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European Commission - Speech Remarks by Commissioner Dombrovskis at Euractiv conference on simplification Brussels, 23 March 2026 Good afternoon, everyone and thank you for the invitation to join you this afternoon. Simplification isn't always simple. That's why I welcome the opportunity to set out what we are doing and why we are doing it. I hope I can provide some useful context for the discussion that will follow ...
European Commission - Speech Remarks by Commissioner Dombrovskis at Euractiv conference on simplification Brussels, 23 March 2026 Good afternoon, everyone and thank you for the invitation to join you this afternoon. Simplification isn't always simple. That's why I welcome the opportunity to set out what we are doing and why we are doing it. I hope I can provide some useful context for the discussion that will follow later. So, let's start by taking a step back. Europe has everything it needs to succeed in the new global economy: Strong institutions and the rule of law. A highly skilled and productive workforce. And a continent-wide Single Market. However, we are not making the most of these assets to ensure our economy lives up to its full potential. The result? Growth has been lower than it could be and should be. This is not a new phenomenon. Europe's productivity challenges have been building up for some two decades already. But the urgency of addressing them has increased sharply. Today, few doubt that we have reached a moment of reckoning. The wider context is quickly changing and becoming increasingly challenging. Technological change is accelerating. Trade policy uncertainty remains high. Russia continues its brutal war of aggression against Ukraine, targeting civil infrastructure, including energy supplies. And now, the conflict in Iran and the wider Middle East is impacting energy prices and financial markets. These dramatic developments pose serious risks for Europe's long-term prosperity and security. They underline the urgency of acting decisively here at home. We must move now to safeguard our long-term security and prosperity. Standing still is no longer an option. A larger and more productive European economy is needed to enhance our economic resilience. A resilient European economy is one that can absorb the shocks and seize the opportunities of this new era. This requires action across all fronts at both European and national levels. For our part, the European Commission has placed competitiveness and deepening our Single Market at the centre of our agenda. And we have been busy taking action across a broad range of policy areas. This includes what we have come here to discuss today: simplification. We know the European economy needs less red tape and more growth. Excessive regulatory obligations pose real problems for our companies. They raise costs, deter investment and divert resources away from innovation. It is not just us saying this. The Draghi Report notes that 60% of EU companies view regulation as an obstacle to investment. And the smaller the firm, the bigger the problem. 55% of SMEs have flagged regulatory obstacles and administrative burdens as their greatest challenge. When individual firms feel the impact of excessive regulation, the broader European economy does too. There are serious macro-impacts and repercussions. Take innovation, for example. It needs to be at the heart of any strategy to drive growth, raise productivity and enhance our competitive advantages. But a recent OECD report highlights how red tape is getting in the way. 3.9% of EU employees are engaged in compliance functions, compared with just 1.7% in research roles. Europe needs more people in laboratories and fewer filling in forms. Simplification can help achieve that objective and more. When businesses feel the benefit, the European economy will too. Even small changes can scale fast. When replicated across hundreds of thousands of businesses across Europe, the aggregate time and cost savings quickly add up. Gains made from simplification can compound to improve Europe's overall competitive position. So, that is why the European Commission has been delivering on a simplification agenda that is unprecedented in both scale and ambition. We know that the changes provided by simplification must be impactful, not merely cosmetic. They must make a tangible difference in the day-to-day operations of our businesses. This is why we are systematically engaging with stakeholders through “implementation dialogues” and “reality checks” to identify what works and what must be improved. Last year alone, the Commission held over 50 implementation dialogues, engaging directly with more than 1,000 stakeholders from a very wide range of sectors. And we will continue this intensive engagement. We have set a target for a 25% reduction in administrative burden by the end of this mandate, and of 35% for SMEs. And we are already making good progress towards this target. We have presented ten far-reaching Omnibus and other simplification proposals to deliver at least €15 billion in administrative-cost savings to EU companies every year. And we are determined to sustain momentum. Our first major simplification initiative, Omnibus I, became law in February. It simplifies corporate sustainability reporting and corporate sustainability due diligence by reducing the reporting burden and limiting the trickle-down effect of obligations on smaller companies. It will free thousands of companies from complex reporting requirements and refocus due diligence obligations where they can make a real difference. It is a clear example of how smart rules can both achieve our objectives and significantly lower burdens on business. Last week's meeting of EU leaders provides fresh momentum for our efforts. It called for agreement on all pending omnibus packages before the end of 2026 and for the Commission to put forward further omnibus and other simplification initiatives. Looking ahead, the European Commission is already working on simplification proposals in critical areas like energy products, taxation, and burden reduction for citizens. We are also practicing what we preach. Similarly to last year, the majority of our new proposals in 2026 will feature a strong simplification dimension, meaning that they will have to deliver a net administrative cost savings. In addition, the number of implementing and delegated acts initially planned for 2026 has been reduced by 30%. This is simplification in practice. By the end of 2029, we will stress test the entire body of the EU acquis. We will identify and eliminate obsolete, overlapping and unnecessary requirements. Every sector will be examined. No stone will be left unturned. But the European Commission cannot deliver simplification alone. EU and national institutions must match ambition with delivery, from legislation in Brussels to implementation on the ground. We must all pull in the same direction to make our regulatory system clearer, simpler, and smarter. Let me conclude with a simple message. We have been trying to drive Europe's economy forward with the handbrake on. The result was predictable: Europe failed to live up to its full growth potential. The cost of falling behind in the current complex world is becoming increasingly high. Simplification is our chance to correct course, release the handbrake, and unleash Europe's full productive potential. It can create the conditions for the economic dynamism we sorely need. We need to seize this opportunity. The cost of failing is simply too high. Thank you very much. I look forward to today's discussion. SPEECH/26/686
Speech Brief