In January 2025, BusinessEurope published a detailed mapping of the regulatory burden in the EU, highlighting mounting concerns about overregulation and its detrimental impact on Europe’s investment climate. The report confirms that excessive and complex regulation is no longer a marginal complaint—it has become a systemic issue threatening Europe’s competitiveness.
Regulation as a major obstacle to investment
According to the report, more than 60% of EU-based companies view regulation as a major obstacle to investment. Among small and medium-sized enterprises (SMEs), the situation is even more pressing: 55% identify regulatory and administrative burden as their single greatest challenge.
Most national business federations across the EU report that administrative burdens have increased over the past year, largely due to newly introduced EU legislation and the large volume of delegated and implementing acts. These findings align with recent high-level reports from Enrico Letta and Mario Draghi, which placed regulatory reform and simplification at the top of Europe’s economic agenda.
Political momentum and proposed solutions
The report welcomes a renewed political focus on competitiveness and burden reduction and supports specific commitments made by the European Commission, including:
- The initiative launched by President Ursula von der Leyen to reduce reporting requirements by at least 25%, and by 35% for SMEs;
- Mandates for each Commissioner to contribute to the reduction of burdens and to apply a “stress test” to the entire EU acquis;
- The introduction of the “Omnibus” approach, which aims to reduce reporting obligations across several legislative acts through a small number of targeted legislative packages.
These measures, if implemented in full, could offer a tangible and effective response to one of the most frequently cited barriers to investment in Europe.
A strategic priority for Europe’s future
With Europe facing major structural challenges in energy, defense, digitalization, and industrial transformation, reducing regulatory burden is not a secondary issue – it is a prerequisite for any successful reform agenda.
To maintain global relevance and provide European businesses with a predictable and investment-friendly environment, cutting unnecessary regulation must become a political priority across all EU institutions.
Read the full report by BusinessEurope here.