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Von der Leyen’s ‘Competitiveness Compass’: deregulation threatens social and environmental protection
Brussels, 29 January 2025 - The European Commission's new Competitiveness Compass confirms widespread concerns that President Ursula von der Leyen's administration is unleashing a sweeping deregulation agenda— at the expense of democracy and social and environmental protections.
The Competitiveness Compass defines corporate competitiveness as the Commission's overarching goal, with deregulation positioned as the key method to achieve it. The Competitiveness Compass speaks a clearer language than Ursula von der Leyen’s political guidelines from July, in that wording on “maintaining high standards” is practically absent. It is becoming crystal clear that ‘simplification’ is, in fact, about deregulation. The Compass, moreover, doubles down on giving corporate lobby groups far-reaching new powers to control EU decision-making. This could enable them to block or weaken proposed new legislation from the earliest stages and even roll back existing legislation they oppose.
To help European citizens keep track of new developments in the deregulation agenda, Corporate Europe Observatory has launched ‘Deregulation Watch’. This new tool will allow monitoring, assessing what's at stake and supporting civil society to resist corporate-led rollbacks of key protections. ’Deregulation Watch’ features '17 'Steps to Deregulation', an up-to-date analysis of the EU Commission's toolbox of new deregulation initiatives. The toolbox creates major new hurdles for and risk of rollback of public interest regulations, including social and environmental protections that are deemed burdensome by corporations.
Key elements of concern in the Competitiveness Compass include:
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An unjustified negative view on regulation and a strong focus on deregulation: The plan emphasises reducing regulatory 'burdens' without adequate safeguards for public interest legislation.
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Unprecedented corporate influence: Each commissioner will hold biannual "implementation dialogues" to hear business concerns and identify deregulatory opportunities, further opening the door to corporate capture of EU law-making.
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Fast-tracking of administrative procedures: Branded as "cutting red tape", this approach could weaken crucial safeguards. For example, industry lobby groups are pushing for mining projects to bypass environmental impact assessments.
"This deregulation agenda is a corporate dream come true," said Olivier Hoedeman, Corporate Europe Observatory research and campaign coordinator. "By embracing questionable corporate lobby framing around ‘over-regulation’, the EU risks losing its moral and regulatory compass, giving industry lobby groups far-reaching new powers to erode social and environmental safeguards that stand in their way."
Civil society organisations have been vocal in expressing their opposition. In an open letter, 270 civil society organizations, including trade unions, consumer groups, and environmental advocates, urged von der Leyen to abandon deregulation and provide guarantees that ‘simplification’ does not lower standards or obstruct vital socio-ecological transitions. Six weeks after the statement was first sent, there has been no answer from von der Leyen. Another joint statement from 160 NGOs and trade unions warns against a weakening of corporate accountability laws in the upcoming Omnibus simplification package.
ENDS
For media inquiries, please contact
Olivier Hoedeman, Corporate Europe Observatory research and campaign coordinator
olivier@corporateeurope.org; +32 474 48 65 45
Marcella Via, Corporate Europe Observatory press officer
media@corporateeurope.org; +39 3484201435
Notes to editor