EU Council backs measures on digitalisation and common specifications
The changes aim to cut paperwork, provide legal clarity, and help growing businesses remain competitive, with final negotiations now moving to the European Parliament.
Member states’ representatives in the Council of the European Union have agreed on new positions for parts of the Omnibus IV legislative package, aimed at simplifying rules for businesses and strengthening competitiveness across Europe. The package contains two main elements: changes to product legislation to make it “digital by default” and the creation of a new category of small mid-cap companies that will receive support measures similar to those available to small and medium-sized enterprises (SMEs).
On digitalisation, the proposals would replace paper-based requirements with digital formats. For example, manufacturers could provide user instructions online instead of on paper, and declarations of conformity could be shared digitally. The reforms also allow the European Commission to establish ‘common specifications’ for proving product compliance when harmonised standards are not available, giving businesses more legal certainty. However, the Council insisted that safety information must still be available on paper if consumers face serious risks.
On small mid-cap companies, the plan extends some of the benefits currently reserved for SMEs to firms that have grown larger but still play a key role in the economy. These companies operate in strategic sectors such as energy, aerospace, health, and electronics. The Council expanded the definition to include businesses with fewer than 1,000 employees and either an annual turnover of up to €200 million or a balance sheet total of up to €172 million. Support for this category is intended to smooth the transition from SME status, encourage growth, and maintain a favourable business environment.
The Council’s amendments also extend the time allowed for member states to implement the new rules to 24 months, giving them more flexibility. Negotiations with the European Parliament will begin soon, with the goal of reaching a final agreement.
The reforms form part of the EU’s broader effort to reduce regulatory burdens and strengthen competitiveness, following calls from European leaders in reports by Enrico Letta and Mario Draghi, and the 2024 Budapest Declaration that launched a ‘simplification revolution.’
