Reducing administrative burden is key to competitiveness

ZAGREB – Simplifying sustainability reporting and reducing administrative burdens are key elements in strengthening the competitiveness of the European economy, it was stated on Friday at the conference “Support for Sustainable Financing,” highlighting that around 80 percent of European companies will be exempt from reporting requirements under the new regulations.

The conference was organized by the ministries of finance and environmental protection and green transition, the Croatian National Bank, the Croatian Financial Services Supervisory Agency, the Croatian Bank for Reconstruction and Development, and the University of Zagreb, with the support of the European Commission (EC) representation in Croatia, focusing on the Omnibus package presented by the Commission at the end of February, aimed at simplifying the rules on sustainability and Union investments.

The head of the European Commission representation in Croatia, Zrinka Ujević, stated that around 80 percent of European companies will be exempt from reporting requirements, with the Commission’s proposals moving towards the application of deferrals for certain directives.

“We want to make it easier for companies to operate, invest in their competitiveness in the global market, and support them by reducing administrative costs and bureaucratization, so that these resources can be invested in growth, innovation, and thus ensure greater competitiveness,” Ujević emphasized.

She mentioned that the Commission is aware of the significant regulatory burden on European companies, where the quantity and complexity of regulations affect their economic potential. “Regulation should not be a brake but a tool for growth,” she conveyed.

Thus, the goal is to reduce the burden by 25 percent for each company, with a 35 percent reduction for small and medium-sized enterprises, given that the European economy actually relies on small and medium-sized enterprises. (April 4, 2025)