Highlights

• EPP pushes to scrap civil liability rules, which sparks conflict with Socialists and Greens.
• Coalition split threatens von der Leyen’s majority as talks on simplification stall.
• Renew caught in the middle between heavy cuts and keeping accountability safeguards.

Talks in the European Parliament on a new omnibus simplification bill collapsed after only a few hours, exposing tensions within Ursula von der Leyen’s coalition.

The legislation is designed to cut reporting duties for companies under EU sustainability disclosure and supply chain transparency rules. Von der Leyen has made trimming red tape a headline initiative in her second term, linking it to EU competitiveness and support for struggling economies.

But, disagreement arose over how far the cuts should go. The European People’s Party (EPP) called for an extensive rollback, an approach backed by right-wing and far-right groups.

Read More: EU Omnibus: Parliament and Council Take Stance on CSRD and CS3D

Their plan would exempt more companies from reporting on their environmental footprint and scrap the civil liability regime, which, for the present, leaves businesses legally exposed to lawsuits for environmental or human rights violations in their supply chains.

The Socialists and Democrats (S&D) opposed this and insisted on keeping accountability measures in place. The Renew group showed openness to a compromise but ended up caught between the two sides.

The failure to find common ground raises questions about how von der Leyen’s centrist coalition will handle top laws in the future.

These parties — the EPP, Renew, and S&D — form the backbone of the majority that secured her second term, together with the Greens. However, the EPP has signalled a willingness to align with conservatives and far-right parties on specific files. The breakdown in talks shows how fragile these alliances have become.

The meeting itself was described as tense, with little constructive exchange.

According to insiders, lawmakers clashed from the outset, with accusations of threats and theatrical behaviour.

Also Read: Consultation Opens on Simplified ESRS Drafts Under Omnibus Directive

The lack of progress on the omnibus bill may set a difficult precedent, as this is the first major piece of legislation the coalition must negotiate since the European elections tilted Parliament further to the right.

Negotiations are due to continue, and the legal affairs committee is scheduled to vote on October 13.

Ends/

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Source: Politico