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European Commission proposes measures to reduce administrative costs for small and medium-sized companies

2025-05-25 16:43:00, Ekonomi CNA

European Commission proposes measures to reduce administrative costs for small

The European Commission has proposed new measures to save EU companies an additional €400 million in annual administrative costs. With a new category of companies, so-called small and medium-sized enterprises, the measures will ease compliance obligations and free up resources for growth and investment.

When small and medium-sized enterprises grow beyond 250 employees, they become large enterprises and face a significant increase in compliance obligations. This can discourage growth and limit competitiveness.

Small and medium-sized companies are companies with fewer than 750 employees and up to €150 million in turnover or up to €129 million in total assets. Nearly 38,000 companies in the EU that fall into this category will gain access to some benefits or simplified rules.

Other key measures include:

-exclusion of around 10,000 companies, in 2026 alone, from the registration of fluorinated greenhouse gases

-simplified data retention obligations in the General Data Protection Regulation (GDPR)

-eliminating paper declarations of conformity, instructions for use and others, thus accelerating the digital transition

-easier ways to demonstrate that products meet EU requirements, even when EU-wide harmonised standards are not available

-softer allocation of due diligence obligations for the battery industry.

The Commission is working to reduce unnecessary bureaucracy and create a regulatory environment that fosters innovation, growth, quality jobs and investment. By 2029, it aims to simplify rules and reduce the administrative burden for businesses by 25% and for small and medium-sized enterprises by 35%.

This proposal is called the fourth package of the Simplification Omnibus. The next package is scheduled for June 2025 and will focus on defense./CNA





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