Is the EU Shifting Toward Easing Environmental and Human Rights Regulations?
The European Parliament has passed a bill easing corporate regulations through a coalition between the largest centrist-right bloc and far-right forces.
On the 13th (local time), the European Parliament voted to pass an amendment to last year's corporate environmental regulation law, aiming to reduce burdens on companies, with 382 votes in favor, 249 against, and 13 abstentions. The European People's Party (EPP), the largest center-right group in the Parliament and the bill's sponsor, overcame opposition from its traditional centrist and leftist allies by securing support from far-right political groups such as "Patriots for Europe (PfE)" and "European Conservatives and Reformists (ECR)."
The European Union (EU) had originally adopted the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) last year, requiring companies to regularly publish reports on labor and environmental issues and to take responsibility for human rights and environmental problems arising in their supply chains. While these directives were welcomed by environmental and human rights organizations, member states have argued that excessive regulation undermines the competitiveness of European companies facing fierce competition from the United States and China, and have called for the law to be relaxed.
With this vote, the European Parliament raised the threshold for mandatory sustainability reporting from companies with over 1,000 employees to those with over 5,000 employees, and increased the revenue requirement from 450 million euros to 1.5 billion euros, significantly narrowing the scope to only a portion of large corporations. In addition, the requirement for companies to submit a "green transition plan," which many firms found burdensome, was also removed.
This marks the first time that conservative forces in the European Parliament have joined with the far right to pass major legislation. It signals a shift away from previous pro-environment policies toward regulatory relaxation. Alberto Alemanno, a professor of EU law at HEC Paris Business School, commented, "This is a significant signal that the European Parliament will be reorganized around deregulation over the next four years."
There has also been criticism within European political circles regarding the EPP's collaboration with the far right. Former Belgian Prime Minister Sophie Wilmes stated, "By entering into a marriage of convenience with the far right, they have legitimized them," and accused the EPP of a "moral failure."
Manfred Weber, leader of the EPP, said, "We promised to reduce unnecessary regulations and simplify administrative procedures for European companies, and today we delivered on that promise." The far-right PfE declared, "Today, we broke the long-standing deadlock of the coalition, removed the shackles of the Green Deal, and opened a new agenda focused on competitiveness. This is a victory for workers, farmers, and industry."
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