26 February 2025. Over the past few weeks, Commission President Ursula von der Leyen teased an "unprecedented simplification effort" for company requirements, with the assumption that cutting red tape will boost competitiveness amid an economic slowdown and a rapidly changing geopolitical reality.
The Omnibus package announced this morning by Commissioner Valdis Dombrovskis has instead taken the form of pure deregulation, sacrificing much-needed binding rules for businesses and compromising the European Union (EU)’s reputation as a trailblazer in environmental and human rights protection.
The foreseen changes to the CSDDD include:
– the restriction of the due diligence scope of application only to direct partners;
– the deletion of civil liability and of the possibility of representative judicial actions by NGOs or trade unions;
– and the deletion of the obligation to implement climate transition plans.
This will harm the very essence and objectives of the CSDDD: it will make it more difficult to hold companies accountable for the devastating impacts their activities can have on workers, communities, and the planet.
The proposal is not only a step back in advancing justice and preventing a repeat of tragedies like the Rana Plaza collapse and the Repsol oil spill. It also penalises the many companies and investors that have supported the CSDDD and put in time and resources for compliance. Instead of supporting responsible businesses in achieving a just transition, the EU is backtracking on the legal certainty that would have enabled a level playing field.
The Omnibus package has also been discussed at record speed, in sharp contrast with the years of consensus-building that characterised negotiations of the CSDDD. The two short and invitation-only consultations held in February saw an over-representation of corporate lobbies and companies, outweighing civil society organisations and trade unions that have voiced the concerns and needs of victims of corporate abuses.
Cutting corners might be seen by some as a tempting option to support EU companies. In reality, it sets a serious precedent for EU policy-making to rely on a lack of transparency and inclusive consultation. The rush for deregulation and rebuke of previous legislation through such flawed processes will erode trust in the EU’s institutional stability and democratic foundations in the long term.
If adopted, today’s package will prove to be a huge step back for the rights of individuals and communities bearing the burden of corporate impunity worldwide – and a blow to the EU’s human rights leadership and stability at a time when it is most needed.
FIDH’s other statements on the Omnibus package:
– Press release under the European Coalition for Corporate Justice: EU Commission’s Omnibus proposal is full-scale deregulation designed to dismantle corporate accountability
– Press release with several French NGOs (in french only): Directive Omnibus : vers un affaiblissement historique des normes environnementales et sociales en Europe
– European Union: Omnibus proposal will create costly confusion and lower protection for people and the planet
– The European Commission should not create further confusion and uncertainty through re-opening agreed legislative texts
– Alerte des organisations de la société civile française sur la proposition de législation dite « Omnibus » (in french only)