Socialists cave to center-right demands to slash EU green rules

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🗞️ Driving the news: Europe’s centrist political coalition has agreed to scale back key green regulations for businesses following pressure from the center-right European People’s Party (EPP), which threatened to align with far-right groups to force a tougher deal
• The Socialists & Democrats (S&D) and Renew Europe ultimately conceded to avoid a political rupture, allowing the EPP to push through changes to sustainability reporting and supply chain due diligence rules under the EU’s new omnibus simplification bill

🔭 The context: The European Parliament has seen a rightward shift since the 2024 elections, weakening the long-standing centrist majority
• This marks a pivotal moment in EU climate and corporate regulation, as the EPP leverages its strengthened position to dilute parts of the Green Deal
• Ursula von der Leyen’s Commission had pledged to reduce regulatory burdens in her second term, and this vote is seen as an early test of whether her coalition can continue to govern effectively amid increasing political fragmentation

🌍 Why it matters for the planet: The rollback of corporate environmental obligations may hinder transparency and slow progress on emissions reductions and sustainable supply chains, especially at a time when implementation is critical to meet 2030 and 2040 climate targets
• While business groups may welcome reduced compliance burdens, civil society and climate advocates warn this compromises the EU’s credibility as a global leader on green regulation
• The growing political influence of the far right adds uncertainty to future environmental legislation

⏭️ What's next: The revised bill now heads for further parliamentary scrutiny, but the political precedent is set: future files, including the crucial 2040 climate target and migration legislation, may face similar dynamics
• The resignation of MEP Lara Wolters, a key S&D negotiator, underscores deep internal tensions
• Von der Leyen is set to face two no-confidence votes, and the outcome could signal whether centrist forces can still hold together in the face of mounting populist and deregulatory pressures

💬 One quote: “This compromise is not our preferred option but the alternative was a worse EPP agreement with the far right,” – Andrea Maceiras, spokesperson for S&D leader Iratxe García

📈 One stat: Two-thirds of EU companies are currently subject to new sustainability reporting obligations that will now be eased under the revised legislative package

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