EU Parliament Rejects Omnibus Compromise

The European Parliament has rejected the Omnibus compromise that would have allowed it to move directly to trilogue negotiations. The vote was 309 in favor, 318 opposed, and 34 abstentions.

On October 13, 2025, the European Parliament Committee on Legal Affairs (JURI) approved its position on the Omnibus, intending for it to move to trilogue negotiations with the European Commission and the European Council for implementation by the end of 2025.

The Parliament’s proposal included significant changes to both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). For the CSRD, these changes included limiting the scope to companies with at least 1,000 employees and €450 million in turnover, aligning it with the Council’s position and excluding more companies from reporting obligations.

For the CSDDD, Parliament proposed limiting the scope to companies with at least 5,000 employees and a net turnover of €1.5 billion. It also proposed eliminating both the civil liability scheme for class-action lawsuits and Tier 1 requirements for information requests in favor of a risk-based approach.

The European Parliament Committee on Legal Affairs’ (JURI) proposal came after some sharp diplomacy by European People’s Party (EPP) lead negotiator Jörgen Warborn, who presented two proposals: one aligned with the centrist position of the council and the other aligned more closely with the right-wing parties demanding deregulation. Warborn secured reluctant support for the centrist position after issuing an ultimatum to the left-wing Socialists and Democrats (S&D): either support his proposal or allow him to seek backing from the right for a more radical alternative. His approach drew criticism from S&D and policy analysts, who said it undermined the democratic foundation of the European Union.