Lawmakers fear EU Parliament will struggle to find ‘middle ground’ on Omnibus

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🗞️ Driving the news: Lawmakers in the European Parliament are voicing concern that mid-July’s start of Omnibus negotiations may not reach consensus, as divisions persist over the scope of simplification measures in the package
• The “stop-the-clock” directive delaying key sustainability rules has passed, but deeper cuts to CSRD, CSDDD and the EU Taxonomy remain contentious
• Member states — including Council backing to significantly reduce reporting obligations — are pushing ahead, prompting lawmakers to question whether compromise is attainable

🔭 The context: The Omnibus package, introduced by the European Commission in February 2025, seeks to simplify or delay definitions and thresholds across the Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive and EU Taxonomy
• A preliminary parliamentary debate earlier this year highlighted polarized views — from calls for deeper deregulation to advocates defending the integrity of sustainability frameworks
• Meanwhile, the recently adopted “stop-the-clock” directive pushes back implementation deadlines to allow time for negotiation

🌍 Why it matters for the planet: The Omnibus carries substantial sustainability implications: narrowing the scope of CSRD and CSDDD could exclude thousands of companies from reporting and due diligence obligations, diluting ecosystem transparency and accountability
• Critics warn that weakening reporting obligations without proportionality assessments may trigger legal challenges and undermine climate and human rights safeguards 

⏭️ What's next: Formal trilogue negotiations are set to begin mid‐July, as European Parliament and Council positions are hammered out; an MEP vote on Parliament’s position is expected in October 2025 
• Key unresolved issues include threshold levels (employees, turnover), the strength of due diligence provisions, and the formal timeline

💬 One quote: “We could see years of uncertainty… Businesses won’t know what rules apply, while courts and companies argue over who’s liable for what.” — David Frydlinger, Cirio partner

📈 One stat: The proposed changes would restrict CSRD reporting to companies with at least 1,000 employees and €450 million in turnover, removing coverage from firms between 250–1,000 employees — slashing the compliance scope by approximately 80%

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