EU: simplification to continue in 2027; Commission withdraws 18 legislative proposals

Brussels – Moving forward with regulatory simplification and the resulting “omnibus packages”: in 2027, the European Commission also intends to finalise legislative revisions, this time for the banking, transport, housing and digital policy sectors. This is the stated policy objective in the 2027 work schedule, presented with great fanfare today (4 November), to emphasise how the EU executive intends to continue working to boost the Union’s competitiveness, with simplification as a key driver of the strategy.

In the interests of competitiveness and simplification, the Commission also announced its intention to establish a pact against “gold-plating”, promoting greater transparency regarding additional national requirements and their impact. The aim is to introduce a “review and removal” mechanism within the European Semester to help Member States identify and address cases of regulatory overlap, in accordance with the Treaties.

However, what stands out even more than the announcements of what is to come is the list of legislative measures that the European Commission has decided to withdraw. This comprises a total of 18 proposals for regulations, directives and communications to the Member States, which are being removed from the agenda due to the inability to reach agreement.

Banking union, energy, Green Deal: what’s off the table

Among the measures that will no longer be implemented, the proposal for a European Deposit Insurance Scheme (EDIS), one of the key elements of the banking union project which has been on hold for far too long, stands out. “The dossier has been under consideration by the co-legislators for over 10 years and will be replaced by proposals on the competitiveness of the banking sector, scheduled for the first quarter of 2027”, reads the statement justifying the decision to shelve the project once and for all.

Also, the proposal for a directive laying down rules on corporate taxation in cases of significant digital presence. The reason? The dossier has been pending before the Council for over eight years (the last discussion took place in 2019), and, according to the Commission, “it is unlikely to secure the Council’s support within a reasonable timeframe, particularly as tax matters require unanimity.”

In the midst of an energy crisis and with a discussion on taxing energy companies’ windfall profits currently underway, the EU executive has scrapped the proposed directive to restructure the EU framework for the taxation of energy products and electricity. The reason for this decision is similar to that for the corporate taxation dossier: “The dossier has been pending before the Council for over five years […]. It is unlikely that the dossier will gain support in the Council within a reasonable timeframe, particularly as tax matters require unanimity”.

 https://www.eunews.it/en/2026/09/11/derogations-from-environmental-rules-and-tacit-approvals-the-defence-omnibus-package-goes-to-a-plenary-vote/

 In Brussels, plans have also been shelved for the Environmental Claims Directive, which has been on hold for over three years and is considered “dead”: “Attempts made by the Council Presidency in 2025 to move discussions forward were unsuccessful, and it is unlikely that the dossier will secure the Council’s support within a reasonable timeframe”. 

The list so far amounts to an indictment of the Member States. The Commission makes it clear that the legislative proposals have been rendered ineffective by the resistance of national governments. However, some initiatives have been scrapped by the von der Leyen team due to irreconcilable differences between the Council and the European Parliament. This is the case with the Directive on European cross-border associations, which was withdrawn because, after more than three years, it appears “unlikely that an agreement can be reached between the European Parliament and the Council within a reasonable timeframe”. The same applies to the draft directive on the status of third-country nationals who are long-term residents, and the proposal for a regulation on measures against transport operators who facilitate or participate in human trafficking or the smuggling of migrants.