Confusion Grows Over EU Regulatory Shifts
Businesses across Europe report rising concern over the European Commission’s new simplification agenda, describing an unpredictable regulatory environment during Ursula von der Leyen’s second term. Politico notes that companies of all sizes increasingly view the Commission as inconsistent in its approach to rulemaking.
Multiple revisions and delays to the EU Deforestation Regulation EUDR have intensified uncertainty. Earlier this year, signals of another postponement triggered strong reactions from agricultural groups, including Ghanaian cocoa farmer Leticia Yankey, who visited Brussels in October to warn EU officials about the consequences of extended delays.
Shifting positions from the Commission over only 3 months have contributed to this sentiment. Initial discussions of a delay were followed by proposals for legislative amendments, only for EU governments and the European Parliament to reinstate the postponement and reopen the rules for further changes in the spring.
Regulatory Instability Frustrates Companies
Frequent reversals have unsettled small firms and major multinationals alike. Nestlé executive Bart Vandewaetere told Politico that corporate leadership has grown increasingly wary due to the lack of predictability.
Growing confusion has emerged despite the Commission’s rollout of 10 simplification packages last year. These packages target sectors such as agriculture, technology, defence, automotive manufacturing and access to EU financing, yet businesses say long term investment and planning remain challenging.
Legal experts highlight these concerns. Thomas Delille of Squire Patton Boggs said clients repeatedly mention that regulatory unpredictability complicates strategic decisions even when they broadly support simplification efforts.
Concerns extend to sustainability commitments as well. Companies preparing for upcoming rules fear that unpredictable changes weaken the EU’s long standing influence as a global regulatory benchmark for sustainable business practices.
Vandewaetere added that this shift has eroded confidence in corporate boardrooms because repeated changes undermine reliability.
Investment Risks and Policy Direction
Analysts caution that inconsistent policy may discourage investment at a time when competitiveness depends heavily on business confidence. Tsvetelina Kuzmanova from the Cambridge Institute for Sustainability Leadership argued that unstable regulations ultimately undermine progress, rewarding slower actors and weakening trust in the market.
Three of the 10 simplification packages have been completed so far, and legislation currently under review has been frozen to prevent companies from making premature adjustments.
Some industry observers believe disruption will precede meaningful simplification. Gerard McElwee of Squire Patton Boggs told Politico that temporary turbulence should be expected as reforms proceed.
Critics nonetheless warn that the EU may be scaling back environmental protections too quickly and without sufficient impact assessments on economic and community outcomes.
