Red Tape, Neatly Folded

Red Tape, Neatly Folded

Red Tape, Neatly Folded

Dr Ion Vallianos // 1 April 2026

The EU has placed regulatory simplification at the centre of its competitiveness agenda, with the Environmental Omnibus presented as a flagship effort to reduce administrative burdens while preserving environmental ambition. This paper argues that, while the package moves in the right direction, its impact is limited by its focus on procedural streamlining rather than substantive reform.

Drawing on the EU Regulatory Observatory’s expert panel, the paper shows that the Omnibus is widely seen as a moderately liberalising measure. Most assessments cluster in the mid-to-upper range of the regulation–deregulation scale, indicating that it reduces compliance burdens without fundamentally reshaping the regulatory framework.

While the package introduces improvements, such as simplified reporting, streamlined permitting, and reduced duplication, these changes affect how regulation is administered rather than what is regulated. As a result, the core structure of EU environmental law remains largely intact.

The paper argues that this delivers efficiency gains, including an estimated €1 billion in annual savings, but does not address deeper structural complexity. Businesses, particularly SMEs and cross-border operators, may still face a fragmented and administratively demanding system.

The paper recommends building on the Omnibus through a more systematic approach to regulatory quality, including stronger proportionality, better implementation, and continuous review of existing legislation. A more ambitious reform agenda would improve both competitiveness and environmental outcomes.

The main findings of the briefing include:

  • The Environmental Omnibus is best understood as a pro-simplification measure, delivering moderate liberalisation rather than far-reaching deregulation.
  • The package reduces administrative and compliance burdens through targeted simplifications in reporting, permitting, and regulatory processes.
  • Estimated savings of around €1 billion annually reflect efficiency gains driven by procedural changes.
  • Core environmental objectives and regulatory standards remain unchanged, limiting the scope of reform.
  • Simplification efforts focus on industrial and circular economy rules, environmental data, and permitting processes.
  • SMEs and cross-border firms are likely to benefit most from reduced administrative costs.
  • Experts agree the Omnibus improves predictability and reduces duplication, but does not resolve underlying complexity.
  • Effective implementation will depend on member-state capacity and coordination.
  • A more continuous and systematic review of EU environmental law is needed to ensure long-term coherence and proportionality.
  • Overall, the Omnibus represents a useful but incremental reform, with greater gains requiring a more ambitious simplification strategy.

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EPICENTER publications and contributions from our member think tanks are designed to promote the discussion of economic issues and the role of markets in solving economic and social problems. As with all EPICENTER publications, the views expressed here are those of the author and not EPICENTER or its member think tanks (which have no corporate view).

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EPICENTER publications and contributions from our member think tanks are designed to promote the discussion of economic issues and the role of markets in solving economic and social problems. As with all EPICENTER publications, the views expressed here are those of the author and not EPICENTER or its member think tanks (which have no corporate view).

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EPICENTER publications and contributions from our member think tanks are designed to promote the discussion of economic issues and the role of markets in solving economic and social problems. As with all EPICENTER publications, the views expressed here are those of the author and not EPICENTER or its member think tanks (which have no corporate view).

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