EU Reaches Possible Omnibus Agreement

The European Union (EU) Council and Parliament have reached a tentative agreement on the Omnibus proposal to simplify reporting and due diligence requirements and promote competitiveness for European businesses.

The Omnibus has been the subject of intense negotiations since it was first proposed on February 26, 2025, in response to criticism in the Draghi Report about the impact of sustainability regulations on EU competitiveness. The Omnibus proposed simplifications and a reduction of scope to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), which are two of the primary elements of the EU Green Deal.

Parties on the left, however, such as the Socialists and Democrats (S&D) and Renew Europe, have tried to retain as much of the original intention of the CSRD and CSDDD as possible.

In recent weeks, the center-right governing European People’s Party (EPP), having failed to get the support it needed for its proposed deep cuts, has looked to right-leaning parties, such as the European Conservatives and Reformists (ECR) and the Patriots of Europe, which has created a dramatic and adversarial atmosphere during negotiations. Supporters of the Green Deal accused EPP lead negotiator Jörgen Warborn of partnering with the far right to sideline objections from the left and push through a radical version of the Omnibus.