, but we need to tackle regulations that hinder homebuilding. Without real action, the role of a Commissioner for Housing could become meaningless,” she warned.

While housing is not traditionally an EU competence, the portfolio now falls under Danish Commissioner Dan Jørgensen. The Commission has committed to developing an affordable housing initiative in 2026, coinciding with Ireland’s EU presidency.

Other Key Legislative Priorities
Other major legislative efforts for 2025 include:

The Affordable Energy Action Plan, aimed at stabilizing energy prices.
A new framework for returning irregular migrants, an issue that has stalled since 2018.
The start of negotiations on the EU’s long-term budget, set to take effect in 2028.
With major budgetary constraints ahead—including repayments from the Covid-19 recovery fund and rising defence spending—negotiations are expected to be complex, with Ireland playing a key role when it takes over the EU presidency in late 2026.

Leadership Changes and Strategic Direction
The work programme was initially scheduled to be presented in Strasbourg by Commission President Ursula von der Leyen but was instead announced by Trade Commissioner Maroš Šefčovič, as von der Leyen remained in Brussels handling trade tariff discussions.

The roadmap for 2025 underscores the Commission’s balancing act—ensuring economic growth and competitiveness while managing political pressure on climate regulations, migration, and housing. With European Parliament elections looming, the Commission’s actions in the coming months could significantly shape the EU’s economic and political landscape.

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