EU Commission says red tape cuts could save businesses €22.3 billion a year

• 2026-10-23
• Europe
• News Desk
• Source: European Commission https://ec.europa.eu/commission/presscorner/detail/en/speech_26_2233

The European Commission has proposed measures that could save companies €22.3 billion a year in administrative costs, Commissioner Serafin told the European Parliament, provided EU lawmakers maintain the ambition of the proposals. Speaking in a debate on cutting costs and unnecessary reporting obligations, Serafin said the Commission has made simplification a priority across all policy areas. The debate took place in Strasbourg on a date not specified in the published remarks.

Key facts

What is the Commission's approach?

• The Commission has proposed measures that could save €22.3 billion in administrative costs every year, if co-legislators keep the level of ambition.
• The Commission applies a "once only principle", checking first whether it already holds information before asking companies for it again.
• Each Commissioner has been asked to contribute to the simplification exercise, with reporting requirements introduced only when strictly necessary.
• Commission President has proposed a Pact against gold-plating to limit unnecessary national additions to EU rules and increase transparency.

Serafin said the Commission has adopted a comprehensive approach covering all administrative costs and changing the way it legislates. "We implement right now 'simplicity by design'," he said, describing a system in which legislation incorporates the once-only principle and regulatory discipline. Under this approach, the Commission will introduce reporting requirements only when strictly necessary and will act at EU level only when justified under the principles of subsidiarity and proportionality. Why does it matter for small businesses?

Serafin stressed that excessive reporting hits small and medium-sized enterprises hardest. "For them, excessive reporting means lost time and money," he said, adding that red tape undermines Europe's competitiveness. He argued that every euro saved in paperwork is a euro that can be redirected towards investment, innovation, wages or growth. What role do member states play?

The Commissioner said real change requires all EU institutions to work in the same direction. He also called on national and regional authorities to play their part, warning that a rule agreed at European level should not become more complex when transposed or implemented in member states. That is why the Commission President has proposed a Pact against gold-plating, aimed at increasing transparency and limiting unnecessary national additions that create complexity and fragment the single market, while safeguarding rights and protections. What happens next?

Serafin said the Commission will continue to simplify EU rules and deepen the single market, which he described as essential to Europe's prosperity and competitiveness. The Commission has urged co-legislators to maintain the level of ambition in its proposals, and the proposed Pact against gold-plating will require buy-in from member states. No timetable was given in the published remarks.

Source: European Commission