Spain urges Brussels not to jeopardise the "green agenda" with the plan to reduce bureaucracy

MadridWith just over a week to go before Ursula von der Leyen presents the first outlines of her plan to reduce bureaucracy in the European Union (EU) – the so-called omnibus regulation–, the Spanish government has already set a first position: it does not want the green agenda, that is, the climate objectives, especially those that affect companies, to be jeopardized in the face of a scenario of relaxation of bureaucratic processes. In a letter sent to the European Commission signed by the third vice-president and Minister of Ecological Transition, Sara Aagesen, and the Minister of Economy, Carlos Cuerpo, Pedro Sánchez's executive warns that although simplification is necessary, it cannot "question the ambition of key European values to guarantee security."

"The elimination of some obligations for companies would not necessarily improve competitiveness," warns the letter sent this Monday, and addressed, among others, to the former socialist minister Teresa Ribera, who now holds the position of vice-president of the European Commission and commissioner for Transaction. The Spanish government does not reject the need to "help the EU respond better to the needs of citizens and businesses" by reducing bureaucracy and simplifying EU rules, but it does set a red line for green ambition. "Achieving climate objectives and strengthening the green agenda will contribute greatly to strengthening the competitiveness of the European Union," it reiterates.

The European Commission is planning to present a first omnibus regulation with some initiatives on February 26th and the Moncloa fears that it will be a first plan that will blow up what has been done so far. For example, that it will reverse the directive on corporate sustainability (CSDDD), which, among other things, requires companies to identify and eliminate negative impacts on human rights and the environment during the value chain. "We must provide certainty to companies that are already working to apply this regulation," the letter states. But it also focuses on the so-called "European taxonomy", whose main objective is to reorient capital, that is, private investment, towards sustainable activities. This taxonomy requires companies to be accountable for where their income goes and whether this destination is aligned with these sustainable objectives or not. Spain is open to re-evaluating how companies should report, but does not want it to remain a dead letter.

The omnibus regulation was created with the aim of making the European bloc a more competitive region compared to the United States and China. However, in order to make this possible, the current European Commission, with a more right-wing executive, has already said that it is willing to speak the language of these two powers, opening the door to deregulation and even to amending the ambitious European green plan.

Informal meeting on March 13

In this context, Spain is preparing an informal summit with European ministers in Valencia to advance the capital markets union, one of the initiatives outlined in the Draghi report to boost competitiveness in the EU. According to the report, The Country According to sources from the Ministry of Economy, the meeting will take place on March 13 and the EU Finance Ministers will be invited, with the possibility of members of the European Commission also attending.