‘Simplification’ drives EU policy agenda for 2026

Mark Ferguson of Pinsent Masons was commenting after the European Commission published its work programme for 2026 on Tuesday. The Commission said that simpler regulation and smoother implementation of EU rules are “instrumental to a more competitive and attractive Europe”.

Ferguson said: “EU competitiveness has been called into question in recent times, with Commission president Ursula von der Leyen pledging to act to address the challenges that have been identified – including, in stark terms, in a September 2024 report authored by former European Central Bank president Mario Draghi. In his report, Draghi warned of the ‘existential threat’ facing the EU unless it cannot arrest the stagnation it has seen in economic growth and, among other things, said the EU must get away from imposing too much regulation and slow law-making.”

“Initially, simplification measures were focused on sustainability-related reporting and due diligence, but with the new Commission’s feet now firmly under the desk it has expanded its ambitions for simplification into other areas. It is due to publish a further ‘digital omnibus’ – expected to address challenges businesses face in implementing the AI Act and lift burdens associated with reporting cybersecurity incidents, among other things – before the end of the year, and to move to streamline regulation in relation to chemicals too. Further omnibus packages – on taxation and to simplify energy product legislation – have now been trailed in its latest work programme,” he said.

According to Commission, the omnibus packages on taxation and to simplify energy product legislation are due to be published in the second quarter (Q2) of next year. It has also promised other simplification measures impacting automotive companies, as well as in relation to food safety, the environment and medical devices too.

Further measures to simplify public procurement are also expected. The Commission said it will bring forward legislative proposals for “simplifying defence and sensitive security procurement” in the third quarter (Q3) of 2026, with more general public procurement reforms anticipated via a new Public Procurement Act, which it expects to present in Q2. Proposals to update antitrust procedural rules are also expected in the latter half of the year.

“We will continue our work to cut administrative burdens by 25% overall and 35% for SMEs – without lowering standards,” the Commission said. “Simpler regulation will help unlock innovation, investment and job creation.”

Plans to improve the EU’s energy security, support cross-border energy projects and enable decarbonisation, were also set out by the Commission. For example, the Commission said it will outline legislative proposals to strengthen energy security in the EU in the first quarter of 2026, when it is also expected to publish an electrification action plan that, among other things, will cover heating and cooling systems. Later in 2026, businesses can expect to see new EU legislation proposed to revise national climate targets, tackle the phasing out of fossil-fuel subsidies, and enable the development of CO2 transportation infrastructure and markets.

A new Circular Economy Act, which the Commission said will be designed to “foster demand and supply of circular products and reduce dependencies on critical resources”, will also be presented next year.

Other new initiatives trailed in the work programme will be aimed at supporting the growth of innovative companies and adopting of new technologies.

For example, the Commission has confirmed its intent to bring forward new legislation to facilitate the operation of a so-called ‘28^th regime’ – a new legal framework that certain companies would be able to opt to adhere to, to support their efforts to set up, operate and expand within the EU. “Innovative companies” would be eligible to take advantage of the 28^th regime, which would sit alongside the existing national frameworks that contain a patchwork of offering different requirements in the areas of companies, employment and tax law.

Formal proposals for a new Cloud and AI Development Act and a new Quantum Act will also be outlined by the Commission in 2026, while the existing EU Chips Act could also be updated too – a review of the current legislation is due to take place early next year.

New regulation is expected in relation to online consumer protection too. A Digital Fairness Act is anticipated to be put forward in the final quarter of 2026 to “tackle outstanding unfair and deceptive consumer practices”, while a new action plan against cyberbullying is also anticipated in the first three months of next year.

A new European Product Act is also envisaged for Q3 2026 through which product rules are expected to be updated as well as rules on market surveillance, compliance and standards.

The Commission’s work programme was published just days after the EU’s supervisory authorities (ESAs) for financial services – the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA), and European Securities and Markets Authority (ESMA) – set out their own joint work programme for 2026 (9-page / 336KB PDF).

In that document, the regulators confirmed plans to support a review of the Sustainable Finance Disclosure Regulation (SFDR) and perform joint risk analyses amid ongoing geopolitical tensions and heightened uncertainties, as well as its intention to designate ‘critical third-party providers’ (CTPP) for regulation under the EU’s Digital Operational Resilience Act (DORA) before the end of 2025 – as well as sharing details of what will happen thereafter for impacted providers.

“The ESAs, one appointed as a lead overseer for each CTPP, with contributions from the Joint Examination Teams composed of staff from the ESAs and NCAs [national competent authorities], will conduct risk assessments to outline individual annual oversight plans for each CTPP, complemented by a strategic multi-annual oversight plan,” the regulators said, “Initial examination activities will be conducted in 2026, which may result in recommendations and follow-ups.”