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The European Commission’s newly introduced Digital Omnibus package is a good starting point for the EU’s digital simplification. Measures such as adjusting the timeline for the application of high-risk AI rules and a reinforced role for the European AI Office are tangible improvements that will give businesses more certainty about how and when they need to meet their compliance obligations. Similarly, the Commission’s launch of a Digital Fitness Check to stress test the digital rulebook and a Data Union Strategy to unlock high-quality data for AI development are important steps. 

However, in certain areas the Commission’s proposal does not go far enough, especially in the harmonisation of cybersecurity obligations. A single entry point for incident reporting helps, but duplication and fragmentation persist across the Network and Information Security Systems Directive 2, the Cyber Resilience Act, the Digital Operational Resilience Act and the General Data Protection Regulation. To cut costs for businesses while raising cyber resilience, the Omnibus should also: 

• Harmonise taxonomies, thresholds and timelines 

• Expand the main establishment principle 

• Align certification and conformity assessments to avoid double audits 

Lessons from other Omnibus initiatives underscore the need for the co-legislators to take swift action and ensure reliable political support behind the Commission’s competitiveness agenda. The stakes for the Digital Omnibus are Single Market-wide. Manufacturers, healthcare and life sciences, financial services, mobility, energy and retail all rely on digital technologies and all face unnecessary burdens from overlapping digital rules. Targeted simplification that reduces duplication and clarifies enforcement promises to accelerate AI adoption, bolster cyber resilience and free resources for investment and jobs across Europe. 

For more detailed recommendations, read our Digital Omnibus position paper. 

The European Parliament’s adoption of its negotiating position on the Omnibus I package marks a major milestone towards a simpler, more consistent and workable sustainability reporting and due diligence framework for companies operating across the Single Market. The final text, however, fails to reflect the concerns of third-country stakeholders and international businesses over extraterritorial effects.

The framework’s implementation risks creating legal uncertainty for global businesses and conflicts of law in different jurisdictions, thereby undermining the diversification of supply chains and chilling investment in the EU. Limiting the scope of the initiatives to an EU Nexus – in other words, making them apply only to those global supply chains directly linked to the EU market – will be critical to achieving sustainability and competitiveness goals.  

The Omnibus I is part of a wider agenda dedicated to improving the competitiveness of the EU’s economy. The Draghi report clearly outlined the pressing urgency of addressing Europe’s competitiveness challenges as a precondition for the EU realising its wider strategic objectives. Europe must act urgently to strengthen its economy and this can only work with ambitious simplification efforts. This imperative should transcend party political lines.  

As the Omnibus I now enters into trilogue discussions, policymakers must secure a strong mandate to improve the EU’s business environment.

Urgency around simplification, predictability for businesses and the growing disconnect between political narrative and business reality were centre stage during AmCham EU’s Executive Council (ExCo) Fall plenary on Monday, 3 and Tuesday, 4 November in Brussels. With a view from the boardroom of some of the largest companies invested in Europe, the senior leaders emphasised how complex and overlapping rules are making it harder to plan, invest and grow in the region. They stressed that the current focus on adding new requirements is not matched by efforts to reduce or align existing ones. The result is a business environment that feels increasingly unpredictable, despite policy goals aimed at growth and competitiveness. 

Julie Linn Teigland, Chair, Executive Council, AmCham EU, said: ‘The ExCo was encouraged by the earnest and determined focus of simplification agenda and how both Commission and Council are putting competitiveness at the centre of EU policy making. The way forward is to set ambitious goals and deliver on them. We truly believe that Europe has the right capabilities and potential to stay an attractive place for investment, growth and innovation.’ 

In meetings with senior EU and US officials, including Ambassador Carsten Grønbech-Jensen, Permanent Representation of Denmark to the EU; Ambassador Aingeal O’Donoghue, Permanent Representation of Ireland to the EU; Ambassador Andrew Puzder, US Mission to the EU and Björn Seibert, Head of Cabinet to European Commission President Ursula von der Leyen, the group of business leaders reinforced the call for clearer, more consistent regulation and a renewed commitment to strengthening the Single Market. Underpinning the discussion was the need for progress on the EU-US Framework agreement, one that provides a path to predictability for businesses. 

Europe must act now to safeguard its competitiveness. That means cutting complexity, ensuring policy matches business reality and deepening ties with trusted partners. If Europe wants to lead on innovation, sustainability and security, it must first be a place where business can thrive.