Former EU Leaders Sign Joint Plea Ahead of EU Omnibus Vote

Former EU leaders have come together to sign a letter in a joint plea to the EU.

Ahead of the vote at the European Parliament, where current leaders will vote on the Omnibus package, former leaders are urging the EU to uphold the current sustainability rules.

The Omnibus package, set to increase speed and competitiveness of EU businesses, will write off vital sustainability regulations. 

Omnibus legislation

In an attempt to give the European economy a boost and help new businesses take off, the European Parliament is set to vote on Omnibus legislation which will simplify regulations. 

The new changes would reduce rules on transport, chemicals, environment, financial services, artificial intelligence and defense.

If the omnibus bill is passed in its present form, it would reduce businesses covered by environmental obligations by 80%.

This means European companies could scrap their climate transition plans and would be stop being held accountable for environmental damage.

The omnibus would mean faster processing for new businesses and business regulations, but this comes at the expense of environmental, social and governance (ESG) practices. 

The letter

More than 30 high-level figures have created a diverse coalition in a joint venture to prevent the Omnibus legislation vote from passing.

The coalition includes former EU leaders, Commissioners and major industry representatives, with thorough understanding of business and sustainability measures.

In a joint letter, these leaders urge the EU to uphold the robust sustainability regulations which are currently under threat.

At present, the EU are considering rolling back on and simplifying ESG regulations in an attempt to speed up European business processes. 

The letter claims that the omnibus legislation would diminish whatever progress Europe's economy makes if parliament vote to scrap sustainability measures.

Rather than creating a more competitive economy, as is the aim, these leaders argue that the loss of the rules will only undermine Europe's current progress towards resilience and value.

“Weakening and delaying sustainability rules carries a price tag we cannot afford. Sustainability isn’t the burden—the burden is not being sustainable," warns Enrico Giovannini, former Italian Minister and Scientific Director of the Italian Alliance for Sustainable Development.

"Climate change is racing ahead, and politics is lagging behind. The focus should not be on how much sustainability will cost, but what value it will create for the future of Europe. If we accelerate the transition, Europe gains growth, innovation, and competitiveness. If we backtrack, Europe’s future is at risk.”

While implementing sustainability measures into business can be a costly and timely affair, countries and businesses that focus on sustainability as a main issue do see the benefits. 

Through sustainable measures, businesses see an increase in company reputation and customer loyalty, gaining a competitive edge and staying ahead of risk by building supply chain resilience. 

Where the current omnibus legislation argues for a simplification which writes out sustainability measures - therefore weakening the EU's reputation - these signatories argue that simplification and positive reputation can co-exist.

“We call for the European Union to put human dignity, social justice and global solidarity at the heart of their policies. We need to move forward, not backwards, and ensure a policy framework that protects people and the planet, our common home," adds Msgr Michael Landau, President of Caritas Europe.

Co-existing properties

The letter argues that sustainability and competitiveness reinforce one another - that weakening regulations sends negative connotations to potential partners, investors and clients. 

Signatories include:

• Enrico Giovannini - former minister under the Draghi and Letta governments
• Alan Jope - former CEO of Unilever
• Josep Borrell - former EU Foreign Policy Chief
• Nicolas Schmidt - Former EU Commissioner
• Sanna Marin, former Prime Minister of Finland
• Msgr Landau, President of Caritas Europe
• Reiner Hoffmann, former President of the German Trade Union Confederation

“Risk-based due diligence is informing strategic business decisions and supporting resilient supply chains. This is how policymakers can really support on competitiveness and create an enabling environment. Now is the time to act with business best interests at heart," adds Linda Kromjong, amfori President. 

amfori is a global business association offering supply chain mapping and reporting in order to help deliver social, environmental and economic benefits for all. 

Sanna Marin, former Prime Minister of Finland, states: “There is only one way to a self-sufficient Europe: sustainability. These rules don't hold business back; on the contrary, they fuel our competitiveness. This is a strategic opportunity that lawmakers must protect if they also want a future-proof economy.”

These signatories are arguing that instead of cutting back, the EU must welcome the acceleration of a low-carbon economy and strengthen climate resilience.

Rather than removing regulations and risking safety - such as the bill to reduce restrictions on cancer-causing substances in cosmetics - these signatories argue the EU should encourage the adoption of sustainable management models which put human rights first.

Now, the EU must decide whether they want to prioritise speed over resilience within emerging supply chains.