Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Europe’s dominant center-right group, the European People’s Party (EPP), is pressing ahead with a proposal to significantly scale back the European Union’s green reporting rules, aiming for a crucial Parliament vote next week. This initiative, which seeks to relax existing corporate sustainability disclosure requirements and reduce the number of companies subject to them, reflects a strategic pivot towards securing support from right-wing and far-right factions in the wake of the 2024 European election.
Strategic Realignment
The EPP’s decision follows the failure of an omnibus simplification bill two weeks ago, which presented the group with a choice: compromise with centrist parties or seek alignment with the right. Opting for the latter, the EPP submitted amendments similar to those previously endorsed by the right-wing European Conservatives and Reformists (ECR), as well as the far-right Patriots for Europe and Europe of Sovereign Nations (ESN).
Jörgen Warborn, the EPP’s lead negotiator on the file, expressed confidence, stating, “These are reasonable amendments, and I expect that we can secure a majority with this so that we can start the negotiations with [EU countries] swiftly.” During a group meeting, EPP President Manfred Weber reportedly affirmed the group’s intention to pursue a right-wing majority after the Socialists & Democrats failed to back the initial compromise.
Broader Political Context
Over the past year, the EPP has increasingly leveraged the European Parliament’s evolving rightward majority to advance its legislative agenda. This has involved strategically introducing measures that have garnered support from far-right groups, even while the EPP maintains it does not formally negotiate with them.
The group also hopes to attract votes from enough Renew Europe MEPs, which would help to mitigate criticisms of exclusively aligning with far-right parties. The Renew group has not yet commented on the matter.
The Green Rules at Stake
The European Commission initially introduced its omnibus simplification bill in February last year to streamline reporting obligations for companies under the bloc’s corporate sustainability disclosure and supply chain transparency rules. These regulations mandate companies to report on their environmental impact and hold them accountable for environmental and human rights violations throughout their supply chains.
A previous EPP-drafted version of the proposal, which pushed for significant cuts to these rules, had secured backing from the ECR, Patriots, and ESN. While the Socialists and liberals initially agreed to a revised version that still scaled back the laws, it ultimately failed to pass in plenary after numerous Socialist MEPs defied their party line and voted against it.
Reactions from Other Groups
Pascale Piera, an MEP from the far-right Patriots for Europe group and a lead negotiator on the file, welcomed the EPP’s proposed amendments. “Our position didn’t change at all, if EPP has tabled the package one amendments that is good for us because we would be able to support it,” Piera stated.
Conversely, Greens MEP Kira-Marie Peter Hansen criticized the EPP’s approach. “I find it a shame that EPP closed the door to any discussions,” she said, adding that the Greens had proposed multiple avenues for pro-European parties to reach an agreement.
Outlook for the Vote
As groups finalize their voting decisions ahead of next Thursday, the upcoming parliamentary vote is poised to be a significant test of the European Parliament’s shifting political landscape. The EPP’s strategy of forging alliances with right-wing and far-right groups could fundamentally reshape the future direction of the EU’s environmental regulatory framework.
