The letter expresses the concern of economists, experts and academics that ‘simplification’ will be used as a pretext to downgrade the level of ambition of these texts, which are essential to guide the European economy towards the objectives of sustainability and the European Green Deal. For the signatories, this danger is all the more present given that the Omnibus project of 26 February is presented as the first stage in a broader wave of deregulation that is largely in line with the demands of major interest groups supported by several Member States, including France. It is a regrettable step backwards : the French position marks a drastic turnaround, given that the country had been a pioneer in extra-financial reporting (2012 law) and due diligence (2017 law), and had defended the adoption of new regulations at EU level.

The signatories stress the dangerous nature of such a step backwards, in terms of environmental and climate action, but also for the European economy. They reject the competitiveness argument put forward by the Commission and point out that this is largely contradicted by the studies carried out when the texts were adopted. On the contrary, they propose an alternative vision in which stable standards and solid environmental requirements will lead to a stronger Europe that can face up to the challenges of our time.

Jézabel Couppey-Soubeyran, economist behind this initiative, Associate Professor at Paris 1 Panthéon-Sorbonne University and scientific advisor to the Veblen Institute, warns : “It is no longer just a matter of unravelling the European Green Deal, but of deregulation thrust that will not make Europe stronger but, on the contrary, more compliant, unstable and weak.”

Jay Rowel, Director of the Marc Bloch Centre (Germany) and a signatory, points out : “The European Commission is now saying the opposite of the impact study it carried out, which showed that the due diligence is good for the competitiveness of European companies.”

Martijn Jeroen Van Der Linden, Professor of Practice in New Finance at The Hague University of Applied Sciences (Netherlands), explains : “These reporting data are demanded by analysts and investors seeking to make well-informed decisions about financial risks and material impacts. Research indicates that the time spent on sustainability data exchange is relatively limited, and the added value for market participants—particularly in the long run—is substantial.”

The signatories therefore call on Ursula von der Leyen and Stéphane Séjourné to maintain the level of ambition of these texts, to truly listen to scientific opinion and to protect Europe’s long-term interests.

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Link to the Euractiv publication : https://www.euractiv.fr/section/eco...

To see the full list of signatories : https://www.veblen-institute.org/IM...

To sign the open letter : https://framaforms.org/call-for-sig...